(Logo: http://www.newscom.com/cgi-bin/prnh/20080512/NEM054LOGO )

One-time, non-cash charges contributed to a net loss of $2.05 per sharefor the quarter, compared to net income of $0.33 per share for the samequarter in 2007.

In announcing the results, Richard T. Riley, Chairman and Chief ExecutiveOfficer said, "In this quarter our international business increased 40% inunit volume and 47% in revenue over the prior year. Even that strongperformance was not enough to fully offset the decline in our domesticbusiness, as the problems intensified in the auto market during the thirdquarter. The decline in the domestic auto market deepened in each sequentialquarter in 2008, with monthly new car sales in September falling below onemillion vehicles for the first time in 15 years. The continued deteriorationin the domestic auto industry has been well documented, with industry expertsnow predicting annual vehicle sales of 13 to 13.5 million units, both in 2008and 2009, compared to new car sales of approximately 16 million vehicles in2007.

"Despite the severe economic climate, we continue to mitigate thechallenges we face, invest in strategic programs to leverage our proprietarytechnology for diversification and deliver solid cash flow. Moreover, ourbalance sheet remains strong and positions us well as we continue to diversifyand expand into new markets."

The third quarter and nine month results for 2008 reflect a non-cash,after-tax charge of approximately $37.7 million, or $2.23 and $2.17 per fullydiluted share respectively, related to the impairment of the intangible assetsrecorded upon the acquisition of Boomerang Tracking. The impairment chargereflects our current estimate of the fair market value of the business, as wework to generate new customers and convert our existing customers from analogto digital technology in a difficult economic environment.

Due to the impairment charge, the operating loss for the third quarter of2008, calculated in accordance with generally accepted accounting principles("GAAP") was $33.2 million, compared to operating income of $8.2 million inthe same quarter a year ago. For the nine months ended September 30, 2008,the operating loss calculated on a GAAP basis was $30.0 million, compared tooperating income of $26.7 million for the same period in the prior year.

Pro forma operating income for the third quarter, which excludes the itemsidentified in Table 1 below, declined 34% to $4.9 million. Pro formaoperating income for the nine months ended September 30, 2008, which excludesthe items identified in Table 1 below, was $8.1 million, representing adecline of 69% over the same period last year.

Table 1 - Items Affecting Operating Income Comparability GAAP to Pro Forma Reconciliation - Operating Income (in millions) Three Months ended Three Months ended September 30, 2008 September 30, 2007 $ $ Operating Income, as reported $(33.2) $8.2 Clare Litigation Settlement -- (0.8) Loss on impairment of intangible assets 38.1 -- Pro Forma Operating Income $4.9 $7.4 Nine Months ended Nine Months ended September 30, 2008 September 30, 2007 Operating Income Operating Income $ $ Operating Income, as reported $(30.0) $26.7 Clare Litigation Settlement -- (0.8) Loss on impairment of intangible assets 38.1 -- Pro Forma Operating Income $8.1 $25.9 The net loss calculated on a GAAP basis for the third quarter was $34.7million, or $2.05 per fully diluted share, down from net income of $6.3million, or $0.33 per fully diluted share, in the same period of the prioryear. For the nine months ended September 30, 2008, the net loss calculated ona GAAP basis was $32.7 million, or $1.88 per fully diluted share, down fromnet income of $19.1 million, or $1.00 per fully diluted share in same periodof the prior year.

Pro forma net income for the third quarter, which excludes the items notedin Table 2 below, declined 36% to $3.6 million from the same quarter lastyear, while pro forma earnings per fully diluted share was $0.21, compared to$0.29 for the same quarter last year, excluding items noted in Table 2 below.Pro forma net income for the nine months ended September 30, 2008, excludingthe items noted in Table 2 below, declined 66% to $6.2 million from the sameperiod last year, while pro forma earnings per fully diluted share declined by64% to $0.35 from the same period last year, excluding items noted in Table 2below.

