RiT Technologies Reports Results for Q2 2008

Q2 Revenues Up 45% to $5.9M; H1 Revenues Up 12% to $10.7M

TEL AVIV, Israel, July 31 /PRNewswire-FirstCall/ -- RiT Technologies
(NASDAQ: RITT), the world-leading provider of intelligent infrastructure
solutions, today announced financial results for the second quarter and six
months ended June 30, 2008.
Financial Results
Revenues for the second quarter of 2008 were $5.9 million, a 45% increase
compared with $4.1 million for the second quarter of 2007 and a 24% increase
compared with the previous quarter of 2008. Net loss for the quarter was $0.5
million, or $0.03 per share (basic and diluted) a decrease of 73% compared
with $1.8 million, or $0.12 per share (basic and diluted), in the second
quarter of 2007. The Company's expenses for the quarter included the impact
of the continued decline in the shekel/dollar exchange rate.
Revenues for the first half of 2008 were $10.7 million, an increase of
12% compared with $9.6 million for the first six months of 2007. Net loss for
the period was $1.6 million, or $0.11 per basic and diluted share, a
reduction of 38% compared with a net loss of $2.6 million, or $0.18 per basic
and diluted share, for the first six months of 2007.
Changes in Principal Shareholders and Management
On June 12, 2008, the Company announced that STINS COMAN had completed
the acquisition of 41.9% of RiT's outstanding share capital, thereby becoming
its controlling shareholder. After the acquisition, Messrs. Yehuda Zisapel
and Meir Barel resigned from the Board of Directors of the Company, and
Messrs. Sergey Anisimov and Boris Granovsky joined the Board of Directors.
Mr. Sergey Anisimov, President and Founder of STINS COMAN since 1992, was
appointed Chairman of RiT's Board of Directors, replacing Yehuda Zisapel who
had served as RiT's Chairman since 1989.
In addition, the Company announced the appointment of Mr. Avi Kovarsky,
formerly RiT's Senior VP Sales and an employee of RiT since 1997, as
President and CEO, replacing Mr. Doron Zinger on July 1, 2008.
Comments of Management
"The second quarter was a transformational period during which the
Company changed ownership, management and strategy," commented Mr. Avi
Kovarsky. "We are encouraged by the quarter's significant revenue growth and
by our growing pipeline of potential sales for the second half of the year
and 2009, which includes opportunities for both the Carrier and Enterprise
side of the business. This reflects the growing success of our sales and
marketing activities, together with our focus on the fast-growing regions of
Russia, Eastern Europe and CIS countries. Further, we have recently announced
that we are in the process of closing a $4.0 million private placement of
ordinary shares (PIPE investment) (subject to shareholder approval), a
milestone transaction which will further increase our ability to do business
and to execute our work plan."
Mr. Kovarsky continued, "During the quarter and immediately after, we
recorded several initial Carrier orders from new customers that are due for
delivery in the third quarter. These sales, together with a number of
high-quality Enterprise and Carrier deals that are now in an advanced stage
of negotiation, are evidence of a reawakening and strengthening of our
business.
"Going forward, our key strategic goals are clear: to take better
advantage of the relationships we have built with the world's leading network
infrastructure integrators, and to leverage the presence of our partners in
high-potential vertical markets."
Mr. Kovarsky concluded, "Taken as a whole, we feel well positioned, and
are determined to return RiT to profitability as soon as possible. We believe
we will be able to deliver a much stronger second half for 2008 and to
continue expanding the Company's momentum in 2009."
Conference Call Details
The Company will host a conference call to discuss these results today,
Thursday, July 31st, at:
10:00 a.m. Eastern Daylight Time
9:00 a.m. Central Daylight Time
8:00 a.m. Mountain Daylight Time
7:00 a.m. Pacific Daylight Time
17:00 Israel Time

To participate, please call one of the following teleconferencing numbers
approximately 5-10 minutes prior to the scheduled start of the call:

