Exhibit 1

For Immediate Release

Pointer Telocation Reports Q2 2012 Financial Results:

· Revenues of $21.2M

· Non-GAAP Net Income of $ 1.1M

· Adjusted EBITDA $2.5M

Rosh HaAyin, Israel August 27th, 2012 Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and roadside assistance services for the automotive industry and insurance market, announced today its financial results for the second quarter of 2012.

Financial Highlights

Revenues: Pointer's revenues for the second quarter of 2012 decreased 4% to $21.2 million, as compared to $22.1 million in the second quarter of 2011.

International activities for the second quarter of 2012 were 27% of total revenues compared to 28% in the comparable period of 2011.

Revenues from products in the second quarter of 2012 were $7.7 million, compared to $7.9 million in the same period in 2011.

Pointer’s revenues from services in the second quarter of 2012 decreased 5% to $13.5 million, from $14.2 million, in the comparable period of 2011(64% of revenues in both periods).

Gross Profit: In the second quarter of 2012, gross profit decreased 12% to $6.8 million from $7.7 million in the second quarter of 2011.

Operating Income: In the second quarter of 2012, operating income was $0.7 million, compared to $1.3 million in the second quarter of 2011.

Net Income: Pointer recorded net income attributable to Pointer’s shareholders for the second quarter of 2012 of $200 thousand or $0.04 per share, compared to net income of $40 thousand or $0.01 per share in the second quarter of 2011.

Net loss attributable to a non-controlling interest in affiliates in the second quarter of 2012 was $250 thousand compared to a net income of $130 thousand for the comparable period in 2011.

Adjusted EBITDA: Pointer’s adjusted EBITDA for the second quarter of 2012 was $2.5 million, as compared to $2.7 million in the comparable period in 2011.

David Mahlab, Pointer's Chief Executive Officer, commented on the results: "We have succeeded to maintain our revenue level and positive net income despite the challenges of the weak global market which has influenced our target market significantly and driven down prices. Our recently launched products have been well received and together with costs savings, and an aggressive sales and marketing approach we were able to maintain momentum. We expect the weak global economy to continue to affect us, but our efforts in launching new products and our additional investment in Latin America should enable us to achieve our long term goals."

Conference Call Information:

Pointer Telocation's management will host today, Monday, August 27th, 2012 a conference call with the investment community to review and discuss the financial results, and will also be available to answer questions.

The conference call will commence at 9:30 AM EST, 4:30 PM Israel time.

To participate in the call, please dial in to one of the teleconferencing numbers below. Please begin placing your call at least 5 minutes before the time set for the commencement of the conference call.

From USA 1-888-668-9141; From Israel: 03-918-0609

A replay will be available from August 28th, 2012 on the Company’s website: www.pointer.com .

Reconciliation between results on a GAAP and Non-GAAP basis:

Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Condensed Interim Consolidated Statements of Cash Flows.

Pointer uses adjusted EBITDA and non-GAAP net income as a non-GAAP financial performance measurement.

We calculate adjusted EBITDA by adding back to net income, financial expenses, taxes, depreciation, the effects of non-cash stock-based compensation expense, amortization and non-cash impairment of goodwill and intangible assets.

We calculate non-GAAP net income by adding back to net income, the effects of non-cash stock based compensation expenses, amortization of intangibles related to acquisitions and non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill.

The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges that are considered by management to be outside of our core operating results.

Adjusted EBITDA and non-GAAP net income are provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company’s business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. We believe that these non-GAAP measures help investors to understand our current and future operating cash flow and performance, especially as our acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. Adjusted EBITDA and non GAAP net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

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 client list with products installed in over 45 countries. Cellocator, a Pointer Products Division, is a leading MRM (Mobile Resource Management) technology developer and manufacturer.

For more information: 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 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.

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	June 30,		December 31,
	2012		2011
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,335	$	1,468
Restricted cash		117		123
Trade receivables		16,347		14,427
Other accounts receivable and prepaid expenses		2,689		1,946
Inventories		3,655		4,467
Total current assets		25,143		22,431
LONG-TERM ASSETS:
Long-term accounts receivable and other		579		805
Severance pay fund		8,036		7,474
Property and equipment, net		10,682		10,839
Long-term loans to affiliate		689		-
Investment in affiliate		140		266
Other intangible assets, net		3,216		3,030
Goodwill		45,028		44,493
Total long-term assets		68,370		66,907
Total assets	$	93,513	$	89,338

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)

