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<SEC-DOCUMENT>0001119083-07-000013.txt : 20071106
<SEC-HEADER>0001119083-07-000013.hdr.sgml : 20071106
<ACCEPTANCE-DATETIME>20071106082039
ACCESSION NUMBER:		0001119083-07-000013
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070930
FILED AS OF DATE:		20071106
DATE AS OF CHANGE:		20071106

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:		071215976

	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>mindcti2007_11.htm
<DESCRIPTION>THIRD QUARTER FINANCIAL STATEMENTS
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<html>
<head>
	<title> MIND CTI LTD (Form: 6-K, 11/06/2007)</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>
<p>
<font size="5">
	<strong><center>SECURITIES AND EXCHANGE COMMISSION</center></strong>
</font>
<p></p>
<font size="4">
	<center><strong>Washington, D.C.
20549</strong>  </center>
</font>
<p></p>
<p>
<strong><center>Report of Foreign Private Issuer</center></strong>
<p>

<center><strong>Pursuant to Rule 13a-16 or 15d-16
of</strong>      </center>
<center><strong>the Securities Exchange Act of
1934</strong>     </center>
<p>

<strong><center>
  For the month of November, 2007
</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></p>
<center>
(Translation of Registrant's Name into English)
</center>
<p>

<center><strong>
	Industrial Park, Building 7, P.O.Box 144, Yoqneam 20692, Israel</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 "Yes" 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:&nbsp;MIND CTI Reports Cash Flow from Operating Activities of over $2 Million for the Third Quarter 2007. Dated November 5, 2007.&nbsp;</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: November 06, 2007
<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>MIND CTI Reports Cash Flow from Operating Activities of over $2 Million for the Third Quarter 2007. Dated November 5, 2007.</td>
	</tr>
</table>
<p>

<hr width="75%" color="#999999" noshade size=2>
<!-- -------------------------------------------------------------------------- -->
<p>
<center>
Exhibit 1<br>
</center>
<center><h1>MIND CTI Reports Cash Flow from Operating Activities of over $2 Million
for the Third Quarter 2007</h1></center>
<center><h2>Estimated over 10% Internal Sequential Growth in Q4 2007</h2></center>
<p>
	<b>Yoqneam, Israel, November 5, 2007</b> - MIND CTI Ltd. (NasdaqGM:MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for tier 2 and tier 3 carriers worldwide, today announced results for the third quarter 2007.</p>
<p>Monica Eisinger, Chairperson and CEO, commented: "We are confident in our long-term strategy and our execution and we expect to see the results of our successfully completed transition commencing in the fourth quarter of 2007. We started over a year ago to invest heavily in the enhancement of our solutions, while focusing on building our business for the long term, with larger deals and long-term contracts. The focus on larger deals that require longer sales-cycles and longer revenue spread has influenced our results in the last four quarters. Our visibility has continually increased since. Our outstanding operational execution enabled us to maintain profitability. In addition to new wins, great positive cash flow and significant recurrent revenue from our customer base in the third quarter, we also succeeded recently in achieving an additional long-term goal - acquisition of a UK-based company.</P>
<p>We believe that we have achieved all the goals we set until now and we are prepared for the next goal, revenue growth. We expect to achieve over 10% internal growth in the fourth quarter of 2007 compared to the third quarter of 2007 and to reach in total a new revenue record of approximately $5.4
million."</p>

