1st Quarter Results

Orad Hi-Tec Systems
15 May 2007








               Orad Hi-Tec Systems Ltd. ('Orad' or the 'Company')

                     Results for the first quarter of 2007



Orad Hi-Tec Systems Ltd. (Frankfurt - Prime Standard; London - AIM. Symbol:
OHT), a leading developer, marketer and distributor of state-of-the-art, 3D
graphical solutions for the broadcasting, advertising and visual simulation
markets, today announces its results for the first quarter of 2007.



•       Continued profitability and positive cash flow

•       Revenues increased by 11% to US$4.7 million compared to US$4.3 million
        in Q1/06.

•       Cash, cash equivalents and restricted cash increased by US$1 million to
        US$10.6 million

•       Gross margin improved to 68% compared to 58% in Q1/06

•       Net profit remained at US$0.1 million.

•       Significant improvement in the on-air graphics segment with another
        order worth over $1 million from a Belgian broadcaster, RTBF.



'We are proud to present the results for the first quarter of 2007. The results
for this quarter continue to improve from 2006. Revenue and cash continues to
increase each quarter.  During NAB we presented several new products, some of
them are already installed and operational with customers. The adoption of the
new products will assist us to secure our growth strategy for 2007. Sales of our
on-air graphics products continue to increase, which translates immediately to
higher gross margins due to the higher share of software based revenue in each
contract'.



For further information:


Orad (www.orad.tv)
Ehud Ben-Yair, CFO                                            + 972 976 768 62


Shore Capital (London)
Graham Shore                                                  + 44 20 7408 4090




Edicto Investor  Relations                                    +  49 608494859-1
Dr. Sonke Knop, Frankfurt Germany


                        Orad Hi-Tec Systems Ltd ('Orad' or the 'Company')

                               Results for the first quarter of 2007




Financial and Operational highlights for the first quarter of 2007 compared to
the first quarter of 2006:

Revenues, net profit and cash status:



Traditionally Q1 revenues are lower than Q4. However, Revenues in Q1/07
increased by 11% to US$4.7 million compared to US$4.3 million on Q1/2006 and
compared to US$4.6 million in Q4/06.

Net profit remained the same at the level of US$0.1 million

In the first quarter   of 2007 cash, cash equivalents and restricted cash
increased to US$10.6 million.

The table below reflects the trend in the last five quarters



US$'000's            Q1/06               Q2/06               Q3/06               Q4/06               Q1/07
Revenue              4,276               4,640               4,196               4,607               4,743
Net Profit           132                 264                 54                  185                 117
Cash Status          8,279               9,487               8,940               9,662               10,629



Gross Margin

Gross margin for the first quarter of 2007 improved significantly to 68%,
compared to 58% in the first quarter of 2006, mainly as a result of different
sales mix and the increases in sales volume.

Operational expenses:

Operational expenses in Q1/07 increased to US$3.1 million compared to US$2.5
million. This is mainly due to the increase in the sales and marketing efforts
resulting from increasing territory coverage and the continued R&D effort
deployed to release new applications to the market.


                                                     Q1/06          Q4/06          Q1/07
Research and Development                               650            660            776
Sales and Marketing                                  1,510          1,840          1,904
General and Administrative                             325            362            491
Total Operating expenses:                            2,485          2,862          3,171





CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands, except share and per share data




                                                                            December 31,           March 31,
                                                                                    2006               2007
                                                                                                  Unaudited
ASSETS

CURRENT ASSETS:                                                            
Cash and cash equivalents                                                  $      9,091        $    9,547      
Restricted cash                                                                   571               1,082
Trade receivables, net                                                            2,422             1,987
Other accounts receivable and prepaid expenses                                    837               959
Inventories                                                                       2,696             2,717
Work in process, net of advances from customers                                   444               154

Total current assets                                                              16,061            16,446

SEVERANCE PAY FUND                                                                1,017             1,057

PROPERTY AND EQUIPMENT, NET                                                       1,530             1,456

Total assets                                                               $      18,608      $     18,959

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables                                                             $      1,354       $     1,020
Deferred revenues                                                                 1,841             1,922
Other accounts payable and accrued expenses                                       4,691             5,086

Total current liabilities                                                         7,886             8,028

ACCRUED SEVERANCE PAY                                                             1,503             1,572

SHAREHOLDERS' EQUITY:
Share Capital                                                                     28                28
Additional paid-in capital                                                        75,357            75,380
Foreign currency translation adjustments                                         (547)              (547)
Accumulated deficit                                                              (65,619)           (65,502)

Total shareholders' equity                                                       9,219              9,359

Total liabilities and shareholders' equity                                $      18,608       $     18,959




CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. $'000's, except share and per share data