	June 30,			December 31,
	2012			2011
	Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities of long-term loans	$	14,146		$	13,208
Trade payables		10,747			9,821
Deferred revenues and customer advances		7,829			6,890
Other accounts payable and accrued expenses		6,950			7,440
Total current liabilities		39,672			37,359
LONG-TERM LIABILITIES:
Long-term loans from banks		8,570			7,715
Long-term loans from shareholders and others		929			943
Other long-term liabilities		3,354			2,895
Accrued severance pay		9,139			8,625
		21,992			20,178
COMMITMENTS AND CONTINGENT LIABILITIES
EQUITY:
Pointer Telocation Ltd’s shareholders' equity:
Share capital		3,393			3,353
Additional paid-in capital		119,190			119,147
Accumulated other comprehensive income		(194	)		837
Accumulated deficit		(96,376	)		(96,743	)
Total Pointer Telocation Ltd’s shareholders' equity		26,013			26,594
Non-controlling interest		5,836			5,207
Total equity		31,849			31,801
LIABILITIES AND SHAREHOLDERS' EQUITY	$	93,513		$	89,338

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

	Six months ended June 30,					Three months ended June 30,						Year ended December 31,
	2012		2011			2012			2011			2011
	Unaudited
Revenues:
Products	$	15,516	$	15,797		$	7,691		$	7,953		$	31,140
Services		27,261		27,383			13,478			14,163			54,778
Total revenues		42,777		43,180			21,169			22,116			85,918
Cost of revenues:
Products		9,280		8,890			4,655			4,474			18,283
Services		19,194		18,248			9,698			9,696			37,249
Amortization of intangible assets		121		489			61			245			1,498
Total cost of revenues		28,595		27,627			14,414			14,415			57,030
Gross profit		14,182		15,553			6,755			7,701			28,888
Operating expenses:
Research and development		1,389		1,507			673			772			3,082
Selling and marketing		4,493		4,346			2,211			2,277			8,932
General and administrative		4,974		5,967			2,301			2,849			11,450
Amortization of intangible assets		1,005		924			501			471			1,821
Impairment of goodwill and intangible assets		354		-			354			-			6,216
Total operating expenses		12,215		12,744			6,040			6,369			31,501
Operating income		1,967		2,809			715			1,332			(2,613	)
Financial expenses, net		942		850			472			452			1,779
Other expenses (income), net		9		(9	)		3			(4	)		77
Income before taxes on income		1,016		1,968			240			884			(4,469	)
Taxes on income		546		693			256			336			2,383
Income (loss) after Income taxes		470		1,275			(16	)		548			(6,852	)
Equity in losses of affiliate		81		798			33			374			1,634
Net income (loss)		389		477			(49	)		174			(8,486	)

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,					Year ended December 31,
	2012			2011			2012			2011		2011
	Unaudited
Other comprehensive income (loss):
Currency translation adjustments of foreign operations		(843	)		810			(1,236	)		397		(2,605	)
Realized gains (losses) on derivatives designated as cash flow hedges		(161	)		172			(82	)		108		(219	)
Unrealized gains (losses) on derivatives designated as cash flow hedges		295			(109	)		32			10		(162	)
Total comprehensive income (loss)
		(320	)		1,350			(1,335	)		689		(11,472	)
Profit (loss) attributable to:
Equity holders of the parent		365			426			201			44		(8,527	)
Non-controlling interests		24			51			(250	)		130		41
		389			477			(49	)		174		(8,486	)
Other comprehensive income (loss) attributable to:
Equity holders of the parent		(262	)		1,003			(745	)		397		(10,982	)
Non-controlling interests		(58	)		347			(590	)		292		(490	)
		(320	)		1,350			(1,335	)		689		(11,472	)
Earnings (loss) per share attributable to Pointer Telocation Ltd's shareholders:
Basic net earnings per share	$	0.07		$	0.09		$	0.04		$	0.01	$	(1.78	)
Diluted net earnings (loss)  per share	$	0.07		$	0.08		$	0.04		$	0.01	$	(1.79	)

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2012			2011			2012			2011			2011
	Unaudited
Net income (loss)	$	389		$	477		$	(49	)	$	174		$	(8,486	)
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and impairment of goodwill and intangible assets		3,059			3,068			1,709			1,576			12,710
Accrued interest and exchange rate changes of debenture and long-term loans		4			94			18			78			135
Accrued interest and exchange rate changes of long-term loans to affiliate		28			-			-			-			-
Accrued severance pay, net		(45	)		350			(8	)		318			487
Gain from sale of property and equipment, net		(124	)		(53	)		(86	)		(22	)		(95	)
Equity in losses of affiliate		81			798			33			374			1,634
Amortization of stock-based compensation		168			230			67			142			515
Impairment loss of loan to minority shareholder in subsidiary														489
Decrease in restricted cash		6			4			4			2			10
Decrease (increase) in trade receivables, net		(2,317	)		(3,680	)		721			(750	)		(1,462	)
Decrease (increase) in other accounts receivable and prepaid expenses		(641	)		(119	)		(382	)		571			373
Decrease (increase) in inventories		799			(488	)		(4	)		(664	)		(1,035	)
Write-off of inventories		84			38			84			38			304
Deferred income taxes		-			(32	)		-			(15	)		170
Decrease (increase) in long-term accounts receivable		233			340			77			120			(177	)
Increase in trade payables		973			756			809			(907	)		452
Increase (decrease) in other accounts payable and accrued expenses		1,405			2,640			(427	)		830			2,457
Net cash provided by operating activities		4,102			4,423			2,566			1,865			8,481