Table 2 - Items Affecting Net Income and Fully Diluted Earnings per Share Comparability GAAP to Pro Forma Reconciliation (in millions, except per share amount) Three Months ended Three Months ended September 30, 2008 September 30, 2007 EPS EPS $ Impact $ Impact Net (loss) income, as reported $(34.7) $(2.05) $6.3 $0.33 Clare litigation settlement, net of tax - - (0.7) (0.04) Loss on impairment of intangible assets, net of tax 37.7 2.23 - - Reversal of Supply Chain Integrity deferred tax asset 0.6 0.03 - - Pro Forma Net Income $3.6 $0.21 $5.6 $0.29 Nine Months ended Nine Months ended September 30, 2008 September 30, 2007 EPS EPS $ Impact $ Impact Net (loss) income, as reported $(32.7) $(1.88) $19.1 $1.00 Clare litigation settlement, net of tax - - (0.7) (0.04) Loss on impairment of intangible assets, net of tax 37.7 2.17 - - Reversal of Supply Chain Integrity deferred tax asset 0.6 0.03 - - Supply Chain Integrity fair value adjustment 0.6 0.03 - - Pro Forma Net Income $6.2 $0.35 $18.4 $0.96 The company's cash and short-term investment balance on September 30, 2008was $66.6 million, an increase of $8.0 million from June 30, 2008.

Gross margin dollars for the third quarter declined 9% to $28.7 millionfrom $31.4 million for the same quarter last year, while gross margin as apercentage of revenue was 54%, compared to 57% in the third quarter of 2007.For the nine months ended September 30, 2008, gross margin dollars declined16% to $79.8 million from $94.8 million in the prior year, and gross margin asa percentage of revenue declined to 53%, from 57% in the prior year.

Mr. Riley said, "In the third quarter, our gross margin percentage anddollars declined compared to record levels for the same quarter in 2007. Thedecline was primarily related to reduced domestic unit volume and the impactof accounting for our equity in Absolute Software for the quarter."

Domestic revenue in the third quarter declined 21% to $29.9 million from$37.6 million in the same quarter of the prior year, on a 22% reduction inunit volume. Domestic gross margin dollars for the quarter declined 29% fromthe same quarter in the prior year, while gross margin as a percentage ofrevenue declined to 55% from 61% in the third quarter of 2007.

Mr. Riley said, "Domestic auto sales dropped approximately 18% in thequarter. The sales declines were widespread, with every major automanufacturer experiencing a drop in sales during September. New vehicles salesin California, our largest market, continued to be particularly hard hit, withyear over year declines higher than the national average. Our domesticbusiness continues to be impacted by the ongoing deterioration of the automarket, resulting from tightening credit and eroding consumer confidencerelated to the crisis in the financial system."

International revenue in the third quarter increased 47% to $17.7 million,from $12.0 million in the prior year, attributable to a 40% increase in unitvolume. International gross margin dollars increased 60% compared to the sameperiod a year ago, while gross margin as a percentage of revenue was 56%compared to 51% in the same period in the prior year.

Mr. Riley said, "Our international unit volume increase in the thirdquarter reflected our expectations for strong growth in the second half ofthis year. The growth was driven by our larger licensees in Latin America andAfrica, where the business is based on insurance mandates, not new auto sales.Though the insurance mandates are not directly influenced by decreases inconsumer spending, we expect that our licensees in Latin America and Africamay begin to experience some softening of their business over the remainder ofthe year. We still expect to deliver a double-digit increase in internationalunit volume in 2008."

Boomerang Tracking had revenue of $5.3 million compared to $5.4 millionfor the same quarter of the prior year. Gross margin as a percentage ofrevenue was 46%, compared to 43% in the third quarter of 2007.

Mr. Riley said, "We previously stated that the required analog to digitaltransition would present a challenge in maintaining the subscriber base atBoomerang. In these unprecedented economic times, the negative impact of thetransition on customer retention has been magnified. Additionally, theBoomerang business was impacted by a fundamental shift in the Canadian automarket away from high end vehicles, where Boomerang historically experiencedhigh penetration. Going forward we are developing programs to address theshift to mid-market vehicles.

"In one of the most uncertain and volatile economic periods in recenthistory, we continue to manage the business aggressively, delivering moderateprofitability before recognition of one-time charges, while making investmentsin our strategic efforts to diversify the LoJack business and position thecompany for long term success.

"We will bring our operational cost structure in line with the revisedauto market expectations. As a result, we expect to recognize a charge ofapproximately $1 million in the fourth quarter of this year. We believe thatthese changes will provide an annualized benefit of approximately $5 millionbeginning in 2009.

"Subsequent to the close of the third quarter, worldwide capital marketsdropped dramatically, impacting the fair market value of many assets. While wedo not know where the capital markets will finish the year, at the end ofOctober we would have reduced the carrying value of our investments inAbsolute Software and our licensee in France by approximately $2.5 million.

