Data Systems & Software Inc. (OTCBB:DSSI), a holding company, today announced that Paketeria GmbH, Germany's first multi-services superstore, has opened its 50th store in the Niedersachsen suburb of Achim, Germany. Paketeria is a franchise system that combines six services (e-bay dropshop, post and parcels, copies, printing, photo processing and printer cartridge refilling) in one store. Paketeria stores are strategically placed primarily within major supermarkets in Germany to improve convenience for consumers.

DSSI acquired a 23% equity stake in Paketeria in August 2006, with the option to acquire a majority position.

Unique European Opportunity

Andy Roesch, a highly regarded and successful serial entrepreneur, founded Paketeria in 2003 to take advantage of the privatization of the German post office. The privatization, which will end the German Post's monopoly on mail delivery by the end of 2007, has led to substantial reductions in their retail network. Many German communities find themselves stranded without convenient access to post and parcel services. Paketeria's goal is to open more than 500 franchised shops in Germany in the next two years. Paketeria is evaluating opportunities in other countries that have announced the privatization of their postal services, including Switzerland, Austria, Italy, and France.

About DSSI

Data Systems & Software Inc. (DSSI) is a holding company that actively invests in proven entrepreneurs with businesses that have revenue traction and a realistic view to profitability. DSSI owns 50% of dsIT, an Israeli software developer, and 23.6% of Comverge Inc., a leading Demand Response company enabling utilities, industry and consumers to better manage peak electricity usage. DSSI also owns 23% of Paketeria GmbH. Additional information about DSSI and its subsidiary and equity affiliates is available at www.dssiinc.com, www.dsit.co.il, www.comverge.com and www.paketeria.de.

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties which may affect the accuracy of these statements and the Company's business generally is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.