OTI receives additional order for 100,000 MediSmart healthcare biometric ID cards in Kenya

On Track Innovations Ltd. (OTI) (Nasdaq:OTIV), a global leader in contactless smart card solutions, has received an additional order for 100,000 MediSmart^TM healthcare biometric ID cards for use by Kenyan-based Smart Applications International Ltd. (SMART), a provider of technology driven secure healthcare solutions. To date, some 200,000 MediSmart cards have already been issued by SMART and more than 2,000 contactless smart card readers and other device points of service have been deployed at hospitals, pharmacies and general practitioner sites across Kenya.

One of the main goals of MediSmart is reducing and eliminating fraud, which according to the Kenya's Business Daily (dated January 31, 2011) estimates that fraud in the medical insurance sector causes revenue losses of 40 percent of total claims. It causes higher insurance rates at a time when providers are scrambling for more business and growing loss in the medical insurance industry. SMART's objective is to support improved profitable growth of the healthcare industry by reduced and discouraged would be fraudulent medical claims through the biometrically controlled MediSmart ID card.

"Out of an estimated work force of 12 million people, less than a million Kenyans actually have private medical insurance coverage, which represents a tremendous growth opportunity for the healthcare insurance industry. However this opportunity will only be a reality when solutions like the one provided by SMART and OTI become the route to market. It is this growing untapped opportunity that remains our motivation," said Mrs. Pauline Muriuki, CEO of SMART. "We deliver the most sophisticated and accurate healthcare biometric patient ID and medical record system with benefits to many sectors of Kenyan society, specifically, insurance companies will benefit since they can focus their resources on legitimate policy holders and lower the cost of medical fraud and waste."

MediSmart, developed by a team of healthcare industry experts at OTI with system process design support by SMART, provides complete medical history, biometric identification (photo and fingerprints) and co-payment options. In addition to addressing fraud, MediSmart enables the introduction and effective management of joint state and private sector funding and service delivery models. The MediSmart solution includes biometric cards, readers and related software that are seamlessly integrated with hospital management systems.

"Implementation of MediSmart and recent data proves that MediSmart is a paramount vehicle in reducing fraud, cutting cost and improving accuracy, ultimately resulting in better service to patients," said Oded Bashan, chairman and CEO of OTI. "The continuing success and expansion of MediSmart in Kenya serves as further validation to the effectiveness and comprehensive nature of our healthcare biometric ID solution. We will continue to collaborate closely with our business partners in Kenya to expand our system there, as well as work with other healthcare systems around the world, to extend the benefits of MediSmart to other entities seeking to improve the efficient delivery of healthcare services."