Embargoed until 7:00 AM, Thursday, August 28, 2008 Visonic Interim Results

Visonic Limited , the international developer and manufacturer of electronic security systems (alarms) and home management systems, is pleased to announce its Interim Results for the half year ended 30 June 2008.

Key Points

* 20% increase in sales to $44.6m (H1-2007 $37.1m) * Fourfold increase in profit before tax to $4.3m (H1-2007: $1.0m) * 334% increase in earnings per share (from 2.3 cents in H1-2007) to 10 cents * Strong balance sheet with $13.0m in cash and cash equivalents * Significant increase in sales in major geographic markets

Visonic's Chairman, Yaacov Kotlicki, commented:

"We have seen the benefits in the first half of 2008 of Visonic's long-standing commitment to investment in R&D, with strong growth in sales and profits. This positive trend in sales has continued into the beginning of the second half of 2008 and we remain confident that the Company's technological expertise and market leading product range provide a sound platform for Visonic's continuing growth."

Chairman's & CEO's StatementResults Overview

Visonic's revenue from the core businesses of Security and Home Management recorded a strong 20% increase in the first half of 2008, to $40.9m, against $34.1m in the first half of 2007. This impressive performance was derived from Visonic's well-established customer base, reflecting rising demand for Visonic's products in its major geographic markets Europe and North America, as well as the success of Visonic's strategy of building sales by developing new channels to market through relationships with major security and utility companies.

The main drivers of the 20% increase in sales were Visonic's flagship product, the PowerMax wireless security system and its advanced variant, the PowerMaxPro, which has a built-in GSM cellular modem, allowing control and monitoring of premises from remote locations via the internet; and the Home Health Care business based on the Amber System. Customer awareness of and demand for the Amber System and the Remote Home Control system continues to grow. The geographical territories which saw the greatest advance in sales were: Far East & Pacific, up 47.6%; UK up 39%; Mainland Europe up 30.3%; Israel up 7.6% and North America up 6.5%. The Board believes that this is an excellent achievement given the weakness in key sectors of the global economy.

As a result of the increase in sales and continuous efficiency improvements, there was a substantial improvement in the operating margin for the six months to 30 June 2008, compared to the corresponding period in 2007. This margin improvement was achieved despite the continued weakness of the US Dollar against the New Israeli Shekel ("NIS"), Visonic's ongoing commitment to the R&D essential to maintain its market-leading position in wireless technologies, and sales and marketing support.

The gross profit margin remained unchanged from that of the first half of 2007 (41.4%) and profit before tax increased fourfold to $4.3m (H1-2007 $1.0m).

The tax liability in Israel is calculated on the NIS denominated accounts with reference to Israeli tax law and accounting principles, rather than on the US Dolllar accounts prepared under IFRS. The Company benefited from a favorable tax regime in Israel and the total tax expense was $0.1m on global earnings.

Earnings per share increased significantly to 10.0 cents from 2.3 cents in the comparable period in 2007.

The balance sheet remained strong with $13.0m in cash and cash equivalents. Equity represented 60% of the balance sheet total. Cash flow from operating activities was positive and amounted to $1.5m (H1-2007 negative $2.6m) due to the strong improvement in profits.

The increase in sales activities in the first half was, unsurprisingly, reflected in additional working capital, particularly trade receivables which rose from $20.4m at 31 December 2007 to $26.5m and inventories which increased from $11.3m at 31 December 2007 to $14.9m. This increase has partially been offset by an increase in trade payables from $8.3m at 31 December 2007 to $13.2m.

As stated in Visonic's announcement of June 27, 2008, Credit Suisse Securities (USA) LLC ("Credit Suisse") notified Visonic that a settlement agreement, previously announced on 25 June 2008, was terminated. Accordingly, Visonic is currently proceeding with its arbitration claim against Credit Suisse and two of its former employees.

As previously announced on 18 June 2008, Visonic has signed a non-binding term sheet with an international company for the sale of its Location Tracking Systems business, Visonic Technologies ("VT") and negotiations are continuing. VT's revenue increased 27% in the first half of 2008, to $3.8m, against $3m in the first half of 2007.

Outlook

The positive trend in sales seen in the first half of 2008 has continued through the beginning of the second half of the year and the Board remains confident that the Company's technological expertise and market leading product range provide a sound platform for Visonic's continuing growth.

This report contains certain forward-looking statements within the meaning of Israeli applicable law relating to future events or our future performance, such as statements regarding trends, demand for our products and expected revenues, operating results and earnings.

