C.M.T. Medical Technologies Ltd. was incorporated in 1981 under the laws of the State of Israel. Our principal executive offices are located at Matam Advanced Technology Center, Haifa 31905, Israel and our telephone number is 972-4-856-6220

The Company was founded as Fidelity Medical Services (Israel) Ltd. At that time, the Company was engaged in the development, manufacturing and marketing of a product line used by cardiologists in the detection and diagnosis of heartbeat irregularities.

In 1982 the Company was acquired by Fidelity Medical Inc., a U.S. company, and became its wholly owned subsidiary. The subsidiary's business was refocused to medical imaging leading to the launch of the FluoroPlus family of products in 1987.

In 1993, a group of investors led by two Israeli individuals, Ms. Greenberg and Mr. Charsky, the former still an investor through a controlled entity, Nofit Center Ltd., purchased the subsidiary from Fidelity Medical Inc. In 1994, a U.S.-based venture capital fund, the Israel Industrial Venture Group, L.P. ("IIVG"), one of the principals of which is Mr. Pinchas Dror, the current Chairman of the Company's Board of Directors, invested $1 million in exchange for a 12.6% stake in the Company.

During 1995, the Company developed a new line of products, the SmartSpot family of products. The introduction of this new product line enabled the Company to enter into OEM agreements with major X-ray manufacturers, resulting in the turnaround of the Company's business and the Company's positive results since the second half of 1997.

In 1996, a wholly-owned, U.S. subsidiary was established by the Company to sell and market its products in North America as well as provide technical support to the North American installed base.

In 1996, we established a wholly-owned subsidiary in the United States, C.M.T. Medical Technologies, Inc. ("CMT Inc."), a Delaware Corporation. CMT Inc. is located at 20 East Sunrise Highway, Suite 303 Valley Stream NY 11581 USA and its telephone number is 516 - 825 - 5500 CMT Inc. markets our products as well as provide technical support to the North American installed base.

On May 17, 1999 the Company offered 1,020,304 of its Ordinary Shares in an Initial Public Offering (the "IPO") on the Nouveau Marché. The offering consisted of 595,177 new shares that were issued in consideration for the increase in the issued capital and of 425,127 existing shares sold by current shareholders.

In February 1999, we invested in Medibell Medical Vision Technologies Ltd. ("Medibell"), which is engaged in the development of projects related to ophthalmology. As of December 31, 2001, the Company had invested in Medibell a total of $ 1,000 thousand, entitling it to 55.6 % of its shares, and an additional amount of $ 1,635 thousand as convertible loans.

Today the Company designs, develops, manufactures and markets digital image processing systems that allow X-ray pictures to be viewed and processed in high-resolution digital form.

The Company's systems are currently used in medical diagnostic imaging applications, primarily in interventional radiology and general radiology applications. Digital image processing provides real-time acquisition and display of X-ray images, allowing physicians to monitor critical procedures and make diagnoses. In addition to marketing its products through distributors as upgrades to existing systems, the Company markets its products on an original equipment manufacturer ("OEM") basis through major X-ray manufacturers who are worldwide leaders in medical diagnostic imaging systems.