CIMATRON LIMITED
                           STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                     (US Dollars in thousands)
 
                                                                          
                                                                   Accumulated 
                                                                     other                                                       
                                              Additional         comprehensive           
               Noncontrolling     Share        paid-in               income 
                 Interest         capital       capital              (loss) 
               
    Balance at
    December 31,
    2010            $ (74)         $ 304       $ 18,275             $ (265)
    Changes
    during the
    twelve months
    ended
    December 31,
    2011:
    Net income
    (loss)            (57)                               
    Cash dividend
    paid                                             
    Exercise of
    share options                      9            724           
    Unrealized
    loss on
    derivative
    instruments                                                       (431) 
    Other                                                             (109)
    Foreign
    currency
    translation
    adjustment                                                         359 
    Total
    comprehensive
    income                                           
    Balance at
    December 31,
    2011           $ (131)         $ 313       $ 18,999             $ (446)
    (table continued)
                                           
                                                                       
                  Retained               
                  earnings                 Comprehensive       Total                
                (accumulated    Treasury      income       shareholders'
                  deficit)        stock        (loss)         equity
               
    Balance at
    December 31,
    2010            $ (303)      $ (752)                     $ 17,185
    Changes
    during the
       twelve  months
        ended
        December  31,
        2011:
        Net  income
        (loss)                      2,668                                            2,611                      2,611
        Cash  dividend
        paid                        (3,216)                                                                        (3,216)
        Exercise  of
        share  options                                                                                                  733
        Unrealized
        loss  on
        derivative
        instruments                                                                    (431)                      (431)
        Other                                                                                (109)                      (109)
        Foreign
        currency
        translation
        adjustment                                                                        359                          359
        Total
        comprehensive
        income                                                                            2,430
        Balance  at
        December  31,
        2011                        $  (851)            $  (752)                                          $  17,132