Notice to Shareholders in Connection with Distribution of Shagrir Shares (the “Spin-Off”)

As previously announced, Pointer Telocation Ltd. (“Pointer”) (NASDAQ: PNTR, TASE: PNTR) plans to distribute, on a pro rata basis, at least 95% of the ordinary shares of Shagrir Group Vehicle Services Ltd. (“Shagrir”) held by Pointer, to holders of Pointer’s ordinary shares (the “Pointer Shares”) (the “Pointer Shareholders”). The remaining shares of Shagrir will be held by the employees of Shagrir as part of Shagrir’s employee incentive scheme, and by a broker or brokers who will be issued Shagrir Shares for the purpose of their sale to the public over the 12 month period following the distribution. The exact percentage of Shagrir Shares to be distributed to Pointer Shareholders, will be described in an Information Statement to be filed with the SEC by no later than the end of May 2016.

You can find the complete release here.