Givat Shmuel, Israel, – May 17, 2005– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling industry, today announced financial results for the first quarter ended March 31, 2005.

Revenues for the first quarter of 2005 were $5.57 million, an increase of 3.7% compared to $5.37 million in the first quarter of 2004. Net loss for the quarter was $(981) thousand compared to a net income of $10 thousand in the first quarter of 2004.

Commenting on the first quarter results, Zvika Naggan, President and Chief Executive Officer of Cimatron, said: "Despite the moderate growth in revenue achieved in the quarter compared to Q1 of 2004, we saw a large net loss. We have taken proactive steps to reduce our cost structure, some of these steps will come into effect in the following quarters. We will continue to take cost saving actions and do our utmost to improve our bottom line results.

We remain fully committed to continue investing in our customers, sales channels and product to maintain our position in the tooling industry for the long term.

On the revenue side we are affected from the economic situation in Europe which remains our main market (55% of our revenues). In this region we have seen in Q1 a decline of 6% in revenues in Euro terms compared to the first quarter of 2004. We are encouraged by our successful growth in the US (13% growth from the comparable quarter last year) and our growth in the Asian market (21% growth from the comparable quarter last year)."

About Cimatron
Cimatron is the leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling industry. Cimatron is committed to providing mold, tool and die makers with comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Worldwide, more than 8,500 customers, with installations in the automotive, consumer plastics, and electronics industries, employ Cimatron's cutting-edge CAD/CAM solutions for manufacturing.

Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support.

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act Of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings, with the Securities and Exchanges Commission. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether

Cimatron Limited
Consolidated Balance Sheets

(in thousands)
Mar 31, 2005
Dec 31, 2004
Current Assets
Total cash,cash equivalents and short-terms investments $6,930 $8,092
Other current assets 8,215 6,902
Total current assets 15,145 14,994
Deposits with insurance companies and severance pay fund 2,594 2,946
Net property and equipment 1,122 1,073
Total other assets 1,691 1,791
Total assets $20,552 $20,804
Current Liabilities
Total liabilities $5,871 $4,688
Accrued severance pay 2,930 3,268
Total shareholder's equity 11,751 12,848
Total liabilities and shareholder's equity $20,552 $20,804

Cimatron Limited
Consolidated statements of income

(in thousands, except per share data)
Three months ended
March 31,
2005 2004
Total revenue 5,572 5,370
Total cost of revenue 1,071 1,106
Gross profit 4,501 4,264
Research and development expenses 1,471 1,244
Selling, general and administrative expenses 4,016 3,099
Operating Income (loss) (986) (79)
Net Income (loss) $(981) $10
Net Income (loss) per share-basic and diluted $(0.13) $0.00
Weighted average number of shares outstanding
- basic and diluted EPS (in thousands)
7,835 7,835