exhibit_1.htm

Exhibit 1

ELBIT VISION SYSTEMS LTD.

Company Contact Information:

Yaron Menashe, CFO

Tel: +972 4 6107609

yaron@evs.co.il

ELBIT VISION SYSTEMS ANNOUNCES Q2 2011 RESULTS

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Second quarter revenues of $1.42 million

Operating profits of $0.35 million and net profits of $0.3 million constituting 24% and 21% of net revenues, respectively

Caesarea, Israel, August 15, 2011 — Elbit Vision Systems Ltd. (OTCBB: EVSNF.OB), a global provider of vision technology for automatic surface inspection and in-line quality monitoring systems, today announced its consolidated financial results for the three month period ending June 30, 2011.

Second Quarter 2011 Results:

Revenues for the Second quarter of 2011 were $1.42 million, representing an increase of 122% compared to $0.64 million for the Second quarter of 2010.

Gross profit on a US GAAP basis was $0.92 million, representing 65% of revenues, compared with a gross profit of $0.2 million for the second quarter of 2010.

Operating profit on a US GAAP basis was $347 thousand compared with an operating loss of $259 thousand in the second quarter of 2010 from continued operation.

Net profit on a US GAAP basis for the second quarter of 2011 was $302 thousand, compared to a net loss of $479 thousand in the second quarter of 2010 from continued operation.

Sam Cohen, CEO of EVS commented, “As we expected, these historic second quarter results show the fourth consecutive profitable quarter for EVS. These results, more than the previous three, are truly significant because it ended the one year anniversary of the new EVS management team with an accumulated EBITDA of $1.35 million after years of devastating losses. Furthermore, we are very encouraged by the early interest in the launch of our new products in the coming months, which we believe, together with our marketing efforts, will enable us to expand into previously unreachable markets. This is further evidence that EVS’s best years are ahead of us!” concluded Mr. Cohen.

About Elbit Vision Systems Ltd. (EVS): www.evs.co.il

EVS offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency. EVS' systems are used by over 650 customers, many of which are leading global companies.

This press release and other releases are available on www.evs.co.il

Safe Harbor Statement

This press release contains forward-looking statements. Such statements are subject to certain risks and uncertainties, such as market acceptance of new products and our ability to execute production on orders, which could cause actual results to differ materially from those in the statements included in this press release. Although EVS believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. EVS disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or otherwise. EVS undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

Use of Non-GAAP financial measures

EVS uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation, amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company’s business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP.

FINANCIAL TABLES FOLLOW

ELBIT VISION SYSTEMS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AT JUNE 30, 2011
IN U.S. DOLLARS

	Jun-30				Dec-31
	2011		2010		2010
	U.S. dollars in thousands (except per share data)
Assets

CURRENT ASSETS:
Cash and cash equivalents		677		174		547
Restricted deposit		32		27		32
Accounts receivable:
Trade		634		334		237
Other		86		95		70
Inventories		420		452		475
Total current assets		1,849		1,082		1,361

LONG-TERM RECEIVABLES:

Severance pay fund		173		170		144
Other long-term receivables		219		47		271
Total long-term receivables		392		217		415

PROPERTY, PLANT AND EQUIPMENT – net of
accumulated depreciation and amortization		52		50		50

OTHER ASSETS -
net of accumulated amortization:
Goodwill		242		242		242
Other intangible assets		-		383		-
		242		625		242

Total assets		2,535		1,974		2,068

	Jun-30						Dec-31
	2011			2010			2010
	U.S. dollars in thousands (except per share data)
Liabilities and shareholders’ equity

CURRENT LIABILITIES:
Credit from banks&current maturities		190			160			170
Current Maturities of Loan from Shareholder and Other		296			85			270
Accounts payable:
Trade		526			641			564
Deferred revenues		277			380			201
Other		464			1,467			383
Total current liabilities		1,753			2,733			1,588

LONG-TERM LIABILITIES:
Long Terms Loans From Banks (Net of current maturities)		1,116			1,294			1,227
Loans and other liabilities (net of current maturities)		556			766			681
Loan from shareholder (net of current maturities)		123			127			139
Other Long Terms liabilities		1,017			-			1,043
Accrued severance pay		230			218			199
Total long-term liabilities		3,042			2,405			3,289
Total liabilities		4,795			5,138			4,877

SHAREHOLDERS’ EQUITY		(2,260	)		(3,164	)		(2,809	)

Total liabilities and shareholders’ equity		2,535			1,974			2,068

ELBIT VISION SYSTEMS LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX AND THREE-MONTHS PERIOD ENDED JUNE 30, 2011

IN U.S. DOLLARS

	6 months ended						3 months ended						year ended
	Jun-30						Jun-30						December 31,
	2011			2010			2011			2010			2010
	U.S. dollars in thousands (except per share data)

REVENUES		2,677			1,120			1,423			641			3,912

COST OF REVENUES		899			860			498			438			1,960
GROSS PROFIT		1,778			260			925			203			1,952


RESEARCH AND DEVELOPMENT EXPENSES – net		314			247			160			87			494
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Marketing and selling		524			381			248			188			921
General and administrative		332			479			170			187			802

OPERATING PROFIT (LOSS)		608			(847	)		347			(259	)		(265	)

FINANCIAL EXPENSES - net		(74	)		(93	)		(45	)		(19	)		(291	)
OTHER (EXPENSES) INCOME – net		(2	)		(76	)		-			(201	)		(307	)
LOSS BEFORE TAXES ON INCOME		532			(1,016	)		302			(479	)		(863	)

TAXES ON INCOME		-			-			-			-			-
PROFIT (LOSS) FOR THE PERIOD		532			(1,016	)		302			(479	)		(863	)

LOSS FROM OPERATION OF DISCONTINUED COMPONENTS		-			(1,946	)		-			(360	)		(1,946	)

NET PROFIT FROM DISPOSAL OF DISCONTINUED OPERATION		-			5,354			-			5,354			5,436

NET INCOME		532			2,392			302			4,515			2,627

PROFIT PER SHARE BASIC		0.008			0.034			0.004			0.065			0.038
PROFIT PER SHARE DILUTED		0.008			0.034			0.004			0.065			0.038
WEIGHTED AVERAGE NUMBER OF SHARES USED IN
COMPUTATION OF PROFIT PER SHARE:
BASIC (IN THOUSANDS)		69,653			69,653			69,653			69,653			69,653
DILUTED (IN THOUSANDS)		70,561			69,653			70,737			69,653			69,741