Pointer Telocation Announces Entering Into a Definitive Agreement for Purchase of Cellocator Ltd.

GIVATAYIM, Israel, July 16 -- Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR; TASE: 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, announced today, further to its announcement of March 16, 2007, that is has entered into a definitive agreement with Cellocator Ltd. and its affiliates for the purchase of its assets and activities for approximately US$18.5 million which will be paid by: (i) the issuance of 160,000 Ordinary Shares of the Company; (ii) a convertible debenture, convertible into 160,000 Ordinary Shares of the Company, at principal amount of US$1,921,668; (iii) a cash consideration of approximately NIS 62,000,000. The closing of the transaction is expected to take place within the next few weeks subject to the completion of certain closing conditions as agreed upon in the definitive agreement.

About Celloator

Cellocator Ltd www.cellocator.net provides sophisticated, cost-effective and reliable OEM products for the vehicle security and fleet management service industry, as well as solutions for wireless M2M (machine to machine). Cellocator is a B2B company that supplies and integrates its technology with solutions for its partners/clients in different business sectors -

- fleet management operators and service providers

- security service providers

- Integrators and turn-key solutions providers

With Cellocator equipment, its partners/clients can offer their customers the following competitive advantages -

- Improved customer service

- Optimized resources usage (money, manpower, time)

- Increased profitability

- Improved cargo and vehicle security

- Decreased outlay communications, fuel, labor, maintenance, insurance

Currently around 150,000 vehicles in over 25 countries are outfitted with Cellocator products. Its growing customer base includes vehicle security and fleet service providers based in the UK, Greece, Mexico, Russia, Croatia, Germany, Czech Republic, Latvia, Turkey, Hong Kong, Singapore, India, Panama, Costa Rica, Brazil, Norway, Venezuela, Hungary and Israel.

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.