ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

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

Record Quarterly Revenues growing 21% over last year

AZOUR, Israel - November 19, 2007 - Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the third quarter ended September 30, 2007.

Highlights

—	Revenues of $31.6 million, a 21% increase over the third quarter of 2006

—	Subscribers reached 430,000 as of September 30, 2007, an increase of 47,000 subscribers from 383,000 subscribers as of September 30, 2006

Third Quarter Results
Revenues for the third quarter of 2007 reached US$31.6 million. This represents a 21.2% increase compared with revenues of US$26.0 million in the third quarter of last year. The increase in revenues was primarily driven by the continued growth in the Company’s subscriber base, growth in end-unit sales and revenues from the recently acquired ERM and MAPA businesses.

Operating profit for the third quarter of 2007 was US$5.3 million (16.9% of revenues) compared with US$6.3 million (24.1% of revenues) in the third quarter of 2006. The lower operating margin was in part due to the fact that in the third quarter of 2007 the company did not record any significant revenues from Korea and China, which typically represents higher margins. In addition, and as previously announced, the Company strongly increased its investment in sales and marketing for the new Ituran GPS in Israel, and the Company experienced increased labor costs compared with the third quarter last year. Finally, in Israel the devaluation of the US dollar against the Israeli shekel in the quarter increased expenses relative to revenues which are linked to the dollar.

EBITDA for the quarter was $7.3 million, which represents 23.1% of revenues compared to $7.4 million which represents 28.4% in the third quarter of last year.

Financial expenses in the quarter, was US$27 thousand as compared with a financial income of $563 thousand in the third quarter of last year. The decrease was mainly as a result of a decrease in gains from investments in marketable securities and the decrease in interest income due to a lower net cash level following the recent acquisitions of ERM and MAPA, and dividends issued through the year.

Net profit was US$3.6 million in the third quarter of 2007 (11.6% of revenues), compared with US$4.9 million (18.8% of revenues), as reported in the third quarter of 2006.

Fully diluted earnings per share in the third quarter of 2007 was US$0.16 compared with US$0.21 per fully diluted share in the third quarter of 2006.

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Cash flow from operations during the quarter was US$3.0 million. As of September 30, 2007 the company had a net cash position (including marketable securities) of US$44.3 million compared with US$59.4 million on December 31, 2006.

Eyal Sheratzky, Co-CEO of Ituran said, “2007 was a year in which we made a number of investments for our continued future growth. While we have seen a strong increase in revenues, our expenses did rise throughout the year, pressuring our margins.”

“In 2008, we expect to see the fruits of our efforts in 2007, with bottom line and top line growth,” continued Mr. Sheratzky. “Following our sale of Telematics and our recent acquisitions of MAPA and ERM, we have a leaner business with a stronger focus on our core competencies, that of providing location based services and related applications. We are also in a stronger financial position to pursue acquisitions that will expand our global reach.”

Conference Call Information

The Company will also be hosting a conference call today, Monday, November 19, 2007 at 10:00am EST. On the call, management will review and discuss the results and the sale of Telematics announced today, 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:
10:00 am Eastern Time, 7:00 am Pacific Time, 5:00 pm 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. Ituran’s subscriber base has been growing significantly since the Company’s inception to over 430,000 subscribers distributed globally. Established in 1995, Ituran has approximately 900 employees worldwide, provides its location based services and has a market leading position in Israel, Brazil, Argentina and the United States.

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) +1 646 201 9246

Investor Relations in Israel

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

** FINANCIAL TABLES TO FOLLOW **

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements
as of September 30, 2007

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements
as of September 30, 2007

Table of Contents

	Page




Consolidated Interim Financial Statements:

Balance Sheets	3-4

Statements of Income	5

Statements of Cash Flows	6-7

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

	US dollars
(in thousands)	December 31, 2006		September 30, 2007
	(audited)		(unaudited)


Current assets

Cash and cash equivalents		43,812		35,829
Investment in marketable securities		16,034		9,137
Accounts receivable (net of allowance for doubtful accounts)		29,709		36,976
Other current assets		4,915		5,885
Contracts in process		1,465		1,633
Inventories		10,901		16,727

		106,836		106,187


Long-term investments and debit balances

Investments in affiliated companies		881		2,296
Accounts receivable		123		-
Deposit		1,457		1,592
Deferred income taxes		5,112		5,559
Funds in respect of employee rights upon retirement		4,001		5,219

		11,574		14,666


Property and equipment, net		19,109		24,749


Intangible assets, net		2,784		10,260


Goodwill		4,536		9,364


Total assets		144,839		165,226

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

	US dollars
(in thousands)	December 31, 2006		September 30, 2007
	(audited)		(unaudited)


Current liabilities

Credit from banking institutions		474		711
Accounts payable		14,956		15,930
Deferred revenues		4,399		6,518
Other current liabilities		13,573		13,105

		33,402		36,264


Long-term liabilities

Liability for employee rights upon retirement		5,278		6,881
Deferred income taxes		816		2,569

