Revenues for the first quarter of 1999 totaled $4.2 million, a $1.5 million increase over the same time period last year, and for the second quarter $6.1 million, an increase of $.7 million over revenues during the second quarter of 1998. The consolidated sales revenue for the first half of 1999 totaled $10.3 million, with $1.4 million in net profit.

Commenting on the outstanding results, Valor CEO Shmuel "Schmil" Dolberg said, "The company went through some restructuring during the first quarter related to the formation of Frontline PCB Solutions, a joint venture entered into with Orbotech (ORBK) at the end of 1998. We are pleased with Frontline’s performance, and with Valor’s performance as well, both of which exceeded our initial projections.

"The increased acceptance by the industry of ODB++, the Valor funded data transfer format, has strengthened our position as a global leader in providing CAD/CAM tools to the electronics interconnect industry as it further restructures itself around a Design-anywhere/Build-anywhere model.

"We took a close look at the market and diagnosed a strong market need for improved data transfer and data reliability, which would in turn shorten cycle times and reduce costs. We’ve targeted our tools to answer with these needs by providing solutions which afford bottom line results, and our marketing message to relay our expertise. The result is that we are proceeding on track in both the PCB Design and Manufacturing markets, and specifically in the PCB assembly market with the recently-launched Trilogy 5000 engineering system.

"Based on these results and on feedback we are getting from the industry, we are confident that we will continue to achieve excellent results."

About Valor

Valor is a global leader in CAD/CAM software providing state-of-the-art solutions for electronic design and manufacturing. Providing powerful analysis tools and serving as an interface for driving production equipment, Valor's systems ensure that manufacturing uses only optimized data. The result is accessible, coherent planning resources and improvements in tooling efficiencies. The bottom line is shortened cycle time driven by a significant boost in productivity and quality. More information about the company can be found at http://www.valor.com

Note: Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties which could cause the actual results to differ materially from those projected, including the timely development and acceptance of new products, delays in factory testing and acceptance, industry trends, technology or pricing competition and other risks. The Company assumes no obligation to update the information in this press release.