Lipman Retail/Restaurant Application with Vital Gift Card Supplement Achieves Vital Class A Approval

Syosset, NY, February 15, 2006 --(PR.com)-- Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA), today announced that the Lipman Retail Restaurant Application (POS4_92 with Protocol 4.45) with Vital Gift Card Supplement has achieved Vital Processing Services® (Vital®) Class A approval. The application is approved for the Lipman NURIT 8000 SECURE (8010-US-M11 only), 8100 and 8320 terminals.

“The Vital Gift Card supplement enables merchants to electronically process credit, debit, electronic benefits transfer (EBT), quick service restaurant (QSR) and Vital Gift Card transactions all from a single terminal,” said Matt Talbot, vice president of product management at Vital. The supplement can be used without the retail/restaurant application on the above-listed NURIT terminals to process Vital Gift Cards only.

Vital Gift Card is a closed-loop, fully integrated prepaid offering for small to medium sized merchants, allowing them to increase profitability and build customer loyalty. Merchants are able to verify gift card balances using the application. Through a simple online ordering system, acquiring banks and independent sales organizations (ISOs) can place gift card and associated merchandise orders on behalf of their merchants, or enable merchants who have Internet access to visit the site and order materials themselves. Reporting functionality for gift card transactions is also available. Vital Gift Card is supported on the NURIT 8000 SECURE (8010-US-M11), 8100 and 8320 terminals.

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 and Latin America. 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.

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