Pointer Telocation Announces Q1 2009 Results - EBITDA of $3.1 Million Supports Financial, Operational & Growth Needs

Pointer Breakeven Net Income in Q1 2009 Compared With Net Income of $752 Thousand in Q1 2008

$3 Million Decrease in Net Debt

ROSH HAAYIN, Israel, May 19, 2009 - Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR, Tel-Aviv Stock Exchange: PNTR) - a leading developer, manufacturer and operator of high-end technology and products for AVL (Automatic Vehicle Location) solutions for stolen vehicle retrieval, fleet management, car & driver safety, vehicle security and asset management, and a leading provider of RSA (Road Side Assistance) services, announced today its financial results for the first quarter of 2009.

Financial Highlights:

Revenues: Pointer's revenues for the first quarter of 2009 decreased by 13.5%, to $16 million from $18.5 million in the comparable period in 2008. International activities consisted of 26% of total revenues compared with 28% in the comparable period in 2008. Revenues from products were $5.2 million, and consisted of 32% of total revenues, as compared to $7.6 million and 41%, respectively, in the first quarter of 2008. Revenues from services were $10.8 million, and consisted of 68% of total revenues, as compared to $10.9 million and 59%, respectively, in the first quarter of 2008.

Gross Profit: For the first quarter of 2009, gross profit decreased 3% to $6.9 million from $7.2 million in the first quarter of 2008. As a percentage of revenues, gross profit was approximately 43.3% in the first quarter of 2009, as compared to approximately 38.8% in the same period in 2008.

Operating Income: Pointer reported $1.8 million in operating income for the first quarter of 2009, compared to $2.3 million in operating income for the first quarter of 2008.

During the first quarter in accordance with applicable accounting rules, Pointer initially adopted Statement of Financial Accounting Standards No. 160, "Noncontrolling Interest in Consolidated Financial Statements" ("SFAS 160") which establishes accounting and reporting standards for the non controlling interest (previously minority interest) in a subsidiary and for the deconsolidation of a subsidiary. The adoption of SFAS 160 affected, among others, Pointer 's accounting for allocation of losses to non controlling shareholders in its subsidiaries, which resulted in a decrease in Pointer's share in its subsidiaries' net losses."

Net Income: Net income attributable to Pointer's shareholders was $3 thousand or $0.00 per share in the first quarter of 2009, as compared to $0.8 million or $0.16 per share in the first quarter of 2008. Net income attributable to non controlling interest was $1.1 million in the first quarter of 2009 compared to $0.6 million in the first quarter of 2008.

For the first quarter of 2009 the net income, before giving effect to the exclusion of those earnings relating to non-controlling interest in accordance with SFAS 160, was $1.1 million, as compared to a net income of $1.3 million in the first quarter of 2008.

Non-GAAP net income attributable to Pointer: Pointer's non-GAAP net income in Q1 2009 was $0.8 million, as compared to non-GAAP net income of $1.8 million in Q1 2008.

EBITDA: Pointer's EBITDA decreased to $3.1 million in the first quarter of 2009, as compared to $3.8 million in Q1 2008. The EBITDA comfortably serves our debt.

Danny Stern, Pointer CEO, said: "Our Q1 2009 results reflect the turbulence in the global economy and the slowdown in the car industry. The activity of our Products and Technology division suffered from the global slowdown while the activity of our services business remains stable, through maintaining our strong customer base and reputable wide array of services. Since the last quarter of 2008 we increased our R&D efforts, with the intention of introducing new products during 2010. Shagrir, Pointer's Israeli subsidiary, recently acquired 51% of CAR2GO, a carsharing service provider. Carsharing is a rapidly expanding trend in urban areas worldwide, because of its significant contribution to the environment and its reduction in costs and time for the large urban population. Since we entered the slowdown from a relatively strong standpoint, we continue to search for M&A opportunities," concluded Mr. Stern.