Exhibit 99.1

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

ITURAN LOCATION AND CONTROL LTD.
PRESENTS RESULTS FOR THE SECOND QUARTER OF 2008

Second quarter 2008 revenues reached $35.2m, a pro-forma YoY growth of 45%

AZOUR, Israel – August 12, 2008 – Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the second quarter ended June 30, 2008.

Highlights of the Quarter
—	Strong top-line and subscriber growth
—	Strong year over year improvement in pro-forma gross and operating margins
—	A 15,000 net subscriber increase to a record of 479,000 as of June 30th, 2008

As previously announced, the sale of Telematics was completed on December 31^st, 2007. The results of the second quarter of 2008 therefore exclude the contribution of Telematics. The pro-forma results of the comparable quarter in 2007 also exclude the contribution of Telematics, to enable investors to compare Ituran’s historical results with current results on a similar basis.

Second Quarter Results
Revenues for the second quarter of 2008 reached US$35.2 million. This represents a 45% increase compared with pro-forma revenues of US$24.2 million in the second quarter of last year. The increase in revenues was primarily driven by the strong growth in the Company’s subscriber base particularly in Brazil and Israel during the quarter, revenues from the recently acquired MAPA businesses, the increased average revenue per user and the weak US dollar.

Operating profit for the second quarter of 2008 was US$6.8 million (19.3% of revenues) compared with a pro-forma operating profit of US$4.0 million (16.5% of revenues) in the second quarter of 2007.

EBITDA for the quarter was $9.3 million (26.4% of revenues) compared to a pro-forma EBITDA of $5.5 million (22.6% of revenues) in the second quarter of last year.

Financial expense in the quarter was US$2.3 million as compared with a pro-forma financial income of $691 thousand in the second quarter of last year.

The unusually high financial expense is as a result of the devaluation of the US dollar against the Israeli shekel during the quarter.

The Company’s functional currency in Israel is the Israeli shekel and therefore for reporting purposes the Company’s accounts are prepared in shekels and translated to US dollars. Therefore, due to the fact that most of the Company’s cash is held in dollars, in shekel terms this amount was reduced by approximately NIS 8.3 million (US$ 2.5 million) in the quarter. Thus, Ituran recorded a financial charge of $2.5 million in the quarter, despite the fact that this cash did not change in value in dollar terms.

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Given that the primary purpose of Ituran’s cash holdings is for the acquisition of synergistic business which are priced in US dollars, management believes that it is strategically prudent to maintain its cash holdings in US dollars, in order to hedge against currency fluctuations which may affect its ability to make potential acquisitions, despite the short term fluctuations in the Company’s profit and loss statement that this may cause.

GAAP net profit was US$2.5 million in the second quarter of 2008 (7.1% of revenues), compared with a pro-forma net profit of US$3.1 million (12.9% of revenues), as reported in the second quarter of 2007. Fully diluted GAAP EPS in the second quarter of 2008 were US$0.12, compared with US$0.13 per fully diluted share in the second quarter of 2007.

Excluding the abovementioned financial charge, net profit in the quarter was US$4.3 million (12.2% of revenues) and fully diluted EPS was US$0.20.

Cash flow from operations during the quarter was US$5.3 million. Excluding the above-mentioned financial charge, cash flow from operations was US$7.8 million. During the quarter, the company repurchased 0.7 million shares for a total of US$8.9 million.

As of June 30, 2008 the company had a net cash position (including marketable securities) of US$53.5 million compared with US$37.9 million on December 31st, 2007.

Eyal Sheratzky, Co-CEO of Ituran said, “Our second quarter was a very good quarter particularly in terms of record revenue and growth, as well as strong improvement in profitability. We are very much seeing the financial rewards and the fruits of our investments throughout last year. Our strong market position and unique business model based on recurring revenues from our established and growing customer base, underlies our performance. We expect to continue to show growth in revenues and profit throughout this year and beyond.”

Conference Call Information

The Company will be hosting a conference call today, August 12, 2008, at 10am Eastern Time. 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 10 minutes before the conference call commences.

US Dial-in Number: 1 888 668 9141
UK Dial-in Number: 0 800 032 3367
ISRAEL Dial-in Number: 03 918 0691
INTERNATIONAL Dial-in Number: +972 3 918 0691

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 from the day after the call in the investor relations section of Ituran’s website, at: www.ituran.com

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Certain statements in this press release are “forward-looking statements” within the meaning of the Securities Act of 1933, as amended.  These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts as well as statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.

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 479,000 subscribers distributed globally. Established in 1995, Ituran has approximately 1100 employees worldwide, provides its location based services and has a market leading position in Israel, Brazil, Argentina and the United States.

Company Contact

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

International Investor

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 **

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements
as of June 30, 2008

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements
as of June 30, 2008

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
	June 30,		December 31,
(in thousands)	2008		2007
Current assets
Cash and cash equivalents		67,062		28,669
Investments in marketable securities		92		9,558
Accounts receivable (net of allowance for doubtful accounts)		34,220		27,578
Other current assets		7,395		83,783
Inventories		14,907		13,258
		123,676		162,846
Long-term investments and debit balances
Investments in affiliated companies		191		191
Investments in other companies		1,911		1,678
Other current assets		333		49
Loan		558		560
Deposit		350		-
Deferred income taxes		6,641		5,850
Funds in respect of employee rights upon retirement		3,146		2,513
		13,130		10,841
Property and equipment, net		30,771		24,440
Intangible assets, net		8,784		8,801
Goodwill		10,984		9,631
Total assets		187,345		216,559

