exhibit_99-1.htm

Exhibit 99.1

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

ITURAN LOCATION AND CONTROL LTD.

PRESENTS RESULTS FOR THE THIRD QUARTER OF 2010

Revenues reach $37 million, growing 16% YoY;

AZOUR, Israel – November 22, 2010 – Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the third quarter ended September 30, 2010.

Highlights of the Quarter

●	A 45,000 year-over-year increase in net subscribers to a record of 594,000 as of September 30, 2010;

●	Gross margin at 49% and operating margin at 20.5%;

●	EBITDA of $11.6 million or 31.3% of revenues;

●	Generated $9.7 million in operating cash flow; ended the quarter with $54.0 million in net cash (including marketable securities and deposits for short and long term);

Third Quarter 2010 Results

Revenues for the third quarter of 2010 reached US$37.1 million, representing 16% growth over revenues of US$32.0 million in the third quarter of 2009. 74% of revenues were from location based service subscription fees and 26% from product revenues.

Revenues from subscription fees grew by 15% over the same period last year. The increase in subscription fees was mainly due to the increase in the subscriber base, which grew to 594,000 as of September 30, 2010, as compared with 549,000 at the end of September 30, 2009. Product revenues grew 20% compared with the same period last year. This increase was driven primarily by increased of sales in Israel.

Gross profit for the third quarter of 2010 was US$ 18.2 million (49.0% of revenues) compared with US$15.6 million (48.7% of revenues) in the third quarter of last year.

Operating profit for the third quarter of 2010 was US$7.6 million (20.5% of revenues) compared with an operating profit of US$6.5 million (20.2% of revenues) in the third quarter of 2009.

Financial income for the third quarter of 2010 was US$0.4 million compared with a financial expense of US$0.7 million in the third quarter of 2009.

EBITDA for the quarter was $11.6 million (31.3% of revenues) compared to an EBITDA of $9.7 million (30.2% of revenues) in the third quarter of last year.

Net profit was US$5.7 million in the third quarter of 2010 (15.4% of revenues), compared with a net profit of US$4.6 million (14.4% of revenues), as reported in the third quarter of 2009. Fully diluted EPS in the third quarter of 2010 was US$0.27, compared with fully diluted EPS of US$0.22 in the third quarter of 2009.

Cash flow from operations during the quarter was $9.7 million.

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

As of September 30, 2010, the Company had net cash, including marketable securities and deposits for short and long term, of US$54.0 million or $2.57 per share. This is compared with US$50.0 million or $2.38 per share as at June 30, 2010, and US$78.1 million as of December 31, 2009.

Eyal Sheratzky, Co-CEO of Ituran said, “The third quarter was another solid quarter in which we continued to grow our revenues and we generated a strong level of cash. Brazil continues its growth and we have a leading position in this market which should support our growth for a number of years ahead. In Israel, solid improvements in the economy has led to increased car sales, and our business there has regained its growth trajectory. Overall, we remain very pleased with the performance of our business and look forward to continued growth and increased profitability over the coming quarters.”

Conference Call Information

The Company will also be hosting a conference call later today, November 22, 2010 at 10am ET. 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 a few 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

ISRAEL Dial-in Number: 03 918 0610

CANADA Dial-in Number: 1 866 485 2399

INTERNATIONAL Dial-in Number: +972 3 918 0610

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.

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.

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

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 594,000 subscribers distributed globally. Established in 1995, Ituran has over 1,400 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 Relations

Ehud Helft & Kenny Green

ituran@ccgisrael.com

CCG Investor Relations

(US) +1 646 201 9246

* Financial Tables to Follow **

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

as of September 30, 2010

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

as of September 30, 2010

Table of Contents

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

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	September 30,		December 31,
(in thousands)	2010		2009

Current assets
Cash and cash equivalents		40,214		60,813
Deposit in escrow		5,236		5,227
Investments in trading marketable securities		1,453		4,213
Accounts receivable (net of allowance for doubtful accounts)		31,929		24,906
Other current assets		7,558		6,136
Inventories		10,934		11,096
		97,324		112,391

Long-term investments and other assets
Deposit in escrow		7,854		7,840
Investments in affiliated company		216		205
Investments in other companies		83		80
Other assets		2,126		1,742
Loan to former employee		558		558
Deferred income taxes		5,024		5,653
Funds in respect of employee rights upon retirement		4,253		3,606
		20,114		19,684

Property and equipment, net		43,287		39,090

Intangible assets, net		4,405		5,064

Goodwill		11,374		9,639

Total assets		176,504		185,868

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	September 30,		December 31,
(in thousands)	2010		2009

Current liabilities
Credit from banking institutions		750		6
Accounts payable		14,764		13,459
Deferred revenues		4,883		5,486
Other current liabilities		16,664		17,443
		37,061		36,394

