Nexus Telocation Systems Ltd. Reports First Quarter Earnings.

TEL AVIV, Israel--(BUSINESS WIRE)--May 14, 1999--

Nexus Telocation Systems Ltd. (NASDAQ: NXUSF) today reported first quarter 1999 revenues of $1.1 million compared with $2.2 million for the first quarter of 1998.

Gross profit for the first quarter was $(0.044) million compared to $0.420 million in 1Q98. Research and development expenses decreased to $0.77 million compared to $1.5 million. Selling, general and administrative expenses decreased to $1.4 million from $1.6 million in 1Q98.

The company's loss for the quarter ended March 31, 1999 was $2.48 million compared to a loss of $2.53 million for the first quarter of 1998.

Mr. Ariel Poppel president and COO said, "The Company accomplished a reduction in general and administrative costs, as well as research and development costs. The full effect of the reduction will be shown in the next quarters."

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

Current events

On February 8, 1999 the Nexus and MegaPage announced the receiving of an order to deploy a one-way and two-way paging system in Kazahstan. The company said that additional applications including telemetry and automatic vehicle location (AVL) will be available on the same system.

On March 1, 1999 - Nexus Telocation Systems announced that it signs a Settlement Agreement with API Merger Corporation ("API"), fomerly known as American Paging, Inc.

On January 1999, BVR increased their ownership in Nexus by investing $3.0 million. BVR owns currently 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, references made to the company's reports filed from time to time with the Securities and Exchange Commission. -0-

                     Nexus Telocation Systems Ltd.
                       Selected Financial Data
              (US$, in thousands except per share data)

Income Statement (consolidated Nexus and Aptel):

                              March 31, March 31,   Dec. 31,
                               1999       1998       1998

Revenues                       1,127      2,266      9,508
Gross profit (loss)              (44)       420      2,257
Research and Development         769      1,547      6,206
Selling, general and
 administrative                1,413      1,579      6,727
Operating profit (loss)       (2,226)    (2,706)   (10,676)
Net income (loss)             (2,480)    (2,536)   (10,334)
Basic and diluted earnings
 per share                     (0.19)     (0.22)     (0.83)
Weighted average number
 of shares                    13,429     11,635     12,078

Selected Balance Sheet data (consolidated Nexus and Aptel):

                               March 31,  March 31, Dec. 31,
                                 1999      1998      1998

Total assets                    13,575    10,665    12,682
Working Capital (deficiency)       450     3,630    (2,636)
Shareholder equity
 (deficiency)                    3,473     5,499     2,457