Pointer Telocation Announces Raising $4,675,000 From Israeli Investors in a Private Placement

GIVATAYIM, Israel, December 28 -- Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR), a leading provider of services to insurance companies and car owners, including road-side assistance, towing and stolen vehicle retrieval services in Israel, Argentina and Mexico, today announced it is raising $4,675,000 from Israeli institutional investors by means of a private issuance of 425,000 ordinary shares at a price per share of $11. The investors in the private placement will also be issued warrants to purchase 212,500 ordinary shares of the company, such that for each one share purchased the investors shall be entitled to a warrant to purchase half a share. The warrants will be exercisable into ordinary shares of the company, at an exercise price per share of $13 and will be exercisable for a period of four years.

The issuance of the shares and the warrants is subject to regulatory approvals.

Yossi Ben Shalom, Chairman of the Board of Directors, commented "The capital raised through the private placement will allow Pointer to implement its growth strategy through acquisitions and broadening the company's lines of services as was published last week."

About Pointer Telocation: Pointer Telocation Ltd

www.pointer.com provides range of services to insurance companies and automobile owners, including road-side assistance, vehicle towing, stolen vehicle retrieval, fleet management and other value added services. Pointer Telocation provides services, for the most part, in Israel, through its subsidiary Shagrir and in Argentina and Mexico through its local subsidiaries. Independent operators provide similar services in Russia and Venezuela utilizing Pointer's technology and operational know-how.