<p><b>Financial Highlights of Q3 2007</b>
<ul type="square">
		<li>Revenues of $4.03 million, compared with $4.66 million in the third quarter of 2006.
		<li>Operating income, excluding amortization of intangible assets and equity-based compensation expense, of $550 thousand.
		<li>Net income, excluding amortization of intangible assets and equity-based compensation expense, of $1.11 million or $0.05 per share.
		<li>GAAP net income of $955 thousand or $0.04 per share.
		<li>Cash flow from operating activities of $2.04 million.
		<li>Strong cash position of approximately $37.4 million on September 30, 2007.</li>
</ul>
<p></p>
<p><b>Dividend Distribution</b><br>In July 2003, the Board of Directors adopted our current dividend policy. We have since distributed dividends five times and we intend to continue to distribute cash dividends based on factors that include our cash position and our activities.</br></p>
<p>Today, the Board of Directors resolved that the Company should take the necessary steps (including if required a court approval) in order to enable a distribution for the year 2007 of approximately $0.20 per share, which is similar to previous years' average. Under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a distribution in order to ensure that the
Company's creditors are not harmed by the action. The Company expects to obtain such court approval within eight to twelve weeks, although there is no guarantee that such approval will not be delayed or denied.</p>
<p>Prior to paying any dividend, which is still subject to specific Board approval, the Company will issue a press release announcing the exact dividend amount, record date and distribution date.</p>
<p>"Given our strong cash position and our positive operating cash flow, we believe that our dividend policy enhances shareholders value,
" stated Monica. "We are well positioned and have the required resources to respond to potentially increasing market needs and at the same time we are focused on targeting potential acquisitions that could benefit the company
growth".</P>




<p><b>Accounting Treatment of Auction Rate Securities</b>
<br>On November 5, 2007, the Board of Directors, after discussions with the
Company's independent registered public accounting firm, concluded that the balance sheets and statements of cash flows included in the
Company's Form 20-F for the fiscal year ended December 31, 2006 should be amended in order to correct the classification of auction rate securities on the balance sheets and in the statements of cash flows of the Company. Auction rate securities are long-term bonds that provide liquidity through a Dutch auction process that resets the applicable interest rate at pre-determined calendar intervals, generally every 28 days. This mechanism allows existing investors either to roll over their holdings, whereby they will continue to own their respective securities, or liquidate their holding by selling such securities at par. Given the liquid nature of such securities, they had previously been classified as cash equivalents on both the balance sheets and in the statements of cash flows. However, given that such auction rate securities have long-term stated maturities and that the issuers of such auction rate securities are under no obligation to redeem them prior to their stated maturities, the Company has determin
ed that its investments in such securities, consisting of $22.8 million as of December 31, 2006, should have been classified as short-term investments, rather than as cash equivalents.  </p>
<p>This amendment will have no impact on previously reported results of operations, cash flow from operating activities, total current assets, total assets or
stockholders' equity. </p>
<p>Investors or other interested parties should refer to the Company's amended Annual Report on Form 20-F/A for the fiscal year ended December 31, 2006, expected to be filed with the SEC within the next 30 days, for additional information. </p>
<p>The recent uncertainties in the credit markets have affected the liquidity of our holdings in auction rate securities, as auctions have been unsuccessful, but at the same time we continue to receive interest every 28 days. While our investments are of high credit quality (AAA/Aaa), at this time we are uncertain as to whether or when the liquidity issues relating to these investments will worsen or improve. We do not believe that it is necessary at this time to adjust the fair value of our portfolio of auction rate securities, but we have decided to classify them as long-term marketable securities on our balance sheet commencing in the third quarter of 2007. As of September 30, 2007, we have a total of $20.3 million invested in auction rate securities.</P>
<p><b>Conference Call Information
</b><br>MIND will host a conference call on November 6, 2007 at 8:30 a.m., Eastern Time, to discuss the Company's third quarter 2007 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 Wireless, Wireline, VoIP and Quad-play carriers worldwide. A global company, with over ten years of experience in providing solutions to carriers, MIND operates from offices in Europe, Israel and the United States, serving customers in more than 40 countries around the world. For more information, visit MIND at: www.mindcti.com.</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>
<!-- _________________________________________________________________________________________________-->
<p>
<hr width="100%">
<a name="table"></a><A href="#top" ><font size="1"><b>Back to top</b></font>
<p></p></A>
<center>
<h2>MIND C.T.I LTD. </h2></center>
<center>
<h3>CONDENSED CONSOLIDATED BALANCE SHEETS </h3></center>
<table cellspacing="0" cellpadding="0" width="100%" border="0">