"We now expect revenue for the full year to be between $199 million and$202 million, pro forma net income to be between $8.5 million and $9.5million, pro forma earnings per fully diluted share to be between $0.50 and$0.53, and gross margin as a percentage of revenue to be approximately 53% forthe year. The pro forma earnings exclude the charge for the Boomerangimpairment, the Supply Chain Integrity items and the proposed restructuringcharge in the fourth quarter. It also excludes any additional valuationadjustments of our investments in the fourth quarter."

In February of 2008, the LoJack Board of Directors authorized therepurchase of 1,000,000 shares under 10b5-1 trading plans. The Board alsoauthorized additional stock repurchases up to 2,000,000, for a totalrepurchase authority of 3,000,000 shares. During the third quarter of 2008,the company did not repurchase any shares. During the nine months endedSeptember 30, 2008, the company repurchased 1,318,222 shares at an averageprice of approximately $10.83 per share. As of September 30, 2008, thecompany had no outstanding repurchase authorities under 10b5-1 trading plansand 1,681,778 available for other repurchases.

About LoJack

LoJack Corporation, the company that invented the stolen vehicle recoverymarket, leverages its superior technology, direct connection with lawenforcement and proven processes to be the global leader in tracking andrecovering valuable mobile assets. The company's Stolen Vehicle RecoverySystem delivers a 90 percent success rate in tracking and recovering stolencars and trucks and has helped recover more than $4 billion worldwide instolen LoJack-equipped assets. The system is uniquely integrated into lawenforcement agencies in the United States that use LoJack's in-vehicletracking equipment to recover stolen assets, including cars, trucks,commercial vehicles, construction equipment and motorcycles. Today, LoJackoperates in 26 states and the District of Columbia, and in more than 30countries throughout Europe, Africa, North America, South America and Asia.

To access the webcast of the company's conference call to be held at 9:00AM ET, Tuesday, November 4, 2008, log onto www.lojack.com (click "About Us,""Investor Relations," and then click "Quarterly Results Conference CallWebcast"). An archive of the webcast will be available through www.lojack.comuntil superseded by the next quarter's earnings release and related webcast.

From time to time, information provided by the company or statements madeby its employees may contain "forward-looking" information, which involverisks and uncertainties. Any statements in this news release that are notstatements of historical fact are forward-looking statements (including, butnot limited to, statements concerning the characteristics and growth of thecompany's market and customers, the company's objectives and plans for futureoperations and products and the company's expected liquidity and capitalresources). Such forward-looking statements are based on a number ofassumptions and involve a number of risks and uncertainties, and accordingly,actual results could differ materially. Factors that may cause suchdifferences include, but are not limited to: the continued and futureacceptance of the company's products and services; the effectiveness of thecompany's marketing initiatives; the rate of growth in the industries of thecompany's customers; the presence of competitors with greater technical,marketing, and financial resources; the company's customers' ability to accessthe credit markets; the company's ability to promptly and effectively respondto technological change to meet evolving customer needs; the extent of thecompany's use of third party installers and distributors; capacity and supplyconstraints or difficulties; the company's ability to successfully expand itsoperations; and changes in general economic or geopolitical conditions. For afurther discussion of these and other significant factors to consider inconnection with forward-looking statements concerning the company, referenceis made to the company's Annual Report on Form 10-K for the year endedDecember 31, 2007.

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

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generallyaccepted accounting principles (GAAP), this press release also contains non-GAAP financial measures of operating income, net income and earnings perdiluted share. The company believes that the inclusion of these non-GAAPfinancial measures in this press release helps investors to gain a meaningfulunderstanding of growth in the company's core operating results, and can alsohelp investors who wish to make comparisons between LoJack and other companieson both a GAAP and a non-GAAP basis. The non-GAAP measures used in thisrelease exclude (i) the non-cash impairment charge relating to BoomerangTracking in 2008 discussed above; (ii) the non-cash fair market adjustment ofour investment in Supply Chain Integrity; (iii) the reversal of a deferred taxasset taken as a result of the consolidation of Supply Chain Integrity; and(iv) the collection of a judgment against Clare Inc. in 2007. LoJackmanagement uses these non-GAAP measures, in addition to GAAP financialmeasures, as the basis for measuring our core operating performance andcomparing such performance to that of prior periods and to the performance ofour competitors. These measures also are used by management to aid theirfinancial and operating decision making.

The non-GAAP financial measures included in this press release are notmeant to be considered superior to or a substitute for results of operationsprepared in accordance with GAAP. In addition, the non-GAAP financial measuresincluded in this press release may be different from, and therefore may not becomparable to, similar measures used by other companies. Reconciliations ofthe non-GAAP financial measures used in this press release to the mostdirectly comparable GAAP financial measures are set forth in the text of, andthe accompanying tables to, this press release.

