CIMATRON LIMITED
                            RECONCILIATION BETWEEN GAAP AND NON-GAAP INFORMATION
                            (US Dollars in thousands, except for per share data)
 
                                       Three months ended                          
                                          December 31,                              
                                    2011                          2010                
                        GAAP      Adj.       NON-GAAP    GAAP      Adj.    NON-GAAP 
 
    Total revenue        12,226        -         12,226    11,013        -     11,013 
 
    Total cost of
    revenue (1)           1,477     (147)         1,330     1,634     (147)     1,487
 
    Gross profit         10,749      147         10,896     9,379      147      9,526
 
     Research and
     development
     expenses, net        2,031        -          2,031     1,692        -      1,692 
 
     Selling,general
     and administrative
     expenses (1)         6,799      (99)         6,700     6,282      (99)     6,183 
    Operating income      1,919      246          2,165     1,405      246      1,651  
 
     Financial income
     expenses),net         (186)       -           (186)       43        -         43  
 
     Taxes on
     income (2)            (339)     (44)          (383)     (401)     221       (180) 
 
    Other                     3        -              3         1        -          1  
 
    Net income            1,397      202          1,599     1,048      467      1,515   
 
      Less: Net(income)
      loss attributable
      to the noncontrolling
      interest               44        -             44        45        -         45  
 
    Net income attributable
    to Cimatron's
    shareholders        $ 1,441    $ 202        $ 1,643   $ 1,093    $ 467    $ 1,560  
    Net income per
    share - basic        $ 0.15                  $ 0.18    $ 0.12              $ 0.17 
    Net income per
    share - diluted      $ 0.15                  $ 0.18    $ 0.12              $ 0.17  
 
    Weighted average number
    of shares outstanding
 
     Basic EPS
     (in thousands)      9,300                   9,300     8,959               8,959 
 
     Diluted EPS
     (in thousands)      9,315                   9,315     8,983               8,983 
    (table continued)
                                    Twelve months ended
                                         December 31,
                                    2011                                  2010
                                                GAAP            Adj.              NON-GAAP        GAAP            Adj.        NON-GAAP
  
        Total  revenue                40,714                -                40,714            36,074                -          36,074
  
        Total  cost  of
        revenue  (1)                      5,383          (588)                4,795              5,876          (588)          5,288
  
        Gross  profit                  35,331            588                35,919            30,198            588          30,786
  
          Research  and
          development
          expenses,  net                6,739                -                  6,739              6,014                -            6,014
  
          Selling,general
          and  administrative
          expenses  (1)                24,453          (402)              24,051            22,053          (396)        21,657
        Operating  income            4,139            990                  5,129              2,131            984            3,115
  
          Financial  income
        (expenses),net                  (195)              -                    (195)                  97                -                  97
  
          Taxes  on  income(2)    (1,327)          843                    (484)              (657)          347              (310)
  
          Other                                      (6)              -                        (6)                  (6)              -                  (6)
    
        Net  income                        2,611        1,833                  4,444              1,565        1,331            2,896
  
          Less:  Net(income)
          loss  attributable
          to  the  noncontrolling
          interest                                57                -                        57                    26                -                  26
  
        Net  income
        attributable
        to  Cimatron's
        shareholders                $  2,668    $  1,833              $  4,501          $  1,591    $  1,331        $  2,922
        Net  income  per
        share  -  basic                $  0.29                                  $  0.49            $  0.18                            $  0.32
        Net  income  per
        share  -
        diluted                            $  0.29                                  $  0.48            $  0.18                            $  0.32
  
        Weighted  average  
        number  of  shares
        outstanding
            Basic  EPS
            (in  thousands)            9,252                                    9,252              9,000                              9,000
            Diluted  EPS
            (in  thousands)            9,292                                    9,292              9,000                              9,000

  
        (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.