Hirsch International Corp. Signs Exclusive Distribution
                   Agreement with MHM Siebdruckmaschinen GmbH

               Largest Distributor of Embroidery Equipment in U.S.
             Synergistically Expands Product Line to Screen Printing


Hauppauge,  NY - August 2, 2006 - Hirsch International Corp. (NASDAQ: HRSH), the
leading provider of advanced  embroidery systems and related support services in
the United States,  has entered into a ten year distribution  agreement with MHM
Siebdruckmaschinen  GmbH for  exclusive  distribution  and support of MHM screen
printing equipment throughout North America.

"We are very excited about our strategic  partnership  with MHM. MHM offers us a
great opportunity to strengthen our current  leadership  position in the apparel
adornment  marketplace  by offering our existing  customers  an  innovative  and
highly  productive  line of equipment  that perfectly  compliments  our existing
Tajima embroidery equipment," said Paul Gallagher, President and Chief Executive
Officer of Hirsch. "Further, our arrangement makes available an avenue of growth
within a completely  new  customer  base,  allowing  Hirsch the  opportunity  to
continue building value for our shareholders."

As a result of the agreement,  MHM's extensive product line will now be marketed
under the name "MHM North America by Hirsch".

About MHM
MHM,  located  in Erl,  Austria,  has been a  world-wide  leader  in the  screen
printing  industry  for over 25 years with over 30 partners  throughout  Europe,
Asia,  Africa,  and South and Central America.  MHM places great emphasis on its
continual research and development with constant  innovation focused on improved
productivity, reliability, and ease of use.

About Hirsch
Hirsch is the leading  supplier  of  electronic  computer-controlled  embroidery
machinery,  and related products and services in the United States.  The Company
offers  single  and  multi-head  embroidery  machines;  proprietary  application
software;  embroidery parts, supplies and accessories; and technical service and
support.  Hirsch's  customers  include contract  embroiderers,  manufacturers of
apparel and fashion  accessories,  retail stores, and embroidery  entrepreneurs.
The Company is the country's leading single source provider of Tajima embroidery
systems, marketing under the name "Tajima USA Sales & Support by Hirsch".


Safe Harbor Statement

Except for historical  information  contained  herein,  the matters set forth in
this news  release  are  forward-looking  statements.  The  Company  noted  that
forward-looking  statements  set  forth  above  involve  a number  of risks  and
uncertainties that could cause actual results to differ materially from any such
statement,  including the risks and  uncertainties  discussed  under the caption
"Risk Factors" in the Company's  Form 10-K for fiscal 2006,  which is discussion
is incorporated herein by reference.




Contacts:
Hirsch International Corp.
Investor Relations
631-701-2345

The Investor Relations Group
Kevin Murphy / Adam Holdsworth
212-825-3210
kmurphy@investorrelationsgroup.com
aholdsworth@investorrelationsgroup.com