DGAP-News

Electronics Line 3000 Ltd.: Revenue and profit increased significantly in FY 2013 - Seite 2

million) due to the fact, that the Company's shareholders approved an
amendment to the Management services agreement with the parent company
(Risco Ltd.), which included an increase of the annual management fee
from US$ 0.3 million to US$ 0.8 million, retrospective as of January 1,
2013.

- During the Reporting Period, net cash provided by operating activities
was US$ 1.7 million compared to US$ 0.6 million during the comparable
year.

- The Company's cash and cash equivalents as of December 31, 2013 were
US$ 2.0 million, compared to US$ 0.8 million on December 31, 2012. The
increase is mainly due to the positive cash flow as well as the
successful reorganization of the loan structure.

- The Company's total equity increased from US$ 3.7 million as of
December 31, 2012 to US$ 6.7 million on December 31, 2013. Accordingly,
the equity ratio improved from 52% to 71% in the Reporting Period.

Outlook

Looking ahead to the current business year, the Company expects an increase
in revenues of about 10% to approximately US$ 18 million, mainly from its
strategic customers and markets, in particular, Northern and Western
Europe, and from the new product line (ELAS, iConnect 2 way and CommPact).
With the increasing revenue, the Company also anticipates a continued
improvement of its earnings.

The Company launched a pilot of its cloud-based solution, www.MyELAS.com,
among a small group of customers, enabling them to independently register
their wireless alarm systems to the cloud and thereby monitor and control
their premises as well as receiving images from the motion detector
cameras. In addition, customers can manage their installer base via the web
admin application. The Company expects that these new Smartphone
applications for iPhone and Android, will help increase sales of the
iConnect and CommPact panels.

The Company continues focusing on its two-way-wireless iConnect product
line and its PIR camera detector with a built-in camera for video
verification, in addition to the release of new complimentary products such
as the two-way repeater for extending the detectors' range and the two-way
vibration detector, all sustaining market expansions and increased sales.

The full 2013 annual report with the audited financial statements is
available on the Company ́s website at www.electronics-line.com in the
investors section.

Following the Board's resolution, dated April 8, 2014, the Company's shares
will be traded in the General Standard segment of the Frankfurt Stock
Exchange instead of the Prime Standard. This change is expected to take