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Strategic Agreement for Pointer in Brazil: Pointer Announces Installment of Advanced Solutions for Fleet Management in Brazil for Over $2M

July 5, 2011

ROSH HAAYIN, Israel, July 5, 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, reports the supply and installation of advanced solutions to manage
a fleet of vehicles in Brazil in a tri-annual agreement for over $2 million.
This is the largest transaction that Pointer signed in Brazil since
commencing sales in Brazil a year ago.

Pointer entered into an agreement with a leading company in Brazil and
installed its solutions in a fleet of over 2,000 motor vehicles. The order
will result in a significant increase in the number of the Company’s
subscribers in Brazil.

The transaction was based on a new business model for Pointer, with
dedicated embedded resources in customer premises, which enable Pointer’s
customers to benefit from achieving efficiency and savings when managing
mobile resources with a fairly low investment, and to utilize, in the best
possible way, the global growth and change that the Telematics field is
undergoing.

Pointer’s solutions will enable the Brazilian company to effectively
track and manage fuel consumption in the company’s motor vehicles, prevent
fuel waste and unauthorized use of the vehicle, improve productivity and
reduce accidents. The systems installed in Brazil also include a package of
solutions to manage a fleet of vehicles with advanced control and command
technologies, road services and the means for locating and returning
vehicles.

These solutions were developed and manufactured in Cellocator, the
technology division of Pointer which is considered to be the leading
provider of technologies for Mobile Resources Management (MRM) for vehicle
fleets and cargo. Cellocator’s product platforms enable Pointer to provide
its customers, inter alia, with vehicle diagnostic services, monitoring
drivers’ behavior and payment according to driving traits based on cellular
technology.

David Mahlab, President and CEO of Pointer, said: “We are very satisfied
that a Brazilian customer of such a significant sizechose our solutions.
This important agreement is part of our consistent growth strategy for the
Company’s operations abroad, while increasing revenues and profitability of
the products and services that the Company supplies. The Cellocator
Division’s products strengthen our position in the markets in which we
operate and the present transaction in Brazil is proof of the Company’s
ability to sign agreements with top-rate customers in the markets in which
we operate and to offer them a unique technology and a complete solution. I
believe that the increased international exposure and recognition for the
Company’s products will continue and even increase the growth trends and the
number of customers abroad.

“After consistent growth and record revenues in the first quarter of
2011, I estimate that in the coming year we will be able to increase the
Company’s revenues from operations abroad, which today comprise
approximately 28% of the Company’s total revenues.”

Pointer reported record revenues in the first quarter of 2011 of an
aggregate of $21 million, 26% growth compared to the equivalent quarter in
2010. In 2010, the Company’s revenues increased by 13% and aggregated 73.9
million dollars.

Revenues from the sale of products increased in the first quarter of
2011 by 63% to 7.8 million dollars (37.2% of total revenues), and revenues
from the provision of services increased by 11% to 13.2 million dollars
(62.8% of total revenues).

The growth in revenues is expressed also in improved profitability.

Pointer’s adjusted EBITDA for the first quarter of 2011 was an aggregate
of $3 million.

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 Ltd., 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 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 Area 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, +972-54-302 2983
        E-mail: chen@gk-biz.com

SOURCE Pointer Telocation Ltd


Source: newswire



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