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	June 30,		December 31,
(in thousands)	2008		2007
Current liabilities
Credit from banking institutions		13,607		318
Accounts payable		16,022		12,703
Deferred revenues		6,227		5,801
Other current liabilities		15,806		33,592
		51,662		52,414
Long-term liabilities
Liability for employee rights upon retirement		5,032		4,085
Deferred income taxes		2,051		1,715
		7,083		5,800
Minority interest		3,749		2,860
Capital Notes		5,894		5,894
Total shareholders' equity		118,957		149,591
Total liabilities and shareholders' equity		187,345		216,559

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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 month period ended June 30,
(in thousands except per share data)	2008			2007			2007			2008			2007			2007
							Pro-Forma(*)									Pro-Forma(*)
Revenues:
Location-based services		41,671			30,019			30,019			21,843			15,416			15,416
Wireless communications products		26,318			27,142			17,478			13,332			13,807			8,815
		67,989			57,161			47,497			35,175			29,223			24,231
Cost of revenues:
Location-based services		15,459			10,713			10,713			8,268			5,655			5,655
Wireless communications products		20,896			20,300			15,732			10,414			10,631			8,109
		36,355			31,013			26,445			18,682			16,286			13,764
Gross profit		31,634			26,148			21,052			16,493			12,937			10,467
Research and development expenses		200			1,476			201			94			763			100
Selling and marketing expenses		5,060			3,247			2,781			2,419			1,665			1,357
General and administrative expenses		13,268			10,181			9,479			7,186			5,336			5,003
Other expenses (income), net		23			1			-			(12	)		12			-
Operating income		13,083			11,243			8,591			6,806			5,161			4,007
Financing income (expenses) , net		(6,664	)		1,203			1,022			(2,293	)		892			691
Income before taxes on income		6,419			12,446			9,613			4,513			6,053			4,698
Taxes on income		(2,470	)		(3,468	)		(2,591	)		(1,689	)		(1,743	)		(1,392	)
		3,949			8,978			7,022			2,824			4,310			3,306
Share in losses of affiliated
companies, net		(29	)		(93	)		(93	)		(13	)		(36	)		(35	)
Minority interests in income of
subsidiaries		(562	)		(388	)		(329	)		(315	)		(164	)		(134	)
Net income for the period		3,358			8,497			6,600			2,496			4,110			3,137
Earnings per share:
Basic		0.15			0.36			0.28			0.12			0.18			0.13
Diluted		0.15			0.36			0.28			0.12			0.18			0.13
Weighted average number of shares
outstanding (in thousands):
Basic		21,850			23,321			23,321			21,593			23,321			23,321
Diluted		21,859			23,482			23,482			21,601			23,482			23,482

(*) Exclude the contribution of Telematics Wireless LTD – the sale of the company was completed on December 31 , 2007.

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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)	2008			2007			2008			2007
Cash flows from operating activities
Net income for the period		3,358			8,497			2,496			4,110
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		4,712			2,947			2,493			1,569
Exchange differences on principal of deposit and loan, net		85			(62	)		37			(38	)
Exchange differences on principal of marketable securities		(92	)		(446	)		(49	)		(206	)
Increase (decrease) in liability for employee rights upon retirement		345			299			234			141
Share in losses of affiliated companies, net		29			93			13			36
Deferred income taxes		222			(405	)		801			(422	)
Capital loses (gains) on sale of property and equipment, net		54			(1	)		21			12
Minority interests in profits of subsidiaries, net		562			388			315			164
Decrease (increase) in accounts receivable		(2,521	)		(2,319	)		1,112			1,485
Decrease (increase) in other current assets		(2,501	)		(326	)		(2,302	)		(476	)
Decrease (increase) in inventories and contracts in process, net		305			(3,604	)		1,251			(614	)
Increase (decrease) in accounts payable		1,447			1,111			(506	)		(1,361	)
Increase (decrease) in deferred revenues		(429	)		94			(740	)		270
Increase (decrease) in other current liabilities		1,500			(1,251	)		107			(936	)
Net cash provided by operating activities		7,076			5,015			5,283			3,734
Cash flows from investing activities
Increase in funds in respect of employee rights upon retirement, net of
withdrawals		(263	)		(288	)		(196	)		(154	)
Capital expenditures		(7,448	)		(4,943	)		(4,697	)		(2,577	)
Deposit		(350	)					(350	)
Proceeds from sale of property and equipment		164			139			32			63
Purchase of intangible assets and minority interest		-			(14	)		-			(14	)
Investment in affiliated company		-			(1,447	)		-			(947	)
Investment in marketable securities		(1,760	)		(1,574	)		(87	)		(519	)
Sale of marketable securities		12,010			9,310			10,358			302
Acquisition of subsidiary (Appendix A)		-			(8,549	)		-			(8,549	)
Proceeds from sale of subsidiary		(58,720	)					-
Net cash used in investment activities		61,073			(7,366	)		5,060			(12,395	)
Cash flows from financing activities
Short-term credit from banking institutions, net		13,242			585			2,425			493
Repayment of long-term loans		-			(3,500	)		-			(3,163	)
Dividend paid		(29,223	)		(4,838	)		(29,223	)		(4,838	)
Purchase of shares from treasury		(22,093	)		-			(8,881	)		-
Net cash used in financing activities		(38,074	)		(7,753	)		(35,679	)		(7,508	)
Effect of exchange rate changes on cash and cash equivalents		8,318			(247	)		5,954			(984	)
Net increase (decrease) in cash and cash equivalents		38,393			(10,351	)		(19,382	)		(17,153	)
Balance of cash and cash equivalents at beginning of period		28,669			43,812			86,444			50,614
Balance of cash and cash equivalents at end of period		67,062			33,461			67,062			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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