Magal Security Systems Ltd.
Perimeter Intrusion Detection Systems
www.magal-ssl.com

Tel.
972-3-5391444

Fax
972-3-5366245

Email:
magalssl@trendline.co.il

Go to Website:
www.magal-ssl.com

17 Altelef St., Yehud 56000, Israel.

Magal is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. Magal also supplies Video Monitoring Services through Smart Interactive Systems, Inc., a U.S.- based subsidiary. [A1] Magal’s products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. Israel-based Magal has subsidiaries in the U.S., Canada, the U.K., Germany, Romania, Mexico and an office in China.

Magal trades in the U.S. on the NASDAQ National Market since 1993 and in Israel on the Tel-Aviv Stock Exchange (TASE) since July 2001, in both under the symbol MAGS.

LATEST NEWS

Magal Security Systems, Ltd. (NASDAQ GM: MAGS; TASE: MAGS), today announced that it recently received a series of orders totaling approximately US$45 million for a turnkey project to protect critical infrastructure facilities. The turnkey project incorporates fence perimeter protection systems, access control systems and CCTV products. Magal’s management expects to recognize income from these orders over the next two years.

Mr. Izhar Dekel, CEO of Magal, commented, "We are very pleased to report these substantial orders, providing us with a great start to 2008. The orders are an important milestone in the implementation of our growth strategy, which emphasizes the provision of turnkey solutions as a major growth driver. The project, which is for the protection of critical infrastructure, demonstrates once again our ability and strong experience in protecting these types of sites.”

Magal receives over USD $ 8 Million order.

Magal Security Systems, Ltd. (NASDAQ GM: MAGS; TASE: MAGS), announced that one of its wholly-owned subsidiaries has received an order of over $8 million to install its Perimitrax buried cable intrusion detection system as part of a project to protect several public utility facilities in Western Asia. The Company will begin installations at the first site, in the fourth quarter of 2007.

Magal Group's Perimitrax – a Buried Cable Intrusion Detection System, is a covert perimeter intrusion detection sensor that generates an electromagnetic field around buried sensor cables. If an intruder comes into contact with the field, an alarm is declared.

"We are very pleased to announce this order for one of Magal’s premier security solutions," commented Mr. Izhar Dekel, CEO of Magal. “This order, further attests to our leading position in the security area, while expanding and diversifying our geographic footprint into a new region.”

Magal Expands Operations in Brazil through New Strategic Partnership

Partnership will provide perimeter solutions, technical support and service
center within Brazil

Magal Security Systems, Ltd. (NASDAQ GM: MAGS; TASE: MAGS), today announced a new strategic partnership in Brazil. The new strategic partnership, Senstar-Stellar Sistemas de Segurança Ltda., will provide local consultants and integrators with complete perimeter solutions, technical support and a local service center.

The new Brazil based operations, located in São Paulo, will be headed by Mr. Eduardo Fazzio, formerly the Magal Group's Brazilian master dealer.

"We are very pleased to announce the formation of this new strategic partnership in Brazil,” said Izhar Dekel, CEO of Magal. “This partnership will enable us to further expand our operations to one of our key strategic markets, South America, and, we believe, will serve as a major growth driver in years to come. This partnership will provide us with a local base within the South American free trade region, potentially enabling us to manufacture certain of our products there in the future."

Magal Security Systems, Ltd. (NASDAQ GM: MAGS; TASE: MAGS), today announced that it has received an approximately US$6 million order for a turnkey project to protect several military bases in Israel. As part of the project, Magal will implement its Taut Wire Intrusion Detection Systems and FORTIS Integrated Command & Control system.

Magal will serve as the subcontractor for the perimeter intrusion detection systems and the work is expected to be completed before the end of 2007. Read More

Magal's DreamBox to protect multiple-sites from hazadous threats and malicious activity.

Magal (NASDAQ, TASE: MAGS) today announced that a major water authority based on the east coast of the US has selected Magal's DreamBox solution to safeguard the utility’s multiple-sites from hazardous threats and malicious activity. The order was placed by a nationwide system integrator, which will also install and provide full support for the product.

DreamBox is a state-of-the-art, intelligent video, audio and sensors manage­ment platform. As an integrated solution of hardware and software products that performs multiple critical security functions in one box, DreamBox offers local and networked digital video and audio recording (DVR/NVR), intelligent video analysis (IVA), virtual video matrix switching, two-way audio and site security management.

