Electronics Line 3000 Announces Results for the Third Quarter of 2007

7 november 2007 Additional Milestone Achieved During the Company's Transition Phase with the Completion of its New Product Line Development Petach Tikva, Israel (November 7, 2007) - Electronics Line 3000 Ltd. ("EL3K" or "the Company") (XETRA: ELN), a leading global provider of wireless security with remote management solutions announced the results for the third quarter of 2007 in U.S. dollars. Financial Highlights Revenues for the first nine months of 2007 were $26.0 million, compared to $33.2 million for the first nine months of 2006. Revenues for the third quarter of 2007 were $8.1 million, compared to $8.8 million for the comparable quarter in 2006. Gross margin was 40% for both the first nine months of 2007 and for the first nine months of 2006. Gross margin for the third quarter of 2007 was 39% compared to 40% for the comparable quarter in 2006. Operating profit for the first nine months of 2007 was $519,000, compared to $2.3 million for the first nine months of 2006. Operating profit for the third quarter of 2007 was $56,000 compared to $ 294,000 for the comparable quarter in 2006. Operating margin for the first nine months of 2007 was 2% compared to 7% for the first nine months of 2006. Operating margin for the third quarter of 2007 was 1% of revenues, compared to 3% for the comparable quarter in 2006. Net income for the first nine months of 2007 was $16,000, compared to $1.2 million for the first nine months of 2006. The loss for the third quarter of 2007 was $151,000, compared to a net profit of $123,000 for the third quarter of 2006. A substantial part of the net loss, approximately $100,000, is attributed to the decline in the exchange rate between the dollar and NIS. Basic and diluted earnings per share for the first nine months of 2007 were $0.00, compared to $0.12 for the first nine months of 2006, and a loss per share of $0.01 in the third quarter of 2007, compared to $0.01 for the comparable quarter in 2006. Net cash used in operating activities for the first nine months of 2007 was $1.3 million, compared to $3.2 million net cash provided by operating activities for the first nine months of 2006. Net cash used in operating activities for the third quarter was $174,000, compared to $449,000 used in the comparable quarter of 2006. Outlook During the quarter just ended, Electronics Line 3000 continued to strengthen its partnerships, while also gaining new customers. In the quarter, the Company received first orders from four new customers in Italy, the Netherlands, Estonia and Austria. The Company has also accomplished a significant milestone by completing the development of its new product line. The new line brings true innovation to the market, providing a unique solution with advanced functionality, within a sophisticated design. It has been developed to fit the contemporary needs of residential users as a lifestyle accessory, offering more than standard security and, as such, includes useful day-to-day information and features. The new product line utilizes an advanced GPRS communications platform, enabling enhanced performance for all users and providers, including: An innovative web user interface for remote operation, real-time data transfer, a plug-and-play installation, remote firmware updates, real-time remote monitoring en masse and more. Amir Hayek, President and CEO, commented: "The Company is in the midst of its transition phase from a producer of traditional security products to a total solutions provider with a comprehensive value proposition. While we are not happy with the temporary decline in revenues, it was expected during this transition phase. We are continuing to refine our business focus and are aiming at strong partnerships with key market players. We have also re-focused our channel and product development and adapted our internal operations to support this strategy". "The coming launch of the new product line is another significant step in support of our new direction. We are proud to have completed developing this innovative solution on time according to our product roadmap. We have now begun pilot tests with several key strategic partners and are receiving positive feedback and great interest. I am positive the results of the new line launch will be apparent during the year ahead", Mr. Hayek concluded. IMPORTANT NOTICE: Summary financial tables are avaiable for download at the end of this message. Please see the Director's Report posted on the website for more details and the accompanying notes which are an integral part of the interim consolidated financial statements. Electronics Line 3000 Ltd. is pleased to invite you to the Q3 2007 results conference call on Thursday, November 8, 2007 14:30 h (CET Frankfurt time) Please use one of the following dial-in-numbers and ask for the Electronics Line 3000 conference call: Germany +49 69 2222 2220 USA +1 718 354 1362 Passcode 7088498 A replay of the conference will be available within 30 minutes after completion until the end of November 9 by calling Germany +49 69 22222 0418 USA +1 718 354 1112 Passcode 7088498 For more information please contact Electronics Line 3000 Ltd. Shoshan Nitzan VP Marketing shoshan.nitzan@electronics-line.com Schwarz Financial Communication Frank Schwarz Tel: +49 611 1745 398 11 schwarz@schwarzfinancial.com --- End of Message --- Electronics Line 3000 Ltd. 2 Granit St., P.O.B. 3253 Petah Tikva Israel WKN: A0B5R7; ISIN: IL0010905052; Index: CDAX, Prime All Share, TECH All Share; Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München, Prime Standard in Frankfurter Wertpapierbörse;