Magnetics was founded in 1987 while its founder, Mike Stern, was working for a US conglomerate called Control Data as their Magnetic Media Salesman. Control Data lost interest in the product line and allowed Mike to leave the company and set up a business of his own, selling the same products – Magnetic Open Reel Tapes, Removable Hard Disks and Diskettes – hence the company name "Magnetics".

Around 1992, the company made the move into the niche market of duplicating diskettes for data and software distribution.  At the time, software distribution required copying the software to a series of diskettes labeled as a set, which would then be physically shipped to the customer for installation.

Around 1998, the move was made to CD's, and from there to DVD's.  The main customers were hi-tech companies looking to duplicate their software for distribution , including printing product information on the CD, and appropriate packaging.

At the height of the CD wave, Magnetics was duplicating 50,000 disks per month for the Israeli software industry. Unlike the music industry, the software industry usually preferred short runs to minimize inventory loss when a software bug was inevitably found the very next day after a full set of disks was duplicated. 

From there , is was a short step to printing and loading Disk-On-Keys (USB Flash Drives), which were essentially the same process – print, load software, test. 

Unlike the CD/DVD, which were used merely software distribution and had no intrinsic value after the software was read, USB Flash Drives were often in demand for promotional purposes. Magnetics seized this new opportunity to market other promotional gadgets to those same customers who were purchasing CD/DVD's and USB Flash drives, and who were already very satisfied with our exceptional standards of service and quality.

In 2013 , the company found itself back in a market that it had looked at and abandoned some 6-7 years before -  the market for systems to produce patients' CD's and DVD's with  Radiology Images , such as MRI, CT, CR, Ultrasound and others.  In 2016, Magnetics was confirmed as sole supplier of these systems to the largest Medical Insurance Company in Israel.

This has led Magnetics to create two separate entities in the company:

– a Promotional Division that handles the marketing and production of CD's, DVD's, USB Flash Drives and other promotional gadgets.

-a Technical Division that will concentrate on technical products such as:

• Critical Software Distribution on USB Flash Drives
• Software and Hardware for viewing, storing and transferring DiCOM (Radiology) images.

• Recycling of used IT equipment, including security degaussing of HDD's and magnetic tape cartridges up to NSA (National Security Agency) standards.

• Creating Virtual Tape Libraries of legacy tapes, allowing the data center seamless access to the virtual tapes as if they exist, and the erasure/recycling of the physical tapes to free up IT resources.

These two entities in the company are reflected in the two web sites the company maintains:

• magnetix.co.il will display our CD/DVD and promotional products
• magnetics.co.il will display our technical products

Throughout, Magnetics has always taken pride in its determination to serve its customers with prompt, quality and expert service. All processes in the company, both marketing and manufacturing, are carefully controlled and documented.

Magnetics has been ISO 9001 Certified since FEB, 2000 and  IS0 27799 Certified since JUL, 2019.

The certifications are renewed annually, controlled and documented.