DreamBox helps high-security facilities – such as airports, seaports, train stations, refinery facilities and utility companies – increase safety and security, streamline operations and maintenance, improve productivity and reduce overall expenditures.

“Water supplies are particularly vulnerable to hazardous threats - ranging from terrorist attacks to accidental contamination. While traditional perimeter protection measures, such as fence and ground sensors, are not viable in this environment, risk can still be mitigated by leveraging advanced Intelligent Video for perimeter protection,” said Izhar Dekel, CEO of Magal. “We are very excited that our DreamBox solution was recently selected by this major US water utility. The utility will benefit from the full capabilities of our advanced solution, including intelligent video analysis, digital recording, security management and seamless integration with other security technologies, such as radar-based sensors.” Read more - go to Magal Website

Magal Receives an order for its PipeGuard System to Protect Banks from Underground Intrusions

Magal Security Systems, Ltd. (NASDAQ GM: MAGS; TASE: MAGS), today announced it has received an order through one of its fully owned subsidiaries, to install its PipeGuard system to protect 6 bank branches from underground intrusions. The work is expected to be executed before the end of the first quarter of 2007.

Following a long and thorough market study, Magal came to the conclusion that one of the major physical threats that banks worldwide currently face, are robberies of valuables contained in safes located below ground by the digging of tunnels beneath the bank’s building.

Magal Group's PipeGuard system utilizes an innovative and unique technology to guard buried assets. The system has the ability to detect potential attacks and intrusions and alert authorities before potential harm or damage occurs. This order utilizes the PipeGuard's advanced technological capabilities to prevent underground intrusions into bank buildings and break-ins into the bank's safes and other secure areas. Read more - go to Magal Website

Magal Receives an Additional $4.5 million Order for the Perimeter Intrusion Detection System along the Northern Border of Israel

Magal Security Systems, Ltd. (NASDAQ GM: MAGS; TASE: MAGS), today announced it has received a follow-on order of approximately US$ 4.5 million from the Israeli Ministry of Defense (MOD) for the installation of a perimeter intrusion detection system along the northern border of Israel.

Most of the work will be executed before the end of 2006, with the balance to be completed by the end of the first quarter of 2007.

Izhar Dekel, CEO of Magal, said: "This order follows a US$5.5 million order we received from the Israeli MOD in September 2006 and continues the reconstruction work to improve the security along the northern border of Israel following the recent hostilities. Receiving a total of $10 million orders for our advanced systems, demonstrates the premium that the Israeli Government places on using our products, which are field-tested and have proven themselves on Israel's borders and in other sensitive installations worldwide. " Read more - go to Magal Website

Magal announces a US $1. 6 Million order to protect an International Airport in Europe

Magal Security Systems, Ltd. (NASDAQ: MAGS; TASE: MAGS), today announced that it has signed a follow-on US$1.6 million contract to protect an international airport in Eastern Europe.

The airport follow-on order is a comprehensive turnkey project and is an extension of a contract that Magal previously signed to protect this airport. The system will include various types of security systems, such as Magal's DTR-2000 Taut Wire Intrusion Detection System and its InnoFence Decorative Intrusion Detection System. All these systems are integrated by Fortis, Magal's Integrated Command & Control System, which supports real-time decision making and wide-area command and control.

The project is expected to be completed by the end of 2007.Read more - go to Magal Website

MAGAL RELEASES THE MSS-1500 - MOBILE SURVEILLANCE SYSTEM

Magal Security Systems, Ltd. announced today that it recently developed a highly advanced Mobile Surveillance System for quick deployment. The system is targeted to be used by special surveillance and security forces worldwide and has already generated interest in several countries worldwide.

The system is constructed from the following three main components:
1. Remote Observation System (ROS)– An array of two MTC-1500 cameras (a PTZF thermal camera integrated with a daylight CCD camera) manufactured by Magal.
2. Wireless Communication Array (WCA) running over LAN.
3. Observation and Recording System - Viewing, recording and intelligent content analysis (IVA) system based on Magal's DreamBox – All-in-One Video Surveillance solution.

