Cimatron Reports Non-GAAP Net Profit of $1 Million in the Fourth Quarter of 2009

$1.3 Million Positive Cash Flow From Operations in 2009

GIVAT SHMUEL, Israel, February 22, 2010 — (PRNewswire) — Cimatron Limited (NASDAQ: CIMT) ("Cimatron" or the "Company"), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the fourth quarter and full year 2009.

The following provides details on Cimatron's GAAP and non-GAAP results for the fourth quarter and full year 2009:

GAAP:

Revenues for the fourth quarter of 2009 were $9.8 million, compared to $10.4 million recorded in the fourth quarter of 2008. In the full year ended December 31, 2009, revenues were $33 million, compared to $41 million in 2008.

Gross Profit for the fourth quarter of 2009 was $8 million as compared to $8.3 million for the same period in 2008. Gross margin in the fourth quarter of 2009 was 82% of revenues, compared to a gross margin of 79% in the fourth quarter of 2008. In 2009, gross profit was $26.8 million, compared to $33.2 million in 2008. Gross margin in 2009 constituted 81% of revenues, reflecting no change relative to 2008.

Operating Profit in the fourth quarter of 2009 was $773 thousand, compared to an operating profit of $652 thousand in the fourth quarter of 2008. In 2009, Cimatron recorded an operating loss of $(957) thousand, compared to an operating profit of $526 thousand in 2008.

Net Profit for the fourth quarter of 2009 was $1.4 million, or $0.15 per diluted share, compared to a net profit of $706 thousand, or $0.08 per diluted share recorded for the same quarter of 2008.

In 2009, net profit was $14 thousand, or $0.00 per diluted share, compared to a net profit of $724 thousand, or $0.08 per diluted share, in 2008.

Non-GAAP:

Revenues on a non-GAAP basis for the fourth quarter of 2009 were $9.8 million, compared to $10.5 million recorded for the fourth quarter of 2008. In the full year ended December 31, 2009, revenues were $33 million, compared to $41.8 million in 2008.

Gross Profit on a non-GAAP basis for the fourth quarter of 2009 was $8.2 million as compared to $8.5 million for the same period in 2008. Gross margin in the fourth quarter of 2009 was 84% of revenues, compared to 81% in the fourth quarter of 2008. In 2009, gross profit on a non-GAAP basis was $27.4 million, compared to $34.6 million in 2008. Gross margin on a non-GAAP basis in 2009 constituted 83% of revenues, reflecting no change relative to 2008.

Operating Profit on a non-GAAP basis in the fourth quarter of 2009 was $1 million, compared to an operating profit of $977 thousand in the fourth quarter of 2008. In 2009, Cimatron recorded an operating profit of $31 thousand, compared to operating profit of $2.3 million in 2008.

Net Profit on a non-GAAP basis for the fourth quarter of 2009 was $955 thousand, or $0.10 per diluted share, compared to net profit of $553 thousand, or $0.06 per diluted share recorded in the same quarter of 2008. In 2009, net profit was $46 thousand, or $0.01 per diluted share, compared to net profit of $2.2 million, or $0.23 per diluted share, in 2008.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said "We are very pleased with the fourth quarter results. The combination of higher revenues (relative to previous quarters in 2009) and continued tight budget control has resulted in a strong bottom line in the fourth quarter, and positive cash flow for the entire year. 2009 was one of the toughest years for our industry, ever. In spite of a steep drop in global demand, we were able to generate a significant amount of cash in 2009, and even show small non-GAAP operating and net profits for the year. We are confident that our strong market position, strong balance sheet, and healthy cash reserves, together with continued investment in marketing and product development, will help us take advantage of new business opportunities. We are witnessing some signs of market recovery, and look forward to a hopefully less turbulent 2010", concluded Mr. Haran.

Conference Call

Cimatron's management will host a conference call tomorrow, February 23rd, 2010 at 9:00 EST, 16:00 Israel time. On the call, management will review and discuss the results, and will answer questions by investors.

To participate, please call one of the following teleconferencing numbers. Please begin placing your call at least 5 minutes before the conference call commences.

                              USA: +1-800-994-4498
                          International: +972-3-9180644
                               Israel: 03-9180644

For those unable to listen to the live call, a replay of the call will be available from the day after the call at the investor relations section of Cimatron's website, at: http://www.cimatron.com

Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income included herein. Non-GAAP financial measures consist of GAAP financial measures adjusted to include recognition of deferred revenues of acquired companies and to exclude amortization of acquired intangible assets and deferred income tax, as well as certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges and other items that are considered by management to be outside our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. We believe that these non-GAAP measures help investors to understand our current and future operating performance, especially as our two most recent acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP results. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

About Cimatron

With over 25 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers, as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron's subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.

Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit the company web site at: http://www.cimatron.com .

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