  <tr>
    <td></td>
    <td align="middle"><font size="2"
      ><b>September 30 </b></font></td>
    <td align="middle"><font size="2"><b
      >&nbsp;December 31,</b></font>
  <tr>
    <td></td>
    <td align="middle" colspan="2"><font size="2"
      ><b>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font></td>
    <td align="middle"><font size="2"><b
      ></b></font>
  <tr>
    <td></td>
    <td align="middle"><font size="2"><b
      >2007 </b></font></td>
    <td align="middle"><font size="2"><b
      >2006 </b></font></td>
    <td align="middle"><font size="2"><b
      >2006</b></font>
  <tr>
    <td></td>
    <td align="middle"><font size="2"><b
      >
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font></td>
    <td align="middle"><font size="2"><b
      >
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font></td>
    <td align="right"><font size="2"><b
      >
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font>
  <tr>
    <td></td>
    <td align="middle"><font size="2"
      ><b>(Unaudited)</b></font> </td>
    <td align="middle"><font size="2"><b
      >(Audited)</b> </font>
  <tr>
    <td></td>
    <td align="middle" colspan="2"><font size="2"
      ><b>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font></td>
    <td align="right"><font size="2"><b
      >
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font>
  <tr>
    <td></td>
    <td align="middle" colspan="3"><div align="center"><font size="2"
      ><b>U.S. $ in
      thousands</b></font> </div></td>
    <td align=right>
  <tr>
    <td></td>
    <td align=middle colSpan=3><font size=2
      ><b>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></b></font></td>
    <td align=right>
  <tr>
    <td align=middle><font size=2><b
      >A s s e t s </b></font></td>
    <td></td>
    <td>&nbsp;</td>
    <td>
  <tr bgColor=#cceeff>
    <td><font size=2><b
      >CURRENT ASSETS: </b></font></td>
    <td align=right></td>
    <td align=right></td>
    <td align=right></td>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Cash and cash equivalents (1) </font></td>
    <td align=right><p><font size="2">$ 7,138</font> </p></td>
    <td align=right><p><font size=2>$ 4,247
    </font></p></td>
    <td align=right><p><font size=2>$
      4,771 </font></p></td>
  </tr>
  <tr bgColor=#cceeff>
    <td bgcolor="#cceeff" style="PADDING-LEFT: 20px"><font size="2">Short-term investments
      (1)</font></td>
    <td align=right><p></p></td>
    <td align=right><p><font size="2">22,400 </font></p></td>
    <td align=right><p><font size="2">22,800 </font></p></td>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Accounts receivable: </font></td>
    <td align=right></td>
    <td align=right></td>
    <td align=right></td>
  <tr bgcolor="#cceeff">
    <td style="PADDING-LEFT: 40px"><font size=2
      >Trade </font></td>
    <td align=right><font size="2">3,798</font></td>
    <td align=right><p><font size=2
      >4,862 </font></p></td>
    <td align=right><p><font size=2
      >5,385 </font></p></td>
  </tr>
  <tr>
    <td style="PADDING-LEFT: 40px"><font size=2
      >Other </font></td>
    <td align=right><p><font size="2">630 </font></p></td>
    <td align=right><p><font size=2>923      </font></p></td>
    <td align=right><p><font size=2>231      </font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td style="PADDING-LEFT: 20px"><font size=2
      >Deferred income taxes </font></td>
    <td align=right><p><font size="2">133 </font></p></td>
    <td align=right> <p><font size="2">8</font> </p></td>
    <td align=right><p><font size=2>154      </font></p></td>
  </tr>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Inventories </font></td>
    <td align=right><p><font size="2">35 </font></p></td>
    <td align=right><p><font size=2>30		</font></p></td>
    <td align=right><p><font size=2>35      </font></p></td>
  </tr>
  <tr>
    <td></td>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></td>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></td>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></td></tr>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 60px"><font size=2
      >T o t a l current assets </font></td>
    <td align=right><p><font size="2">11,734 </font></p></td>
    <td align=right><p><font size=2
      >32,470 </font></p></td>
    <td align=right><p><font size=2
      >33,376 </font></p></td>
  </tr>
  <tr>
    <td><font size=2><b
      >INVESTMENTS AND OTHER NON CURRENT ASSETS:
    </b></font></td>
    <td align=right></td>
    <td align=right></td>
    <td align=right></td></tr>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Marketable debentures </font></td>
    <td align=right><p><font size="2">10,000 </font></p></td>
    <td align=right></td>
    <td align=right><p><font size=2
      >10,000 </font></p></td>
  </tr>