The system is supplied in easy to carry cases with a self sufficient power supply. It is simple to set-up and operate. Read more - go to Magal Website

MAGAL RECEIVES AN ORDER OF US$ 2.4 MILLION TO SUPPLY SECURITY SYSTEMS FOR CORRECTIONAL FACILITIES IN MEXICO
January 9, 2006

YAHUD, ISRAEL, January 9, 2006 -- Magal Security Systems, Ltd. (NASDAQ NM:MAGS;TASE:MAGS) today announced that its fully owned Mexican subsidiary, Senstar-Stellar Latin America, S.A de C.V., received an order for approximately US$2.4 million to supply intrusion detection systems and video surveillance equipment for correctional facilities in Mexico.

The order, which includes the DreamBox, an all-in-one CCTV security solution which integrates a number of CCTV related applications into one box, is expected to be completed during the first half of 2006.

The order also included an option, which will automatically enable the Israeli Ministry of Defence to increase the order by a further US$5 million. Management believes that assuming there are no unusual events, the MOD will exercise this option and increase the order before the end of the year.

Mr. Jacob Even-Ezra, Chairman of Magal and CEO, said: "We are pleased to have been chosen once again by the Israeli MOD to continue the installation of our systems along the seam line. Mr. Mashiah Netzah, head of the seam line administration, was quoted in an article published in the Ha'aretz newspaper in early July 2005 that to date, 213 kilometers of the barrier have been built in the north part of the seam line and out of the remaining 450 kilometers, 190 kilometers are currently under construction in the southern part of the seam line. Another 80 kilometers of the central portion of the fence will be finished between December 2005 and March 2006."

Magal Signs US$ 0.5 Million Contract for Installation of Command & Control System for Israeli City

July 18, 2005 -- Magal Security Systems, Ltd. (NASDAQ NMS:MAGS, TASE:MAGS) today announced that it has signed a US$ 0.5 million contract for the installation of a municipal command and control system for a city in Israel, based on Magal's FORTIS system that was modified for this purpose. The project is expected to be completed by the end of the third quarter of 2005.

The modified FORTIS system will integrate command and control of the entire security infrastructure of the city, protecting its industrial facilities, water reservoirs and its citizens from burglars and sabotage. Magal expects that more applications will be integrated into the system in the future, such as the integration of command and control for the fire departments and emergency rescue teams.

Using advanced technology which includes dozens of smart cameras, the modified FORTIS system will provide the control center of the municipality with a unique graphical command tool, which will update the location details and video view of the alerting area, while simultaneously enabling operators to dispatch and monitor security personnel, thus optimizing the operational response.

Mr. Even-Ezra, Chairman of Magal said: " This is the first time that Magal is involved in control and command of civil activities, and we are pleased that our R&D people were able to modify the Fortis system and adapt it to the unique needs specified for this particular project. We believe that this opens a new niche for Magal's systems and we believe that our success will lead to more orders following from other cities."

May 31, 2005 - Magal Security Systems Ltd. (NASDAQ NMS: MAGS; TASE: MAGS), today announced that it has signed two contracts totaling over US$13 million for supplying comprehensive security solutions at two sensitive sites, one based in Africa and the other in Europe. The installations will commence in the third quarter of 2005 and are expected to be completed before the end of 2006.

These projects incorporate few of Magal's products, including the recently introduced DreamBox, an All-in-One CCTV security solution, which integrates a number of CCTV related applications, into one box.

Mr. Jacob Even-Ezra, Chairman of Magal, stated: "We are pleased to win these particular contracts with clients based in Africa and Europe, demonstrating the global demand for our security solutions. We believe that we will receive additional follow-on orders for these particular projects. As the market becomes more educated with regard to the capabilities of DreamBox, we are seeing a growing interest for this product.”

The DreamBox is a state-of-the-art embedded hardware and software product, which integrates a number of CCTV related applications, into one box. The system is designed to be economical, as well as compact to save space, whilst avoiding the use of a complicated cable installation and network protocols integration.

DreamBox contains twelve different applications, including Digital Video and Audio Recording, Video & Audio Matrix Switcher, Outdoor and Indoor Video Motion Detection System (VMD), Security Management System (SMS) and Transmission system.

