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Pointer Telocation Announces Closing of Acquisition of Remainder of Shagrir Systems Ltd., Reaching 100% Ownership

 Pointer Telocation Announces Closing of Acquisition of Remainder of Shagrir
                    Systems Ltd., Reaching 100% Ownership

PR Newswire

ROSH HAAYIN, Israel, January 15, 2014

ROSH HAAYIN, Israel, January 15, 2014 /PRNewswire/ --

Pointer Telocation Ltd.(Nasdaq CM: PNTR) - a leading developer, manufacturer
and operator of Mobile Resource Management (MRM), announced today that it has
completed its previously announced acquisition of the 45.5% interest in
Shagrir Systems Ltd. ("Shagrir") that it did not previously own, including
Shagrir's management portion. Pointer now owns 100% and has fully consolidated
the share capital of Shagrir.

In consideration for the acquired interest in Shagrir: (i) Pointer paid an
aggregate of NIS 27 million (approximately $7.72 million) using credit
facilities from banking institutions (this amount was less than previously
announced as the cash consideration per share was reduced, pro rata, to
account for a dividend distribution made by Shagrir to its shareholders prior
to the closing) and (ii) Pointer issued 994,357 Ordinary Shares to Shagrir's
selling shareholders, representing 15.2% of the issued share capital of
Pointer (following the issuance of such shares).

Shagrir provides Mobile Resource Management (MRM) and roadside assistance
services for the automotive industry including towing services andmobile
automobile repair services primarily in Israel. Shagrir also offers car
sharing services via Car2Go in urban areas throughout Israel.

David Mahlab, President and CEO of Pointer said, "I am very happy to conclude
our acquisition, fully consolidating Shagrir into Pointer so quickly and
efficiently. I believe this deal enables us to better realize the synergies
between our global entities and we expect it to be immediately accretive. The
full consolidation of Shagrir is a further milestone in our long-term strategy
and in line with our expansion goals. It puts us further along the road of
becoming a global service provider in the growing Mobile Resource Management
market."

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 list of customers and products installed in 50 countries. 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. The Company's top
management and the development center are located in the Afek Industrial Area
of Rosh Ha'ayin, Israel.

For more information:http://www.pointer.com

Forward Looking Statements

This press release contains historical information and forward-looking
statements within the meaning of The Private Securities Litigation Reform Act
of 1995 with respect to the business, financial condition and results of
operations of the Company. The words "believe," "expect," "anticipate,"
"intend," "seems," "plan," "aim," "should" and similar expressions are
intended to identify forward-looking statements. Such statements reflect the
current views, assumptions and expectations of the Company with respect to the
proposed acquisition and other future events and are subject to risks and
uncertainties. Many factors could cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements that may be expressed or implied by such
forward-looking statements, including, among others, changes in the markets in
which the Company operates and in general economic and business conditions,
loss or gain of key customers and unpredictable sales cycles, competitive
pressures, market acceptance of new products, inability to meet efficiency and
cost reduction objectives, changes in business strategy and various other
factors, both referenced and not referenced in this press release. Various
risks and uncertainties may affect the Company and its results of operations,
as described in reports filed by the Company with the Securities and Exchange
Commission from time to time. The Company does not assume any obligation to
update these forward-looking statements.

Contact
Zvi Fried, V.P. and Chief Financial Officer
Tel.: +972-3-572-3111
E-mail:zvif@pointer.com

Kenny Green/Ehud Helft, GK Investor Relations
Tel: +1-646-201-9246
E-mail:pointer@gkir.com

SOURCE Pointer Telocation Ltd
 
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