Hotel Outsource Management International, Inc. Presents Q3 2012 Results

Hotel Outsource Management International, Inc. (“ HOMI”) (OTC: HOUM), a multi-national service provider in the hospitality industry, supplying computerized minibars that are primarily intended for in-room refreshments, presented its consolidated financial results for the third quarter ended September 30, 2012.

Mr. Daniel Cohen, HOMI’s President, stated: "In the third quarter we demonstrated some improvement in gross profit and gross margin, in addition to narrowing operating and net losses, as a result of our continued efforts to reduce selling, marketing, and general and administrative expenses. We will continue with reorganizing activities which we expect to improve gross profit and gross margin.

"We have started installations of our new generation open access minibar, the HOMI ® 226. We are also working on developing our direct sales business model, which we consider an additional growth engine. We are renovating HOMI’s website, and adding new marketing collaterals."

Mr. Daniel Cohen concluded: "I would like to welcome Mr. Kalman Huber, HOMI's newly appointed Chairman of the Board, and wish him good luck. Mr. Huber has served as a director of our board since 2009 and is the Chairman of HOMI’s Audit Committee. Mr. Huber replaces Mr. Abraham Bahry, who served as Chairman of the Board since 2004 and will continue to serve as a director."

Third quarter 2012 results :

Revenues for the third quarter of 2012 reached US$780,000, compared to US$885,000 in the third quarter of 2011. The decrease is mainly due to the expiration of agreements with two hotels in the United States, as well as a decrease in occupancy rates in Israel during this period. Revenues arise primarily from the sale of refreshments in the minibars.

For the three months ended September 30, 2012, HOMI's three largest customers accounted for approximately 27.5% of the total revenues, compared to 29.6% in the same period of 2011.

Gross Profit in the third quarter of 2012, after consideration of depreciation expense, was US$130,000, compared to US$123,000 in the third quarter of 2011, an increase of 5.7%. Gross profit margin increased from 13.9% in the third quarter of 2011 to 16.7% in the third quarter of 2012.

Operating Loss in the third quarter of 2012 was US$323,000, compared to an operating loss of US$339,000 in the third quarter of 2011.

The research and development of the HOMI ® 330, was completed in 2009. The research and development of an additional product, the new generation HOMI® 226, began in the first quarter of 2012. Total research and development expenses in the third quarter of 2012 were $25,000. Selling and Marketing expenses decreased to US$70,000 from US$92,000 in the third quarter of 2011, primarily as a result of the reduction of marketing efforts. General and administrative expenses decreased from US$345,000 to US$339,000.

Net Loss in the third quarter of 2012 was US$421,000, compared to a net loss of US$490,000 in the third quarter of 2011.

Cash and Cash Equivalents as of September 30, 2012 were US$148,000, including deposits, compared to US$345,000 as of December 31, 2011.

Total Shareholders' Equity as of September 30, 2012 was US$2,000,000, compared to US$1,176,000 as of December 31, 2011.

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 "OTC" Exchange, under the symbol "HOUM".

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 43 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 hotels’ needs, ranging from consultation, supervision and rental services, to full outsource installation and operation arrangements.

HOMI's leading products are the HOMI ® 330, HOMI ® 226 and the External Dry-Section computerized 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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