The DreamBox is substantially lower in price than the cost of the other products’ applications combined, a factor, which positions DreamBox as the ultimate security solution for all strategic facilities. Its target markets include governmental, institutional and other sensitive facilities, such as airports, train stations, seaports, prisons, casinos and hospitals, all of which require the use of high quality CCTV applications.

Magal Signs US$6.1 million Framework Agreement with Israeli Ministry of Defense

Magal Security Systems, Ltd. (NASDAQ NM:MAGS - News; TASE:MAGS) today announced that it has signed a framework agreement for US$6.1 million with the Israeli Ministry of Defense (MOD) to continue the installation of intrusion detection systems along the seam-line between Israel and the West Bank. This agreement is expected to be completed by the end of the third quarter of 2005.

Mr. Even-Ezra, Chairman of Magal said: "This agreement is a follow-on from previous orders that Magal has received in the past few years from the Israeli MOD for the installation of the Company's intrusion detection systems along the seam-line. We are gratified that the Israeli MOD has once again chosen us for the important task of protecting Israel's borders. The Israeli MOD has particularly stringent security and operational requirements. The fact that Magal is chosen continually to protect the country's borders, where there is a significant and persistent risk of terrorism, is testament to the quality and success of Magal's offering."

Mr. Even-Ezra concluded: "We believe the company will continue to receive further orders for the installation of our systems on the seam-line during this year."

Perimitrax, a buried cable intrusion detection sensor technology, will be delivered and installed with all sites being completed by the end of March 2006. The contract is based on three phases of deliverables with US$0.4 million in 2004, US$1.6 million in 2005, and the balance of US$1.4 million in 2006.

Mr. Jacob Even-Ezra, Chairman of Magal commented that, “Correctional Service Canada has been one of SSC’s major customers for many years. The fact that this customer continues to use our products proves once again the reliability and effectiveness of our systems and we will continue to serve this customer to their complete satisfaction.”

Operating Income Increases 49% and Net Income Increases 32% Compared with the Third Quarter of 2003-

November , 2004 - Magal Security Systems Ltd. (Nasdaq NM:MAGS; TASE:MAGS) today announced its consolidated financial results for the third quarter and nine-month period ended September 30, 2004.

Revenues for the third quarter of 2004 reached US$15.3 million, a slight decrease of 0.4 percent compared with the third quarter of 2003 and an increase of 5 percent over the second quarter of 2004.

Gross profit for the third quarter of 2004 reached US$6.8 million (44.7 percent of revenues), an increase of 7 percent over the third quarter of 2003 and an increase of 5 percent compared with second quarter of 2004.

Operating income in the third quarter of 2004 reached US$1.2 million compared with operating income of US$796,000 for the third quarter of 2003. Second quarter operating loss was US$345,000, which included US$1.2 million of award expenses paid to all of the Company’s employees by the Company’s two principal shareholders out of their personal funds. A ccording to the generally accepted accounting principles in the United States, such grant was recorded in Magal’s second quarter statement of income as an expense, although it did not effect the Company’s shareholders’ equity nor its statement of cash- flows. Excluding the grant, operating income for the second quarter would have been US$855,000, representing a third quarter sequential growth of 39 percent.

Net income in the third quarter of 2004 reached US$663,000, compared with net income of US$503,000, for the third quarter of 2003 and a net loss of US$739,000 in the second quarter of 2004. Excluding the above-mentioned award paid to employees, net income in the second quarter was US$461,000, representing a third quarter sequential growth of 44 percent.

Diluted earnings per share for the third quarter was US$0.08, compared with diluted earnings per share of US$0.06 in the same period last year.

Revenues for the first nine months of 2004 reached US$44 million, an increase of 6 percent compared with the same period in 2003.

Operating and net income for the first nine months of 2004, excluding the above-mentioned US$1.2 million award expenses granted to employees by the Company’s two principal shareholders out of their personal funds, reached US$3.3 million and US$1.8 million, respectively, similar to the figures achieved in the first nine months of 2003.

As a result of the award expense, operating income and net income for the nine-month period, reached US$2.1 million and US$611,000, respectively, a decrease of 36 percent and 67 percent, respectively, compared with the first nine months of 2003.

Diluted earnings per share for the nine-month period, including the award expenses, was US$0.07, compared with US$0.22 in the same period of last year.