Such forward-looking statements usually contain language such as "believe", "estimate" and the like.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements.

These risks and other factors include but are not limited to: changes affecting currency exchange rate, including the NIS/US Dollar and the NIS/EURO exchange rate; payment default by any of our major clients; the loss of one of more of our key personnel; changes in laws and regulations, including those relating to the electronic security (alarms) industry and the home management industry and inability to meet and maintain regulatory qualifications and approvals for our products; termination of arrangements with our suppliers; loss of one or more of our principal clients; increasing levels of competition in markets in which we do business; changes in economic conditions in Israel, including in particular economic conditions in the Company's core markets; our inability to predict accurately consumption of our products; and risks associated with product liability claims.

We cannot guarantee future results, levels of activity, performance or achievements. We do not assume any obligation to update the forward-looking information contained in this report.

Yaacov Kotlicki Dr. Avigdor Shachrai

Chairman President & CEO 28 August 2008 Dr. Avigdor Shachrai (President & CEO) Yair Naaman (CFO) Visonic Limited Tel: + 972 3 645 6797 Website: www.visonic.com Alistair Mackinnon-Musson Nicola Savage Hudson Sandler Tel: + 44 (0)20 7796 4133 Email: visonic@hspr.com Neil Kirton Richard Tulloch Arbuthnot Securities Tel: + 44 (0)20 7012 2000 Independent Auditors' Report To the Shareholders of Visonic Ltd.

Re: Report on review of interim condensed

consolidated financial statements for the six

months ended 30 June 2008

Introduction

We have reviewed the accompanying interim condensed consolidated financial statement of Visonic Ltd. and its subsidiaries (the "Group") as of 30 June 2008, comprising of the interim consolidated balance sheet as of 30 June 2008 and the related interim consolidated statements of income, changes in equity and cash flows for the six months period, then ended and explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

We have been furnished with reports of other accountants in respect of the review of the interim financial statements of subsidiaries, whose assets constitute approximately 22.9 per cent of total consolidated assets as of 30 June 2008 and whose revenues constitute approximately 47.5 per cent of total consolidated revenues for the six months then ended.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing. Consequently, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review and the reports of other accountants referred to above, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.

Tel-Aviv, Israel KOST FORER GABBAY & KASIERER August 27, 2008 A Member of Ernst & Young Global

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

As of As of 30 June 31 December 2008 2007 2007 US$ '000 US$ '000 US$ '000 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents 13,027 8,634 13,367 Short-term deposits - 3,777 - Available-for-sale financial assets 183 171 183 Trade receivables 26,452 20,302 20,386 Income tax receivable 2,958 2,725 2,528 Other accounts receivable 2,807 2,379 1,801 Inventories 14,897 13,516 11,251 Total current assets 60,324 51,504 49,516 NON-CURRENT ASSETS: Long-term deposits 1,700 - 1,960 Property and equipment, net 5,863 5,895 5,613 Prepaid expenses 644 611 618 Deferred tax assets 1,475 1,277 1,565 Intangible assets, net 4,243 4,213 4,484 Other investment - 1,190 - Total non-current assets 13,925 13,186 14,240 Total assets 74,249 64,690 63,756 LIABILITIES AND EQUITY CURRENT LIABILITIES: Credit from banks and current maturities 4,700 1,585 4,520 of long-term loans Trade payables 13,207 8,920 8,311 Employees benefits 3,431 2,578 2,954 Other current liabilities 4,048 2,754 2,716 Total current liabilities 25,386 15,837 18,501 LONG-TERM LIABILITIES: Bank loans 4,000 7,000 4,000 Employees benefits liability 160 159 15 Total long-term liabilities 4,160 7,159 4,015 EQUITY: Share capital 21 21 21 Share premium 23,710 23,468 23,596 Net unrealized gains reserve 13 1 13 Retained earnings 20,959 18,204 17,610 Total equity 44,703 41,694 41,240 Total liabilities and equity 74,249 64,690 63,756

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

August 27, 2008 Date of approval of Yaacov Kotlicki Dr. Avigdor Yair Naaman the Sacharai financial Chairman of the Chief Executive Chief Financial statements Board Officer Officer

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Six months ended Year ended 30 June 31 December 2008 2007 2007 US$ '000 US$ '000 US$ '000 Unaudited Audited Sale of goods 44,645 37,070 74,388 Cost of sales (26,156) (21,713) (43,722) Gross profit 18,489 15,357 30,666 Research and development costs (3,491) (3,382) (6,795) Selling and marketing expenses (8,760) (8,828) (17,420)