  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Marketable securities (1)</font></td>
    <td align=right><p><font size="2">20,300</font></p></td>
    <td align=right></td>
    <td align=right><p><font size=2
      ></font></p></td>
  </tr>

  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Long term bank deposits </font></td>
    <td align=right></td>
    <td align=right><p><font size=2
      >10,000 </font></p></td>
    <td align=right></td></tr>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Other </font></td>
    <td align=right><p><font size="2">958 </font></p></td>
    <td align=right><p><font size="2">834		</font></p></td>
    <td align=right><p><font size=2
      >1,003 </font></p></td>
  </tr>
  <tr bgColor=#cceeff>
    <td><font size=2><b
      >PROPERTY AND EQUIPMENT</b>, net of accumulated
      depreciation </font></td>
    <td align=right><p><font size="2">1,342 </font></p></td>
    <td align=right><p><font size=2
      >1,790 </font></p></td>
    <td align=right><p><font size=2
      >1,558 </font></p></td>
  </tr>
  <tr>
    <td><font size=2><b
      >INTANGIBLE ASSETS</b>, net of accumulated
      amortization </font></td>
    <td align=right>
      <p><font size=2>580
    </font></p></td>
    <td align=right>
      <p><font size=2>980
    </font></p></td>
    <td align=right>
      <p><font size=2>888
    </font></p></td></tr>
  <tr bgColor=#cceeff>
    <td><font size=2><b
      >GOODWILL </b></font></td>
    <td align=right>
      <p><font size=2>6,966
    </font></p></td>
    <td align=right>
      <p><font size=2>6,966
    </font></p></td>
    <td align=right>
      <p><font size=2>6,966
</font></p>
  <tr>
    <td></td>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></td>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
     ></div></td>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 60px"><font size=2
      >T o t a l assets </FONT></TD>
    <td align=right>
      <p><font size=2>$ 51,880
      </FONT></P></TD>
    <td align=right>
      <p><font size=2>$ 53,040
      </FONT></P></TD>
    <td align=right>
      <p><font size=2>$ 53,791
      </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV>
  <tr>
    <td align=middle><font size=2><b
      >Liabilities and shareholders' equity </B></FONT></TD>
    <td></TD>
    <td align=right></TD>
    <td align=right>
  <tr bgColor=#cceeff>
    <td><font size=2><b
      >CURRENT LIABILITIES: </B></FONT></TD>
    <td align=right></TD>
    <td align=right></TD>
    <td align=right></TD></TR>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Accounts payable and accruals: </FONT></TD>
    <td align=right></TD>
    <td align=right></TD>
    <td align=right></TD></TR>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 40px"><font size=2
      >Trade </FONT></TD>
    <td align=right>
      <p><font size=2>$ 495
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>$ 594
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>$ 464
    </FONT></P></TD></TR>
  <tr>
    <td style="PADDING-LEFT: 40px"><font size=2
      >Other </FONT></TD>
    <td align=right>
      <p><font size=2>1,596
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>1,497
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>2,509
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Deferred revenues </FONT></TD>
    <td align=right>
      <p><font size=2>1,486
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>1,580
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>1,236
    </FONT></P></TD></TR>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Advances from customers </FONT></TD>
    <td align=right>
      <p><font size=2>365 </FONT></P></TD>
    <td align=right>
      <p><font size=2>171 </FONT></P></TD>
    <td align=right>
      <p><font size=2>241
  </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 60px"><font size=2
      >T o t a l current liabilities </FONT></TD>
    <td align=right>
      <p><font size=2>3,942
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>3,842
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>4,450
    </FONT></P></TD></TR>
  <tr>
    <td><font size=2><b
      >EMPLOYEE RIGHTS UPON RETIREMENT </B></FONT></TD>
    <td align=right>
      <p><font size=2>1,488
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>1,495
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>1,482
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td style="PADDING-LEFT: 60px"><font size=2
      >T o t a l liabilities </FONT></TD>
    <td align=right>
      <p><font size=2>5,430
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>5,337
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>5,932
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td><font size=2><b
      >SHAREHOLDERS' EQUITY: </B></FONT></TD>
    <td align=right>
      <p><font size=2></FONT></P></TD>
    <td align=right></TD>
    <td align=right></TD></TR>
  <tr bgColor=#cceeff>    <td style="PADDING-LEFT: 20px"><font size=2
      >Share capital </FONT></TD>
    <td align=right>
      <p><font size=2>54 </FONT></P></TD>
    <td align=right>
      <p><font size=2>53 </FONT></P></TD>
    <td align=right>
      <p><font size=2>54
  </FONT></P></TD></TR>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Additional paid-in capital </FONT></TD>
    <td align=right>
      <p><font size=2>59,642
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>59,510
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>59,547
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Capital surplus </FONT></TD>
    <td align=right>
      <p><font size=2>525 </FONT></P></TD>
    <td align=right>
      <p><font size=2>244 </FONT></P></TD>
    <td align=right>
      <p><font size=2>325
  </FONT></P></TD></TR>
  <tr>
    <td style="PADDING-LEFT: 20px"><font size=2
      >Accumulated deficit </FONT></TD>
    <td align=right>
      <p><font size=2>(13,771)
      </FONT></P></TD>
    <td align=right>
      <p><font size=2>(12,104)
      </FONT></P></TD>
    <td align=right>
      <p><font size=2>(12,067)
      </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 60px"><font size=2
      >T o t a l shareholders' equity </FONT></TD>
    <td align=right>
      <p><font size=2>46,450
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>47,703
    </FONT></P></TD>
    <td align=right>
      <p><font size=2>47,859
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td style="PADDING-LEFT: 20px"><font size=2
      >T o t a l liabilities and shareholders' equity
    </FONT></TD>
    <td align=right>
      <p><font size=2>$ 51,880
      </FONT></P></TD>
    <td align=right>
      <p><font size=2>$ 53,040
      </FONT></P></TD>
    <td align=right>
      <p><font size=2>$ 53,791
      </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td>
      <P align=center>&nbsp;</P></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR></table>
<p align="left" style="PADDING-LEFT: 60px">(1) See "Accounting Treatment of Auction Rate
Securities" above</p>
<font size=2>
<center>
<P></P>
<p>
<center>
<p><font size=2>I</FONT></P></CENTER><!-- _________________________________________________________________________________________________-->
<hr width="100%">

