Exhibit 99.1

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

ITURAN LOCATION AND CONTROL LTD.
PRESENTS RESULTS FOR THE SECOND QUARTER OF 2007

Record Quarterly Revenues growing 17% over last year

AZOUR, Israel - August 20, 2007 - Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the second quarter ended June 30, 2007.

Highlights

— Revenues of $29.2 million, a 17% increase over the second quarter of 2006

— Subscribers reached 418 thousand as of June 30, 2007, an increase of 43 thousand subscribers from 375 thousand subscribers as of June 30, 2006

— At the end of the second quarter, Ituran closed its acquisition of MAPA group, the main provider of geographical information in Israel.

Second Quarter Results
Revenues for the second quarter of 2007 reached US$29.2 million. This represents a 17.0% increase compared with revenues of US$25.0 million in the second quarter of last year. While revenues from the business in Korea decreased in the quarter compared to last year, the net increase in revenues was driven by the continued growth in the Company’s subscriber base, growth in end-unit sales and revenues from the ERM business which was acquired at the end of 2006. In addition, the Company saw a growth in average revenue per subscriber.

Operating profit for the second quarter of 2007 was US$5.2 million (17.7% of revenues) compared with US$6.1 million (24.3% of revenues) in the second quarter of 2006. The lower operating margin in the quarter was due to the previously announced delay in recognizing revenues from the second and third phase of the project in Korea. In addition, the Company experienced increased labor costs and other operating expenses.

For the rest of the year, Ituran management expects expenses to continue to increase, although at a slower pace than revenues, and therefore expect operating margins to improve in the second half of the year.

Net profit was US$4.1 million in the second quarter of 2007 (14.1% of revenues), compared with US$4.6 million (18.6% of revenues), as reported in the second quarter of 2006.

Fully diluted EPS in the second quarter of 2007 was US$0.18 compared with US$0.20 per fully diluted share in the second quarter of 2006.

Since the closing of the acquisition of Mapa was at the end of the second quarter, its balance sheet was consolidated with Ituran’s in the second quarter, while Mapa’s income statement will be consolidated from the beginning of the third quarter.

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Cash flow from operations during the quarter was US$3.7 million. As of June 30, 2007 the company had a net cash position (including marketable securities) of US$41.4 million compared with US$59.4 million on December 31, 2006. The decrease was mainly due to $13.0 million paid for Mapa and a dividend of $4.8 million that was paid in the second quarter.

Eyal Sheratzky, Co-CEO of Ituran said, “Our business continues to grow, and in the quarter we grew our top line strongly by 17% over last year. We are facing higher expenses, due to our investment in customer support and marketing, which includes the Ituran GPS launched in the third quarter, and this is impacting our profitability. We believe that during the second half of the year, our expenses will continue to increase on an absolute basis. However, our revenues will grow faster than our expenses and we expect our profitability to increase from these levels.”

“We will consolidate Mapa’s results as of the start of the third quarter,” continued Mr. Sheratzky. “We believe our recently launched GPS system in Israel complements our existing services, and fits our strategy of continuously expanding the scope of the location based services that we can offer to our customers.”

Conference Call Information

The Company will also be hosting a conference call today, Monday, August 20, 2007 at 10:00am EDT. On the call, management will review and discuss the results, and will be available to answer investor questions.

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1 888 407 2553
UK Dial-in Number: 0 800 917 5108
ISRAEL Dial-in Number: 03 918 0687
INTERNATIONAL Dial-in Number: +972 3 918 0687

at:
10:00am Eastern Time, 7:00am Pacific Time, 5:00pm Israel Time

For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call in the investor relations section of Ituran’s website, at: www.ituran.com

About Ituran

Ituran provides location-based services, consisting predominantly of stolen vehicle recovery and tracking services, as well as wireless communications products used in connection with its location-based services and various other applications. Ituran offers mobile asset location, Stolen Vehicle Recovery, management & control services for vehicles, cargo and personal security, and radio frequency identification products for various purposes including automatic meter reading, electronic toll collection and homeland security applications. Ituran’s subscriber base has been growing significantly since the Company’s inception to over 418,000 subscribers distributed globally. Established in 1995, Ituran has approximately 800 employees worldwide, provides its location based services and has a market leading position in Israel, Brazil, Argentina and the United States. The company also sells its products in China and South Korea.