General and administrative expenses (2,837) (2,156) (4,371)

Share-based payments expense (114) (114) (227) Total operating expenses (15,202) (14,480) (28,813) Operating profit 3,287 877 1,853 Financial income 133 425 436 Financial expenses (513) (268) (1,745) Exchange rate difference 1,318 - 863 Other income (expenses) 43 9 (1,182) Profit before taxes on income 4,268 1,043 225 Taxes on income 112 87 (134) Net profit 4,156 956 359 Basic and diluted earnings per share (in 10.0 2.3 1.0 cents)

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Share Share Net Retained Total Total capital premium unrealized earnings equity recognized gains income (loss) (expenses) reserve US$`000 US$`000 US$`000 US$`000 US$`000 US$`000 Six months ended 30 June 2008 (Unaudited) As of 1 January 21 23,596 13 17,610 41,240 2008 - Share-based - 114 - - 114 - payments expense Dividend - - - (807) (807) - Net profit - - - 4,156 4,156 4,156 4,156 As of 30 June 2008 21 23,710 13 20,959 44,703 (Unaudited) Six months ended 30 June 2007 (Unaudited) As of 1 January 21 23,354 (2) 18,075 41,448 2007 Net gain on - - 3 - 3 3 available-for-sale financial assets Exercise of *) - *) - - - *) - - options Share-based - 114 - - 114 - payments expense Dividend - - - (827) (827) - Net profit - - - 956 956 956 959 As of 30 June 2007 21 23,468 1 18,204 41,694 (Unaudited) Year ended 31 December 2007 (Audited) As of 1 January 21 23,354 (2) 18,075 41,448 2007 Net loss on - - 15 - 15 15 available-for-sale financial assets Exercise of *) - 15 - - 15 - options Share based - 227 - - 227 - payments expense Dividend (824) (824) - Net profit - - - 359 359 359 374 As of 31 December 21 23,596 13 17,610 41,240 2007

*) Represents an amount less than $ 1 thousand.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended Year ended 30 June 31 December 2008 2007 2007 US$ '000 US$ '000 US$ '000 Unaudited Audited Cash flows from operating activities: Net profit 4,156 956 359

Adjustments to reconcile net profit to (2,673) (3,526) 2,514 net cash provided by (used in) operating

activities (a)

Net cash provided by (used in) operating 1,483 (2,570) 2,873 activities

Cash flows from investing activities: Short-term deposits, net - 4,223 4,800 Proceeds from held to maturity - 1,000 1,000 investments Acquisition of intangible assets (296) (603) (1,322) Proceeds from sale of property and 35 - 24 equipment

Purchase of property and equipment (935) (683) (1,114)

Net cash provided by (used in) investing (1,196) 3,937 3,388 activities

Cash flows from financing activities: Dividend paid (807) (713) (824) Exercise of options - *) - 15 Decrease in balances with related party - (53) (53) Repayment of long-term loans from banks - - (229) Short-term bank credit, net 180 409 573

Net cash used in financing activities (627) (357) (518)

Increase (decrease) in cash and cash (340) 1,010 5,743 equivalents

Cash and cash equivalents at the 13,367 7,624 7,624 beginning of the period Cash and cash equivalents at the end of 13,027 8,634 13,367 the period Non-cash activities: Dividend payable - 114 -

*) Represents an amount less than $ 1 thousand.

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended Year ended 30 June 31 December 2008 2007 2007 US$ '000 US$ '000 US$ '000 Unaudited Audited (a) Adjustments to reconcile net profit to net cash provided by (used in) operating activities: Income and expenses not involving cash flows: Depreciation and amortization 1,201 1,040 2,175 Deferred taxes 90 132 (156) Increase (decrease) in long-term 145 52 (92) employee benefit liabilities Loss (gain) from sale of property (14) - 2 and equipment, net Loss from revaluation of other - - 1,190 investment Loss from revaluation of short and 260 - 1,240 long-term deposits Share-based payments expense 114 114 227 Changes in working capital items: Increase in trade receivables (6,066) (3,681) (3,765) Increase in income tax receivable (430) (888) - Increase in other accounts (1,006) (91) (204) receivable Decrease (increase) in inventories (3,646) 909 3,174 Decrease (decrease) in long-term (26) 56 49 prepaid expenses Increase (decrease) in trade 4,896 (1,675) (2,284) payables Increase in short-term employee 477 174 550 benefits Increase in other current 1,332 332 408 liabilities (2,673) (3,526) 2,514 (b) Supplemental disclosure of cash flows information: Cash paid during the period for: Interest 248 439 543 Income taxes 41 879 909 Cash received during the period for: Interest 131 271 471 Income taxes - - 2,112

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1:- GENERAL

These financial statements have been prepared in a condensed format as of 30 June 2008 and for the six month period then ended. These interim financial statements are to be read in conjunction with the annual financial statements of the Company as of 31 December 2007, and their accompanying notes.

