CIMATRON LIMITED
                                     STATEMENTS OF CASH FLOWS
                                    (US Dollars in thousands)
 
                                                                           Three months
                                                                               ended
                                                                             March 31,
                                                                         2012        2011
 
    Cash flows from operating activities:
    Net income                                                          $ 843       $ 311
 
    Adjustments to reconcile net income
    to net cash provided by operating activities:
    Depreciation and amortization                                         337         375
    Increase (decrease) in accrued severance pay                          218          (8)
    Deferred taxes, net                                                   (92)        170
 
    Changes in assets and liabilities:
    Increase in accounts receivable and prepaid expenses                 (755)       (282)
    Decrease (increase) in inventory                                      (21)         17
    Increase in deposits with insurance companies 
     and severance pay fund                                              (118)        (20)
    Increase in trade payables, accrued expenses and 
     other liabilities                                                  1,941         715
    Net cash provided by operating activities                           2,353       1,278
 
    Cash flows from investing activities:
    Purchase of property and equipment                                    (63)        (45)
    Net cash used in investing activities                                 (63)        (45)
 
    Cash flows from financing activities:
    Short-term bank credit                                                663         456
    Long-term bank credit                                                  (1)          -
    Proceeds from issuance of shares upon exercise of options              14         728
    Net cash provided by financing activities                             676       1,184
 
    Net increase in cash and cash equivalents                           2,966       2,417
    Effect of exchange rate changes on cash                               151         342
    Cash and cash equivalents at beginning of period                   11,787      10,221
    Cash and cash equivalents at end of period                       $ 14,904    $ 12,980
 
     Appendix  A  -  Non-cash  transactions
        Purchase  of  property  on  credit                                                                                $  8                  $  6