<p></P><a name=table2></A><A href="#top" ><font size=1><b>Back to top</B></FONT>
<p></P></A>
<center>
<h2>MIND C.T.I LTD.</H2>
<h3>CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS</H3></CENTER>
<table cellSpacing=0 cellPadding=0 width="100%" align=center border=0>

  <tr>
    <td></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >Nine months<br>ended September
      30</B> </FONT></P></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >Three months<br>ended September
      30</B> </FONT></P></TD>
    <td vAlign=bottom align=middle>
      <p><font size=2><b
      >Year ended<br>December 31,</B>
      </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2007</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2006</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2007</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2006</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2006</B> </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >(Unaudited)</B> </FONT></P></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >(Unaudited)</B> </FONT></P></TD>
    <td vAlign=bottom align=middle>
      <p><font size=2><b
      >(Audited)</B> </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td></TD>
    <td vAlign=bottom align=middle colSpan=5>
      <p align=center><font size=2><b
      >U.S. $ in thousands (except per share
      data)</B></FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle colSpan=5>
      <div
      style="WIDTH: 95%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td align=middle colSpan=6>
      <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>$ 12,884
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 14,985
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 4,028
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 4,659
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 20,060
      </FONT></P></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>3,659
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>4,482
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,039
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,392
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>5,675
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p><font size=2><b
      >GROSS PROFIT</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>9,225
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>10,503
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,989
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>3,267
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>14,385
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <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>4,053
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>4,715
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,271
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,389
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>6,118
    </FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p><font size=2><b
      >SELLING AND MARKETING EXPENSES</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,802
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,735
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>880 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>868 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>3,628
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p><font size=2><b
      >GENERAL AND ADMINISTRATIVE EXPENSES</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,269
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,353
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>447 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>595 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,135
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p><font size=2><b
      >OPERATING INCOME</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,101
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,700
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>391 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>415 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,504
    </FONT></P></TD></TR>
  <tr>
    <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>1,574
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>* (749)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>586 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>304 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>* (222)
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p><font size=2><b
      >INCOME BEFORE TAXES ON INCOME</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,675
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>951 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>977 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>719 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,282
    </FONT></P></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>61 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>79 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>22 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>9 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,373
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p><font size=2><b
      >NET INCOME&nbsp;</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 2,614
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 872
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 955
    </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>$ 909
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p><font size=2><b
      >EARNING&nbsp;PER SHARE:</B> </FONT></P></TD>
    <td colSpan=6>
      <p><font size=2></FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <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>$ 0.12
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 0.04
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$
    0.04</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 0.03
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 0.04
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <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>
      <p><font size=2></FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Basic </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,583
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,510
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,593
    </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>21,515
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Diluted </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,595
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,555
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,602
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,551
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>21,546
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR></TABLE><br>
<table>

