Ituran Location and Control Ltd. Announces Signature of an Agreement with General Motors Brazil

Ituran Location and Control Ltd.

, announced that today Ituran entered into agreement with General Motors Brazil through a company controlled by Ituran (51%). According to the agreement, GMB will offer its customers immobilization, location and Telematics services for the Chevrolet range of vehicles it sells in Brazil through Ituran's aforementioned subsidiary. The sale and the installation of the anti-theft device will not be carried out by Ituran. New regulations in Brazil, i.e. Supplementary Law CONTRAN no. 245, provide that as of August 2012, new vehicles in Brazil shall be obliged to incorporate an anti-theft device. Since the Regulation has not yet entered into force, the Company cannot estimate at this time the effect of the agreement with GMB on its profitability and sales revenues. Ituran estimates that the agreement with GMB is of significant importance, since once the Regulation enters into effect, it may be of substantial financial scope.