Pointer, Through its Subsidiary Shagrir, Announces the Acquisition of a Car Repair Business Which is Complimentary to Shagrir’s Road Side Services

ROSH HAAYIN, Israel, October 11, 2011 /PRNewswire/ –

Pointer Telocation Ltd. (Nasdaq CM: PNTR, TASE: PNTR) – a leading
supplier of technology and service for managing mobile resources and
providing roadside services to the vehicle industry and to the insurance
market, today announced that its subsidiary, Shagrir Systems Ltd., has
signed a definitive agreement to acquire the activities of an Israeli chain
of car repair garages for $3.4 million to be paid in two installments.
Shagrir will leverage the acquired chain of car repair garages as a
complementary service for its array of road side services.

David Mahlab, President and CEO of Pointer said: “The acquisition of
this car repair garages will expand Shagrir’s activity in the vehicles
services market, such as road side services, vehicle replacement services
and other value added services. Shagrir intends to expand the operations of
the acquired chain of garages to additional cities in Israel.”

About Pointer Telocation

Pointer is a leading supplier of MRM (Mobile Resource Management) for
the motor vehicle industry. The combination of technological supremacy and
innovation enables Pointer to develop and manufacture unique communications
solutions to meet customers’ needs. The Company provides a range of services
to insurance companies and vehicle owners, including road services, car
towing, locating stolen cars, managing vehicle fleets, safety products and
other value added services.

Pointer has grown in recent years also through successful implementation
of acquisitions in Israel and in Argentina and establishing business
branches and partnerships in Mexico, Romania and Brazil. In April 2004, the
Company acquired the assets and operations of Shagrir, and in 2007 the
Company acquired the assets and operations of Cellocator. Pointer has
offices in Israel, Argentina, Mexico, Brazil and Romania.

Pointer has a growing list of customers and products installed in more
than 45 countries. Among the Company’s customers are insurance companies
that offer or require towing services and locating services of vehicles as
part of the insurance policies they sell.

Pointer shares are traded on NASDAQ (PNTR) and the Tel Aviv Stock
Exchange (PNTR).

The Company’s top management and the development center are located in
the Afek Industrial Park of RoshHa’ayin.

This press release contains historical information and forward-looking
statements within the meaning of The Private Securities Litigation Reform
Act of 1995 with respect to the business, financial condition and results of
operations of the Company. The words “believe,” “expect,” “anticipate,”
“intend,” “seems,” “plan,” “aim,” “should” and similar expressions are
intended to identify forward-looking statements. Such statements reflect the
current views, assumptions and expectations of the Company with respect to
future events and are subject to risks and uncertainties. Many factors could
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
that may be expressed or implied by such forward-looking statements,
including, among others, changes in the markets in which the Company
operates and in general economic and business conditions, loss or gain of
key customers and unpredictable sales cycles, competitive pressures, market
acceptance of new products, inability to meet efficiency and cost reduction
objectives, changes in business strategy and various other factors, both
referenced and not referenced in this press release. Various risks and
uncertainties may affect the Company and its results of operations, as
described in reports filed by the Company with the Securities and Exchange
Commission from time to time. The Company does not assume any obligation to
update these forward-looking statements.

        Contact:

        Zvi Fried, V.P. and Chief Financial Officer
        Tel: +972-3-572 3111
        E-mail:  zvif@pointer.com

        Chen Livne, Gelbart-Kahana Investor Relations
        Tel: +972-3-607 4717
        E-mail:  chen@gk-biz.com

SOURCE Pointer Telocation Ltd