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LoJack Corporation Celebrates 20th Anniversary

Initial 'Novel' Idea Proves Ongoing Relevance; Propels Company to Global Leadership

WESTWOOD, MA - July 18, 2006: Twenty years ago LoJack Corporation had to work extremely hard to convince Boston-area police that it had a new, breakthrough device that would dramatically help in the fight against auto theft, which at that time was rampant in the state. LoJack persevered and this month marks two decades of the company actively selling its Stolen Vehicle Recovery System to consumers in the state of Massachusetts -- and the creation of a market for an entirely new category of theft protection: the stolen vehicle recovery market. The rest, as they say, is history.

Today, LoJack (named as the antithesis of "hijack") has developed into a NASDAQ NMS-listed, growth-oriented company with operations in 26 states and the District of Columbia, as well as in more than 27 countries worldwide. The company's now proven Stolen Vehicle Recovery System delivers a better than 90 percent success rate in vehicle recovery and has helped recover 180,000 stolen assets worth more than $3 billion globally.

The product, which began as a system to recover stolen cars and trucks, now has expanded applications for recovering stolen construction equipment, commercial vehicles and motorcycles. Moreover, LoJack's continued relevance in today's world has the potential to open doors for recovering other valuable mobile assets.

"Teamwork, perseverance and an entrepreneurial spirit were the qualities that got LoJack off the ground, kept it going in the early years, and continue to fuel our success today," said Chairman, CEO and 18-year LoJack veteran Joseph F. Abely. "Our original competencies, our relationship with law enforcement, our technology and our infrastructure continue to truly differentiate LoJack in the marketplace and present us with opportunities for future growth."

From Category Creation to Global Leadership

The actual beginning of LoJack dates back to 1976. William Reagan was a visionary entrepreneur and former selectman and police commissioner of Medfield, MA who vowed to reduce the number of police fatalities as a result of routine traffic stops. His idea to accomplish this feat ultimately became the LoJack Stolen Vehicle Recovery System. LoJack Corporation was born and, as with many start-ups, the early years were a struggle from a financing, development and acceptance perspective. It was the fierce determination of early employees and their strong belief in the product that fostered the organization's growth.

"LoJack recruited me directly from the Medfield Police Department, where I was a sergeant," said Patrick Clancy, LoJack's first Law Enforcement Liaison and current Vice President of Law Enforcement. "My colleagues at the police department all thought I'd be back within six months. But, once they saw first-hand what the LoJack system could do, they quickly became believers. LoJack provided a great new way to both identify stolen vehicles, and to arrest criminals who were often involved with more serious crimes."

Clancy added that his role was to travel to police departments nationwide, demonstrate the system and enlist their support for using it to fight auto theft in their specific area. Today, LoJack's connection and direct integration with police departments is one of its key differentiators.

Another core competency that has set LoJack apart is its use of radio frequency technology, which has proven to be the optimal technology for tracking and recovery. In the early years, the use of this type of technology to track and recover stolen vehicles was such a "novel" idea that it garnered a great deal of attention from the media. As a result, LoJack quickly began building a strong brand, and its name is now part of today's vernacular. LoJack is not only frequently mentioned by Jay Leno on the "Tonight Show," but was also named in the blockbuster book The Da Vinci Code, on high profile television series such as "The Sopranos," and on very popular programs including "Good Morning America," and "Regis and Kelly."

In the early 1990s, LoJack focused on developing a successful business model that would stand the test of time, concentrating on the automotive channel. By the late 1990s, LoJack became profitable and actively expanded its network to additional geographies in the United States. The year 2000 was the beginning of a new era for LoJack. Ronald Rossi became CEO and, along with a management team comprised of a mix of seasoned talent including current Chairman and CEO Joseph F. Abely, initiated a strategic business plan designed to translate LoJack's core competencies into new arenas. This successful strategy resulted in new products (LoJack Early Warning, LoJack Ruggedized); new channels (LoJack For Motorcycles); an increase in domestic markets (from 15 to 26 states); international expansion (from 15 to 27 countries); and sustained profitable growth.

Today, the company continues to maintain its focus on its core competencies while planning for the future. Mr. Abely said, "The LoJack Stolen Vehicle Recovery System is as effective as ever. Recently in Los Angeles, a LoJack-equipped Escalade led to the discovery of an unusually sophisticated theft ring that had stolen more than 200 luxury SUVs worth more than $8 million. It was not the largest recovery in LoJack's history, but it underscored how the System helps law enforcement in its fight against professional auto thieves." He continued, "As we look ahead, we see growing relevance for LoJack systems in today's uncertain world. We believe that our partnership with law enforcement will continue to prove crucial in the fight against theft. And we pledge to advance shareholder value and strengthen the company's premier, unrivaled brand in the stolen mobile asset recovery market."