Nexus Telocation Systems Ltd. Announces Reverse Stock Split to Take Effect August 10, 2005

GIVATAYIM, Israel, August 10 -- Nexus Telocation Systems Ltd. (OTC Bulletin Board: NXUSF), a leading provider of stolen vehicle retrieval services in Israel, Argentina and Mexico, and a leading provider of road side assistance and towing services in Israel, announced that effective as of the open of business on August 10, 2005, a one hundred (100) for one (1) reverse stock split of the Company's Ordinary Shares is to take effect. Nexus' new symbol as of such date shall be NXTSF.

Following the reverse stock split, the Company's authorized share capital will be Twenty Four Million New Israeli Shekels (24,000,000 NIS) divided into Eight Million (8,000,000) Ordinary Shares, nominal value NIS 3.00 each, and the issued share capital shall be approximately 2,458,910 Ordinary Shares, nominal value NIS 3.00 each (depending on the rounding up and down of the shares to the nearest whole number).

The company has applied to have its shares listed once again for trade on the NASDAQ Smallcap Market instead of having them listed on the Over-The-Counter Bulletin Board.

Yossi Ben Shalom, Chairman of the board said: "We believe that after our achievements during the last three years to transform Nexus and substantially increase its business, it is important that our shares will be listed for trade on the NASDAQ Smallcap Market. We hope that such initiatives will bring value to our shareholders, by means of reduced share-trading transaction costs and increased exposure to many more investors".

"We are upgrading our relations with the capital markets, shareholders and potential investors to better enable them to evaluate Nexus' business and financial improvements and growth potential" Concluded Ben Shalom.

This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Nexus and its affiliates. These forward-looking statements are based on the current expectations of the management of Nexus, only, and are subject to risk and uncertainties relating to changes in technology and market requirements, the company's concentration on one industry in limited territories, decline in demand for the company's products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Nexus undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting the company, reference is made to the company's reports filed from time to time with the Securities and Exchange Commission.

Ronen Stein, V.P. and Chief Financial Officer, Tel.: +972-3-572 3111, E-mail: ronens@nexus.co.il, Yael Nevat, Commitment-IR.com, Tel: +972-3-611-4466, E-mail: yael@commitment-IR.com