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

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

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

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 LoJack Corporation (LOJN) World leader in stolen vehicle tracking and recovery 90+% recovery rate 20-year history of success NASDAQ-listed company ―Symbol: 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 Core Strengths 97% 96% 94% 93% 91% 85% 77% Wal-MartKleenexAT&TMasterCardebayAmazon.comDuracell 93.3% U.S. survey - aided & unaided Proprietary covert Radio Frequency Technology Extensive Private Wireless Network Relationships with Law Enforcement Compelling Commercial Model Insurance Relationships Brand Recognition (see below) Yahoo

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

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

11 Business Segments Domestic –Automotive Dealers –Construction –Motorcycle Boomerang –Insurance –Automotive Dealers International –Licensees –Limited Investment Segment 70% 21% 9%9% 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 LoJack operates in markets that represent 70% of theft in the nation  Arizona  California  Colorado  Connecticut  Delaware  District of Columbia  Florida  Georgia  North Carolina  Ohio  Oregon  Pennsylvania  Rhode Island  South Carolina  Tennessee  Texas  Virginia  Washington  Illinois  Louisiana  Maryland  Massachusetts  Michigan  Nevada  New Hampshire  New Jersey  New York

13 LoJack’s Global Footprint

14 LoJack Brands

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) Notification Activation Location Recovery Customer reports theft to police or directly to LoJack in certain regions. Police or LoJack send radio signal from tower. LoJack unit emits uniquely coded signal. The signal is tracked and used to locate the vehicle, usually within hours. The vehicle is returned to the owner Installation LoJack unit hidden in vehicle by certified technician. Registered in LoJack or police database. 1 1

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

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

SVR in Emerging Markets Considering 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

Source : Global Insight Asian Automotive Industry Forecast Report August Light vehicles include passenger cars and light trucks. 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 China’s car parc is predicted to grow at CAGR of 9% from 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

Estimated Global Theft Rates and 2004 Car Parc by Market 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% Source : Global Insight Asian Automotive Industry Forecast Report August 2005, Company and LoJack Corporation estimates

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.