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CORRECTION: Wizcom Decides for Comprehensive Reorganization

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Wizcom Technologies Ltd. / CORRECTION: Wizcom Decides for Comprehensive Reorganization . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

Board assumes responsibility for operations and strategy

Company focuses on profitable operations to carry organization to the launch of its new product line

*corrected phrase in italics

Rosh Ha'ayin, December 12^th, 2011 - The Board of Directors of Wizcom Technologies Ltd. (Prime Standard: WZM, IL 0010830706) today decided for comprehensive changes to the Company's Management and Organization. The Company is in the process of executing its turnaround strategy, which is to culminate in the launch of a new line of innovative products. Wizcom announced in its earnings release of November 30, 2011, that the Company is operating under cash stress. Despite considerable progress with the turnaround program, CEO Mr. Shimon Amouyal has requested the Board of Directors to accept his resignation from his position as CEO, effective as of December 15, 2011.

Gideon-Ben Zvi, Chairman of the Board of Directors, stated, "We have great respect for Shimon and for what he has achieved since he took the helm at Wizcom in 2009, however, the current cash flow situation is such that if we want to complete our turnaround and protect our ongoing operations, we have to take drastic measures. It is in this light that we accept Shimon's resignation but we have requested he stays on as consultant to the new CEO."

"The measures we have decided on are comprehensive and are implemented immediately, and serve to generate the cash flow required to complete the development of the new product lines in a timely manner. In order to achieve these goals, the Board has taken the following steps:

(i) The employment of the CFO, Mr. Yaron Herz has been terminated.

(ii) The Company has taken austerity measures, terminating the employment contracts and consulting agreements of all persons not directly involved in R&D and the continuing commercial operations of the Company.

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WizCom Technologies

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(iii) The Board has taken over the active management of the Company. To that end, Mr. Tiran Fartouk has joined the Board and has been nominated as acting CEO, effective as of December 15, 2011. Mr. Eldad Halevy joined as observer to the Board and special consultant to the chairman.

(iv) The board will be involved in all aspects of day to day management of the Company, until such time that the new products, to be launched towards the middle of 2012, have gained sufficient traction in the market to support an expanded organizational structure.

(v) The Company intends to immediately raise additional funds, with the amount and structure of the financing to be determined by the Board in accordance with the Company's requirements.

Mr. Ben-Zvi continued, "Our projections show that the new organizational structure, which focuses on profitable operations, should assist us in achieving our goal of a successful launch of our new product lines. Apart from a minor stipend for Mr. Fartouk to cover certain expenses, no payments are made to the Board members who are taking an interim executive role with the Company. Other than as investors ourselves, we have no additional interest in the Company and no conflicts of interest."

"Our belief in the innovative nature of the new product lines is very strong and we anticipate that upon timely launch, Wizcom will be able to achieve growth and become profitable. This is why we decided to assist the Company when we rejoined in 2009 and this is why we feel taking control is the right thing to do. With our new products, we will have a much more compelling offer to a number of specific, large and growing markets, which we believe will enable us to leverage our IP in a successful commercial manner."

Mr. Fartouk is a highly regarded investment banker who is responsible for many successful transactions in the Israeli market and has also wide experience in the operating management of companies and served for 12 years as an Officer in one of the most prestigious units in the IDF. Mr. Eldad Halevy is CEO and one of the main shareholders of Second Opinion International, a leading company in the field of add-on services to the international insurance industry, and a former shareholder of SHR Group - a leading assistance company in Israel. Both, Mr. Fartouk and Mr. Halevy participated in the last financing rounds of the Company.

Mr. Shlomi Drori has resigned from the Company's Board as his other obligations do not allow him to dedicate the time and effort required to serve as External Director. The Board recommends appointing Dr. Ido Shechter in his place and will request his appointment to be approved at the next general meeting of shareholders.

Mr. Ben-Zvi concluded, "Implementing such a comprehensive restructuring process is painful for many of the parties involved. We have much respect for those who have shown such dedication to the Company for many years, however, going forward our actions must be guided completely by the overriding objective of bringing the company to profitability. This is obviously not a walk in the park, but we wouldn't have entered this challenge, if we didn't believe we can make it. We are optimistic to achieve our goals with the initiated measures."

About Wizcom Group:

Wizcom Technologies Ltd. is the world's leading producer of personal, portable scanning pens that help people read and process text. These pocket-sized, user-friendly devices enable people to understand and use printed material, anytime and anywhere, without disrupting their reading process. Our pens help students of English as a first or second language, as well as people working in multilingual environments, enhancing their fluency and expediting reading comprehension.

For further information, please contact:

SCHWARZ Financial Communication
Frank Schwarz
Investor Relations
Telefon +49-611-1745-398-11
Schwarz@schwarzfinancial.com

Press Release as PDF

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Source: Wizcom Technologies Ltd. via Thomson Reuters ONE

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Wizcom Technologies Ltd.
13 Hamelacha St. Rosh Ha'ayin Israel

WKN: 915856;ISIN: IL0010830706;Index:Prime All Share,TECH All Share;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Börse Berlin,
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