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Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001119083-06-000017.txt : 20060802
<SEC-HEADER>0001119083-06-000017.hdr.sgml : 20060802
<ACCEPTANCE-DATETIME>20060802080211
ACCESSION NUMBER:		0001119083-06-000017
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060630
FILED AS OF DATE:		20060802
DATE AS OF CHANGE:		20060802

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MIND CTI LTD
		CENTRAL INDEX KEY:			0001119083
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31215
		FILM NUMBER:		06996120

	BUSINESS ADDRESS:	
		STREET 1:		INDUSTRIAL PARK BUILDING 7
		CITY:			YOQNEAM ILIT ISRAEL
		STATE:			L3
		ZIP:			20692
		BUSINESS PHONE:		97249936666

	MAIL ADDRESS:	
		STREET 1:		PO BOX 144
		CITY:			YOQNEAM ILIT ISRAEL
		ZIP:			20692
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>mind6k.htm
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
	<TITLE> MIND CTI LTD (Form: 6-K, Received: 07/25/2002 09:11:35) </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF"                 VLINK="#800080">
<BR>
<P>

<FONT SIZE=5>
	<STRONG><CENTER>FORM 6-K</CENTER></STRONG>
</font></p>
<P>
<FONT SIZE=5>
	<STRONG><CENTER>SECURITIES AND EXCHANGE COMMISSION</CENTER></STRONG>
</font></p>
<FONT SIZE=4>
	<CENTER>Washington, D.C. 20549</CENTER>
</font></p>
<p>
<STRONG><CENTER>Report of Foreign Private Issuer</CENTER></STRONG>
<P>

<CENTER>Pursuant to Rule 13a-16 or 15d-16 of</CENTER>
<CENTER>the Securities Exchange Act of 1934</CENTER>
<P>

<STRONG><CENTER>
  For the month of August, 2006
</CENTER>
</STRONG>
<P>
<STRONG><CENTER>
Commission File Number: 000-31215
</CENTER>
</STRONG>
<P>
<center>
	<FONT SIZE=5><STRONG>MIND C.T.I. LTD.</strong></font>
</center>
</p>
<CENTER>
(Translation of Registrant's Name into English)
</CENTER>
<P>

<CENTER><STRONG>
	Industrial Park, Building 7, Yoqneam, Israel 20692</STRONG>
</CENTER>
<CENTER>
	(Address of Principal Executive Offices)
</CENTER>
<P>

<CENTER>
	Indicate by check mark whether the registrant files or will file annual
</CENTER>
<CENTER>
	reports under cover Form 20-F or Form 40-F:
</CENTER>
<P>

<CENTER>Form 20-F [X] Form 40-F [ ]</CENTER>
<P>
<CENTER>
	Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): N/A
</CENTER>
<P>
<CENTER>
	Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): N/A
</CENTER>
<P>

<CENTER>
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
	<BR>
	Yes [ ] No  [X]
</CENTER>
<P>

<center>
	If &quot;Yes&quot; is marked, indicate below the file number assigned to the registrant
	in connection with Rule 12g3-2(b): 82-N/A.
</center>
<P>
<p>
<STRONG><CENTER>INCORPORATION BY REFERENCE</CENTER></STRONG>
<P>
<CENTER>
The financial statements included in the press release attached as Exhibit 1 to this Report on Form 6-K are hereby incorporated by reference into: (i) the Registrant's Registration Statement on Form S-8, Registration No. 333-117054; (ii) the Registrant's Registration Statement on Form S-8, Registration No. 333-100804; and (iii) the Registrant's Registration Statement on Form S-8, Registration No. 333-54632.
</CENTER>
<P>
<p>
<STRONG><CENTER>CONTENTS</CENTER></STRONG>
<P>
<CENTER>This report on Form 6-K of the registrant consists of the following document, which is attached hereto and incorporated by reference herein:
<BR>1.	Press Release: MIND CTI Reports Revenue of $5.1 Million for the Second Quarter of 2006
</CENTER>
<P>
<P>
<STRONG><CENTER>SIGNATURES</CENTER></STRONG>
<P>
<CENTER>
Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</CENTER>
<p>Date: August 02, 2006
<p>
<table width="100%" cellpadding="0" cellspacing="0">
	<tr>
	<td valign="bottom" width="50%"></td>
	<td>MIND C.T.I. LTD. <BR><BR></td></tr><tr><td></td><td>
	By: /s/ Monica Eisinger<br>
	Name: Monica Eisinger<br>
	===================<br>
     	Title: Chairperson of the Board of
	Directors, President and Chief Executive Officer
	</td>
	</tr>
</table>
<P ALIGN="CENTER"><STRONG>EXHIBIT INDEX</STRONG></P>
<table cellpadding="2">
	<tr><td width="150">Exhibit Number</td><td>Description of Exhibit</td></tr>
	<tr><td align="right" valign="top">1.</td><td>Press Release: MIND CTI Reports Revenue of $5.1 Million for the Second Quarter of 2006</td>
	</tr>
</table>

