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$439 60 X18 X30

CLASSIC CREDENZA

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(810) 366-0220

72" X 72"
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Bring your friends and family for a fun-filled day of
FitCC activities and entertainment at

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August Z4 from 14 p.ni. at Maple/Drake and JPM

This exciting day will feature various activities including:

Live entertai n ment by OeTilitii at %ark/Brake

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Edible art _projects

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Biscovery 1Z9ooltt Museum at Maple/Brake

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Sponsored Fy:
THE JEWISH NEWS

Nest 33toomfielb Eccentric

lations going into effect, 1,500
systems are needed, while the
European Civil Air Commission
is demanding that by the year
2000 all European airports au-
tomatically screen all luggage —
a market of some 500 machines.
"This will give us a boom," pre-
dicts Even-Ezra.
Magal is not alone in the field,
however. One of its biggest com-
petitors is the U.S. company In-
Vision, which has the only
product approved by the Feder-
al Aviation Administration.
Earlier this year, InVision re-
ceived an order for $52.5 million
from the FAA. Another order of
$40 million, earmarked for 1998,
has been blocked, however, be-
cause of growing criticism about
InVision's CTX 5000.
In June, United Airlines,
which is testing the CTX 5000 at
Chicago's O'Hare International
Airport, said the machine, which
costs $1 million, is too expensive,
has a 30 percent alarm rate,
sounds alarms on toiletries, shoes
and foodstuffs, and processes few-
er than 150 bags an hour. For
one jumbo jet alone, it would take
five to six hours to process lug-
gage.
Another competitor is Vivid
Technologies, also from the U.S.
Vivid's product works as quickly
as the Aisys system and is cheap-
er, but Even-Ezra says detection
rates are not as high. "You can't
have good quality and cheap
prices. We aren't ready to reduce
price on account of detection
probability."
Magal has another problem
which Even-Ezra hopes will be
resolved in the next few months.
U.S. legislation at present only
approves systems that detect ex-
plosives. Since Magal's system
detects the explosive devices, it
does not qualify. This has been a
long-running problem, but after
the TWA crash, public pressure
forced the FAA into seeking the
necessary legislative amend-
ments. These changes should be
completed soon and Even-Ezra
hopes that his machine, which
meets FAA standards in every
other way, will be certified and
that he will receive an order from
the U.S. government.
Magal, which spends heavily
on research and development,
has also brought other new prod-
ucts to the market. In 1989, it be-
gan work on a video motion
detector for perimeter security.
Believed to be one of the most ad-
vanced in the world, analyst Pete
Castellanos of Cruttenden Roth
says the system automatically
recognizes and tracks intruders
with fewer false alarms than
competing systems.
Another new product is a ma-
chine that detects weapons, ex-

plosives, narcotics and other con-
traband smuggled in freight pal-
lets. Developed jointly with an
American company, Magal has
already supplied four pallet
screening machines to the Israeli
Customs Authority.
"We are taking dumb things
like a fence or an X-ray machine
and putting sense into them,"
says Even-Ezra.
"Instead of a person inter-
preting signals, the computer
makes the decision about
whether to give an alarm. Hu-
man beings are the most unre-
liable creatures that exist."
Magal's expansion plans don't
stop at new products, however.
In March 1993, the company held
its first public offering on Wall
Street. With the money raised,
Magal paid $1.2 million for a Cal-
ifornia company, Stellar Securi-
ty Products Inc., owned by
Daimler Benz (DB).
Magal went on to buy anoth-
er subsidiary from DB, Senstar
(UK) Ltd. based in England and
the production lines of three Is-
raeli companies.
In February of this year, Ma-
gal held a second public offering.
Less successful than before, it
raised just $10.2 million. "I
wasn't pleased," admits Even-
Ezra. "It was comparatively low,
which reflects the market then.
We lost between $1 million-$2
million. But if we'd waited any
longer, we'd have had to write the
whole prospectus again, and I
was sick and tired of it. Still, I
don't regret things that have
been done, only things that
haven't."
With the money from the of-
fering, Magal bought two more
DB companies, Senstar Corp., in
Canada, and Senstar GmbH, in
Germany for a total of $5.2 mil-
lion.
Together these four sub-
sidiaries, which are 100 percent
owned by Magal, give the com-
pany substantial force. They
have enlarged the product line
— with new items such as an un-
derground sensor system —
while expanding Magal's distri-
bution capability in Canada and
Germany, two markets where
Magal was weak.
Even-Ezra is pleased with his
purchases. "These companies
weren't even on the market," he
says proudly. "I convinced Daim-
ler Benz's shareholders that they
should be. I had the chutzpah to
ask them why they needed the
headache of such small compa-
nies in their organization."
The hard work is beginning to
show results. In the last few
years, revenues have grown at
an annual average rate of about
20 percent. ❑
Jerusalem Post