Last updated on April 24, 2014 at 1:21 EDT

Magal Announces an Award of Approximately $2.5 Million from Arbitration

October 25, 2011

YAHUD, Israel, October 25, 2011 /PRNewswire/ –

Magal Security Systems Ltd. (NASDAQ GMS: MAGS; TASE: MAGS) today
announced that it has collected an award of approximately $2.5 million,
arising from a lengthy arbitration proceeding. The arbitration was with a
former customer in Eastern Europe regarding a contract to supply a
comprehensive security solution for a sensitive site and followed the
unwarranted cancellation in 2006.

Magal expects to record income of $2.2 million from the arbitration, net
of legal expenses. The defendant has notified Magal that it may seek to
vacate the judgment.

About Magal S3

Magal S3 is a leading international provider of security, safety and
site management solutions and products (NASDAQ: MAGS
[http://finance.yahoo.com/q?s=mags&d=t ]).

Over the past 40 years, Magal S3 has delivered tailor-made solutions to
hundreds of satisfied customers in over 80 countries.

Magal S3 offers a broad portfolio of unique products used to protect
sensitive installations in some of the world’s most demanding locations and
harshest climates. This portfolio covers the following three categories:

        - Perimeter Intrusion Detection Systems (PIDS) - a variety of
          smart barriers and fences, fence mounted detectors, virtual gates,
          buried and concealed detection systems
        - Close Circuit TV (CCTV) - a comprehensive management platform
          with a leading Intelligent Video Analysis (IVA) and Video Motion
          Detection (VMD) engine
        - Physical Security Information Management (PSIM) - an open site
          management system that enhances command, control and decision making
          during both routine operations and crisis situations

This press release contains forward-looking statements, which are
subject to risks and uncertainties. Such statements are based on assumptions
and expectations which may not be realized and are inherently subject to
risks and uncertainties, many of which cannot be predicted with accuracy and
some of which might not even be anticipated. Future events and actual
results, financial and otherwise, may differ from the results discussed in
the forward-looking statements. A number of these risks and other factors
that might cause differences, some of which could be material, along with
additional discussion of forward-looking statements, are set forth in the
Company’s Annual Report on Form 20-F filed with the Securities and Exchange

For more information:

        Magal S3                         CCG Investor Relations
        Eitan Livneh, CEO                Ehud Helft/Kenny Green
        Tel: +972-3-539-1421             Tel: (US) +1-646-201-9246
        Assistant: Ms. Elisheva Almog    Int'l dial: +972-3-607-4717
    elishevaa@magal-s3.com   E-mail: magal@ccgisrael.com                                 


SOURCE Magal Security Systems Ltd

Source: PR Newswire