		6,094		9,450


Minority interest		2,578		3,270


Capital Notes		5,894		5,894


Total shareholders' equity		96,871		110,348


Total liabilities and shareholders' equity		144,839		165,226

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

	US dollars						US dollars
	Nine month period ended September 30,						Three month period ended September 30,
(in thousands except per share data)	2006			2007			2006			2007


Revenues:
Location-based services		39,867			46,523			13,845			16,504
Wireless communications products		35,201			42,212			12,201			15,070

		75,068			88,735			26,046			31,574


Cost of revenues:
Location-based services		13,314			16,729			4,780			6,016
Wireless communications products		24,917			31,804			8,571			11,504

		38,231			48,533			13,351			17,520


Gross profit		36,837			40,202			12,695			14,054
Research and development expenses		2,082			2,210			590			734
Selling and marketing expenses		3,829			5,531			1,250			2,284
General and administrative expenses		12,701			15,871			4,571			5,690
Other expenses (income), net		2			2			(4	)		1

Operating income		18,223			16,588			6,288			5,345
Financing income, net		1,152			1,176			560			(27	)

Income before taxes on income		19,375			17,764			6,848			5,318
Taxes on income		(4,703	)		(4,910	)		(1,774	)		(1,442	)

		14,672			12,854			5,074			3,876
Share in losses of affiliated companies, net		(201	)		(161	)		(52	)		(68	)
Minority interests in income of subsidiaries		(403	)		(550	)		(127	)		(162	)

Net income for the period		14,068			12,143			4,895			3,646


Earnings per share
Basic		0.61			0.52			0.21			0.16


Diluted		0.60			0.52			0.21			0.16


Weighted average number of shares outstanding
(in thousands):
Basic		23,172			23,287			23,281			23,338


Diluted		23,469			23,422			23,442			23,422

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

	US dollars						US dollars
	Nine month period ended September 30,						Three month period ended September 30,
(in thousands)	2006			2007			2006			2007


Cash flows from operating activities
Net income for the period		14,068			12,143			4,895			3,646
Adjustments to reconcile net income to net cash from operating
activities:
Depreciation and amortization		2,922			4,895			1,101			1,948
Exchange differences on principal of deposit and loan, net		(37	)		(57	)		(18	)		5
Exchange differences on principal of marketable securities,
net		100			(350	)		(72	)		96
Increase (decrease) in liability for employee rights upon
retirement		(296	)		596			(118	)		297
Share in losses of affiliated companies, net		201			161			52			68
Deferred income taxes		886			1,618			591			2,023
Capital gains on sale of property and equipment, net		(35	)		(48	)		(8	)		(47	)
Minority interests in profits (losses) of subsidiaries, net		403			550			127			162
Decrease (increase) in accounts receivable		(3,269	)		(3,655	)		(1,005	)		(1,336	)
Increase in other current assets		(237	)		(658	)		(203	)		(332	)
Increase in inventories and contracts in process, net		(3,626	)		(4,904	)		(995	)		(1,300	)
Increase (decrease) in accounts payable		3,134			(168	)		835			(1,279	)
Increase in deferred revenues		471			1,352			201			1,258
Increase (decrease) in other current liabilities		(1,596	)		(3,488	)		205			(2,237	)

Net cash provided by operating activities		13,089			7,987			5,588			2,972

Cash flows from investing activities
Increase in funds in respect of employee rights upon
retirement, net of withdrawals		(341	)		(599	)		(107	)		(311	)
Capital expenditures		(10,080	)		(7,663	)		(4,193	)		(2,720	)
Proceeds from sale of property and equipment		53			181			8			42
Purchase of intangible assets and minority interest		(51	)		(31	)		(28	)		(17	)
Investment in affiliated company		-			(1,447	)		-			-
Investment in marketable securities		(52,357	)		(3,269	)		(5,540	)		(1,695	)
Sale of marketable securities		35,155			11,364			5,424			2,054
Loan granted to affiliated company		(138	)		-			-			-
Acquisition of subsidiary (Appendix A )		-			(8,549	)		-			-

Net cash used in investment activities		(27,759	)		(10,013	)		(4,436	)		(2,647	)

Cash flows from financing activities
Short-term credit from banking institutions, net		(244	)		560			(60	)		(25	)
Repayment of long-term loans		(2,835	)		(3,500	)		-			-
Dividend paid		(3,705	)		(4,838	)		-			-
Proceeds from exercise of options by employees		18			12			10			12
Acquisition of minority interests in subsidiaries		(21	)		-			-			-
Dividend distribution to minority interest of a subsidiary		(172	)		-			-			-
Purchase of shares from treasury		(877	)		-			(877	)		-

Net cash used in financing activities		(7,836	)		(7,766	)		(927	)		(13	)

Effect of exchange rate changes on cash and cash equivalents		4,090			1,809			1,949			2,056

Net increase (decrease) in cash and cash equivalents		(18,416	)		(7,983	)		2,174			2,368
Balance of cash and cash equivalents at beginning of period		58,429			43,812			37,839			33,461

Balance of cash and cash equivalents at end of period		40,013			35,829			40,013			35,829

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Appendix A - Acquisition of subsidiary

	US dollars
	Nine months period Ended September 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
Intangible assets, net		6,719
Goodwill		5,220
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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