On a GAAP basis, the company's operating expenses and operating loss reflect the impact of one-time charges of approximately $19.9 million related to the comprehensive agreement to settle all pending disputes with the company's former licensee in China, as well as associated expenses. GAAP net loss and loss per diluted share reflect an after tax impact of approximately $14.6 million or $0.85 per diluted share related to the one-time charges.

In announcing the results, Ronald V. Waters, President and Chief Executive Officer said, "Despite unit volume and revenue declines compared to the prior year, we continue to see sequential quarter over quarter improvement in our domestic business and stabilization of our international business. Our operating performance this quarter continues to reflect our effective management of operations and alignment of our cost structure to the current size of the business.

"Domestic unit volume and revenue for the third quarter increased sequentially from the second quarter of this year, benefiting from the 'cash for clunkers' program and reflecting improving conditions in the U.S. auto market. However, we do have some concern about our domestic unit volume moderating in the fourth quarter as a result of increasingly tight consumer credit and rising unemployment. Despite these challenges, we remain poised to take advantage of the anticipated increases in new vehicle sales, which industry experts estimate will grow from approximately 10.2 million for 2009 to 11.5 million units for 2010.

"Our international unit volume for the third quarter was consistent with the second quarter of this year, despite the impact of local economic and political issues with certain of our licensees in Latin America. Our international business has stabilized and we expect strengthening of unit volume for the fourth quarter.

"We continue to invest in our strategic programs for long term growth, which include launching our next generation stolen vehicle recovery technology, expanding into additional countries and expanding LoJack SafetyNet, our solution for people with Alzheimer's and autism.

"We are committed to maintaining a solid financial position and continue to expect to sustain healthy margins and deliver significant operating cash flow for the year, excluding the settlement payments to the former licensee in China and the associated expenses. We have maintained a strong balance sheet and believe that we have sufficient liquidity to effectively manage our day to day business."

Domestic revenue in the third quarter declined 22% to $23.7 million, from $30.3 million for the same quarter of the last year, on a 28% reduction in unit volume.

International revenue in the third quarter declined 48% to $9.1 million, from $17.7 million in the same quarter of the prior year, attributable to a 50% decline in unit volume.

Boomerang Tracking had revenue of $3.3 million compared to $4.9 million for the same quarter in 2008. The impact of the devaluation of the Canadian dollar negatively affected revenue by $0.2 million, or 5%.

Gross margin dollars for the third quarter declined 28% to $20.6 million from the same quarter last year. Gross margin as a percentage of revenue was 57%, compared to 54% in the prior year, reflecting efficiency gains in our domestic operations and a $0.5 million sales tax refund in the quarter related to Boomerang Tracking.

The GAAP operating loss for the third quarter of 2009 was $20.3 million, compared to an operating loss of $33.2 million in the same quarter a year ago. The GAAP net loss attributable to LoJack Corporation for the third quarter of 2009 was $13.4 million, compared to a net loss of $34.7 million in the same quarter a year ago. The operating loss and net loss for the third quarter of 2009 reflect the impact of the one-time charges described above. The operating loss and net loss for the third quarter of 2008 reflect the impact of approximately $38.1 million related to the impairment of goodwill and intangible assets of the Boomerang Tracking business.

The pro forma operating loss for the third quarter of 2009, which excludes the items identified in Table 1, was $0.4 million, compared to pro forma operating income of $4.9 million in the same quarter last year. Pro forma net income for the third quarter of 2009, which excludes the items noted in Table 2, was $1.2 million or $0.07 per diluted share, compared to pro forma net income of $3.6 million in the same quarter a year ago. Pro forma net income for the third quarter of this year includes severance costs of approximately $1.4 million related to the workforce reduction in the quarter.

During the third quarter net cash used by operations was $13.6 million. Excluding the impact of the China settlement and related expenses, the company generated $5.4 million of positive operating cash flow for the quarter. In accordance with the Waiver Agreement with the company's lending institutions, approximately $17 million has been classified as restricted cash at the end of the quarter. The remaining unrestricted cash balance at the end of the quarter was $16.7 million which is sufficient to support the ongoing operations of the company.

During the third quarter of 2009, the company did not repurchase any shares. As of September 30, 2009, the company had an outstanding authority to repurchase 1,681,778 shares.