  <tr>
    <td vAlign=top><b>*</B></TD>
    <td>
      <p><font size=2><b
      >Financial expenses for the 9 months period ended
      September 30, 2006 and for the year ended December 31, 2006 include a loss
      from a premature withdrawal of long-term deposits in the amount of
      $1,330,000. </B></FONT></P></TD></TR></TABLE>
<p>
<center>
<p><font size=2>II</FONT></P></CENTER><!-- _________________________________________________________________________________________________-->
<hr width="100%">

<p></P><a name=table3></A><A href="#top" ><font size=1><b>Back to top</B></FONT>
<p></P></A>
<center>
<h2>MIND C.T.I LTD.</H2>
<h3>CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS</H3></CENTER>
<table cellSpacing=0 cellPadding=0 width="100%" align=center border=0>

  <tr>
    <td></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >Nine months<br>ended September
      30</B></FONT></P></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >Three months<br>ended September
      30</B></FONT></P></TD>
    <td vAlign=bottom align=middle>
      <p><font size=2><b
      >Year ended<br>December
      31,</B></FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2007</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2006</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2007</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2006</B> </FONT></P></TD>
    <td vAlign=bottom align=middle width=80>
      <p><font size=2><b
      >2006</B> </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >(Unaudited)</B> </FONT></P></TD>
    <td vAlign=bottom align=middle colSpan=2>
      <p><font size=2><b
      >(Unaudited)</B> </FONT></P></TD>
    <td vAlign=bottom align=middle>
      <p><font size=2><b
      >(Audited)</B> </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle colSpan=2>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=middle>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td>
    <td vAlign=bottom align=middle colSpan=5>
      <p align=center><font size=2><b
      >U.S. $ in thousands </B></FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=middle colSpan=5>
      <div
      style="WIDTH: 95%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr>
    <td align=middle colSpan=4>
      <div style="WIDTH: 95%; LINE-HEIGHT: 1px"></DIV></TD></TR>
  <tr>
    <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&nbsp; </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 2,614
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 872
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 955
    </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>$ 909
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Adjustments to reconcile net income&nbsp;to net cash
      provided by (used in) operating activities:</FONT></P></TD>
    <td colSpan=5>
      <p><font size=2></FONT></P></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>650 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,149
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>186 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>334 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,391
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 40px"><font size=2
      >Deferred income taxes, net </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>76 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></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></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(293)
    </FONT></P></TD></TR>
  <tr>
    <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>6 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>166 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>22 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>72 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>176
  </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 40px"><font size=2
      >Capital loss (gain) on sale of property and equipment
      - net </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>(9) </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(1) </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(3)
  </FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 40px"><font size=2
      >Employees share based compensation expenses
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>200 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>244 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>69 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>83 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>325
  </FONT></P></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>
      <p><font size=2></FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 60px"><font size=2
      >Decrease (increase) in accounts
    receivable:</FONT></P></TD>
    <td colSpan=5>
      <p><font size=2></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>1,587
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(1,473)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>874 </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>(1,996)
    </FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 80px"><font size=2
      >Interest accrued on marketable debentures
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(131)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(133)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(37)
  </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>(268)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(192)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(129)
    </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>537
  </FONT></P></TD></TR>
  <tr>
    <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></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(5)
  </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 60px"><font size=2
      >Increase (decrease) in accounts payable and
      accruals:</FONT></P></TD>
    <td colSpan=5>
      <p><font size=2></FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 80px"><font size=2
      >Trade </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>31 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(92)
</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>55 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(105)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(222)
    </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>(913)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(244)
    </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>(87)
</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>768
  </FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 60px"><font size=2
      >Increase (decrease) in deferred revenues
</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>250 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(64)
</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>147 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>168 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(408)
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 60px"><font size=2
      >Increase (decrease) in advances from customers, net
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>124 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(619)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(1) </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(171)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(549)
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Net cash provided by (used in) operating activities
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>4,236
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(262)</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,040
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,048</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>593
  </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></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>
      <p><font size=2></FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2></FONT><font
      size=2>Decrease (increase) in short-term investments (1)
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,500
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2
      >(22,400)</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(300)
    </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
      >(22,800)</FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <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>(256)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(339)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(89)
	</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(43)
	</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(379)
    </FONT></P></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Amounts funded in respect of accrued
      severance pay </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>(74)
	</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(43)
	</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(62)
	</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(119)
    </FONT></P></TD></TR>
<tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Acquisition of marketable debentures held-to-maturity
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></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></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></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2
      >20,000</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>30,000
    </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>120 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>46 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>42 </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>162
  	</FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Net cash provided by (used in) investing activities
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>2,354
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2
    >(2,767)</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(390)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(245)
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2
    >(3,136)</FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid">
      <p><font size=2></FONT></P></DIV></TD></TR>