<center>
	<h1>MIND CTI Reports Revenue of $5.1 Million for the Second Quarter of 2006
	</h1>
</center>
<p>
	<b>Yoqneam, Israel, August 1, 2006</b> - MIND CTI Ltd. (NasdaqNM:MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for VoIP, Mobile, Wireline and Quad-play carriers worldwide, today announced results for the second quarter 2006.
</p>
<p>Monica Eisinger, Chairperson and CEO, commented: "The second quarter results reflect the change in our business model and customer base. As we close more managed services deals we build long-term relationships with our customers as well as future revenue stream. As we achieve our goal of increased average deal size, our business model changes and the professional services part of our business grows as well. We are thrilled with our three new wins this quarter, which include a large operator in Europe to whom we will provide a complete end-to-end billing solution for Wireline, Wireless and IP services. As always, we are focused on successful and timely deliveries of our billing and customer care product based solutions, building our business for the long term and increasing our operating margins".</p>
<p>
	<b>Financial Highlights of Q2 2006</b>
	<ul type="square">
		<li>Revenues of $5.07 million, a 48% increase over the second quarter of 2005.</li>
		<li>Net income, excluding amortization of intangible assets, loss from premature withdrawal of long-term bank deposits and equity-based compensation expense, of $1.09 million.</li>
		<li>GAAP net loss of $492 thousand or $0.02 per share, resulting from a GAAP operating income of $710 thousand, offset by the loss from a premature withdrawal of long-term bank deposits in the amount of $1,330,000.</li>
		<li>Cash flow from operating activities in Q2 2006 was $0.6 million.</li>
		<li>Cash position remains strong with approximately $36 million on the balance sheet on June 30, 2006.</li>
	</ul>
</p><p>
	<b>Six Months Highlights</b>
	<ul type="square">
		<li>Revenues were $10.33 million, a 59% increase over the first six months of 2005.</li>
		<li>Net income, excluding amortization of intangible assets, loss from premature withdrawal of long-term bank deposits and equity-based compensation expense, of $2.15 million.</li>
		<li>Five new wins, three in the US and two in Europe.</li>
		<li>The company distributed $0.14 per share in annual dividends.</li>
	</ul>
</p><p>
	<b>Revenue Distribution for Q2 2006</b><br>
	The geographic revenue breakdown, as a percentage of total revenues, was as follows: sales in the Americas represented 56%, Europe represented 31%, Africa, APAC and Israel represented 13%.
</p><p>
Revenue from our customer care and billing software totaled $4.45 million, while revenue from our enterprise call management software was $623 thousand. The revenue breakdown from our business lines of products was $1.96 million, or 39%, from licenses, $1.49 million, or 29%, from maintenance and $1.62 million, or 32%, from services.
</p><p>
<b>Conference Call Information </b><br>
MIND will host a conference call on August 2, 2006 at 8:30 a.m., Eastern Standard Time, to discuss the Company's second quarter 2006 results and other financial and business information. The call will be carried live on the Internet via www.fulldisclosure.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.
 </p><p>
<b>About MIND</b><br>
MIND CTI Ltd. is a leading provider of convergent prepaid and postpaid end-to-end billing and customer care solutions for VoIP, Mobile, Wireline and Quad-play carriers worldwide. Since 1997 MIND has been a pioneer in enabling the VoIP technology for emerging and incumbent service providers. In August 2005 MIND acquired Sentori, Inc., a US based provider of customer care and billing solutions to wireless carriers and mobile virtual network operators (MVNO's). Sentori, Inc. brings over ten years of wireless experience staff and seven years of a wireless operational solution to carriers. A global company, MIND operates from offices in Europe, Israel and the United States. MIND employs over 300 IT professionals and serves customers in more than 40 countries around the world. For financial information, reports and presentations, please visit the Investor Relations site: http://www.mindcti.com/ir
</p><p><font size="2">
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements." These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securities Exchange Commission.  The Company does not undertake to update any forward-looking information.</font>
</p><p>
<b>For more information please contact:</b><br>
Andrea Dray<br>
MIND CTI Ltd.<br>
Tel: +972-4-993-6666<br>
investor@mindcti.com<br>
</p>

