Presented by M. Sean Molloy Regional Director, Asia Pacific DATE 02-07-07

1. Doing Business in Emerging International Markets Global Business Alliance 13th Annual Business Forum Presented by M. Sean Molloy Regional Director, Asia Pacific DATE 02-07-07

2. Agenda • Introduction • LoJack Corporate Overview • Defining the challenge: Vehicle theft • Company Information • LoJack Products and Services • LoJack International • Mitigating risk through Licensee relationships • Key international initiatives • Emerging Market Opportunities • China • India • Global Economic Challenges • Risk of no presence may be greater than operational risk • Risk mitigation; leveraging community resources • Conclusions

3. Vehicle Theft Problem

4. Vehicle Theft • North America • A vehicle is stolen every 25 seconds • 1.2M vehicles stolen per year • $20B per year • Europe • 1.5M vehicles stolen per year (Europol) • $22B per year • Countries with highest rate of stolen vehicles – UK, France, Italy, Spain, Poland (Europol) • Asia Pacific • Est. 600,000 vehicles stolen per year (approx. $10B per year) • High theft rates and ratio of NVS to car parc in India & China • Growing theft with income disparity in emerging markets

5. LoJack – Corporate Overview

6. Mission • To Be the Leading Global Provider of Products and Services for the Tracking and Recovery of Valuable Mobile Assets

7. World leader in stolen vehicle tracking and recovery 90+% recovery rate 20-year history of success NASDAQ-listed company Symbol: LOJN LoJack Corporation (LOJN) • Global • 26 States + Washington D.C. • 28 Countries • Over 5 million units sold and installed • Over 180,000 vehicles recovered globally worth $3 billion

8. 97% 93.3% 96% 94% 93% 93% 91% 85% 77% Duracell Wal-Mart Kleenex AT&T MasterCard ebay Amazon.com Core Strengths • Proprietary covert Radio Frequency Technology • Extensive Private Wireless Network • Relationships with Law Enforcement • Compelling Commercial Model • Insurance Relationships • Brand Recognition (see below) Yahoo U.S. survey - aided & unaided

9. Markets Served Motorcycles Cargo Passenger Cars Mobile Assets Commercial Vehicles Construction Equipment

10. Strong Revenue Growth $ in millions CAGR (2001-2005) = 17.5% • 3 years of consistent quarter over quarter growth in revenue and earnings • Revenue: 70% US – 30% International • Units Sold: 50% US – 50% International

11. Segment 9% 21% 70% Business Segments • Domestic • Automotive Dealers • Construction • Motorcycle • Boomerang • Insurance • Automotive Dealers • International • Licensees • Limited Investment Consolidate Revenue YTD 2006

12. LoJack Recovery Network Coverage Areas • LoJack works best in areas with: • Greatest population density • Highest number of new vehicle sales • Highest incidence of vehicle theft • Arizona • California • Colorado • Connecticut • Delaware • District of Columbia • Florida • Georgia • Illinois • Louisiana • Maryland • Massachusetts • Michigan • Nevada • New Hampshire • New Jersey • New York • North Carolina • Ohio • Oregon • Pennsylvania • Rhode Island • South Carolina • Tennessee • Texas • Virginia • Washington LoJack operates in markets that represent 70% of theft in the nation

13. LoJack’s Global Footprint

14. LoJack Brands

15. Products and Services

16. How LoJack Works • The LoJack system includes a small wireless transceiver that is randomly hidden in your customer’s vehicle • When activated, the unit emits silent radio signals over the LoJack network that allow the police to track and recover the vehicle (complemented by Early Warning product) 2 3 1 4 5 Installation Activation Recovery Location Notification • The vehicle is returned to the owner. • Customer reports theft to police or directly to LoJack in certain regions. • The signal is tracked and used to locate the vehicle, usually within hours. • Police or LoJack send radio signal from tower. • LoJack unit emits uniquely coded signal. • LoJack unit hidden in vehicle by certified technician. • Registered in LoJack or police database.

