Crow Technologies 1977 (CRWTF) 6-K First half net income of NIS 1.6m vs. net loss of NIS 3.3m for the same period in 2004

Exhibit 1

CROW ANNOUNCES FIRST HALF 2005 RESULTS

First half net income of NIS 1.6m vs. net loss of NIS 3.3m for the same period in 2004

Airport City, Israel, 06 September 2005– Crow Technologies 1977 Ltd. (OTC: CRWTF),a worldwide leading manufacturer of residential, commercial and industrial security products, today announced its consolidated financial results for the first half and second quarter, ended June 30, 2005 according to Israeli GAAP.

Revenues for the first half of 2005 were NIS 56.3 million compared with NIS 56.2 million in the same period of last year. Revenues only grew marginally year over year, due to the fact that during the second quarter, Crow moved from its headquarters in Holon to significantly larger facilities in Airport City. During the move, the Company’s manufacturing facility was shutdown for approximately two weeks.

Operating income for the first half of 2005 was NIS 3.6 million or 6.4% of revenues, compared with NIS 6.8 million, or 12.1% of revenues in the first half of 2004. Margins were negatively affected by the closure of the facilities and the cost of the move.

Net income for the first half of 2005 was NIS 1.6 million or 2.9% of revenues, compared with a net loss of NIS 3.3 million in the similar period of last year. During the first half of 2004, Crow made a larger than usual provision for tax expenses and doubtful debts.

Mr. Shmuel Melman, Chief Executive Officer of Crow said, “We are very focused on improving and increasing the efficiency of our manufacturing facilities, as the demand for our products continually grows. Our move to a much larger facility in the second quarter has substantially increased our production capabilities, giving us growing room for years to come. However, our second quarter revenues and margins suffered from the fact that our manufacturing facilities were not operational during the move. Despite this, our first half revenues held steady over last year and the revenues that were not achieved in June were regained in July.”

Mr. Melman concluded, “We are continuously pursuing and negotiating new OEM contracts with major market players that we believe will provide us with a steady revenue stream and future growth. We believe that with our new facilities fully operational now, we will show significant improvements in our results over the rest of the year.”

About Crow
Crow is a worldwide leading designer and manufacturer of electronic intruder alarm systems and detection devices. With a full range of wired and wireless control panels, intrusion alarm detectors, unique outdoor detection devices, access control systems, and smart communication accessories for the security industry, Crow offers its proven expertise to the security industry and faces the evolving needs of the security marketplace.

Crow’s products are used worldwide by professional installers and central stations to protect residential, commercial, industrial and military installations. Crow has established a worldwide dynamic network of over 50 distributors and sales offices, making the best use of its most advanced technologies, state-of-the-art R&D and manufacturing facilities. Its Total Quality Management is in line with the latest international standards.

Crow’s website iswww.thecrowgroup.com

Contact Details
Kenny Green / Ehud Helft
GK Investor Relations
Tel: (US) 1 866 704 6710 (UK) +44 871 474 1219 (Israel) +972 3 607 4717
E-mail:kenny@gk-biz.com / ehud@gk-biz.com

Safe Harbour
This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry and price reductions, as well as due to risks identified in the documents filed by the Company with the SEC.

*** Tables to follow ***

CONSOLIDATED BALANCE SHEETS

							Convenience Translation*
	December 31,		June 30,				June 30,
	2004		2004		2005		2005
	Audited		Unaudited				Unaudited
	Reported NIS						U.S. dollars
	(In thousands)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		12,749		8,781		12,884		2,817
Marketable securities		45		49		76		17
Trade receivables, net		25,608		27,543		21,732		4,751
Other accounts receivable and prepaid expenses		4,475		5,621		6,290		1,375
Inventories		31,031		29,341		33,597		7,346
Total current assets		73,908		71,335		74,579		16,306
LONG-TERM INVESTMENTS:
Loan to other companies		54		54		-		-
Investment in an affiliate		865		1,124		765		168
Loans to jointly controlled entities		1,293		1,319		3,606		788
Non current inventory		2,078		2,183		1,587		347
Total long-term investments		4,290		4,680		5,958		1,303
PROPERTY AND EQUIPMENT, NET		17,382		17,348		19,430		4,248
INTANGIBLE AND OTHER ASSETS, NET		3,671		4,585		2,531		553
Total assets		99,251		97,948		102,498		22,410

* For convenience, we provide a translation from NIS to US$ using the exchange rate as of June 30, 2005 of $ 1 = NIS 4.574.