<center>(tables to follow)</center>
<!-- _________________________________________________________________________________________________-->
<p>
<hr width="100%">

<a name="table"></a>
<a href="#top"><font size="1"><b>Back to top</b></font></p></a>

<center><h2>MIND C.T.I LTD.</h2><h2 style="font-weight:normal">CONDENSED CONSOLIDATED BALANCE SHEETS</h2></center>
<table border="0" cellpadding="0" cellspacing="0" align="center" width="100%">
<tr><td></td>
<td valign="bottom" colspan="2"  align="center"><p><font size="2">	<b>June 30</b></font></p></td>
<td valign="bottom" rowspan="2" align="center"><p><font size="2">	<b>December 31,</b>	</font></p>	</td></tr>
<tr><td></td><td valign="bottom" colspan="2"  align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td></tr>
<tr><td></td>
	<td valign="bottom" align="center" width="100"><p><font size="2">	<b>2006</b>	</font></p></td>
	<td valign="bottom" align="center" width="100"><p><font size="2">	<b>2005</b>	</font></p></td>
	<td valign="bottom" align="center" width="100"><p><font size="2">	<b>2005</b></font></p></td>
</tr><tr>
	<td></td><td valign="bottom" align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td valign="bottom" align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td valign="bottom" align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td></td><td valign="bottom"  align="center" colspan="2"><p><font size="2">	<b>(Unaudited)</b>			</font></p></td><td valign="bottom" align="center"><p><font size="2">	<b>(Audited)</b>	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td></td><td valign="bottom" colspan="3" align="center"><p><font size="2">	<b>U.S. $ in thousands</b>	</font></p></td></tr>
<tr>
	<td></td>
	<td align="center" colspan="3"><div style="width:95%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>

