Nexus Telocation Systems Ltd. Announces Closing of Agreement for Purchase of All
Outstanding Shares of Pointer (Eden Telecom Group) Ltd.

Givatayim, Israel, June 27, 2004. Nexus Telocation Systems Ltd. (OTC Bulletin Board: NXUS.OB), a leading provider of Stolen Vehicle Retrieval services, announced today the closing of the Share Exchange Agreement with the shareholders of Pointer (Eden Telecom Group) Ltd. pursuant to which Nexus purchased 100% of the issued share capital of Pointer in exchange for shares and warrants of Nexus, representing approximately 26% of the issued share capital of the company on a fully diluted basis, post transaction.

The purchase of Pointer continues Nexus strategy to strengthen its presence as an operator of location based services and security applications. As a result of the purchase of Pointer by Nexus both companies will be able to expand the services to be provided to their customers.

Pointer is a communication company specializing in providing location services for vehicles and persons through a communication network deployed throughout Israel. The network is capable of command and control services, telemetry and transfer of wireless data. The main product of Pointer is a sophisticated system for the protection and location of vehicles. The products of Pointer are based on Nexus’ technologies. The product includes a distress button, which is an integral part of the system, which allows to immediately alert, from the vehicle, assistance services from a twenty-four hours manned telephone service center, which locates the vehicle and immediately sends to it the required service. The Pointer systems also allow personal location of the vehicle through the Internet, by inserting a personal code, at any given time, through the Pointer website – www.pointer4u.co.il.

Yossi Ben-Shalom, Chairman of the Board of Directors of Nexus, commented: “I am confident that the purchase of Pointer by Nexus using both capabilites will leverage our business both in Israel and in other territories, where we are heading.The leading companies in the field of Stolen Vehicle Recovery are operating in the model of owning a propriatery technology, while serving as an operator. Nexus improves its position for competing by owning the operator here in Israel, in addition to its operator in Argentina. Excellent management team in Pointer, with wide experience and knowledge have led the company to achieve 50K subscribers in an environment of very high intense competition. We intend to utilize their capabilities to build the leading group in the field of vehicle security”.

The issued share capital of Nexus after the closing is169,831,941 Ordinary Shares, par value New Israeli Shekel 0.03 each and approximately 96 million options and warrants of which approximately 80% are at an exercise price per share of $0.044.

The major holdings in the Company following the closing are as follows: DBSI Investments Ltd. – approximately 35% of the share capital; Polar Communciation Ltd. – approximately 9% of the share captial; I.D.B. Group – approximately 8% of the share capital; Pelephone Communciations Ltd. – approximately 6% of the share capital; M. Wertheim (Holdings) Ltd. – approximately 5% of the share capital; AMS Electronics Ltd. – approximately 6% of the share capital.

Nexus Telocation Systems Ltd. develops, manufactures and markets low energy and cost effective wireless communications and location based information systems through the application of digital spread spectrum technologies deployed in Stolen Vehicle Retrieval applications.