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,						Year ended December 31,
	2012			2011			2012			2011			2011
	Unaudited
Cash flows from investing activities:
Purchase of property and equipment		(2,398	)		(2,609	)		(1,090	)		(1,232	)		(4,445	)
Proceeds from sale of property and equipment		746			271			314			106			1,050
Investment in affiliate, net		(717	)		(1,106	)		12			(563	)		(1,740	)
Acquisition of Subsidiary (a)		(251	)		-			-			-			-
Purchase of activity (b)		(3,125	)		-			-			-			-
Proceeds from sale of investments in previously consolidated subsidiaries (c)		-			-			-			-			39
Net cash used in investing activities		(5,745	)		(3,444	)		(764	)		(1,689	)		(5,096	)
Cash flows from financing activities:
Proceeds from issuance of shares		143			33			138			10			281
Repayment of long-term loans from banks		(5,658	)		(4,489	)		(3,051	)		(2,577	)		(8,937	)
Repayment of long-term loans from others		-			(22	)		-			(14	)		(1,071	)
Receipt of long-term loans from banks, shareholders and others		7,637			6,248			4,456			4,304			8,384
Dividend paid to the non-controlling interest		-			(896	)		-			(896	)		(1,594	)
Short-term bank credit, net		263			(1,890	)		(1,867	)		(101	)		(1,002	)
Net cash provided by (used in) financing activities		2,385			(1,016	)		(324	)		726			(3,939	)
Effect of exchange rate on cash and cash equivalents		125			67			93			(147	)		(211	)
Increase (decrease) in cash and cash equivalents		867			30			1,571			755			(765	)
Cash and cash equivalents at the beginning of the period		1,468			2,233			764			1,508			2,233
Cash and cash equivalents at the end of the period	$	2,335		$	2,263		$	2,335		$	2,263		$	1,468

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

		Six months ended June 30					Three months ended June 30				Year ended December 31
		2012			2011		2012		2011		2011
		Unaudited
(a)	Acquisition of subsidiary:
	Property and equipment	$	22		$	-	$	-	$	-	$	-
	Technology		58			-		-		-		-
	Goodwill		304			-		-		-		-
	Minority Interest		(133	)		-		-		-		-
		$	251		$	-	$	-	$	-	$	-
(b)	Purchase of activity:
	Working capital	$	27		$	-	$	-	$	-	$	-
	Property and equipment		112			-		-		-		-
	Customer list		1,364			-		-		-		-
	Goodwill		1,669			-		-		-		-
	Accrued severance pay, net		(23	)		-		-		-		-
	Employees accruals		(24	)		-		-		-		-
		$	3,125		$	-	$	-	$	-	$	-
(c)	Proceeds from sale of investments in previously consolidated subsidiaries:
	The subsidiaries' assets and liabilities at date of sale:
	Working capital (excluding cash and cash equivalents)	$	-		$	-	$	-	$	-	$	32
	Non-controlling interests											426
	Loss from sale of subsidiaries		-			-		-		-		(110	)
	Receivables for sale of investments in subsidiaries		-			-		-		-		(309	)
		$	-		$	-	$	-	$	-	$	39

POINTER TELOCATION LTD. AND ITS SUBSIDIARIES

ADDITIONAL INFORMATION

U.S. dollars in thousands

The following table reconciles the GAAP to non-GAAP operating results:

Non GAAP Net income

	Six months ended June 30				Three months ended June 30					Year ended December 31
	2012		2011		2012			2011		2011
	Unaudited
GAAP Net income (loss) as reported	$	389	$	477	$	(49	)	$	174	$	(8,486	)
amortization and impairment of goodwill and  intangible assets		1,480		1,413		916			716		9,535
Stock based compensation  expenses		168		230		67			142		515
non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill		419		316		201			160		2,365
Non-GAAP Net income	$	2,456	$	2,436	$	1,135		$	1,192	$	3,929

Adjusted EBITDA

	Six months ended June 30				Three months ended June 30					Year ended December 31
	2012		2011		2012			2011		2011
	Unaudited
GAAP Net income (loss) as reported:	$	389	$	477	$	(49	)	$	174	$	(8,486	)
One time charge attributable to efforts to expand services to Israeli insurance companies		-		-		-			-		486
Financial expenses, net		942		850		472			452		1,779
Tax on income		546		693		256			336		2,383
Stock based compensation  expenses		168		230		67			142		515
Depreciation , amortization and impairment of goodwill and intangible assets		3,059		3,068		1,709			1,576		12,710
Non-GAAP Adjusted EBITDA	$	5,104	$	5,318	$	2,455		$	2,680	$	9,387