<tr BGCOLOR="#CCEEFF"><td valign="bottom"  align="center"><p><font size="2">	<b>A  s  s  e  t  s</b>	</font></p></td><td valign="bottom" colspan="3">			   				</td></tr>
<tr><td valign="bottom"><p><font size="2">	<b>CURRENT ASSETS:</b>	</font></p></td><td valign="bottom" align="right">			   				</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Cash and cash equivalents	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 25,694 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 6,354 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 10,174 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Accounts receivable:	</font></p></td><td valign="bottom" align="right">			   				</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">	Trade	</font></p></td><td valign="bottom" align="right"><p><font size="2">	4,882	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 2,518 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	3,389 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:40px"><font size="2">	          Interest accrued on long-term bank deposits	</font></p></td><td valign="bottom" align="right">		</td><td valign="bottom" align="right"><p><font size="2">	 29 	</font></p></td><td valign="bottom" align="right">			</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">	Other	</font></p></td><td valign="bottom" align="right"><p><font size="2">	956	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 726 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	739 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Inventories	</font></p></td><td valign="bottom" align="right"><p><font size="2">	30	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 19 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	30 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:60px"><font size="2">	T o t a l  current assets	</font></p></td><td valign="bottom" align="right"><p><font size="2">	31,562	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 9,646 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	14,332 	</font></p>	</td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>LONG-TERM BANK DEPOSITS</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	10,000	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 40,000 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	30,000 	</font></p>	</td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>OTHER LONG-TERM ASSETS</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	492	</font></p></td><td valign="bottom" align="right"><p><font size="2">	403	</font></p></td><td valign="bottom" align="right"><p><font size="2">	480 	</font></p>	</td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>PROPERTY AND EQUIPMENT</b>, net of accumulated depreciation and amortization	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	1,910	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	 1,885 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	1,957 	</font></p>	</td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>INTANGIBLE ASSETS</b>, net of accumulated amortization	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,160	</font></p></td><td valign="bottom" align="right">		</td><td valign="bottom" align="right"><p><font size="2">	1,660 	</font></p>	</td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>GOODWILL</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	6,966	</font></p></td><td valign="bottom" align="right"><p><font size="2">	150	</font></p></td><td valign="bottom" align="right"><p><font size="2">	6,966 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF">
	<td valign="bottom"><p style="margin-left:60px"><font size="2">	T o t a l  assets	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 52,090 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 52,084 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 55,395 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>	<td valign="bottom"  align="center"><p><font size="2">	<b>Liabilities and shareholders' equity</b>	</font></p></td><td valign="bottom" colspan="3"></td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>CURRENT LIABILITIES -</b>	</font></p></td><td valign="bottom" colspan="3">			   				</td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Accounts payable and accruals:	</font></p></td><td valign="bottom" colspan="3">			   				</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">	Trade	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$699 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 338 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 686 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:40px"><font size="2">	Other	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,584	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 1,721 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,741 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	     Deferred revenues 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,412	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 1,515 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,644 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Advances from customers, net	</font></p></td><td valign="bottom" align="right"><p><font size="2">	342		</font></p></td><td></td><td valign="bottom" align="right"><p><font size="2">	790 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:60px"><font size="2">	T o t a l  current liabilities	</font></p></td><td valign="bottom" align="right"><p><font size="2">	4,037	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 3,574 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	4,861 	</font></p>	</td></tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>EMPLOYEE RIGHTS UPON RETIREMENT</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,143	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 1,118 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,049 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">	T o t a l liabilities	</font></p></td><td valign="bottom" align="right"><p><font size="2">	5,180	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 4,692 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	5,910 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>SHAREHOLDERS' EQUITY:</b></font></p></td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Share capital	</font></p></td><td valign="bottom" align="right"><p><font size="2">	53	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 53 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	53 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Additional paid-in capital	</font></p></td><td valign="bottom" align="right"><p><font size="2">	59,510	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 59,357 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	59,399 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Compensation in respect of options granted to     empolyees	</font></p></td><td valign="bottom" align="right"><p><font size="2">	161	</font></p></td><td valign="bottom" colspan="3">					</td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Accumulated deficit	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(12,814)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(12,018)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(9,967)	</font></p>	</td>
</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:60px"><font size="2">	T o t a l  shareholders' equity 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	46,910	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 47,392 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	49,485 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td valign="bottom"><p style="margin-left:20px"><font size="2">	To t a l  liabilities and shareholders' equity	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 52,090 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 52,084 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 55,395 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
</table>

<p><center><p><font size="2">I</font></p></center>
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<center><h2>MIND C.T.I LTD.</h2><h2 style="font-weight:normal">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</h2></center>