Commenting on the results, Mr. Jacob Even-Ezra, Chairman of Magal, said: “We are pleased with our revenue growth in the first nine months of 2004 compared to the same period of 2003. T he growth in the rest of our business more than compensated for the delays caused by the Israeli Ministry of Defense in the Seam Line project in Israel during 2004. In particular, we are especially pleased this year with the contribution from new project wins, as well as our beginning to record revenue from our new products. The Seam Line project had significantly contributed to our 2003 revenues and management estimates that Magal will receive more orders for this project in the year 2005.”

May 24, 2004 -- Magal Security Systems, Ltd. (NASDAQ NM:MAGS, TASE:MAGS) today announced that its fully owned U.S. based subsidiary, Senstar-Stellar, Inc (SSI) has recently received more than US$1 million worth of orders for various homeland security related projects.

One of the largest United States defense contractors, placed an order for Perimitrax, a buried cable intrusion detection sensor technology, and StarNet, a security monitoring and control system, valued at more than US$580,000. This order was issued under the United States Army’s Integrated Base Defense Security System (IBDSS) contract.

Additionally, a U.S. based nuclear power plant has placed orders for more than US$460,000 of SSI’s new generation Intelli-FIELD perimeter sensor technology.

Mr. Jacob Even-Ezra, Chairman of Magal commented, “The orders for the Nuclear power plant was a competitive bid with particular emphasis put on the ability to protect against all types of threats. This is a significant win as it demonstrates that Magal’s products best meet the new requirements driven by Homeland Security initiatives that favor increased detection-field height.”

Magal also announced that the Board of Directors of the company has decided to declare a stock dividend of 5% of the issued shares. The above stock dividend is additional to the cash dividend that the Company has paid to its shareholders in January 2004. The Company expects that, subject to the approval of the general shareholders meeting to be held in July 2004, the stock dividend shall be paid during August 2004.

March 30, 2004 - Magal Security Systems, Ltd. Launches The DreamBox - a New All-in-One CCTV Security Solution.

The DreamBox is a state-of-the-art embedded hardware and software product, which integrates a number of CCTV related applications, into one box. The system is designed to be economical, as well as compact to save space, whilst avoiding the use of a complicated cable installation and network protocols integration.

DreamBox contains twelve different applications, including Digital Video and Audio Recording, Video & Audio Matrix Switcher, Outdoor and Indoor Video Motion Detection System (VMD), Security Management System (SMS) and Transmission system.

The DreamBox is substantially lower in price than the cost of the other products’ applications combined, a factor, which positions DreamBox as the ultimate security solution for all strategic facilities. Its target markets include governmental, institutional and other sensitive facilities, such as airports, train stations, seaports, prisons, casinos and hospitals, all of which require the use of high quality CCTV applications.

Mr. Jacob Even-Ezra, Chairman of Magal said: “Magal identified the huge potential of the fast growing digital CCTV market and developed the DreamBox, which is a break-through in this area, by providing a unique “All-in-One” solution.

By developing this product, Magal is entering a new area of activity. We refer to the DreamBox’s target market as an ‘add-on’ market for Magal and believe that this product is substantially broadening the Company’s target markets. As an example, we are entering the field of Digital Video Recording, which is only one of the DreamBox’s applications out of many.”

Mr. Even-Ezra, added:” Seeing the potential of the DreamBox, Magal has decided to establish a special division for this product and open a separate office in the USA for marketing and support of the DreamBox”.

Mr. Even-Ezra concluded: “DreamBox joins two other new products that Magal has recently launched. These are the FORTIS Integrated Command and Control System and the PIPEGUARD- a buried assets security system, which altogether significantly widens the spectrum of security solutions we offer and substantially broadens the potential security markets of Magal.”

DreamBox will be presented for the first time at the ISC West 2004 Expo

This comprehensive turnkey project constitutes an extension of a contract that Magal has previously signed to protect this airport. Besides different types of security systems, integrated by MagNet, Magal's computerized Security Management System (SMS), this project also includes video and data communication systems.

Mr. Jacob Even-Ezra, Chairman of Magal, stated: "The fact that the customer ordered Magal systems for the second phase of the project, proves once again the reliability and efficiency of our systems”.

The Greek Military installation order includes Magal’s recently announced State-of the-Art FORTIS Integrated Command and Control system.

