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LOJACK CORPORATION REPORTS FOURTH QUARTER 2002 RESULTS

Westwood, MA. February 21 - LoJack Corporation, (NASDAQ NMS: “LOJN”) reported that revenue for the fourth quarter ended December 31, 2002 was $27,520,000 compared to $27,566,000 in the same period a year ago. The net income for the fourth quarter was $904,000, or $.06 per diluted share, compared to a net loss of ($570,000), or ($.04) per diluted share, for the same period a year ago.

Revenues for the twelve months ended December 31, 2002 increased 17% to $116,426,000, compared to revenues of $99,860,000 for the same period a year ago. Net income was $1,829,000, or $.12 per diluted share, for the twelve months of 2002, compared to $2,692,000, or $.17 per diluted share, for the twelve months of calendar year 2001, a decrease of 32%.

Domestic revenues for the fourth quarter were $22,048,000, a 5% decrease compared to $23,160,000 for the same period a year ago, reflecting the current economic climate. International revenues for the fourth quarter were $5,472,000, an increase of 24% compared to revenues a year ago of $4,406,000. This increase was primarily attributable to strong product sales to the company’s South African and South American licensees.

For the twelve months of 2002, domestic revenues exceeded the prior year by $13,901,000, or 17%, while international revenues exceeded the prior year by $2,665,000, or 15%.

Gross margin for the fourth quarter remained at 51% compared to the same period a year ago. Domestic gross margin was 52%, down from 54% for the same period a year earlier. The two-percentage point decline was primarily due to lower unit volumes partially offset by decreases in the overall installed cost of the product. International gross margin for the fourth quarter was 47%, up from 36% for the same period a year ago, primarily due to favorable volume variable pricing and other vendor rebates, as well as lower inventory write-offs than in the prior year.

Additions to deferred revenue, relating to payments received for warranty products sold in the three and twelve months ended December 31, 2002, totaled $1,247,000 and $5,759,000, respectively. The company receives full payment for its warranty products at the time of purchase, but recognition of the deferred warranty revenue is generally spread over the life of the warranties. These payments are a significant component of the company’s cash flow from operations.

In announcing the results, Ronald J. Rossi, chairman, said, "For the year of 2002, we are pleased with our domestic and international performance, and that we returned to profitability in the third quarter and maintained this level of profitability in the fourth quarter despite the difficult global economic climate. The improvement in market penetration and in profitability reflects our investments in sales, marketing and product development, which have been funded using cash generated from operations, consistent with our strategic business plan.

"The launch of the LoJack Early Warning System was well received in our Northeast test market in October, and nationwide rollout began in January of this year, with a strong advertising campaign in selected markets beginning in February.

"As we enter 2003, we now have strong marketing and engineering organizations in place. In light of the potential continuation of a difficult global economic climate, we are continuing to focus on improving productivity and achieving greater operating efficiencies, with the objective of continuing to increase our profitability in the face of a potential slowing of sales growth. The areas of focus include sales and distribution as well as overall installed cost of our product.

"We expect to deliver continued revenue growth in 2003. Due to the uncertain economy and geopolitical situation we expect to grow at a more modest rate of 12% to 14%, rather than the aggressive 17% rate we achieved in 2002. We will continue our investment in new product development but will have only modest growth in other operating expenses compared to a year ago. Although we face a very uncertain geopolitical and economic environment, we believe earnings in excess of $.50 per share are attainable in 2003."

LoJack Corporation is the recognized world-leader in stolen vehicle recovery technology. In the United States, law enforcement officials in 20 states and the District of Columbia utilize its stolen vehicle recovery system. Globally, LoJack is operated by law enforcement and security organizations in more than 20 countries in Europe, Africa, Asia and the Western Hemisphere.

To access the webcast of the company’s conference call to be held at 9:00 AM EDT, Friday, February 21, 2003 log onto: http://www.firstcallevents.com/service/ajwz375231382gf12.html The webcast will be available for one week, until February 28, 2003.

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 market and customers, 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; the company’s ability to successfully expand its operations and changes in general economic or geopolitical conditions. 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/ajwz375231382gf12.html or at www.lojack.com. 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