Hotel Outsource Management International, Inc. Presents Full Year 2011 Results

Hotel Outsource Management International, Inc. (“ HOMI”) (OTC BB: HOUM) presented its consolidated financial results for the year ended December 31, 2011.

Mr. Daniel Cohen, HOMI’s President, stated: "In 2011 we continued to execute our strategic plan, signing agreements with additional hotels. This year we successfully implemented our new business model with several hotels. Pursuant to this business model, HOMI receives loans from third parties secured by specific minibars, and such minibars continue to be installed, managed and operated by HOMI."

"The results for the year, especially gross profits and gross profit margins, were affected by the additional expenses associated with the installations of the HOMI 232, open display minibars which we purchased from a third party. These third party minibars have not lived up to our expectations. However, our own minibars, the HOMI 330, are proving to be very reliable and we plan to exchange the HOMI 232 minibars in some of the hotels with our HOMI 330 and later, with the new generation HOMI 226, which we expect will begin production during June 2012. We continue with our efforts to reduce expenses, and going forward, this trend will continue, with 2012 being a year of significant cost savings across the board."

Full Year 2011 results :

Revenues for the year ended December 31, 2011 reached US$3,326,000, compared to US$3,201,000 in the year ended 2010, an increase of 3.2%. These revenues arise primarily from the sale of products in the minibars. The increase in revenues is mainly due to the increase of quantity of minibars installed and operated.

For the year ended December 31, 2011, HOMI's three largest customers accounted for approximately 27.7% of the total revenues, compared to 30% in the year ended December 31, 2010.

Gross Profit in 2011, after consideration of depreciation expense, was US$543,000, compared to US$754,000 in 2010. Gross profit margin decreased from 23.6% in 2010 to 16.4% in 2011. The decrease is mainly due to additional expenses relating to the new HOMI® 232 Minibars as these minibars require additional development. Although there was a slight increase in revenues, the cost of revenues grew even more. The economic situation does not allow the Company to increase the prices of the products offered in the minibars.

Operating Loss in 2011 was US$1,315,000, compared to an operating loss of US$1,304,000 in 2010.

The research and development of the HOMI ® 330, was completed in 2009. In 2011 the company incurred additional expenses to improve the production and functionality of the minibars. Total research and development expenses in 2011 were $109,000. Selling and Marketing expenses decreased to US$341,000 compared to US$368,000 in 2010. General and administrative expenses decreased from US$1,562,000 to US$1,408,000, due to the company's increased efforts made to reduce expenses.

Net Loss in 2011 was US$1,745,000, compared to a net loss of US$1,904,000 in 2010.

Cash and Cash Equivalents as of December 31, 2011 were US$345,000, including deposits, compared to US$772,000 as of December 31, 2010.

Total Shareholders' Equity as of December 31, 2011 was US$1,176,000, compared to US$2,622,000 as of December 31, 2010.

About HOMI

HOMI is a multi-national service provider in the hospitality industry, supplying a range of services in relation to computerized minibars that are primarily intended for in-room refreshments. HOMI was incorporated under the laws of Delaware in 2000 and is listed on the Over-the-Counter "OTCQB" Exchange, under the symbol "HOUM.PK"

HOMI and its subsidiaries are engaged in the distribution, marketing and operation of computerized minibars in major branded hotel chains, operating approximately 10,500 computerized minibar systems at 41 hotels located in the United States, Europe and Israel, and in the development and manufacture of a new range of computerized minibar systems, designed to improve the performance of minibar departments, thereby improving the hotel’s bottom line.

HOMI offers a number of solutions that are designed to meet the hotel's needs, ranging from consultation, supervision and rental services, to full outsource installation and operation arrangements.

HOMI's leading products are the HOMI ® 330 and the External Dry-Section / Trays

For more information about HOMI, visit: http://www.my-homi.com/

Forward-Looking Statement

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to the company's future financial performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the company's or the industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the company does not intend to update any of the forward-looking statements to conform these statements to actual results. The terms, the "Company", "we", "us", "our" means Hotel Outsource Management International, Inc and its subsidiaries, unless otherwise indicated.

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