Nexus Posts 60 Percent Gain in Twelve-Month Revenues.

GIVATAYIM, Israel--(BUSINESS WIRE)--March 1, 1999--Nexus Telocation Systems Ltd. (NASDAQ: NXUSF) today reported fourth quarter 1998 revenues of $0.9 million, compared with $2.38 million for the fourth quarter of 1997. Twelve-month revenues increased 60 percent to $9.5 million from $5.9 million for the same period last year.

Gross profit for the fourth quarter was $0.4 million compared to $0.72 million in 4Q97. Twelve-month research and development expenses were $6.21 million compared to $8.51 million (including $5.1 million for acquired research & development), and selling, general and administrative expenses increased to $6.72 million from $2.48 million in 1997.

For the twelve months of 1998 the gross profit was $2.20 million compared to $2.09 million for the same period in1997.

In the fourth quarter of 1998 the company delivered a system to China to be installed in the first quarter of 1999.

Mr. Ariel Poppel President and COO said "We remain committed to our investments in marketing and R&D and we expect our efforts to be rewarded in the near future. The company has delivered and is installing systems in Russia Two-Way Paging ("TWP") and Automatic Vehicle Location ("AVL"), Australia (TWP), SE Asia (TWP), Venezuela (AVL), USA Water Meter Reading ("WMTR"), China (TWP & AVL), Israel (TWP, AVL and WMTR ) and Kazahstan (TWP, AVL and WMTR).

"Financial results for the fourth quarter include those of Aptel, which was acquired by Nexus. Aptel's operations have resulted in higher costs for 1998, but ultimately, these outlays will be offset by Nexus's strengthened competitive position in telemetry technology. The Company has already received orders for telemetry applications." Mr. Poppel concluded.

The Company's loss for the quarter ended December 31, 1998 came to $3.76 million against a loss of $6.45 million in the fourth quarter of 1997. The Company's loss for the twelve months was $10.3 million compared to a loss of $9 million for the same period in 1997.

The deficiency in the working capital will have to be covered by additional sources of financing for the current and future activities.

As of January 1999, BVR increased their ownership in Nexus by investing $3.0 million. BVR owns 37% of Nexus shares.

Nexus Telocation Systems Ltd. develops manufactures and markets low energy wireless communications and location systems through application of digital spread spectrum technologies. Nexus is a 37 percent owned affiliate of B.V.R. Technologies Ltd. (NASDAQ:BVRTF).

This press release contains forward-looking statements with respect to the Company's business, financial condition and results of operations. These forward-looking statements are based on the current expectations of the management of Nexus Telocation Systems Ltd. only, and are subject to risk and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the company's products, inability to timely develop and introduce new technologies, products and applications, loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting the company, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission. -0-

                        SELECTED FINANCIAL DATA
               (US$, in thousands except per share data)

Income Statement (consolidated Nexus and Aptel):

                            Q4/98      Q4/97    Dec 31, 98  Dec 31, 97

Revenues                     922       2,376       9,508       5,913
Gross Profit (Loss)          424         722       2,240       2,086
Operating Profit (Loss)   (3,807)     (6,399)    (10,694)     (8,894)
Net Income (Loss)         (3,768)     (6,455)    (10,334)     (9,008)
Basic and diluted
 loss per share             (0.3)       (0.6)     $(0.86)     $(0.91)
Weighted average number of
 shares outstanding
 (in thousands)           12,413      10,776      12,078       9,879

Selected Balance Sheet data (consolidated Nexus and Aptel):

                                             Dec 31, 98     Dec 31, 97
Total Assets                                   12,682         12,559
Working Capital (deficiency)                   (2,636)         5,939
Shareholder Equity (deficiency)                 2,457          7,948