About LoJack

LoJack Corporation, the company that invented the stolen vehicle recovery market more than two decades ago, is the global leader in finding and recovering a wide range of mobile assets including cars, construction equipment and motorcycles - having recovered more than $5 billion USD in stolen assets worldwide. In today's rapidly changing world, LoJack's core competencies are more valuable and more relevant than ever as they are now being applied into new areas, such as the prevention, detection and recovery of stolen cargo and finding and rescuing people with cognitive disorders such as Alzheimer's and autism. LoJack has the proven processes, ultimate technology for recovery - Radio Frequency - and unique integration with law enforcement agencies, making its offerings the most effective solutions that not only deliver a wide range of recoveries, but also enhance the safety of the public on a global level. LoJack's Stolen Vehicle Recovery System operates in 27 states and the District of Columbia, and in more than 30 countries throughout North America, South America, Europe, Africa and Asia. For more information, visit http://www.lojack.com.

To access the webcast of the company's conference call to be held at 9:00 AM ET, Wednesday, November 4, 2009, log onto www.lojack.com (click "About Us," "Investor Relations," and then click "Quarterly Results Conference Call Webcast"). An archive of the webcast will be available through http://www.lojack.com until superseded by the next quarter's earnings release and related webcast.

From time to time, information provided by the company or statements made by its employees may contain "forward-looking" information, which involve risks 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 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 company's ability to obtain financing from lenders; 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 customers' ability to access the credit markets; the company's ability to promptly and effectively respond to technological change to meet evolving customer needs; the company's ability to successfully expand its operations; the outcome of the ongoing litigation involving the company; 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 year ended December 31, 2008.

The company undertakes no obligation to release publicly the result of any revision to the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures of operating income (loss), net income (loss) attributable to LoJack Corporation, earnings (loss) per diluted share attributable to LoJack Corporation and net cash (used in) provided by operations. The company believes that the inclusion of these non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of growth in the company's core operating results, and can also help investors who wish to make comparisons between LoJack and other companies on both a GAAP and a non-GAAP basis. The non-GAAP measures used in this release exclude (i) the China litigation settlement and associated charges discussed above; (ii) the non-cash goodwill and intangible assets impairment charge; and (iii) the non-cash fair market adjustment of our investment in Supply Chain Integrity. LoJack management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. These measures also are used by management to aid their financial and operating decision making.

The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies. Reconciliations of the non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release.

                          LoJack Corporation and Subsidiaries
                    Condensed Consolidated Statement of Operations

                  (in millions, except share and per share amounts)

                                           Three Months Ended September 30,
                                                   2009             2008
                                                        (unaudited)
    Revenue                                       $36.1             $52.9

    Cost of goods sold                             15.5              24.2
    Gross margin                                   20.6              28.7

    Costs and expenses:
    Product development                             1.9               1.8
    Sales and marketing                             8.7              12.1
    General and administrative                     10.6               8.2
    Legal settlement                               18.3                --
    Depreciation and amortization                   1.4               1.7
    Impairment of goodwill and intangible assets     --              38.1

        Total                                      40.9              61.9

    Operating loss                                (20.3)            (33.2)

    Other income (expense):
    Interest income                                 0.5               0.5
    Interest expense                               (0.1)             (0.3)
    Other, net                                      0.2              (1.2)
        Total                                       0.6              (1.0)

    Loss before (benefit) provision for income
     taxes and net loss of noncontrolling
     interest                                     (19.7)            (34.2)
    (Benefit) provision for income taxes           (6.1)              0.6
    Net loss                                      (13.6)            (34.8)
    Less: Net loss attributable to the
     noncontrolling interest                       (0.2)             (0.1)
        Net loss attributable
         to LoJack Corporation                   $(13.4)           $(34.7)

    Diluted loss per share attributable to
     LoJack Corporation                          $(0.78)           $(2.05)
    Weighted average diluted common
     shares outstanding                      17,228,083        16,897,702

                           LoJack Corporation and Subsidiaries
                       Condensed Consolidated Statement of Operations

                    (in millions, except share and per share amounts)

                                              Nine Months Ended September 30,

                                                   2009              2008
                                                        (unaudited)

    Revenue                                       $99.4            $150.4

    Cost of goods sold                             46.6              70.6
    Gross margin                                   52.8              79.8

    Costs and expenses:
    Product development                             5.3               5.4
    Sales and marketing                            24.3              36.4
    General and administrative                     28.6              24.4
    Legal settlement                               18.3                --
    Depreciation and amortization                   4.8               5.5
    Impairment of goodwill and intangible assets   14.0              38.1

        Total                                      95.3             109.8

    Operating loss                                (42.5)            (30.0)

    Other income (expense):
    Interest income                                 1.1               1.6
    Interest expense                               (0.3)             (1.0)
    Equity loss in affiliate                         --              (1.2)
    Other, net                                      0.6              (0.9)
        Total                                       1.4              (1.5)

