Lipman Receives $7 Million Order from Industrial and Commercial Bank of China

ROSH HAAYIN, Israel--(BUSINESS WIRE)--Jan. 31, 2006--

Customized POS Terminals and PIN Pads to be Deployed in more than 8,000 Petrol Stations throughout China in Joint Project with China National Petroleum Corporation

Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that it has received a contract to supply $7 million of customized NURIT 8320 and 8000 Point of Sale terminals and NURIT 222 PIN Pads to the Industrial and Commercial Bank of China (ICBC). These terminals will be used in a joint project between ICBC and China National Petroleum Corporation (CNPC) to equip more than 8,000 CNPC petrol stations with Lipman terminals, allowing CNPC customers to enable payment at the pump for the first time in China's history. This project, which comes following a successful 12 city pilot program, is one of the largest POS terminal deployments in China to date. Product shipments began during the second half of 2005, with deliveries expected to continue through the first quarter of 2006.

Through this program, CNPC is deploying customized versions of Lipman's NURIT 8000 utilizing Wi-Fi technology and NURIT 8320 with Ethernet and modem connectivity, as well as Lipman's NURIT 222 PIN Pad. Utilizing a form of Wi-Fi technology that is new to the electronic payment industry, Lipman's devices will allow CNPC customers to pay for fuel from their vehicles, both quickly and securely.

Lazy Yanay, Executive Vice President Sales and Marketing of Lipman said, "We are very pleased to be a part of this major deployment in the Chinese market and to be working with leaders in the banking and petrol industries. This order is a testament to Lipman's ability to develop and support new business opportunities in new market segments in which the use of electronic payment is undeveloped, as well as our ability to provide customers with highly reliable, advanced technology solutions completely customized to meet the specific needs of the project. China has long been a primary area of focus for Lipman and we are excited to be at the forefront of the emergence of this important market."

About Lipman

Lipman is a leading worldwide provider of electronic payment systems. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.

Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz.

Statements concerning Lipman's business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: our dependence on distributors and customers; the competitive market for our products; market acceptance of new products and continuing products; timely product and technology development/upgrades and the ability to manage changing market conditions; manufacturing in Israel; compliance with industry and government standards and regulations; dependence on key personnel; possible business disruption from acquisitions; and other factors detailed in Lipman's filings with the U.S. Securities and Exchange Commission. Lipman assumes no obligation to update the information in this release.