Document:

EXHIBIT 10.32

                                 LEASE AGREEMENT

                   MADE AND EXECUTED ON THE 29TH OF MAY, 2002

BETWEEN:            Rinat Yogev Real Estate, Ltd.
                    Private Co. 51-3225615
                    Of:  28 Bezalel St., Ramat Gan
                    (hereinafter:  "the Landlord")
                                                               THE FIRST PARTY;

AND BETWEEN:        Ituran Cellular Communication, Ltd.
                    Private Co. 51-2718925
                    Of:  3 Hashikma St., Azor Industrial Zone
                    (hereinafter:  "the Tenant")
                                                              THE SECOND PARTY;

WHEREAS:            On September 18, 1998 a lease agreement was signed between
                    the Tadiran Telematics, Ltd. and Tadiran Ltd. (hereinafter,
                    "the Basic Lease Agreement"), according to which the Tadiran
                    Telematics, Ltd. was renting a property known as part of
                    Parcel 21 of Block 6781 in the Holon Industrial Zone, with a
                    built-up area of approximately 1,600 sq.m. (hereinafter,
                    "the Telematics Property");

AND WHEREAS:        On April 18, 2002 the Landlord purchased the Telematics
                    Property from Tadiran Ltd., (through Koor Industries, Ltd.),
                    as well as an adjacent area of about 800 sq.m. in size
                    (hereinafter, "the Leased Property"), and it was agreed that
                    upon the delivery of possession all of the rights and
                    obligations of Tadiran Ltd. regarding the Telematics
                    Property and the Leased Property would be transferred to the
                    Landlord;

AND WHEREAS:        Beginning in February or thereabouts (hereinafter, "the
                    Determining Date") the Tenant is interested in renting the
                    Leased Property from the Landlord, and the Landlord is
                    interested in renting out the Leased Property in the manner
                    and circumstances set forth below;

AND WHEREAS:        The parties wish to set out the relationship between them
                    regarding all matters concerning the Lease Period beginning
                    on the Determining Date and therefrom;

       THEREFORE THE PARTIES HAVE DECLARED, AGREED AND STIPULATED AS FOLLOWS:

1.     The Lease Agreement and all of its provisions shall apply to the lease
       referred to in this Agreement, mutatis mutandis and with the changes
       explicitly set out in this Agreement. The Lease Agreement is attached
       hereto as APPENDIX A.

2.     In the Lease Agreement, wherever mention is made of Tadiran, Ltd., this
       shall be replaced with Rinat Yogev Real Estate, Ltd., and wherever
       mention is made of Tadiran Telematics Ltd., this shall be replaced with
       Ituran Cellular Communications, Ltd. The Lease Agreement shall apply to
       the Leased Property and the relationship between the parties.

3.     The Lease Period shall begin on the Determining Date, and extend for a
       period of two years. The Tenant is hereby given four options of two years
       each to extend the Lease Period. The Lease Agreement shall be renewed
       automatically for two years, each time in accordance with the
       aforementioned options, unless the Tenant informs the Landlord otherwise
       by the end of the agreement via written notification 120 days prior to
       the end of the Lease Period.

4.     The lease fee and all payments the Tenant is obligated to pay to the
       Landlord shall be the same as the lease fee and other payments that
       Tadiran Telematics Ltd. pays to the Landlord, and in proportion to the
       size of the Leased Property in relationship to the Telematics Property.

5.     The Leased Property shall be surrendered to the Tenant on the Determining
       Date "as is."

        AND IN WITNESS THEREOF THE PARTIES HAVE AFFIXED THEIR SIGNATURES:

              (stamped and signed)            (stamped and signed)

        Rinat Yogev Real Estate, Ltd.    Ituran Cellular Communication, Ltd.
        -----------------------------    -----------------------------------
        RINAT YOGEV REAL ESTATE, LTD.         TADIRAN TELEMATICS, LTD.

                                       2EXHIBIT 10.33

                                                                12 November 2000

                     Re: DEED OF UNDERTAKING AND INDEMNIFICATION
                         ---------------------------------------

Whereas             According to our request dated September 26, 2000
                    (hereinafter: our request), you were requested by us to
                    issue a deed of undertaking (hereinafter: the Deed of
                    Undertaking), under our full responsibility, to the benefit
                    of your New York branch (hereinafter: the New York branch),
                    to guarantee credit in the amount of US $3,000,000 with
                    added interest, and all, as stated in our request
                    (hereinafter, in whole or in part: "the credit"), which the
                    New York branch has placed or will place to the benefit of
                    our affiliated company: Ituran Locaizacao e Controle Ltd.
                    (Hereinafter, "the lender"). The Deed of Undertaking and our
                    request are hereby appended as Appendices A and B to this
                    document;

And whereas         The lender is a company associated according to the laws of
                    the State of Brazil, and its offices are registered in the
                    State of Brazil;

And whereas         According to the opinion that the New York branch received
                    from the lenders' Brazilian lawyers (hereinafter: the
                    opinion) and additional opinions, there are substantial
                    limitations concerning the provision and payment of the
                    credit as specified below;

And whereas         The lender's limitations related to the paying of the credit
                    as specified below, are liable to prevent the New York
                    branch from paying the credit, and it will therefore demand
                    that you realize the Deed of Undertaking,

         THEREFORE, WE HEREBY CERTIFY, DECLARE AND UNDERTAKE AS FOLLOWS:

The preamble and appendices to this Deed constitute an integral part thereof.

