VUANCE Ltd. Announces Significant Restructuring: Refocuses on Proprietary and Profitable RFID Business

By Vuance Ltd., PRNE
Wednesday, March 17, 2010

Sale of Unprofitable CSMS and Electronic Access Control Businesses Strengthens Balance Sheet and Positions VUANCE for Enhanced Profitability

QADIMA, Israel and OAK CREEK Wisconsin, March 18, 2010 - VUANCE Ltd. (Pink Sheets: VUNCF), a leading provider of innovative Radio
Frequency Verification Solutions focused on long-range active RFID, today
announced the completion of a significant restructuring initiative designed
to position the Company for sustainable profitability. As part of this
transition and effective March 18, 2010, Ron Peer, formerly President of
VUANCE, Ltd., has been promoted to Chief Executive Officer, replacing Eyal
. Mr. Tuchman will join the board of directors, following the approval
of the shareholders' general assembly

    The restructuring initiative involved:
    -- VUANCE sold the unprofitable businesses which were not core
       competencies of the Company, including its Critical Situation
       Management System (CSMS) and Electronic Access Control businesses.
    -- This divestiture enables management to focus all resources on the
       Company's true growth engine, specifically the internally developed
       and produced long-range active Radio Frequency Identification Devices
       (RFID). VUANCE's PureRF will be produced and distributed through a
       dedicated business unit in the USA, PureRFid Inc.
    -- VUANCE has begun selling its own PureRF products and solutions as of
       the fourth quarter of 2009. Management reports that initial results
       have been positive due to the superior performance and better ROI of
       PureRFid products compared to competing offerings.

Eli Rozen, Chairman of the Board, commented, "This restructuring
positions VUANCE to capitalize on the emerging opportunity for long-range,
active RFID solutions and focuses the enterprise on its proprietary solutions
targeted to this market. In addition, VUANCE Ltd has signed contracts through
2016 to continue to supply its passive RFID cards solutions, which will
generate approximately US$36 million in aggregate through approximately US$6
in recurring revenue per year. With our strengthened balance sheet
and targeted focus, the new VUANCE is poised to create shareholder value as
it delivers proven, proprietary and innovative solutions to a wide and
expanding range of customers."

During 2009, the remaining businesses generated approximately US$7
in revenue. Management expects that the 2010 revenues of the targeted
businesses will increase and the Company will be profitable.

About VUANCE Ltd.

VUANCE Ltd is a RFID Management Solution Provider. With its PureRF(TM)
Suite; RFID hardware-software hybrid asset-tracking management platform,
streamlines critical resources (Asset and personal) Management scenarios
through the introduction of the integrated platform of Movement Detection
Solution (MDS) and a Real Time Locating System (RTLS): PureRF(TM) enabling to
monitor, track, locate, secure and manage multiple objects/items, and is
operated by a secure, proprietary knowledge-based, interactive, user friendly
interface. VUANCE features a unique all-in-one best-practiced active RFID
technology accompanied with advanced complementary services for the
transportation, healthcare and homecare, Security and safety, Building and
access automation and more. VUANCE's PureRF innovative solution assists
companies in efficiently utilize, otherwise, wasted time and resources and is
the ultimate solution for remote hands-off authentication, validation,
identification, location and real-time monitoring of valuable resources,
personal and assets.

VUANCE Ltd. is headquartered in Qadima Israel. Its common stock is listed
on the Pink sheets under the symbol "VUNCF.PK." For more information, visit

Safe Harbor

This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Statements preceded or
followed by or that otherwise include the words "believes", "expects",
"anticipates", "intends", "projects", "estimates", "plans", and similar
expressions or future or conditional verbs such as "will", "should", "would",
"may" and "could" are generally forward-looking in nature and not historical
facts. Forward-looking statements in this release also include statements
about business and economic trends. Investors should also consider the areas
of risk described under the heading "Forward Looking Statements" and those
factors captioned as "Risk Factors" in the Company's periodic reports under
the Securities Exchange Act of 1934, as amended, or in connection with any
forward-looking statements that may be made by the Company. These statements
are subject to known and unknown risks, uncertainties and other factors that
may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements arising from the annual audit by
management and the Company's independent auditors. The Company undertakes no
obligation to update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise, after the date of this
press release.

The Company also disclaims any duty to comment upon or correct
information that may be contained in reports published by the investment

    Investor/Media Contact
    Hayden IR
    Brett Maas, +1-646-536-7331

Brett Maas of Hayden IR, +1-646-536-7331, brett at, for VUANCE Ltd.

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