Contact: Paul McMahon Senior Director, Corporate Communications (781) 251-4130 John Swanson Swanson Communications, Inc. (516) 671-8582 LoJack Corporation and Subsidiaries Condensed Income Statement Data (in millions, except share and per share amounts) Three Months Ended September 30, 2008 2007 (unaudited) Revenue $52.9 $55.1 Cost of goods sold 24.2 23.7 Gross margin 28.7 31.4 Costs and expenses: Product development 1.8 0.8 Sales & marketing 12.1 12.8 General and administrative 8.2 7.9 Depreciation and amortization 1.7 1.7 Loss on impairment of intangible assets 38.1 -- Total 61.9 23.2 Operating (loss) income (33.2) 8.2 Other income (expense): Interest income 0.5 1.1 Interest expense (0.3) (0.3) Other (1.2) 0.2 Total (1.0) 1.0 (Loss) income before provision for income taxes (34.2) 9.2 Provision for income taxes 0.6 2.9 (Loss) Income before minority interest (34.8) 6.3 Minority interest (0.1) -- Net (loss) income ($34.7) $6.3 Diluted (loss) earnings per share ($2.05) $0.33 Weighted average diluted common shares outstanding 16,897,702 18,992,325 LoJack Corporation and Subsidiaries Condensed Income Statement Data (in millions, except share and per share amounts) Nine Months Ended September 30, 2008 2007 (unaudited) Revenue $150.4 $167.4 Cost of goods sold 70.6 72.6 Gross margin 79.8 94.8 Costs and expenses: Product development 5.4 3.8 Sales & marketing 36.4 35.7 General and administrative 24.4 23.3 Depreciation and amortization 5.5 5.3 Loss on impairment of intangible assets 38.1 -- Total 109.8 68.1 Operating (loss) income (30.0) 26.7 Other income (expense): Interest income 1.6 2.1 Interest expense (1.0) (0.9) Other (2.1) 0.7 Total (1.5) 1.9 (Loss) Income before provision for income taxes (31.5) 28.6 Provision for income taxes 1.3 9.5 (Loss) income before minority interest (32.8) 19.1 Minority interest (0.1) - Net (loss) income ($32.7) $19.1 Diluted (loss) earnings per share ($1.88) $1.00 Weighted average diluted common shares outstanding 17,419,727 19,051,672 LoJack Corporation Condensed Balance Sheets (in millions, except share and per share amounts) September 30, December 31, 2008 2007 (unaudited) (audited) Assets Current Assets: Cash and equivalents $65.3 $56.6 Short-term investments 1.3 14.7 Accounts receivable, net 40.0 40.0 Inventories 15.8 14.9 Prepaid expenses and other 6.8 3.6 Deferred income taxes 4.9 5.5 Total current assets 134.1 135.3 Property and equipment, net 21.4 23.4 Deferred income taxes 9.2 8.5 Intangible assets, net 1.9 3.1 Goodwill 16.9 55.0 Other assets 19.7 20.6 Total $203.2 $245.9 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $2.2 $-- Accounts payable 6.8 7.6 Accrued and other liabilities 10.8 7.4 Current portion of deferred revenue 25.9 25.3 Accrued compensation 6.1 7.2 Total current liabilities 51.8 47.5 Long term debt 25.0 26.5 Deferred revenue 40.4 37.6 Deferred income taxes 0.5 1.1 Other accrued liabilities 2.1 2.1 Accrued compensation 2.4 2.7 Total liabilities 122.2 117.5 Commitments & Contingent Liabilities -- -- Minority Interest 0.6 Stockholders' equity: Common stock 0.2 0.2 Additional paid in capital 13.8 25.8 Accumulated & other comp. inc. 5.9 9.2 Retained earnings 60.5 93.2 Total stockholders' equity 80.4 128.4 Total $203.2 $245.9 NOTE: The full text of this news release can be accessed for 30 days atwww.prnewswire.com. This news release as well as current financial statementsmay also be accessed on the Internet at www.lojack.com. Each quarter's releaseis archived on the LoJack website under "Investor Relations" during the fiscalyear (click "About Us", then, click "Investor Relations", click "QuarterlyFinancial Releases"). The company's Annual Report, Form 10-Q and Form 10-Kfilings are also available on its website. Copies of the company's financialinformation, including news releases, may also be obtained by contactingSwanson Communications, Inc. at (516) 671-8582.

SOURCE LoJack Corporation