NOTE 2:- BASIS OF PREPARATION AND ACCOUNTING POLICIES

These interim condensed financial statements for the six months ended 30 June 2008 have been prepared in accordance with IAS 34, "Interim Financial Reporting".

The significant accounting policies and methods of computations applied in the preparation of the interim financial statements are the same as those applied in the annual financial statement as of 31 December 2007, except for the adoption of new Standards and Interpretations, noted below.

Adoption of these Standards and Interpretations did not have any effect on the financial position or performance of the Group.

IFRS 2 Share-based Payment - Vesting Conditions and Cancellations

This Standard has been amended to clarify the definition of vesting conditions and to prescribe the accounting treatment of an award that is effectively cancelled because a non-vesting condition is not satisfied. The adoption of this amendment did not have any impact on the financial position or performance of the Group.

NOTE 3:- DIVIDEND PAID

On May 23, 2008, the Company distributed dividend in the amount of *‚¤ 0.01 per share. The total dividend amounted to $ 807 thousand, which was paid in cash.

NOTE 4:- SHARE-BASED PAYMENT

During the six months ended June 30, 2008 542,000 shares options were granted to senior executives and other employees under the stock options plan. The exercise price of the options of £ 0.49 is equal to the market price of the shares on the date of grant. The fair value of the options granted amounting to $ 72 thousand is estimated at the date of grant using the Black & Scholes pricing model, taking into account the terms and conditions upon which the options were granted. The contractual life of each option granted is until 27 November 2013. There are no cash settlement options. The weighted average fair value of options granted during the six months ended 30 June 2008, was estimated on the date of grant using the following assumptions:

Expected volatility (%) 29.1 Risk free interest rate (%) 4.08 Expected life (years) 3 Share price and exercise price (£) 0.49

NOTE 5:- SEGMENT REPORTING

a. General:

1. The Group companies operate in two principal business segments: location tracking systems and security and home management.

2. All revenues and expenses are allocated directly to the business segments.

b. The following data is presented in accordance with IAS 14:

Six months ended 30 June 2008 (Unaudited) Security Location Total and home tracking consolidated management systems US$ '000 US$ '000 US$ '000 Total revenues 40,860 3,785 44,645 Segment operating 3,137 150 3,287 profit Financial income, net 938 Other income, net 43 Taxes on income (112) Net profit 4,156 Six months ended 30 June 2007 (Unaudited) Security Location Total and home tracking consolidated management systems US$ '000 US$ '000 US$ '000 Total revenues 34,091 2,979 37,070 Segment operating 1,182 (305) 877 profit (loss) Financial income, net 157 Other income, net 9 Taxes on income (87) Net profit 956

NOTE 5:- SEGMENT REPORTING (Cont.)

Year ended 31 December 2007 (Audited) Security Location Total and home tracking consolidated management systems US$ '000 US$ '000 US$ '000 Total revenues 68,051 6,337 74,388 Segment operating 2,158 (305) 1,853 profit (loss) Financial expenses, (446) net Other income, net (1,182) Taxes on income 134 Net profit 359 c. Geographical split of sales: Below are the consolidated sales of the Group according to geographic markets without taking into account the location where the product was manufactured. Six months ended Year ended 30 June 31 December 2008 2007 2007 US$ '000 US$ '000 US$ '000 Unaudited Audited Europe 27,398 21,026 41,264 North America 6,916 6,495 13,074 U.K. 5,309 3,818 8,021 Israel 2,242 2,083 4,543 Far East and Pacific 1,365 925 2,477 Other 1,415 2,723 5,009 44,645 37,070 74,388

NOTE 6:- ADDITIONAL INFORMATION

Visonic has signed a non-binding term sheet with an international company for the sale of its Location Tracking Systems business, Visonic Technologies ("VT"). The parties are negotiating a detailed binding agreement. Upon the completion of the significant terms of the sale agreement, the assets, liabilities and results of VT will be reclassified as discontinued operation.

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