Valor Concludes 2008 with Record Cash Flow from Operating Activities of $5.5M

YAVNE, Israel - February 25, 2009 - Valor Computerized Systems Ltd

25.02.2009

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

YAVNE, Israel - February 25, 2009 - Valor Computerized Systems Ltd. [Prime Standard: VCR], a global provider of productivity improvement software solutions for the printed circuit board industry, announced today its financial results for the period ending December 31, 2008. p>

Revenues in the 2008 were $40.4M, a decrease of 3.7% as compared with $41.9M in 2007.

Operating income in 2008 was $2.8M, not including issuance costs of cancelled IPO in amount of $1.4M and restructuring expenses of $1.7M, representing a growth of 12% in operating margin as compared with 2007.

Net income in 2008 was $3.5M not including the issuance costs of cancelled IPO and restructuring expense, net of tax, representing a growth of 17% in net profit as compared with 2007.

Cash flow from operating activities in 2008 accumulated to $5.5M, as compared with 4.6M in 2007.

Earnings per Share (diluted) in 2008 were $0.04, as compared with $0.14 in the parallel period of the previous year.

Revenues in the fourth quarter of 2008 were $9.1M, a decrease of 14% as compared with $10.6M in the fourth quarter of 2007.

Net profit was $0.4M in the fourth quarter of 2008, excluding restructuring expenses, net of tax, as compared with a net profit of $0.8M in the same period of the previous year.

Information and Explaination of the Issuer to this News:

Some of the following statements are forward-looking in nature, and actual results may differ materially:

'Valor concluded 2008 in a relatively good position, with a substantial cash flow from operating activities of $5.5M,' said Dan Hoz, Valor's CEO. 'We all know these are challenging times for the electronics industry and the market as a whole, and yet the decrease in our revenues stems mainly from weakness in the fabrication market, in which we operate via Frontline - our joint venture with Orbotech (Nasdaq: ORBK). In our other market segments we actually demonstrated relative stability, and even some increase in market share thanks to our software solutions which assist electronics manufacturers in reducing their operating costs and are therefore in high demand during times like these.'

'We are also very pleased to see our maintenance contracts renewals and customer retention maintaining a stable trend, even in Japan and APAC, which seem to have been affected more severely by the economic conditions' said Hoz. 'In addition, we are strengthening our business through the recent acquisition of PCB Matrix, as well as the appointment of a new EVP of Business and Strategy.'

'We are putting a lot of emphasis on our contribution in 2009' said Hoz. 'In line with that approach we have made some necessary adjustments to our expenses during 2008, some of which resulted in restructuring expenses of $1.7M and issuance costs of cancelled IPO totaling $1.4M. Nevertheless, our cash position remains firm at $30M, and our ability to sell our products has not been affected. It is important for us to continue supporting our customers, and we believe that we are fully capable of continuing to do so throughout 2009 as well.'

The complete financial report can be downloaded from the Investor Relations section on the Valor corporate website: www.valor.com

Valor will hold an Earnings Call on Feb. 25, at 14:00 GMT. To participate, call the following numbers: Israel Toll Free - 180 934 4019 Germany Toll Free - 0800-330-4462 Germany Local - +49-6971-044-5554 US Toll Free - 1-866-691-3082 US Local - +1-480-629-9039

Conference code:3989631 Participant registration begins 5-10 minutes before the scheduled time.

About Valor Valor is a global provider of productivity improvement software solutions for the printed circuit board, or PCB, manufacturing supply chain. PCBs are the principal electronic interconnect technology used in the vast majority of electronic products sold today. Valor's solutions target three key segments in the PCB manufacturing market: design of the physical layout of the PCB, fabrication of the bare PCB, and assembly of PCB components. Valor is listed on the Prime Standard of the Frankfurt Stock Exchange [WKN 928731]. More information about Valor can be found on www.valor.com.

Contact Information Valor Corporate: Alon Erlich, Valor Computerized Systems, Ltd.; IR@Valor.com; Tel: +972-(0)8-943-2430

Risks Regarding Forward Looking Statements Certain statements included herein are forward-looking in nature and, accordingly, are subject to risks and uncertainties. Such forward-looking statements include statements regarding the size and timing of the proposed offering. These forward-looking statements are only predictions based on our current expectations and projections about future events. Many factors, including those indicated in the press release, as well as general market conditions, could impact the realization of these forward-looking statements. Valor wishes to caution prospective investors not to rely on any such forward-looking statements as predictions of future events. Valor does not undertake, and specifically disclaims any obligation, to update any forward-looking statements, which speak only as of the date made. For additional information, see our website at: www.valor.com/fls

25.02.2009 Financial News transmitted by DGAP

Language: English Issuer: Valor Computerized Systems Ltd. 4 Faran Street 70600 Yavne Israel Phone: +972-(0)3 - 9432430 Fax: +972-(0)3 - 9432429 E-mail: IR@valor.com Internet: www.valor.com ISIN: IL0010845324 WKN: 928731 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Düsseldorf End of News DGAP News-Service