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Company Contact

Udi Mizrachi (udi_m@ituran.com)
VP Finance, Ituran
(Israel) +972 3 557 1348

International Investor Relations

Ehud Helft
Kenny Green
info@gkir.com
GK Investor Relations
(US) +1-866-704-6710

Investor Relations in Israel

Oded Ben Chorin (oded@km-ir.co.il)
KM Investor Relations
(Israel) +972-3-5167620

** FINANCIAL TABLES TO FOLLOW **

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

as of June 30, 2007

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

as of June 30, 2007

Table of Contents

	Page
Consolidated Interim Financial Statements:
Balance Sheets	2 - 3
Statements of Income	4
Statements of Cash Flows	5 - 6

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	December 31,		June 30,
(in thousands)	2006		2007
Current assets
Cash and cash equivalents		43,812		33,461
Investments in marketable securities		16,034		8,653
Accounts receivable (net of allowance for doubtful accounts)		29,709		34,524
Other current assets		4,915		5,165
Contracts in process , net		1,465		1,485
Inventories		10,901		14,852
		106,836		98,140
Long-term investments and debit balances
Investments in affiliated companies		881		2,233
Accounts receivable		123		-
Deposit		1,457		1,512
Deferred income taxes		5,112		5,674
Funds in respect of employee rights upon retirement		4,001		4,674
		11,574		14,093
Property and equipment, net		19,109		22,718
Intangible assets, net		2,784		9,304
Goodwill		4,536		9,731
Total assets		144,839		153,986

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	December 31,		June 30,
(in thousands)	2006		2007
Current liabilities
Credit from banking institutions		474		728
Accounts payable		14,956		16,367
Deferred revenues		4,399		5,003
Other current liabilities		13,573		12,873
		33,402		34,971
Long-term liabilities
Liability for employee rights upon retirement		5,278		6,275
Deferred income taxes		816		2,487
		6,094		8,762
Minority interest		2,578		2,962
Capital Notes		5,894		5,894
Total shareholders' equity		96,871		101,397
Total liabilities and shareholders' equity		144,839		153,986

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED INTERIM STATEMENTS OF INCOME

	US dollars						US dollars
	Six month period Ended June 30,						Three months period ended June 30,
(in thousands except per share data)	2006			2007			2006			2007
Revenues:
Location-based services		26,022			30,019			13,199			15,416
Wireless communications products		23,000			27,142			11,773			13,807
		49,022			57,161			24,972			29,223
Cost of revenues:
Location-based services		8,534			10,713			4,452			5,655
Wireless communications products		16,346			20,300			8,129			10,631
		24,880			31,013			12,581			16,286
Gross profit		24,142			26,148			12,391			12,937
Research and development expenses		1,492			1,476			809			763
Selling and marketing expenses		2,579			3,247			1,402			1,665
General and administrative expenses		8,130			10,181			4,090			5,336
Other expenses, net		6			1			10			12
Operating income		11,935			11,243			6,080			5,161
Financing income , net		592			1,203			175			892
Income before taxes on income		12,527			12,446			6,255			6,053
Taxes on income		(2,929	)		(3,468	)		(1,445	)		(1,743	)
		9,598			8,978			4,810			4,310
Share in losses of affiliated companies, net		(149	)		(93	)		(36	)		(36	)
Minority interests in income of subsidiaries		(276	)		(388	)		(127	)		(164	)
Net income for the period		9,173			8,497			4,647			4,110
Earnings per share:
Basic		0.40			0.36			0.20			0.18
Diluted		0.39			0.36			0.20			0.18
Weighted average number of shares outstanding
(in thousands):
Basic		23,117			23,321			23,142			23,321
Diluted		23,482			23,482			23,482			23,482