CONSOLIDATED BALANCE SHEETS

										Convenience Translation*
	December 31,			June 30,						June 30,
	2004			2004			2005			2005
	Audited			Unaudited						Unaudited
	Reported NIS									U.S. dollars
	(In thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans and bank credit		30,730			23,960			21,611			4,725
Current maturities of long-term loans		4,003			9,040			5,517			1,206
Trade payables		10,873			13,624			12,264			2,681
Other accounts payable and accrued expenses		18,791			15,080			20,984			4,588
Total current liabilities		64,397			61,704			60,376			13,200
LONG-TERM LIABILITIES:
Long-term loans from banks		7,130			10,823			12,445			2,721
Long-term loans from minority in a subsidiaries		1,302			1,709			1,119			245
Accrued severance pay, net		2,266			2,319			2,652			580
Deferred taxes on income		451			1,604			372			81
Total long-term liabilities		11,149			16,455			16,588			3,627
MINORITY INTEREST IN SUBSIDIARIES		1,310			837			1,338			292
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.25 par value each -
Authorized: 5,000,000 shares at December 31,
2004 and June 30, 2004 and 2005; Issued and
outstanding: 4,372,275 shares at December
31, 2004 and June 30, 2004 and 2005		15,355			15,355			15,355			3,357
Additional paid-in capital		21,244			21,244			21,244			4,645
Foreign currency translation adjustments		489			414			648			142
Accumulated deficit		(14,693	)		(18,061	)		(13,051	)		(2,853	)
Total shareholders' equity		22,395			18,952			24,196			5,291
Total liabilities and shareholders' equity		99,251			97,948			102,498			22,410

* For convenience, we provide a translation from NIS to US$ using the exchange rate as of June 30, 2005 of $ 1 = NIS 4.574.

CONSOLIDATED STATEMENTS OF OPERATIONS

													Convenience translation
	Year ended December 31,			Three months ended June 30,			Six months ended June 30,						Six months ended June 30,
	2004			2005			2004			2005			2005
	Audited			Unaudited			Unaudited						Unaudited
	Reported NIS												U.S. dollars
	(In thousands, except share and per share data)
Sales		114,915			27,325			56,204			56,303			12,309
Cost of sales		70,282			17,831			33,613			36,519			7,984
Gross profit		44,633			9,494			22,591			19,784			4,325
Research and development expenses		6,752			2,081			3,068			3,900			853
Selling and marketing expenses		10,946			2,659			4,756			5,264			1,151
General and administrative expenses		12,591			3,008			7,515			6,576			1,439
Amortization of other assets		923			231			462			462			101
Operating income		13,421			1,515			6,790			3,582			781
Financial expenses (income), net		2,687			(97	)		1,050			180			37
Other expenses, net		2,779			188			2,294			380			83
Income before taxes on income		7,955			1,424			3,446			3,022			661
Taxes on income		7,019			357			6,473			1,220			267
		936			1,067			(3,027	)		1,802			394
Equity in losses of an affiliate		(159	)		(34	)		(35	)		(132	)		(29	)
Minority interest in earnings of
subsidiaries		(736	)		(175	)		(265	)		(28	)		(6	)
Net income (loss)		41			858			(3,327	)		1,642			359
Net earnings (loss) per 4 Ordinary
shares of NIS 0.25 each (equal to
NIS 1 par value) **		0.04			0.78			(3.04	)		1.5			0.33
Net earnings (loss) per 1 Ordinary
share of NIS 0.25 **		0.01			0.20			(0.76	)		0.38			0.08

* For convenience, we provide a translation from NIS to US$ using the exchange rate as of June 30, 2005 of $ 1 = NIS 4.574.

** Ordinary shares of NIS 0.25 par value each - Issued and outstanding: 4,372,275 shares as of June 30, 2004, December 31, 2004 and June 30, 2005.