Investor Presentation

1. Ituran Location and Control, Ltd. Investor Presentation May 2006

2. Safe Harbor Disclosure Except for statements of historical fact, the information presented herein constitutes forward- looking statements within the meaning  of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "expect," "estimate," "anticipate," "intend," "predict," "believe," and similar expressions and variations thereof.  Such  forward-looking statements include statements regarding the intent, belief, current expectations or projections about future events of Ituran Location and Control Ltd.  Readers are cautioned that these forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Ituran Location and Control Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include without limitation, general economic and business conditions, the loss of market share, changes in the competitive landscape, failure to keep up with technological advances and other factors over which Ituran Location and Control Ltd. has little or no control.  Ituran Location and Control Ltd. undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date hereof.

3. Our Business We provide wireless location–based services and productsto the stolen vehicle recovery and machine–to–machine communications markets

4. Company Overview 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Overview • Operating in Israel, Brazil, Argentina and US • 800 employees worldwide • Revenue of $90 million in 2005 • 26.0% EBITDA margin • Over 358,000 subscribers as of march 31, 2006 Company History Moked Ituran acquired Company from Tadiran Acquired Tadiran Telematics from Tadiran Entered Brazilian market Incorporated in Israel as a subsidiary of Tadiran Initial Public Offering on the Tel Aviv Stock exchange(ticker: ITRN) Renamed Tadiran Telematics to Telematics Wireless IPO on NASDAQ

5. Business Highlights • Rapid growth trajectory • successful geographical expansion out of home market (Latin America, Asia) • new applications (Fleet management, AMR, AVI) • Diversified and growing customer base • Effective distribution through insurance provider relationships • Superior technology and proven track record • Subscription model with high revenue visibility • Substantial profitability and cash flow generation • significant EBITDA margin expansion

6. Services and Products Overview Location–Based Services • Stolen vehicle recovery (SVR) • Fleet management • Personal location • Concierge (Mr.Big) Location–Based Products Automatic Meter Reading (AMR) Radio Frequency Identification (RFID) • Automatic Vehicle Location (AVL) • Water • Potential application in gas and electric utilities • Electronic Toll Collection • eSeals • Commercial vehicle operations Our technology edge translates into market leadership

7. Our SVR Business Overview: • Increasing car theft and crime rates driving addressable market growth • Services based on superior AVL technology • Terrestrial Network Triangulation • Currently providing services in Israel, Brazil, Argentina and the US • Strong established relationships with insurance companies Highlights: • > 85% recovery rate with < 20 minutes typical recovery time • Rapidly growing international subscriber base • Brazil and Argentina CAGR of 72% and 158%, respectively over the last 2 fiscal years • churn rate of < 2% • High level of visibility • 90%+ of previous quarter’s subscription fees expected to roll into next quarter

8. Competitive Advantages Terrestrial Triangulation Homing System GPS/Cellular Network–Based Cellular Performance in Dense Urban Areas Resistance to Jamming Location Accuracy / Pinpointing Real–time Alert Unified SVR, Fleet Management, Asset Tracking and Value Added Services Recurring Revenue Stream                         The best overall solution for location–based applications

9. Case Study – Brazilian Market Subscriber Growth: 2001—2005 Subscriber Base CAGR: 88% Leverageable Business Model: • Relatively low infrastructure deployment costs with minimal ongoing expenditure • Leading insurance companies provide a powerful channel to market and act as demand aggregators • lower S&M costs • Expansion to other Brazilian cities will leverage existing infrastructure • Rio de Janeiro to use same control center as Sao Paolo

10. 5060212N_Ituran Roadshow Arrows.cdr Brazil (Sao Paulo) • ~8 million addressable vehicles • Currently adding ~ 12,000 gross new subscribers per quarter Growing Our Markets – Brazil, Argentina Ituran is growing much faster than its competitors in South America Growth Strategy Sao Paulo Buenos Aires Argentina (Buenos Aires) • ~1 million addressable vehicles • Currently adding ~ 8,000 gross new subscribers perquarter

11. Growing Our Markets – US Overview: • Capitalize on SVR technology • fleet management and stolen vehicle recovery • Utilize GPRS standard without limitation of “last generation” technology (e.g. CDPD) • Strong growth potential in AMR and RFID applications Highlights: • Partnership with top national wireless carriers targeting fleet management customers • Increasing penetration of AMR and RFID products

12. Growing Our Markets – China, South Korea… China • Beijing and Shanghai • Expected completion of infrastructure 2006; end-unit sales 2006 Turnkey solutions Third-party local providers Product sales to new markets South Korea • Full coverage of country • Initial infrastructure sales 2005 / 2006; end-unit sales 2006 Potential to sell millions of end units in emerging markets Growth Strategy Sao Paulo

13. AMR — Automated Meter Reading Product Quality Leadership Award 2003 Fastest growing AMR product in the US Overview: • Deregulation – pressure on utilities to be cost effective • Patented integrated RF components – “Radio Inside” technology • Marketing in US done by Arad under Master Meter brand name to water utilities • Potential to leverage existing capabilities to electric and natural gas utilities Highlights: • Solid business traction • market share of Master Meter – from 3% in 2002 to 15% in 20051 • 681,000 units sold as of 30/06/05 • Current market – water utilities • currently selling to over 1,000 utilities • Electric and gas utility products expected to be introduced in 2006 Note: 1 Management estimate

14. RFID—Radio Frequency Identification Targeted Applications • Electronic Toll Collection • Dept. of Homeland Security Solutions • Commercial Vehicle Operations Efficiency Customer Wins • Cross Israel Highway • Washington State Department of Transportation — traffic management program [Company to confirm] • NORPASS USA — Commercial vehicle programs • Minnesota Department of Transportation — HOV/HOT toll system • Sole technology provider to certain US federal government pilot programs • ACS — electronic weigh station devices Competitive Advantages • Ability to process transactions at high speeds • Lower cost for customers • Track record in Israel • Leverage to multiple applications “New security requirements will cost transportation industry $7 billion over the next 10 years”Federal Computer Weekly

15. Financial Overview

16. Financial Highlights • Subscription services provide strong visibility and recurring revenue stream • 90% of previous quarters’ fees expected to roll into next quarter • Product sales provide strong y-o-y revenue growth potential • Highly profitable with strong cash flow generation • Expanding profit margins

17. Growing Revenues and EBITDA '03-'05 Revenue Exluding cellular segment CAGR: 26% • Increasing # of subscribers • Geographical expansion • Enhanced relationships with insurance companies • AVL sales to China and Korea • Additional applications such as AMR and RFID '03-'05 net profit CAGR: 63% • Scaling / operating leverage • S&M through insurance companies • Shift to higher margin product mix

18. Revenue Breakdown by Segment Note: 1 Low-margin, non-core other segment that Ituran exited in Q1 2005

19. Revenue Breakdown by Geography Continued focus on international diversification 2002 10-12/2005

20. Strong Margin Performance

21. Summary • Fast-growing company in fast-growing markets • Market leader with superior technology • Experienced team with proven track record andestablished relationships • Highly-visible subscription revenue growth

22. Thank You