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Magal Implements Reorganization Plan
May 23, 2010 (10:05 AM EDT)


YEHUD, Israel, May 23, 2010 /PRNewswire-FirstCall/ -- Magal S3 (NASDAQ GM: MAGS; TASE: MAGS), announced today that it is implementing a second phase of its reorganization plan, designed to enable the company to execute on its new strategic plan and cope with the global trends, specifically the European economy slowdown. Magal's strategic intent is to expand international sensor sales and refocus on projects in preferred regions.

As part of this plan, the company announced internal organizational changes, as well as a workforce reduction in Israel. Management anticipates that these changes will be reflected in Magal's financial results in the second half of 2010 .

Eitan Livneh, President and CEO of Magal S3, commented: "We are preparing to refocus and increase our marketing activities as part of our new strategic plan. With that, due to current global macroeconomic conditions, Magal was forced to reduce personnel in Israel in order to rationalize our operating expense and make resources available to meet new market opportunities."

About Magal S3:

Magal S3 is a leading international provider of security, safety and site management solutions and products (NASDAQ: MAGS). 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 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) - comprehensive management platforms with a
      leading Intelligent Video Analysis (IVA) and Video Motion Detection
      (VMD) engine

    - Physical Security Information Management (PSIM) - a proprietary 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 Commission.

    Magal S3
    Eitan Livneh, President & CEO
    Tel: +972-3-539-1444
    Fax: +972-3-536-6245
    Assistant: Ms. Elisheva Almog
    E-mail: ElishevA@magal-s3.com

    Financial Communication Public & Investor Relations
    Hadas Friedman
    Tel: +972-3-695-4333 Ext. 6
    E-mail: hadas@fincom.co.il
    Mobile: +972-54-230-3100


SOURCE Magal S3