    Loss before (benefit) provision for income
     taxes and net loss of noncontrolling
     interest                                     (41.1)            (31.5)
    (Benefit) provision for income taxes           (8.2)              1.3
    Net loss                                      (32.9)            (32.8)
    Less: Net loss attributable to the
     noncontrolling interest                       (0.5)             (0.1)
        Net loss attributable to LoJack
         Corporation                             $(32.4)           $(32.7)

    Diluted loss per share attributable to
     LoJack Corporation                          $(1.89)           $(1.88)
    Weighted average diluted common
     shares outstanding                      17,148,463        17,419,727

                      LoJack Corporation and Subsidiaries
                     Condensed Consolidated Balance Sheets
                (in millions, except share and per share amounts)

                                     September 30, 2009   December 31, 2008
                                         (unaudited)         (audited)
    Assets
      Current Assets:
      Cash and cash equivalents               $16.7             $57.9
      Restricted Cash                          17.0                --
      Marketable securities at fair value       1.9               4.2
      Accounts receivable, net                 35.2              43.0
      Inventories                              12.6              14.8
      Prepaid and other expenses                3.7               4.4
      Prepaid income taxes                      9.1               3.6
      Deferred income taxes                     6.1               6.3
        Total current assets                  102.3             134.2

      Property and equipment, net              21.0              21.7
      Deferred income taxes                     9.1               9.5
      Intangible assets, net                    0.8               1.5
      Goodwill                                  1.7              14.6
      Other assets, net                        14.8              14.4
        Total assets                         $149.7            $195.9

    Liabilities and stockholders' equity
      Current Liabilities:
      Current portion of long-term debt       $14.5              $2.4
      Accounts payable                          4.4               6.5
      Accrued and other liabilities             9.2               7.0
      Current portion of deferred revenue      24.4              24.2
      Deferred income taxes                      --                --
      Accrued compensation                      4.6               7.1
        Total current liabilities              57.1              47.2

    Long term debt, net of current portion       --              21.3
    Deferred revenue, net of current portion   35.7              39.0
    Deferred income taxes                       0.2               0.3
    Other accrued liabilities                   0.9               1.5
    Accrued compensation                        2.2               2.2
        Total liabilities                      96.1             111.5

    Commitments and Contingent Liabilities

    Stockholders' equity:
      Common stock                              0.2               0.2
      Additional paid-in capital               17.2              14.8
      Accumulated other comprehensive income    7.9               8.2
      Retained earnings                        28.3              60.7
        Total LoJack Corporation and
         Subsidiaries stockholders' equity     53.6              83.9
    Noncontrolling interest in subsidiary        --               0.5
        Total equity                           53.6              84.4
    Total liabilities and stockholders'
     equity                                  $149.7            $195.9

        Table 1 - Items Affecting Operating Income (Loss) Comparability

           GAAP to Pro Forma Reconciliation - Operating Income (Loss)
                                   (in millions)

                               Three Months ended      Three Months ended
                               September 30, 2009      September 30, 2008
                                          $                        $

    Operating loss, as reported        $(20.3)                  $(33.2)

    Legal settlement and associated
     charges                             19.9                       --
    Impairment of goodwill and
     intangible assets                     --                     38.1

    Pro forma operating (loss) income   $(0.4)                    $4.9

                               Nine Months ended       Nine Months ended
                              September 30, 2009       September 30, 2008


                                          $                        $
    Operating loss, as reported        $(42.5)                  $(30.0)

    Legal settlement and
     associated charges                  21.3                       --
    Impairment of goodwill
     and intangible assets               14.0                     38.1

    Pro forma operating (loss) income   $(7.2)                    $8.1

    Table 2 - Items Affecting Net Income (Loss) and Fully Diluted Earnings
                        (Loss) per Share Comparability

                     GAAP to Pro Forma Reconciliation
                   (in millions, except per share amount)

                              Three Months ended     Three  Months ended
                               September 30,2009      September 30, 2008

                               $        EPS           $        EPS
                                      Impact                  Impact
    Net loss attributable to
     LoJack Corporation, as
     reported               $(13.4)   $(0.78)      $(34.7)   $(2.05)

    Reversal of Supply Chain
     Integrity deferred
     tax asset                  --        --          0.6      0.03

    Legal settlement and
     associated charges       14.6      0.85           --        --
    Impairment of goodwill
     and intangible assets      --        --         37.7      2.23

    Pro forma net income
     attributable to LoJack
     Corporation, as reported $1.2     $0.07         $3.6     $0.21


                              Nine Months ended       Nine Months ended
                             September 30, 2009      September 30, 2008

                               $       EPS          $         EPS
                                     Impact                  Impact
    Net loss attributable to
     LoJack Corporation, as
     reported               $(32.4)   $(1.89)      $(32.7)   $(1.88)
    Reversal of Supply Chain
     Integrity deferred
     tax asset                                        0.6      0.03
    Supply Chain Integrity
     fair value adjustment        --      --          0.6      0.03
    Impairment of goodwill
     and intangible assets      14.0    0.82         37.7      2.17
    Legal Settlement and
     associated charges         15.8    0.92           --        --

