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LOJACK CORPORATION REPORTS SECOND QUARTER 2002 RESULTS

Westwood, MA, August 1 -LoJack Corporation, (NASDAQ NMS: "LOJN") reported that for the second quarter ended June 30, 2002 revenues increased by 25% to $30,419,000, from $24,392,000 in the same period a year ago. The net income for the second quarter was $28,000, compared to net income of $2,056,000 for the same period a year ago.

Revenues for the six months ended June 30, 2002 were $57,819,000 compared to revenues of $47,637,000 for the same period a year ago, an increase of 21%. Net income was $111,000 for the first six months of 2002, compared to $2,295,000 for the first six months of calendar year 2002.

Domestic revenues increased by 21% in the second quarter to $24,782,000, compared to $20,507,000 for the same period a year ago. International revenues for the second quarter were $5,637,000, an increase of 45% compared to revenues a year ago of $3,885,000. For the first six months of 2002, domestic revenues exceeded the prior year by $8,804,000, or 22%, while international revenues exceeded the prior year by $1,378,000, or 17%.

Additions to deferred revenue, relating to payments received for warranty products sold in the three and six months ended June 30, 2002, totaled $1,431,000 and $2,871,000, respectively. The company receives full payment for its warranty products at the time of purchase, but recognition of this revenue is spread over the life of the warranties. These payments are becoming an increasingly significant component of the company’s cash flow from operations.

In announcing the results, Ronald J. Rossi, chairman, said, “Revenues for the second quarter represented a new record for the company. In the U.S., sales of LoJack units were the highest in the company’s history, exceeding the same period a year ago by 21%, while new car sales declined by 2% compared to year ago levels. Net income for the second quarter was down reflecting the expense of our national advertising campaign and investments in people, marketing, sales, information technology, and product development. We continue to see growth in our domestic revenues resulting from those investments.

"We have also seen a return to growth in international unit sales and revenue, and expect this trend to continue in the coming quarters. Newly opened territories of France and Puerto Rico received their first shipments of product in the second quarter.

"Our multi-media advertising campaign and other strategic business plan investments should begin to show profitable results in the second half of 2002, with a return to strong profit margins in 2003."

During the second quarter the company did not repurchase any shares under its stock buyback program but, instead, utilized its cash flow to finance its growth program internally. The company may resume its stock buyback program in future quarters. As of June 30, 2002, a total of 8,663,034 shares have been repurchased since inception of the program.

To access the webcast of the company’s conference call to be held at 9:00 AM EDT, Thursday, August 1, 2002 log onto: http://www.firstcallevents.com/service/ajwz363656607gf12.html. The webcast will be available for one week, until August 8, 2002.

From time to time, information provided by the company or statements made by its employees may contain “forward-looking” information, which involve risk and uncertainties. Any statements in this news release that are not statements of historical fact are forward-looking statements (including, but not limited to, statements concerning the characteristics and growth of the company’s objectives and plans for the company’s future operations and products and the company’s expected liquidity and capital resources). Such forward-looking statements are based on a number of assumptions and involve a number of risks and uncertainties, and accordingly, actual results could differ materially. Factors that may cause such differences include, but are not limited to: the continued and future acceptance of the company’s products and services; the effectiveness of the company’s marketing initiatives; the rate of growth in the industries of the company’s customers; the presence of competitors with greater technical, marketing, and financial resources; the company’s ability to promptly and effectively respond to technological change to meet evolving customer needs; capacity and supply constraints or difficulties; and the company’s ability to successfully expand its operations. For a further discussion of these and other significant factors to consider in connection with forward-looking statements concerning the company, reference is made to the company’s Annual Report on Form 10-K for the transition period from March 1, 2001 to December 31, 2001.

NOTE: The full text of this news release as well as current financial statements may be accessed on the Internet at: http://www.firstcallevents.com/service/ajwz363656607gf12.html. Each quarter’s release is archived on the web site under LoJack Financial Information during the fiscal year. The company’s Annual Report, Form 10-Q and Form 10-K filings will also be available on its web site. Copies of the company’s financial information, including news releases, may also be obtained by contacting Swanson Communications, Inc. at (516) 671-8582.

Contact:
Joseph F. Abely, President
(781)326-4700

John Swanson
Swanson Communications, Inc.
(212) 683-4890