  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p><font size=2><b
      >CASH FLOWS FROM FINANCING ACTIVITIES:</B>
    </FONT></P></TD>
    <td colSpan=5>
      <p><font size=2></FONT></P></TD></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>95 </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>4 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>149
  </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>(4,318)
    </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></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(3,009)
    </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Net cash provided by (used in) financing activities </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(4,223)
    </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 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2></FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>(2,860)
    </FONT></P></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></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>2,367
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2
    >(5,927)</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>1,654
    </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
    >(5,403)</FONT></P></TD></TR>
  <tr>
    <td align=middle colSpan=6>
      <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 BEGINNING OF
      PERIOD (1)</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>4,771
    </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>5,484
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2
    >3,444</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%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td vAlign=bottom>
      <p><font size=2><b
      >BALANCE OF CASH AND CASH EQUIVALENTS AT END OF
      PERIOD (1)</B> </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 7,138
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 4,247
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 7,138
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 4,247
      </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 4,771
      </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      >
      <p><font size=2
    ></FONT></P></DIV></TD></TR>
  <tr>
    <td vAlign=bottom>
      <p><font size=2><b
      >SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON CASH
      ACTIVITIES</B> </FONT></P></TD>
    <td colSpan=5>
      <p><font size=2></FONT></P></TD></TR>
  <tr bgColor=#cceeff>
      <td vAlign=bottom>
      <p style="MARGIN-LEFT: 20px"><font size=2
      >Cash paid during the year for income tax
</FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 867
    </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 31
</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>$ 9 </FONT></P></TD>
    <td vAlign=bottom align=right>
      <p><font size=2>$ 39
  </FONT></P></TD></TR>
  <tr>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR>
  <tr bgColor=#cceeff>
    <td></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD>
    <td align=right>
      <div
      style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"
      ></DIV></TD></TR></TABLE>

</center>
<p align="left" style="PADDING-LEFT: 60px"><font size=2>(1) See "Accounting Treatment of Auction Rate
Securities" above</p>
<center>

<p>
<center>
<p><font size=2>III</FONT></P></CENTER><!-- _________________________________________________________________________________________________-->
<hr width="100%">

<p></P><A href="#top" ><font size=1><b>Back to top</B></FONT>
<p></P></A>
<center>
<p><font size=2>- end of file
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