INVESTMENT AND LONG TERM LOANS TO AFFILIATE

12 Months Ended

Dec. 31, 2012

INVESTMENT AND LONG TERM LOANS TO AFFILIATE

NOTE 6:-

INVESTMENT AND LONG TERM LOANS TO AFFILIATE

In August 2008 the Company incorporated a company in Brazil by the name of Pointer do Brazil S.A. ("Pointer Brazil"). As of December 31, 2012, the Company holds 48% of the share capital in Pointer Brazil, with an option to acquire an additional 4%. The option will expire in August 2013.

	December 31,
	2012			2011

Invested in equity	$	3,830		$	3,830
Accumulated foreign currency translation differences		(153	)		(96	)
Accumulated net loss		(3,430	)		(3,468	)

Total investment in affiliate	$	247		$	266

As of December 31, 2012, Pointer Brazil's total assets and liabilities are $ 5,991 and $ 4,586, respectively. The net gain for the year 2012 is $ 243.

Loans to Pointer Brazil

During 2012 the Company Lend to Pointer Brazil loans in amounts of $434 and $ 286 linked to the Brazilian real. The loans carry an annual interest of 21% and 6% respectively. As of December 31, 2012 the outstanding amount of the loans was $567.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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