WizCom Announces Results for 9M/2006 Jerusalem, November 28, 2006 - WizCom Technologies Ltd. (WizCom) (Prime Standard: WZM, IL 0010830706), a global provider of handheld scan and attain tools and products that enable and improve reading-related activities and business productivity, announces today its financial results for the first nine months and third quarter of 2006, reporting a significant increase in revenues. Financial Highlights Sales in the first nine months of 2006 increased by 17% to US$5.8 million, compared with US$5.0 million in the first nine months of 2005. Gross profit margin reached 44% for the first nine months of 2006, compared with 47% in the period of 2005. Operating income in the first nine months of 2006 was US$95,000, compared with an operating loss of US$423,000 in the period of 2005. Net income for the first nine months of 2006 reached US$57,000, compared with a net loss of US$567,000 in the period of 2005, not including loss from discontinuing operations. Net earnings per share for the first nine months of 2006 were less than $0.01, compared with a net loss of US$0.05 not including loss from discontinuing operations. in the period of 2005. Net cash provided by operating activities cumulated to US$299,000 in the first nine months of 2006, compared to US$46,000 in the previous year. Cash and cash equivalents as of September 30, 2006 were US$1.1 million (US$1.5 million as of December 31, 2005). Company Highlights Strong growth in Asia driven by sales to Chinese market. Strengthening of U.S. distribution with Sam's Club agreement. Final preparations for launch of third generation product. "In the third quarter we have experienced an accelerating revenue growth, which was mainly driven by the dynamic demand from the Far East markets, in particular from China. During Q3 we have laid the fundamentals to address these demands through business partnerships with regional suppliers. The first result is a joint product development with Chinese Hanwang Technology Co. that subsequently lead to the signing of an exclusive distribution agreement, worth more than US$4 M over the next two years. This agreement marks a true milestone for the company and a breakthrough in the Far East," comments WizCom CEO Rami Ish-Hurvitz. "Revenues in the Far East significantly increased this quarter as a result of our joint development agreement. Unfortunately, the costs incurred in starting this development coupled with the costs of the final phases of the new generation product, which led to an overall quarterly loss. However we expect increased sales in Q4 as the Far East business continues to grow and the first new generation product revenues are recognized," explains Raz Itzhaki, WizCom's Executive VP and CFO. "Also the political unrest in he Middle East adversely affected Galil's business for this quarter. Looking forward to Q4 we expect to see substantial revenue growth and a positive operational result for the full year 2006," continues Itzhaki. Company Outlook WizCom will launch its third generation product in selected markets during quarter four of 2006. The company expects that an increasing demand for the new product in established markets like the U.S. and the UK will support to further accelerate growth rates, currently fuelled by the demand from emerging markets in the Far East. In addition, the company strives to further explore growth opportunities in other countries of the Asian and Pacific region, where economic development causes an increasing need to learn foreign languages. In order to read the full version of the PR, please click on the link at the end of this announcement. WizCom's financial statements for the first nine months 2006 may be viewed at the Company Website: www.wizcomtech.com. The company is holding its annual analysts and investors conference at the German Equity Conference in Frankfurt today. About WizCom: WizCom Technologies Ltd. is the world's leading producer of personal, portable scanning pens that help people read and process text. These pocket-sized, user-friendly devices enable people to understand and use printed material, anytime and anywhere, without disrupting their reading process. Our pens help students of English as a first or second language, as well as people working in multilingual environments, enhancing their fluency and expediting reading comprehension. Ligature Ltd. is a world leader developer of Optical Character Recognition (OCR) technologies and applications. The company offers innovative approach to OCR based solutions for specialized markets partnering with OEMs, VARs and system integrators incorporating CharacterEyes into software applications and hardware products. Galil Microwaves Israel (2003) Ltd. is a third party manufacturer and assembler of electronic modules for microelectronic and microwave components. For further information please contact: WizCom Technologies Ltd. Raz Itzhaki Executive VP and CFO 8B HaMarpe St. 97774 Jerusalem Israel Phone +1-978-808-6989 (US) Fax +1-978-929-9228 (US) [email protected] http://www.wizcomtech.com SCHWARZ Financial Communication Frank Schwarz Investor Relations Germany Phone +49-611-174539811 Fax +49-611-174539829 [email protected] --- End of Ad-hoc Message --- WKN: 915856; ISIN: IL0010830706; Index: Prime All Share, TECH All Share; Listed: Freiverkehr in Börse Berlin Bremen, Freiverkehr in Börse Düsseldorf, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Stuttgart, Prime Standard in Frankfurter Wertpapierbörse, Geregelter Markt in Frankfurter Wertpapierbörse;