17. Market Drivers • Best Technology Choice - Proven • Technology more robust than competitive technologies • Dealership Benefits • Dealers make money on sale and installation • Customer satisfaction • Insurance • Many global markets are driven by insurance mandates • Europe, Latin America, South Africa • Insurance discounts are offered in many regions • Customers • Provides asset protection and peace of mind • Proven product with real consumer benefit

18. LoJack International Building a Global Brand

19. LoJack’s International Expansion • 1992 expansion begins • Builds on Bill Reagan’s entrepreneurial origins • Early technology license & distribution model • Licensing fees finance expansion • Seeking local experts allows for immediate market entry • Allows for local tracking and marketing flexibility • Leverages entrepreneurial innovation and R & D • Minimizes investment requirements • Allows for local relationship management • Cuts down on international administration costs • Growing need to hedge against regional/global risks • Need to leverage brand value globally (Global SVR leader) • “on call” and black box safety regulations • Demand for regional operational coverage • Telematics IT convergence and OEM relationships • Evolving model for emerging markets

20. Increasing International Market Penetration • Market Opportunity • 66 Million New Vehicles Sold Annually • For Every Vehicle Stolen in U.S., 2 are Stolen Globally • Licensee Strategies for Growth • Develop Programs Enabling Licensees to Increase Local Market Share • Consolidating operations and establishing subsidiary presence • New product development • Develop New Markets in Asia/Pacific Rim • Seek Global Agreements with Vehicle Manufacturers

21. Leveraging Global Presence • Ownership and Operation of Select Markets • Creating Shareholder Value • Italy First Step • Operational in Rome and Milan • Pan-European Network • Distribution and Recovery Experience in U.S. Applicable • Develop key emerging markets • China ’07 • India & SE Asia in development

22. Developing New Products in the Tracking and Recovery Space • Knowledge of Police Systems and Process • Proven Radio Frequency (RF) Technology • Brand = Tracking and Recovery

23. SVR in Emerging MarketsConsidering China and India

24. Emerging Market Opportunities • China and India • the two most populous countries, • account for 40% of the world’s population, • are the fastest growing economies in the world • Business objectives moving from outsourcing and supply chain efficiencies to presence & market share • Challenges remain: developing economies in transition • Formation of institutions (political and regulatory) • Formation and maturity of markets • Impacts becoming material • Impacts of continued Sino-Indian growth will become larger • In 1980 when China grew ten percent, the absolute increment to global GDP and global demand was insignificant. • Now the GDP is over 1.88 trillion $, and a ten percent increment is large in absolute terms (equivalent in terms of global demand of about a 1.4% increment in US growth

25. Engines for Global Growth • China and India represent unprecedented growth opportunities • GDP per capita predicted to grow by a factor of 4 to 7 within next 20 years • Obvious impacts on global consumer spending trends

26. China and India:The Fastest Growing Vehicle Markets in the World • China’s 2004 car parc was 24.1 Million • China’s car parc grew at CAGR of 5% from 2000 - 2004 • China’s car parc is predicted to grow at CAGR of 9% from 2005 - 2015 • China already is the third largest light vehicle market by vehicle sales in the world • China is expected to become the second largest auto market in 2007, surpassing Japan • India projected to grow to 3M in annual new vehicles sold by 2010 HISTORICAL AND PROJECTED CHINA CAR PARC — LIGHT VEHICLES Source : Global Insight Asian Automotive Industry Forecast Report August 2005. Light vehicles include passenger cars and light trucks.

27. China and India: Vehicle Theft Rates Among the Highest Worldwide • “Automobile theft is rampant. In 2005, Chinese police authorities recorded 683,000 automobile theft cases” Source: People’s Daily Online January 20, 2006 • Over 2% of the vehicle car parc was stolen in 2005 • Theft rates among the highest in the world, comparable with South Africa and Brazil • Market survey revealed that 50%+ of car owners know someone whose car was stolen • Theft rates in India skyrocketing, now also approaching 2% Estimated Global Theft Rates and 2004 Car Parc by Market Source : Global Insight Asian Automotive Industry Forecast Report August 2005, Company and LoJack Corporation estimates

28. Global Economic Challenges

29. “The World is Flat” • Globalization as an opportunity and a challenge • Opportunities will become threats if not engaged • Avoiding emerging markets may be a bigger risk than confronting the challenges they present • LoJack’s Approach • Leverage maximum resources through partnership • Maintain a focused, prioritized, and strategic approach to new markets and product development • Ensure leading position and brand recognition in developed countries and commit to key emerging markets • Identify and invest in good people

30. Utilizing Community Resources • Market studies • Strategy consulting • Partner search • Regional networking • Sharing best practices • Regional consultants • References

31. Conclusions • Globalization as an agent of change • The best companies will risk failure in order to gain opportunity • Risk is not a matter of choice, but strategy • Partnerships allow companies to overcome risk by leveraging shared resources and specialization • Harnessing entrepreneurship drives creativity and innovation in an increasingly competitive environment • A company is only as good as the people it keeps.