    Pro Forma net (loss)
     income attributable to
     LoJack Corporation, as
     reported                $( 2.6)  $(0.15)        $6.2     $0.35

     Table 3 - Items Affecting Net Cash (Used In) Provided by Operations

                         GAAP to Pro Forma Reconciliation
                      (in millions, except per share amount)

                                                       Three Months ended
                                                       September 30, 2009

                                                                  $
    Net cash used in operating activities                      ($13.6)

    Cash paid for legal settlement and associated charges        19.0

    Pro forma net cash provided by operating activities          $5.4

NOTE: The full text of this news release can be accessed for 30 days at www.prnewswire.com. This news release as well as current financial statements may also be accessed on the Internet at www.lojack.com. Each quarter's release is archived on the LoJack website under "Investor Relations" during the fiscal year (click "About Us ", then, click "Investor Relations", click "Quarterly Financial Releases"). The company's Annual Report, Form 10-Q and Form 10-K filings are also available on its website. Copies of the company's financial information, including news releases, may also be obtained by contacting Swanson Communications, Inc. at (217) 285-4967.

    Contact:
    Paul McMahon
    Vice President
    Corporate and Marketing Communications
    (781) 251-4130

    John Swanson
    Swanson Communications, Inc.
    (217) 285-4967

SOURCE LoJack Corporation

http://www.lojack.com

Expected next investor conference call information:
Conference Call Date: 11/4/2009
Conference Call Time (ET): 9:00 AM
Conference Call URL: http://www.videonewswire.com/event.asp?id=63636

Who: The podcast addressed these subject matters with a panel of experts, including:

    --  Gerald Flaherty, Vice President for Medical & Scientific Programs at the
        Massachusetts/New Hampshire Chapter of the national Alzheimer's
        Association, who has co-authored an award-winning book on dementia and
        wandering and a training guide for police on missing persons with
        dementia
    --  Jill Gilbert, Vice President at Caring.com, the leading online
        destination for people caring for aging parents.

    --  John Paul Marosy, General Manager, LoJack SafetyNet, who is an innovator
        in elder care with a 30-year career that includes serving in executive
        positions with leading healthcare organizations, as well as authoring
        award-winning books on elder care issues.

Background:

The podcast is part of LoJack's educational efforts on issues related to cognitive conditions such as Alzheimer's disease and autism. LoJack recently launched a new system, LoJack SafetyNet, that works with Project Lifesaver and enables public safety agencies to track and rescue people at risk of wandering.

Resources:

www.alz.org

www.alz.org/manh/

www.caring.com

http://www.lojack.com/safetynet/pages/resources.aspx

www.projectlifesaver.org

    CONTACTS:    Jeanne Bock, jbock@tieronepr.com, 781-861-5249
                 Laura Feng, lfeng@tieronepr.com, 978-975-1414
                 Paul McMahon, pmcmahon@lojack.com, 781-251-4130

SOURCE LoJack Corporation

http://www.lojack.com

What: LoJack Corp. to report third quarter 2009 results

When: Wednesday, November 4 -- 09:00AM EST

How: To listen to the live webcast, visit http://www.videonewswire.com/event.asp?id=63636.

You may also participate in the live conference call by dialing +1-800-895-0198 and using LOJACK as the conference ID.

If you are unable to participate during the live webcast, the call will be archived at http://www.lojack.com/about/pages/about-ir.aspx.

Contact: Paul McMahon of LoJack, +1-781-251-4130, pmcmahon@lojack.com

About LoJack Corporation

LoJack Corporation, the company that invented the stolen vehicle recovery market more than two decades ago, is the global leader in finding and recovering a wide range of mobile assets including cars, construction equipment and motorcycles -- having recovered more than $5 billion USD in stolen assets worldwide. In today's rapidly changing world, LoJack's core competencies are more valuable and more relevant than ever as they are now being applied into new areas, such as the prevention, detection and recovery of stolen cargo and finding and rescuing people with cognitive disorders such as Alzheimer's and autism. LoJack has the proven processes, ultimate technology for recovery -- Radio Frequency -- and unique integration with law enforcement agencies, making its offerings the most effective solutions that not only deliver a wide range of recoveries, but also enhance the safety of the public on a global level. LoJack's Stolen Vehicle Recovery System operates in 27 states and the District of Columbia, and in more than 30 countries throughout North America, South America, Europe, Africa and Asia. For more information, visit www.lojack.com.

SOURCE LoJack Corporation

http://www.lojack.com