CIMATRON LIMITED
                         CONSOLIDATED STATEMENTS OF INCOME
             (US Dollars in thousands, except for per share data)
                                   continued

                                Nine months ended September 30,
                                   2011                       2010
                       GAAP        Adj.    NON-GAAP    GAAP   Adj.   NON-GAAP

   Total
   revenue           28,488          -     28,488    25,061      -    25,061

   Total cost of
   revenue (1)        3,906       (441)     3,465     4,242   (441)    3,801

   Gross
   profit            24,582        441     25,023    20,819    441    21,260

   Research and
   development
   expenses, net      4,708          -      4,708     4,322      -     4,322

   Selling, general and
   administrative
   expenses (1)      17,654       (303)    17,351    15,771   (297)   15,474
   Operating
   income             2,220        744      2,964       726    738     1,464

   Financial income
   (expenses), net       (9)         -         (9)       54      -        54

   Taxes on
   income (2)          (988)       887       (101)     (256)   126     (130)

   Other                 (9)         -         (9)       (7)     -       (7)

   Net income         1,214      1,631      2,845       517    864     1,381

   Less: Net (income)
  loss attributable
  to the
  noncontrolling
  interest               13          -         13       (19)     -       (19)

   Net income
   attributable to
   Cimatron's                               
   shareholders     $ 1,227     $ 1,631   $ 2,858     $ 498  $ 864   $ 1,362
   Net income per
   share - basic and
   diluted           $ 0.13                $ 0.31    $ 0.06           $ 0.15

   Weighted average
   number of shares
   outstanding

   Basic EPS (in
   thousands)        9,235                 9,235      9,014            9,014

   Diluted EPS
   (in
   thousands)        9,284                 9,284      9,014            9,014
   (1) Non-GAAP adjustment to exclude non-cash amortization of acquired 
       intangible assets.
   (2) Non-GAAP adjustment to exclude the effect of deferred taxes and other 
       non-cash tax provisions.

   
                                        CIMATRON LIMITED
                                   CONSOLIDATED BALANCE SHEETS
                                     (US Dollars in thousands)

                                         September 30,        December 31,
                                                 2011                2010

                       ASSETS
   CURRENT ASSETS:
         Total cash, cash
         equivalents and
         short-term investments               $ 11,550          $ 10,221
         Trade receivables                       5,060             5,708
         Other current assets                           1,989                          2,275
                        Total  current  assets                                18,599                        18,204

                        Deposits  with  insurance
                        companies  and  severance
                        pay  fund                                                          3,149                          3,279

                        Net  property  and
                        equipment                                                        1,044                              949

                        Total  other  assets                                    11,796                        12,469

                              Total  assets                                      $  34,588                    $  34,901

                                              LIABILITIES  AND
                                              SHAREHOLDERS'
                                              EQUITY
      CURRENT  LIABILITIES:
                  Short-term  bank  credit                                      $  91                            $  99
                  Trade  payables                                                    1,430                          1,685
                  Accrued  expenses  and
                  other  liabilities                                              7,935                          8,260
                  Deferred  revenues                                              4,168                          2,275
                        Total  current
                        liabilities                                                  13,624                        12,319

      LONG-TERM  LIABILITIES:
                  Accrued  severance  pay                                      4,218                          4,297
                  Long-term  loan                                                          53                                98
                  Deferred  tax  liability                                        729                          1,002
                  Total  long-term
                  liabilities                                                          5,000                          5,397

                  Total  shareholders'
                  equity                                                                  15,964                        17,185
                              Total  liabilities  and
                              shareholders'  equity                      $  34,588                    $  34,901