<table border="0" cellpadding="0" cellspacing="0" align="center" width="100%">
<tr><td>		</td>
	<td align="Center" valign="bottom" colspan="2"><p><font size="2">	<b>Six months<br>ended June 30</b>			</font></p></td>
	<td align="Center" valign="bottom" colspan="2"><p><font size="2">	<b>Three months<br>ended June 30</b>			</font></p></td>
	<td align="Center" valign="bottom"><p><font size="2">	<b>Year ended<br>December 31,</b>	</font></p></td>
</tr>
<tr>
	<td></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td></td>
<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2006</b>	</font></p></td>
<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2005</b>	</font></p></td>
<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2006</b>	</font></p></td>
<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2005</b>	</font></p></td>
<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2005</b>	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td>		</td><td valign="bottom" colspan="2" align="center"><p><font size="2">	<b>(Unaudited)</b>			</font></p></td><td valign="bottom" colspan="2" align="center"><p><font size="2">	<b>(Unaudited)</b>			</font></p></td><td valign="bottom" align="center"><p><font size="2">	<b>(Audited)</b>	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td>		</td><td valign="bottom" colspan="5" align="center"><p><font size="2">	<b>U.S. $ in thousands (except per share data)</b></font></p></td>	</tr>
<tr>
	<td></td>
	<td align="center" colspan="5"><div style="width:95%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>REVENUES</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$10,326 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 6,504 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 5,074 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 3,422 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 15,601 	</font></p></td>	</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>COST OF REVENUES</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	3,090	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 1,607 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,492	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 803 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	4,015 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>GROSS PROFIT</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	7,236	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 4,897 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	3,582	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 2,619 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	11,586 	</font></p></td>	</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>RESEARCH AND DEVELOPMENT EXPENSES</b>	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	3,326	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	 2,109 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	1,588	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	 1,110 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	5,086 	</font></p></td>	</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:</b>	</font></p></td><td colspan="5">			   				   			</td>	</tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Selling	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,867	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 1,020 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	885	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 428 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	2,148 	</font></p></td>	</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	General and administrative	</font></p></td><td valign="bottom" align="right"><p><font size="2">	758	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 753 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	399	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 394 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,507 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>OPERATING INCOME</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,285	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 1,015 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	710	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 687 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	2,845 	</font></p></td>	</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>FINANCIAL INCOME (EXPENSES)</b> - net	</font></p></td><td valign="bottom" align="right"><p><font size="2">	*(1,053)	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,021	</font></p></td><td valign="bottom" align="right"><p><font size="2">	*(1,178)	</font></p></td><td valign="bottom" align="right"><p><font size="2">	303	</font></p></td><td valign="bottom" align="right"><p><font size="2">	1,260	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>INCOME (LOSS) BEFORE TAXES ON INCOME</b>	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	232	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	2,036 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(468)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	990 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	4,105 	</font></p></td>	</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>TAXES ON INCOME</b>	</font></p></td><td valign="bottom" align="right"><p><font size="2">	70	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 25 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	24	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 10 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	43 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>NET INCOME (LOSS)</b>	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 162 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 2,011 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ (492)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 980 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 4,062 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>EARNING (LOSS) PER SHARE:</b>	</font></p></td><td colspan="5">			   				   			</td>	</tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Basic and diluted	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 0.01 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 0.09 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ (0.02)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 0.05 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 0.19 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS:</b>	</font></p></td><td colspan="5">			   				   			</td>	</tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	  Basic	</font></p></td><td valign="bottom" align="right"><p><font size="2">	21,500	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 21,417 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	21,528	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 21,453 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	21,431 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>

<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	  Diluted	</font></p></td><td valign="bottom" align="right"><p><font size="2">	21,565	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 21,574 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	21,577	</font></p></td><td valign="bottom" align="right"><p><font size="2">	 21,558 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	21,619 	</font></p></td>	</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
</table>

<br>
<table>
	<tr><td valign="top"><b>*</b></td><td><p><font size="2"><b>Financial expenses for the 6 and 3 month periods ended June 30, 2006 include a loss from a premature withdrawal of long-term bank deposits in the amount of $1,330,000.</b></font></p></td></tr>
</table>

<p><center><p><font size="2">II</font></p></center>
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<a name="table3"></a>
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<center><h2>MIND C.T.I LTD.</h2><h2 style="font-weight:normal">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</h2></center>


