PIA Pilat Tech.

    Pilat Technologies International Ltd                      

                             Database Registration                             

Pilat Technologies International Ltd ("PTI" or "the Company") announces that
the Company has received notification from the Israeli Registrar of Databases
(the "Registrar"), which regulates the collection and maintenance of databases,
of its intention to cancel the registration of certain databases held by Pilat
(Israel) Ltd ("Pilat"), a wholly owned subsidiary of the Company, due to an
alleged violation of the law governing databases (the "Law").

The databases in question are used by Pilat's assessment department in
screening candidates for employers, and the recruitment department in finding
suitable employees for positions specified by clients. The proposed
cancellation of registration would prevent Pilat using computer databases in
both the assessment and placement processes. Pilat would still be able to
maintain hard copies of all records.

Pilat is disputing the notification as it believes it is complying with the Law
as it applies to the maintenance and use of its databases. The use of databases
by Pilat is similar to other assessment and recruitment companies operating in
Israel.

Pilat will take all necessary action in order to prevent the proposed
cancellation of the registrations by the Registrar.

Background

Approximately five years ago, companies performing assessment services in
Israel, including Pilat, held extensive discussions with the Registrar
concerning an acceptable code of ethics. Since that time a Court has held that
assessment providers were not required to allow candidates access to the
information held on their databases. In addition there was a proposal to enact
legislation requiring candidates who underwent the psychological tests to be
allowed access to the resulting information held on computer databases.
However, the proposed legislation has not been enacted.

Enquiries                                                                    
                                                                             
Pilat Technologies International Ltd                        00 972 3 767 9200
                                                                             
Chaim Helfgott, Corporate Secretary                                          
                                                                             
Hanson Westhouse Limited                                        0113 246 2610
                                                                             
Tim Feather / Matthew Johnson                                                



END

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