EUR 2 Million Contract to Pointer Telocation in Romania

Shagrir, Pointers' Subsidiary, Enters Romania

ROSH HAAYIN, Israel, July 22 /PRNewswire-FirstCall/ -- Pointer Telocation
Ltd. (Nasdaq Capital Market: PNTR, Tel-Aviv Stock Exchange: PNTR) - a leading
provider of Automatic Vehicle Location (AVL) technology, stolen vehicle
retrieval services, fleet management, car & driver safety, public safety,
vehicle security, asset management and road side assistance, announces today
first EUR 2 million in two years contract to Shagrir's subsidiary in Romania.
Shagrir provides RSA, SVR and Fleet Management services to over 750,000
customers in Israel. Shagrir's subsidiary in Romania, S.C. Pointer S.R.L,
will provide Road Side Assistance in Romania starting October 1st, 2008 for
EUR 2 million, over a period of two years, to a large Romanian-based petrol
company that will offer the services to its customers.
In addition, Pointer engaged with a Hungarian company to provide
technology for fleet management services in Hungary. Pointer signed an
agreement to loan a certain amount to the Hungarian company and will have an
option to become a shareholder in the company in accordance with the terms of
the agreement.
Danny Stern, Pointer's CEO, said: "Pointer Telocation continues to expand
it global presence with its broad offering of technology, products and
services. Operating in Romania is a step in Shagrir's strategic growth plan
to duplicate its vast knowledge and experience in service providing.
Following this contract, S.C. Pointer S.R.L will approach insurance
companies, car leasing companies and large car fleets with large service
offering in order to duplicate its economies-of-scale business-model",
concluded Mr. Stern.
About Pointer Telocation:
Pointer Telocation is a leading provider of technology and services to
the automotive and insurance industries, offering a set of services including
Road Side Assistance, Stolen Vehicle Recovery and Fleet Management. Pointer
has a growing client list with products installed in over 400,000 vehicles
across the globe: the UK, Greece, Mexico, Argentina, Russia, Croatia,
Germany, Czech Republic, Latvia, Turkey, Hong Kong, Singapore, India, Costa
Rica, Norway, Venezuela, Hungary, Israel and more. Cellocator, a Pointer
Products Division, is a leading AVL (Automatic Vehicle Location) solutions
provider for stolen vehicle retrieval, fleet management, car & driver safety,
public safety, vehicle security and more. In 2004, Cellocator was selected as
the official security and location equipment supplier for the Olympic Games
in Athens. For more information: http://www.pointer.com
About Shagrir:
Shagrir Systems. Pointer's Israeli subsidiary is the leading provider of
services to the automotive and insurance industries, offering a set of
services including Road Side Assistance, Stolen Vehicle Recovery and Fleet
Management. The company uses the most advanced operation systems in 24/7 call
mode. Shagrir offers Road-Side Assistance (RSA) to more than 750,000
customers in Israel and has a large install base of proprietary "Pointer"
Stolen Vehicle Recovery (SVR) systems.
Safe Harbor Statement
This press release contains forward-looking statements with respect to
the business, financial condition and results of operations of Pointer and
its affiliates. These forward-looking statements are based on the current
expectations of the management of Pointer, 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.
Pointer 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.
Contact:

Zvi Fried, V.P. and Yael Nevat,
Chief Financial Officer Commitment-IR.com
Tel: +972-3-572-3111 Tel: +972-9-741-8866
E-mail: zvif@pointer.com E-mail: yael@commitment-IR.com

SOURCE Pointer Telocation Ltd

Contact: Zvi Fried, V.P. and Chief Financial Officer, Tel: +972-3-572-3111,
E-mail: zvif@pointer.com; Yael Nevat, Commitment-IR.com, Tel: +972-9-741-8866,
E-mail: yael@commitment-IR.com