The Power Plant contract includes security systems such as perimeter intrusion detection systems, video motion detection systems and other systems, all controlled by Magal's Security Management System, MagNet.

Both projects are expected to be completed during the year 2004.

Mr. Even-Ezra, Chairman of Magal, said: “We are very glad that Greece has joined the list of countries that are using Magal’s systems and we have every reason to believe that we will receive more orders for installations in Greece during the year 2004”.

As of end of year 2002, there were an estimated 3 million miles of unprotected oil and gas pipelines worldwide, out of which 2 million miles were in the USA alone. Although the need has been strongly recognized by the Oil & Gas industry for years, and in spite of increasing threats since the 9/11 events and current instability in Iraq and elsewhere in the Middle-East, there is no effective solution for securing buried pipes against damage caused by terror, sabotage, theft or other third party threats.

Magal has identified the demand and has implemented a unique technology aimed at meeting this challenge. PipeGuard provides the solution for securing buried assets, gas and oil pipelines and infrastructure of buried communication lines such as fiber optic cables.

PipeGuard utilizes an innovative and unique technology to guard buried pipelines, regardless of pipeline length, with the ability to detect potential attack and alert authorities before potential harm or damage occurs. Its target market includes Oil & Gas companies, owners and operators of pipelines or communication cables and governmental agencies dealing with security and environment.

PipeGuard is suitable for all pipes or cables, from existing and operational pipelines, to new pipelines under construction. The system can easily be integrated into a full turnkey security solution, including perimeter protection, ground or air patrol and others. By answering the challenge of securing pipelines, Magal offers a total security solution for the Oil and Gas industry – from the oil field to the refineries.

Mr. Jacob Even-Ezra, Chairman of Magal concluded: “Magal regards the PipeGuard as a new frontier in security solutions, which are based upon the same core technology. The new product will widen the spectrum of security solutions we offer, and broaden the potential security markets of Magal.”

Magal will host a conference call, following the release of its 2003 year-end and fourth quarter results, on Tuesday, February 10, 2004 at 11.00 EDT. To participate please dial +1 877 332 1104 from the US, 5 minutes before the start of the call.

FORTIS reduces the period of time from intruder detection to intruder engagement, to a minimum. FORTIS was developed to improve the response to real-time security events, by sharing video and geographical information between the control center and security personnel acting in the field.

The system creates a unified and interactive intelligence picture - drawing data from all sensors, whilst displaying the movement of security personnel in the field and adding other relevant information, such as video from various sources, auxiliary services and weather conditions. This combined picture, which is continuously updated, is sent by the Central Command to all security personnel in the command chain, and serves as a unified basis for operational planning and allocation of tasks.

Using advanced technology, FORTIS gives the security officer a unique graphical command tool, which updates the location details and video view of the alerting area, whilst simultaneously enabling a constant watch over security personnel movements, thus optimizing the operational response.

FORTIS is based on a number of advanced technologies that are currently being used in military applications. However, the system's competitive price, positions FORTIS as an optimal security system for all strategic facilities, both in the public and private sectors. Its target markets include governmental, institutional and large sensitive facilities, such as borders, airports, hospitals, power plants and water sources, as well as large manufacturing facilities requiring real-time control and protection.

The order is expected to be executed by the end of the third quarter of 2004. It includes Magal’s Perimeter intrusion detection systems, as well as cameras, digital video recording and other security systems, all controlled by Magal's Security Management System, MagNet.

Mr. Even-Ezra, Chairman of Magal said: “We are glad be chosen again for the mission of preventing escape from prisons. We are proud to say that today, Magal's perimeter security systems are installed in hundreds of prisons and correctional facilities all over the world."

The IBDSS program includes Intrusion detection systems designed to prevent unauthorized entry or access to large, medium and small military facilities. The IBDSS program will be deployed starting in October 2003 through September 2008 to protect classified facilities.

Magal Group’s products have been approved by the Department of the Air Force for use in the various tested applications and configurations, and they will be supplied to the US Air Force through the major U.S. integrators.

Magal also announced that its fully owned U.S. based subsidiaries, Perimeter Products, Inc. (PPI) and Senstar-Stellar, Inc (SSI) have, over the past few months, supplied $4.2 million of orders to Homeland Security contractors for the protection of various governmental and military sites throughout the United States.