<table border="0" cellpadding="0" cellspacing="0" align="center" width="100%">
<tr>
	<td></td>
	<td valign="bottom" align="center" colspan="2"><p><font size="2">	<b>Six months<br>ended June 30</b></font></p></td>
	<td valign="bottom" align="center" colspan="2"><p><font size="2"><b>Three months<br>ended June 30</b></font></p></td>
	<td valign="bottom" align="center"><p><font size="2"><b>Year ended<br>December 31,</b></font></p></td>
</tr>
<tr>
	<td></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td></td>
	<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2006</b>	</font></p></td>
	<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2005</b>	</font></p></td>
	<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2006</b>	</font></p></td>
	<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2005</b>	</font></p></td>
	<td valign="bottom" align="center" width="80"><p><font size="2">	<b>2005</b>	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td>		<td valign="bottom" align="center" colspan="2"><p><font size="2">	<b>(Unaudited)</b>	</font></p></td><td valign="bottom" align="center" colspan="2"><p><font size="2">	<b>(Unaudited)</b>	</font></p></td><td valign="bottom" align="center"><p><font size="2">	<b>(Audited)</b>	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center" colspan="2"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="center"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td>		<td valign="bottom" align="center" colspan="5"><p><font size="2">	<b>U.S. $ in thousands </b>									</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="center" colspan="5"><div style="width:95%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>CASH FLOWS FROM OPERATING ACTIVITIES:</b>	</font></p></td><td colspan="5"></td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Net income (loss) 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 162 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 2,011 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ (492)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	$ 980 	</font></p></td><td valign="bottom" align="right"><p><font size="2">	$ 4,062 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Adjustments to reconcile net income (loss) to net cash provided by operating activities:	</font></p></td><td colspan="5"></td></tr>
<tr><td valign="bottom"><p style="margin-left:40px"><font size="2">	Depreciation and amortization	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	815 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	338 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	329 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	158 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	987 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">	Accrued severance pay 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	94 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	12 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(8)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	73 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(151)	</font></p>	</td>
</tr>
<tr><td valign="bottom"><p style="margin-left:40px"><font size="2">	Capital gain on sale of property and equipment - net	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	 (8)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	 (30)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(4)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(7)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(38)	</font></p>	</td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">	Loss from withdrawal of long term deposits	</font></p></td>
<td valign="bottom"align="right"><p><font size="2">	1,330 	</font></p></td>
<td></td>
<td valign="bottom"align="right"><p><font size="2">1,330 	</font></p></td>
<td></td>
<td></td></tr>
<tr><td valign="bottom"><p style="margin-left:40px"><font size="2">	Compensation in respect of options granted to employees	</font></p></td>
<td align="right"><p><font size="2">	161 	</font></p></td>
<td></td><td align="right"><p><font size="2">84</font></p></td>
<td></td><td>			</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:40px"><font size="2">Changes in operating asset and liability items:</font></p></td><td colspan="5"></td></tr>
<tr><td valign="bottom"><p style="margin-left:60px"><font size="2">Decrease (increase) in accounts receivable:</font></p></td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:80px"><font size="2">	Trade	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(1,493)	</font></p></td>
<td valign="bottom" align="right"><p style="margin-left:80px"><font size="2">	900 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	309 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(738)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	196 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:80px"><font size="2">	Interest accrued on long-term bank deposits	</font></p></td><td valign="bottom" align="right"><p><font size="2">		</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	213 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">		</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	804 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	242 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:80px"><font size="2">	Other	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(217)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	47 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	27 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(271)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	48 	</font></p>	</td></tr>
<tr><td valign="bottom"><p style="margin-left:60px"><font size="2">Increase (decrease) in accounts payable and accruals:</font></p></td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:80px"><font size="2">	Trade	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	13 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(128)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(90)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(25)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(697)	</font></p>	</td>
</tr>
<tr><td valign="bottom"><p style="margin-left:80px"><font size="2">	Other	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(157)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(568)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(161)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(233)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(1,510)	</font></p>	</td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:60px"><font size="2">	      Increase in inventories         	</font></p></td><td valign="bottom" align="right"><p><font size="2">		</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(1)	</font></p></td>
<td></td><td></td>
<td valign="bottom" align="right"><p><font size="2">	(12)	</font></p>	</td>
</tr>
<tr><td valign="bottom"><p style="margin-left:60px"><font size="2">	Decrease in deferred revenues	</font></p></td>
<td align="right"><p><font size="2">	(232)	</font></p></td>
<td>		</td>
<td align="right"><p><font size="2">(487)	</font></p></td>
<td></td>
<td valign="bottom" align="right"><p><font size="2">	(799)	</font></p>	</td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:60px"><font size="2">	Decrease in advances from customers, net	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(448)	</font></p></td>
<td>		</td>
<td valign="bottom" align="right"><p><font size="2">	(233)	</font></p></td>
<td></td>
<td valign="bottom" align="right"><p><font size="2">	(1,467)	</font></p>	</td>
</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	Net cash provided by operating activities	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	20 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	2,794 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	604 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	741 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	861 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>CASH FLOWS FROM INVESTING    ACTIVITIES:</b>	</font></p></td><td colspan="5"></td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Purchase of property and equipment	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(296)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(421)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(122)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(205)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(589)	</font></p>	</td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Acquisition of subsidiary (a)</font></p></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td valign="bottom" align="right"><p><font size="2">(4,233)</font></p></td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">Amounts withdrawal (funded) in respect of  accrued severance pay	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(12)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	41 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(15)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(53)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	94 	</font></p></td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Investments in long-term bank deposits 	</font></p></td><td valign="bottom" align="right"><p><font size="2">		</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(10,000)	</font></p></td>
<td></td><td></td>
<td valign="bottom" align="right"><p><font size="2">	(10,000)	</font></p>	</td>
</tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Withdrawal of long-term bank deposits 	</font></p></td>
<td valign="bottom"align="right"><p><font size="2">	18,670 	</font></p></td>
<td></td>
<td valign="bottom"align="right"><p><font size="2">	18,670 	</font></p></td>
<td></td>
<td valign="bottom" align="right"><p><font size="2">	10,000 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Proceeds from sale of property and equipment	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	36 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	118 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">7 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	29 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	175 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	Net cash provided by (used in) investing activities	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	18,398 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(10,262)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	18,540 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(229)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(4,553)	</font></p>	</td>
</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom" colspan="6"><p><font size="2">	<b>CASH FLOWS FROM FINANCING ACTIVITIES:</b></font></p></td></tr>
<tr><td valign="bottom"><p style="margin-left:20px"><font size="2">	Employee stock options exercised and paid	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	111 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	278 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	51 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	14 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	322 	</font></p>	</td></tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p style="margin-left:20px"><font size="2">	Dividend paid 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(3,009)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(5,143)	</font></p></td><td align="right"><p><font size="2">(406)	</font></p></td>
<td></td>
<td valign="bottom" align="right"><p><font size="2">	(5,143)	</font></p>	</td>
</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	Net cash provided by (used in) financing activities	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(2,898)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(4,865)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(355)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	14 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(4,821)	</font></p>	</td>
</tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</b>	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	15,520 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(12,333)	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	18,789 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	526 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	(8,513)	</font></p>	</td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr><td valign="bottom"><p><font size="2">	<b>BALANCE OF CASH AND CASH  EQUIVALENTS AT BEGINNING OF PERIOD</b>	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	10,174 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	18,687 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	6,905 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	5,828 	</font></p></td>
<td valign="bottom" align="right"><p><font size="2">	18,687 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr>
	<td align="center" colspan="4"><div style="width:95%;line-height:1px;"></div></td>
</tr>
<tr BGCOLOR="#CCEEFF"><td valign="bottom"><p><font size="2">	<b>BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD</b>	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 25,694 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 6,354 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 25,694 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 6,354 	</font></p></td>
	<td valign="bottom" align="right"><p><font size="2">	$ 10,174 	</font></p>	</td></tr>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
</table>