U.S. (toll free) - 1-888-407-2553
International - +972-3-918-0650

To participate in the webcast of the call, please log-in about 5-10
minutes prior to the start of the call as follows:
http://www.videonewswire.com/event.asp?id=50395
For those unable to participate, the teleconference will be archived for
replay for 14 days at the same url address, beginning 12 o'clock noon (EDT)
the day of the call. Note: Participants in the webcast may submit questions
to be addressed in the conference call in advance by email to:
simonag@rit.co.il, by phone: +972-3-766-4249 or fax: +972-3-647-4115.
About RiT Technologies
RiT is a leading provider of intelligent solutions for infrastructure
management, asset management and network utilization. RiT Enterprise
solutions address datacenters, communication rooms and workspace
environments, ensuring maximum utilization, reliability, decreased downtime,
physical security, automated deployment, asset tracking, and troubleshooting.
RiT Carrier solutions provide carriers with the full array of network
mapping, testing and bandwidth qualification capabilities needed for access
network installation and service provisioning. RiT's field-tested solutions
are delivering value in thousands of installations for top-tier enterprises
and operators throughout the world.
For more information, please visit our website: http://www.rittech.com
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use the
words "believe," "anticipate," "expect," "plan," "intend," "estimate",
"forecast", "target" and similar expressions, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
While these forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from the
results expressed or implied by these statements due to numerous important
factors, including, but not limited to, those described under the heading
"Risk Factors" in our most recent Annual Report filed with the Securities and
Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented
in subsequent reports filed with the SEC. These factors include, but are not
limited to, the following: our ability to raise additional financing, if
required; the continued development of market trends in directions that
benefit our sales; our ability to maintain and grow our revenues; our
dependence upon independent distributors, representatives and strategic
partners; our ability to develop new products and enhance our existing
products; the availability of third-party components used in our products;
the economic condition of our customers; the impact of government regulation;
and the economic and political situation in Israel. We are under no
obligation, and expressly disclaim any obligation, to update the
forward-looking statements in this press release, whether as a result of new
information, future events or otherwise.
RiT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (U.S GAAP)
(U.S dollars in thousands)

June 30, December 31,
2008 2007
(Unaudited) (Audited)
Assets
Current Assets
Cash, cash equivalents and short
term investments 3,560 3,850
Trade receivables, net 4,366 4,536
Other current assets 449 370
Inventories 3,677 3,684
Total Current Assets 12,052 12,440

Long­term Investment 1,940 1,713

Property and Equipment
Cost 3,445 3,376
Less - accumulated depreciation 2,878 2,734
567 642
Total Assets 14,559 14,795

Liabilities and Shareholders' Equity
Current Liabilities
Short-term loan from principal
shareholder 2,000 -
Trade payables 3,273 3,838
Other payables and accrued expenses 1,998 2,459
Total Current Liabilities 7,271 6,297

Long-term Liability
Liability in respect of employees'
severance benefits 2,406 2,178
Total Liabilities 9,677 8,475

Shareholders' Equity
Share capital 389 389
Treasury stock (27) (27)
Additional paid-in capital 32,734 32,580
Accumulated deficit (28,214) (26,622)
Total Shareholders' Equity 4,882 6,320
Total Liabilities and Shareholders'
Equity 14,559 14,795

RiT TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S dollars in thousands, except for per share data)

For the three months For the six months
ended ended
June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited)

Sales 5,943 4,102 10,735 9,602
Cost of sales 3,206 2,239 5,942 5,269
Gross profit 2,737 1,863 4,793 4,333

Operating costs
and expenses:
Research and
development:
Research and 936 1,199 1,938 2,272
development,
gross
Less - 104 49 104 110
royalty-bearing
participation
Research and 832 1,150 1,834 2,162
development, net

Sales and 1,537 1,914 3,175 3,699
marketing
General and 887 591 1,456 1,095
administrative
Total operating 3,256 3,655 6,465 6,956
expenses

Operating loss (519) (1,792) (1,672) (2,623)
Financial income, 30 10 80 53
net

Net loss (489) (1,782) (1,592) (2,570)

Net loss per (0.03) (0.12) (0.11) (0.18)
ordinary share
(basic and
diluted)

Weighted average 14,681,574 14,670,643 14,681,574 14,658,918
number of
ordinary shares,
used to compute
net loss per
ordinary share
(basic and
diluted)

Company contact:
Simona Green
VP Finance
+972-3-766-4249
simonag@rit.co.il

SOURCE RiT Technologies Ltd

Company contact: Simona Green, VP Finance, +972-3-766-4249, simonag@rit.co.il