Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this 
announcement. 
----------------------------------------------------------------------
--------------    




Rosh Ha'ayin, August 31st, 2009 - WizCom Technologies Ltd. ("WizCom")
(Prime Standard: WZM, IL 0010830706), a leading global provider of
handheld scanning and translation tools, announces its results for
the first six months of 2009. Figures in this press release are
according to US-GAAP and in US$ thousands.

Financial Highlights

# Revenues for H1 of 2009 dropped by 36% compared to H1 2008, from
US$4,305 to US$2,762.

# Revenues for Q2 fell by 38% compared to Q1 from US$1,705 to
US$1,057

# Gross profit margin for H1 2009 came in at 38%, the same level as
for H1 2008.

# An operating loss of US$279 was posted, as compared to a US$536
operating loss for H1 2008.

# A net loss was posted of US$203, compared with last year's H1 net
loss of US$584.

# Total operating expenses for the first six months of 2009 were down
39% to US$1,334 from US$2,182.

# Basic and diluted net loss per common share was US$0.017, compared
to US$0.05 for H1 2008.

# As of 30 June 2009, the Company had cash and cash equivalents of
US$68, as compared to US$194 for 31 December 2008, representing a
negative cash-flow of US$126, while net cash used in operating
activities was a negative US$ 167.

Operations

Mr Shimon Amouyal, CEO for WizCom, stated, "After the first quarter,
which showed a promising development compared to Q4 of 2008, we
witnessed a further decline in our sales performance during the
second quarter. One of the main reason was the general economic
environment, which caused a slow-down in our sales. In addition, we
are still in a turnaround phase, as announced previously, part of
which are our efforts to expand and develop our distribution
channels, among others through web-based sales. Furthermore, we are
looking to concentrate on key markets and key products."

"We are now coming out of the transition phase and we are looking to
roll our new strategy out fully in Q1 of calendar year 2010. This
doesn't mean we only anticipate improvements from that point onwards,
as mentioned many measures have already been implemented, as can be
seen from the reduction in costs."

"We are continuing to control our costs. Although part of this
decline is related to the fall in revenues, the majority is due to
cost savings, resulting from our turnaround program as discussed in
our Q1 release. The program has led to our operating expenses
dropping as a percentage of revenue from nearly 51% for H1 2008 to
48% for H1 2009. We anticipate that going forward our absolute cost
base will remain round current levels when revenues increase, which
will make the effects of our measures even more clearly visible."

Despite the fall in revenues, we have managed to improve our bottom
line. Though not profitable yet, we reduced our net loss from US$584
to just US$203 and continue to work on improving our bottom line.

Outlook

"Although it is too early to make statements on our revenues going
forward, our backlog is very promising and I feel confident that we
are able to capitalize on the changes and developments I have
described and we feel there is strong cause for optimism.

This brings me to my final two points. As announced previously, we
had identified a supply problem, which we believed could have a
significant negative effect on our ability to deliver products and
hence generate revenues and thereby cause liquidity shortages.

As published in our Ad Hoc announcement of 26 August, we have managed
to find a solution to solve this supply problem, and as a result we
will be able to ship deliveries throughout Q3, and pressure on
revenues from this problem will be limited in scale and scope.
Following this episode, we have immediately initiated a program to
reduce our dependence on single suppliers and we are currently
working on a long-term solution to prevent this from happening again.

Finally, as announced in the same Ad Hoc announcement, we intent to
issue a convertible loan note to a group of existing and external
shareholders. The proceeds will be between US$800,000 and US$1.3
million. This will solve our short term liquidity problems and allow
us to branch out our sales channel and distribution networks. The
issuance of the convertible note is subject to approval by the EGM,
to be held on 1 October 2009."

About Wizcom Group:

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.
WizCom Technologies Inc, Boston, US-based entity, responsible for
WizCom Group operations in the Americas.
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.
Shimon Amouyal, CEO
13 Hamelacha St.
Rosh Ha'ayin, 48091, Israel

Phone +972-3-9103330
shimona@wizcomtech.com
http://www.wizcomtech.com

SCHWARZ Financial Communication
Frank Schwarz
Investor Relations
Germany

Phone +49-611-1745-398-11
Schwarz@schwarzfinancial.com


 
--- End of Message ---

WizCom Technologies Ltd.
8B Hamarpe St. Jerusalem Israel

WKN: 
915856; ISIN: IL0010830706; Index: Prime All Share, TECH All Share;
Listed: Freiverkehr in Börse Berlin, 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, Regulierter Markt in 
Frankfurter Wertpapierbörse;
http://hugin.info/130210/R/1338222/319214.pdf


Copyright © Hugin AS 2009. All rights reserved.