Mr. Even-Ezra, Chairman of Magal said: “We are pleased that our systems are being included as part of the U.S. Homeland Security program, and we hope to continue serving the important mission of protecting American infrastructure and further advance our activity in the Homeland Security field.”

The order calls for Magal Group’s Perimeter Intrusion Detection Systems and is expected to be completed by the end of the year 2003.

Mr. Jacob Even-Ezra, Chairman of Magal, said: "This order follows previous installations that SSLA executed for the same customer, which reflects his confidence in Magal Group’s products and we have every reason to expect more orders to follow from this customer”.

Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. Magal also supplies Video Monitoring Services through Smart Interactive Systems, Inc., a subsidiary established in the U.S. in June 2001. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. Israeli-based Magal has subsidiaries in the U.S., Canada, the U.K., Germany, Mexico, Romania and an office in China.

Revenues for fiscal year 2002 were US$43 million, with net income of US$1.9 million.

Magal trades in the U.S. on the NASDAQ National Market since 1993 and in Israel on on the Tel-Aviv Stock Exchange (TASE) since July 2001, in both under the symbol MAGS.

Magal's main products can be divided into three groups: Perimeter Intrusion Detection Systems, Video Motion Detection Systems and Security Management Systems (SMS).

July 31, 2003 - Magal Security Systems'’ Subsidiary Acquires Assests of Dominion Wireless, Inc.
Magal Security Systems, Ltd. announced that Perimeter Products, Inc. (PPI), its fully owned USA based subsidiary, acquired yesterday the assets of Dominion Wireless, Inc. (DWI), a company located in Virginia, USA, which specializes in applying advanced radio frequency (RF) transmission and locating technologies to deliver highly reliable security systems for use in correctional and other institutional environments.

DWI develops, produces and manufactures a product by the name Flair&Flash™.
This product delivers high reliability personal portable duress alarm systems to protect staff in correctional facilities. It identifies staff in distress and can pinpoint their location within 12.5 feet (4 meters) of the distress signal — with an indoor-to-outdoor and floor-to-floor accuracy unmatched by any other product.

Mr. Jacob Even-Ezra, Chairman of Magal said: “We believe that this acquisition will strengthen the Company's product line, improve market share and competitive standing in the perimeter security marketplace in addition to contributing to Magal's growth in the year 2003 and beyond.”

The order to protect communication facilities in India constitutes the second stage of a comprehensive security installation program initiated in 2002, and is expected to be completed by the end of the second quarter of 2003. The first order within this program, for US$4 million, which was reported by Magal in May 2002, was executed in 2002.

This turnkey project will protect hundreds of communications nodes of an extensive Wide Area Network in India. It includes security systems such as digital video and audio, access control and perimeter protection systems, all controlled by Magal's Security Management System, MagNet.

The order to protect sensitive installations in Thailand calls for Magal's Taut Wire Intrusion Detection System and Video Motion Detection Systems. This order is expected to be completed by the end of the first quarter of 2003.

SSC will design, supply, install and test its Intelli-Flex Fence Disturbance Systems at 12 Correctional Service Canada institutions located across Canada. SSC will also provide operational and technical training. The Intelli-FLEX sensors will be integrated into the existing Perimeter Intrusion Detection System (PIDS) Integration Unit. Six sites will be completed by March 31, 2003, with the balance anticipated to be completed by March 31, 2004.

Mr. Jacob Even-Ezra, Chairman of Magal, said: "The contract for protecting the Canadian correctional facilities follows previous orders of about US$3 million that SSC received from the same customer in January and in April, 2002. We are very pleased that the Magal’s products continue to be chosen for the critical mission of preventing escape of inmates from correctional facilities.

Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. Magal also supplies Video Monitoring Services through Smart Interactive Systems, Inc., a subsidiary established in the U.S. in June 2001. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. Israeli-based Magal has subsidiaries in the U.S., Canada, the U.K., Germany, Mexico, Romania and an office in China.

Revenues for fiscal year 2002 were US$43 million, with net income of US$1.9 million.

Magal trades in the U.S. on the NASDAQ National Market since 1993 and in Israel

ASIS International
53rd Annual Seminar and Exhibits
September 24-27, 2007
Booth No. 2012 (together with Magal-Senstar, Inc)