<p><center><p><font size="2">III</font></p></center>
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<hr width="100%">
</p>

<a name="table4"></a>
<a href="#top"><font size="1"><b>Back to top</b></font></p></a>
<center><h2>MIND C.T.I LTD.</h2>
<h2 style="font-weight:normal">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)</h2>
</center>

<table border="0" cellpadding="0" cellspacing="0">
<tr>	<td>		</td><td align="center"><p><font size="2">	<b>Year ended<br>December 31, 2005</b>	</font></p></td></td>
<tr>
	<td></td>
	<td align="right"><div style="width:95%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr  BGCOLOR="#CCEEFF">	<td><p><font size="2"><b>(a) Acquisiiton of subsidiary:</b></font></p></td><td>		</td></td>
<tr>	<td><p style="margin-left:40px"><font size="2">	Assets and liabilities of the subsidiary upon acquisition:	</font></p></td><td>		</td></td>
<tr  BGCOLOR="#CCEEFF">	<td><p style="margin-left:40px"><font size="2">	Working capital (excluding cash and cash equivalents)	</font></p></td><td align="right"><p style="margin-left:40px"><font size="2">	$ (4,881)	</font></p></td></td>
<tr>	<td><p style="margin-left:40px"><font size="2">	Property and equipment	</font></p></td><td align="right"><p><font size="2">	277 	</font></p></td></td>
<tr  BGCOLOR="#CCEEFF">	<td><p style="margin-left:40px"><font size="2">	Intangible assets	</font></p></td><td align="right"><p><font size="2">	1,871 	</font></p></td></td>
<tr>	<td><p style="margin-left:40px"><font size="2">	Goodwill	</font></p></td><td align="right"><p><font size="2">	6,966 	</font></p></td></td>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
<tr  BGCOLOR="#CCEEFF">	<td><p style="margin-left:40px"><font size="2">	Cash paid - net	</font></p></td><td align="right"><p><font size="2">	$ 4,233 	</font></p></td></td>
<tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr><tr>
	<td></td>
	<td align="right"><div style="width:90%;line-height:1px;color:black;border-bottom:1px solid black"></div></td>
</tr>
</table>
<p><center><p><font size="2">IV</font></p></center>
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<hr width="100%">
</p>
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<center><p><font size="2">- end of file -</font></p></center>
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