                                                                     Year ended                Three months ended
                                                                    December 31,                    March 31,
                                                                       2006                  2006               2007
                                                                                                   Unaudited
Revenues:
Sales                                                            $      17,719         $    4,276     $        4,743

Cost of sales                                                           6,901               1,783              1,522

Gross profit                                                            10,818              2,493              3,221

Operating expenses:
Research and development, net                                           2,507               650                776
Sales and marketing                                                     6,631               1,510              1,904
General and administrative                                              1,506               325                491

Total operating expenses                                                10,644              2,485              3,171

Operating income                                                        174                 8                  50
Financial income, net                                                   467                 131                70
Other expenses, net                                                     5                   7                  3

Net income                                                       $      636          $      132     $          117

Basic net earnings per share                                     $      0.06         $      0.01    $          0.01

Weighted average number of shares used in computing basic net    
earnings per share (in thousands)                                       10,791              10,791             10,802

Diluted net earnings per share                                   $      0.06         $      0.01    $          0.01

Weighted average number of shares used in computing diluted      
net earnings per share (in thousands)                                   10,823              10,813             10,971






STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

U.S. $'000's, except share data




                                           Number of      Share      Additional     Foreign      Accumulated    Total
                                          outstanding                 paid-in      currency        deficit
                                           ordinary      capital      capital     translation
                                            shares                                adjustments

Balance as of January 1, 2006            10,790,621      $ 28    $    75,281   $   (547)      $  (66,255)   $     8,507


Comprehensive income:
Net income                               -                 -          -            -             636              636
Issuance of shares upon exercise of      10,000        *)  -          9            -             -                9
  employee share options
Share based compensation                 -                 -          67           -             -                67

Balance as of December 31, 2006          10,800,621        28         75,357       (547)         (65,619)         9,219


Comprehensive income:
Net income                               -                 -          -            -             117              117
Issuance of shares upon exercise of      1,500         *)  -          3            -             -                3
employee share options
Share-based compensation                 -                 -          20           -             -                20

Balance as of March 31, 2007            10,802,121         28         75,380       (547)        (65,502)          9,359
(unaudited)


Balance as of January 1, 2006           10,790,621    $    28   $     75,281  $    (547)     $  (66,255)     $    8,507


Comprehensive income:
Net income                              -                  -          -             -            132              132
Share-based compensation                -                  -          7             -            -                7

Balance as of March 31, 2006            10,790,621    $    28  $      75,288  $     (547)    $  (66,123)    $     8,646
(unaudited)                                                                                


*)      Represents an amount lower than US$1.


CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. $'000's




                                                                    Year ended                Three months ended
                                                                   December 31,                    March 31,
                                                                       2006                   2006            2007
                                                                                                   Unaudited
Cash flows from operating activities:

Net income                                                        $    636      $              132        $  117
Adjustments to reconcile net income to net cash provided

      by operating activities:
Depreciation                                                           569                     140           142
Share-based compensation                                               67                      7             20
Decrease in trade receivables, net and other accounts                  1,214                   1,095         313
receivable and prepaid expenses
Decrease (increase) in inventories                                     29                      45            (21)
Decrease (increase) in work in process, net of advances from           22                      (8)           290
customers
Increase (decrease) in trade payables, other accounts payable          731                     (671)         90
and accrued expenses and accrued severance pay, net
Increase in deferred revenues                                          640                     1,679         81
Other                                                                  5                       7             3

Net cash provided by in operating activities                           3,913                   2,426         1,035

Cash flows from investing activities:

Purchase of property and equipment                                     (146)                   (16)          (80)
Proceeds from sale of property and equipment                           48                      31            9
Decrease (increase) in restricted cash                                 (71)                    250           (511)

Net cash provided by (used)  investing activities                      (169)                   265           (582)

Cash flows from financing activities:

Issuance of shares upon exercise of employees share options            9                       -             3

Net cash provided by financing activities                              9                       -             3

Increase in cash and cash equivalents                                  3,753                   2,691         456
Cash and cash equivalents at the beginning of the period               5,338                   5,338         9,091

Cash and cash equivalents at the end of the period                $    9,091       $           8,029     $   9,547



a.  The Company's shares and options held by members of the Board of
    Directors and officers of the Company:


                                                                                 Number of               Number of
                                                                                 Ordinary                  share
                                                                                  shares                options *)

Avi Sharir                                                                      2,143,238               184,932

Moshe Nissim                                                                    -                       35,000

Ehud Ben-Yair                                                                   -                       45,000

Orna Nehustan                                                                   -                       30,000

Dan Falk                                                                        -                       20,000

Shimon Ravid                                                                    -                       10,000

Uzi Peled                                                                       -                       10,000

Daniel Furman                                                                   753,300                 10,000

Anat Segal                                                                      -                       20,000



*)       Each share option is convertible into one Ordinary share.


b.       As of March 31, 2007, the Company employs 131 employees.

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