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

	US dollars						US dollars
	Six months period ended June 30,						Three months period ended June 30,
(in thousands)	2006			2007			2006			2007
Cash flows from operating activities
Net income for the period		9,173			8,497			4,647			4,110
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		1,821			2,947			982			1,569
Exchange differences on principal of deposit and loan, net		(19	)		(62	)		(27	)		(38	)
Exchange differences on principal of marketable securities		172			(446	)		(108	)		(206	)
Increase (decrease) in liability for employee rights upon retirement		(178	)		299			27			141
Share in losses of affiliated companies, net		149			93			36			36
Deferred income taxes		295			(405	)		607			(422	)
Capital loses (gains) on sale of property and equipment, net		(27	)		(1	)		(35	)		12
Minority interests in profits of subsidiaries, net		272			388			123			164
Decrease (Increase) in accounts receivable		(2,264	)		(2,319	)		(1,209	)		1,485
Decrease (increase) in other current assets		(34	)		(326	)		257			(476	)
Increase in inventories and contracts in process, net		(2,631	)		(3,604	)		(663	)		(614	)
Increase (decrease) in accounts payable		2,299			1,111			4			(1,361	)
Increase (decrease) in deferred revenues		270			94			(195	)		270
Decrease in other current liabilities		(1,801	)		(1,251	)		(1,542	)		(936	)
Net cash provided by operating activities		7,497			5,015			2,904			3,734
Cash flows from investing activities
Increase in funds in respect of employee rights upon retirement, net of
withdrawals		(234	)		(288	)		(85	)		(154	)
Capital expenditures		(5,887	)		(4,943	)		(4,094	)		(2,577	)
Proceeds from sale of property and equipment		45			139			45			63
Purchase of intangible assets and minority interest		(23	)		(14	)		-			(14	)
Investment in affiliated company		-			(1,447	)		-			(947	)
Investment in marketable securities		(46,817	)		(1,574	)		(2,698	)		(519	)
Sale of marketable securities		29,731			9,310			26,662			302
Loan granted to affiliated company		(138	)		-			11			-
Acquisition of subsidiary (Appendix A)		-			(8,549	)		-			(8,549	)
Net cash used in investment activities		(23,323	)		(7,366	)		19,841			(12,395	)
Cash flows from financing activities
Short-term credit from banking institutions, net		(184	)		585			43			493
Repayment of long-term loans		(2,835	)		(3,500	)		(1,643	)		(3,163	)
Dividend paid		(3,705	)		(4,838	)		(3,705	)		(4,838	)
Proceeds from exercise of options by employees		8			-			8			-
Acquisition of minority interests in subsidiaries		(21	)		-			-			-
Dividend distribution to minority interest of a subsidiary		(172	)		-			(172	)		-
Net cash used in financing activities		(6,909	)		(7,753	)		(5,469	)		(7,508	)
Effect of exchange rate changes on cash and cash equivalents		2,145			(247	)		2,922			(984	)
Net increase (decrease) in cash and cash equivalents		(20,590	)		(10,351	)		20,198			(17,153	)
Balance of cash and cash equivalents at beginning of period		58,429			43,812			17,641			50,614
Balance of cash and cash equivalents at end of period		37,839			33,461			37,839			33,461

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Appendix A – Acquisition of subsidiary

	US dollars
(in thousands)	Six and Three months period ended June 30, 2007
Working capital (excluding cash and cash equivalents ), net		1,280
Funds in respect of employee rights upon retirement		408
Property and equipment , net		397
Goodwill		11,939
Liability for employee rights upon retirement		(729	)
Long-term deferred income taxes		(1,583	)
Long term loan		(3,163	)
		8,549

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