Long-term liabilities
Long term loans		141		-
Liability for employee rights upon retirement		6,279		5,457
Provision for contingencies		4,799		3,071
Deferred income taxes		1,062		1,209
		12,281		9,737

Capital Notes		5,894		5,894

Shareholders’ equity		117,289		130,126
Non –controlling interest		3,979		3,717
Total equity		121,268		133,843

Total liabilities and shareholders’ equity		176,504		185,868

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF INCOME

	US dollars						US dollars
(in thousands except per share data)	Nine month period ended September 30,						Three month period ended September 30,
	2010			2009			2010			2009

Revenues:
Location-based services		79,321			65,513			27,455			23,985
Wireless communications products		27,759			22,194			9,621			8,046
		107,080			87,707			37,076			32,031

Cost of revenues:
Location-based services		29,948			23,768			10,551			8,610
Wireless communications products		24,473			20,517			8,370			7,832
		54,421			44,285			18,921			16,442

Gross profit		52,659			43,422			18,155			15,589
Research and development expenses		333			275			111			95
Selling and marketing expenses		6,501			5,479			2,206			1,942
General and administrative expenses		23,628			19,540			8,246			6,867
Other expenses, net		3			671			-			227
Operating income		22,194			17,457			7,592			6,458
Other expenses		(81	)		-			-			-
Financing income (expenses) , net		459			944			388			(666	)
Income before taxes on income		22,572			18,401			7,980			5,792
Taxes on income		(6,544	)		(5,335	)		(2,103	)		(1,029	)
		16,028			13,066			5,877			4,763
Share in gains (losses) of affiliated companies, net		(2	)		16			-			1
Net income for the period		16,026			13,082			5,877			4,764
Less: Net income attributable to non-controlling interest		(784	)		(421	)		(184	)		(136	)
Net income for the period attributable to company shareholders		15,242			12,661			5,693			4,628

Earnings per share: attributable to company shareholders
Basic		0.73			0.60			0.27			0.22

Diluted		0.73			0.60			0.27			0.22

Weighted average number of shares outstanding (in thousands):
Basic		20,968			20,968			20,968			20,968

Diluted		20,977			20,977			20,977			20,977

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

	US dollars						US dollars
(in thousands)	Nine months period ended September 30 ,						Three months period ended September 30 ,
	2010			2009			2010			2009
Cash flows from operating activities
Net income for the period		16,026			13,082			5,877			4,764
Adjustments to reconcile net income to net cash from operating activities:
Depreciation , amortization and impairment of goodwill		11,513			8,759			3,998			3,214
Exchange differences on principal of deposit and loan, net		381			68			745			516
Exchange differences on principal of marketable securities		-			(1,090	)		-			(182	)
Gain in respect of trading marketable securities		-			(306	)		-			(306	)
Increase in liability for employee rights upon retirement		658			484			216			187
Share in losses (gains) of affiliated companies, net		2			(16	)		-			(1	)
Deferred income taxes		599			358			357			914
Capital loses (gains) on sale of property and equipment, net		21			(10	)		-			-
Decrease (increase) in accounts receivable		(4,939	)		1,705			(2,246	)		(227	)
Increase in other current assets		(1,383	)		(1,848	)		(416	)		(1,367	)
Decrease in inventories		495			355			125			2,690
Increase (decrease) in accounts payable		901			430			428			(1,315	)
Increase (decrease) in deferred revenues		(768	)		1,051			(302	)		635
Increase in other current liabilities and provision for contingencies		332			2,242			935			2,972
Net cash provided by operating activities		23,838			25,264			9,717			12,494
Cash flows from investing activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals		(539	)		(589	)		(193	)		(237	)
Capital expenditures		(14,609	)		(10,933	)		(5,305	)		(5,181	)
Deposit		(45	)		(363	)		(13	)		(102	)
Proceeds from sale of property and equipment		704			58			225			21
Investment in trading marketable securities		(1,326	)		(34,649	)		-			(4,159	)
Sale of marketable securities		4,214			64,242			-			18,642
Acquisition of non controlling interest		(2,223	)		-			(2,223	)		-
Net cash used in investment activities		(13,824	)		17,766			(7,509	)		8,984
Cash flows from financing activities
Short-term credit from banking institutions, net		716			(128	)		534			(170	)
Receipt of Long term loans from banking institutions		165						-
Repayment of long terms loans		(6	)		-			(6	)		-
Dividend paid		(31,621	)		(3,566	)		-			-
Dividend paid to Non controlling interest		-			(169	)		-			-
Net cash used in financing activities		(30,746	)		(3,863	)		528			(170	)
Effect of exchange rate changes on cash and cash equivalents		133			1,579			1,705			1,953

Net increase (decrease) in cash and cash equivalents		(20,599	)		40,746			4,441			23,261
Balance of cash and cash equivalents at beginning of period		60,813			12,511			35,773			29,996
Balance of cash and cash equivalents at end of period		40,214			53,257			40,214			53,257

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