We hereby undertake to indemnify and compensate you immediately on being
requested to do so by you, for any expense and/or damage and/or loss of any type
or kind whatsoever, which may be caused you as a consequence of any demand that
will reach you to pay according to the Deed of Undertaking, and we undertake not
to present you, either directly or indirectly, with any suit and/or claim and/or
demand and/or complaint relating to payment according to the Deed of
Undertaking, as required by law.

Without derogating from the generality of the above, we hereby confirm, declare
and undertake as follows:

     A.  According to the opinion, and as you notified us pursuant to the law
         applicable to the provision of credit to the lender, certain legal

         problems and/or other problems may arise, of which we are presently
         unaware, with respect to the ability of the New York branch to receive
         payment for the credit from the lender.

     B.  We are aware that according to the opinion, the promissory note that is
         issued in relation to the credit is not enforceable in the State of
         Brazil.

     C.  We are aware that problems may arise in relation to the payment of
         credit owing to the foreign currency supervision laws prevalent in the
         State of Brazil.

In addition to that stated in Sections A-C above, you undertook in the Deed of
Undertaking produced at our request, to pay the New York branch any sum that you
will be requested to pay in the context of the Deed of Undertaking, immediately,
when requested to do so.

We hereby instruct you and irrevocably authorize you to charge any account we
have with you to the sum of any sum that you are asked to legally pay, that we
owe you according to this Deed of Undertaking and Indemnification, after
providing us with a written notice.

In order to remove any doubt, the provisions of this Deed of Undertaking and
Indemnification are intended to add rather than derogate from all the
obligations that we have undertaken towards you and all the authorizations that
were given you by us in a separate document.

The laws of the State of Israel will apply to this document, and the sole place
of jurisdiction has been determined as the competent court in Tel Aviv-Jaffa.

              AND IN WITNESS THEREOF WE HAVE AFFIXED OUR SIGNATURES

/s/ Illegible
-------------------------------------------
Ituran Location and Control Ltd.

P.C. 52-004381-1

Certification
-------------

I, the undersigned, Guy Aharonov, attorney for Ituran Location and Control Ltd.,
P.C. 52-004381-1 (Ituran), hereby certify that the Ituran company has signed
this document through the proxy of its signatories, Messrs. Izzy Shiratzky, I.D.
0749544 and Eli Kamer, I.D. 22366363, in accordance with Ituran's updated
certificates of association and the decisions made by Ituran according to law,
to sign this Deed and to appoint said signatories to sign this Deed of
Undertaking on its behalf, and that the signature of Ituran on this Deed is
binding in this matter.

Attorney's stamp and signature  /s/ Guy Aharonov
                                ----------------
                                Guy Aharonov, Legal Adviser
                                Ituran Location and Control Ltd.

                                       2

          REQUEST TO ISSUE A DEED OF UNDERTAKING TO AN OVERSEAS BRANCH

Name of Client: Ituran Location and Control Ltd.

Address: 3 Shikma St., Azur

ID/Company  No.: 520043811

To:

Bank Hapoalim Ltd., Nachalat Yitzhak Branch

        Re: Request to Issue a Deed of Undertaking to an Overseas Branch
            ------------------------------------------------------------

We request that you issue a Deed of Undertaking to your overseas branch,
according to the following details:

1.       Name of beneficiary: Bank Hapoalim Ltd. New York branch.

2.       Beneficiary's address: 1177 Avenue of the Americas, New York, NY
         10036-2790.

3.       Name of lender (the beneficiary's client): Teleran Holding Ltd.

4.       Amount of principal: US 3,000,000 (three million dollars)

5.       Interest at a rate of 1% will be added to the principal, over and
         above, the LIBOR rate, for _________ months, as determined by the bank,
         for which the lender will be debited for the principal (hereinafter:
         the interest);

         The sum of the principal plus interest, will hereinafter be called the
         amount of the undertaking.

6.       The undertaking will be in force until the end of business on 31
         December 2002 at the location of the beneficiary noted in Section 1
         above.

7.       The undertaking is issued in conjunction with guaranteeing the lender's
         debts and obligations towards the beneficiary.

8.       The undertaking issued by you will constitute an absolute undertaking
         without any condition, to pay the beneficiary noted in Section 1 above,
         the amount of the undertaking. Moreover, said undertaking will be an
         independent undertaking that will not depend on the relationships
         between us and the lender.

9.       All of the conditions of the Deed of Undertaking regarding the issue of
         bank guarantees (MS-16) will apply to our request, as of 13 May 1999.

10.      Our undertakings towards you will remain in force even if the payment
         to your overseas branch will not be requested or carried out by means
         of TELEX or SWIFT or WIRE.

26 September 2000                   /s/ Illegible
-----------------                   --------------------------------
Date                                Signature of requesting client
                                    Ituran Location and Control Ltd.

                                       3

Ituran Location and Control Ltd.

Legal Department

                                                              26 September, 2000

To Bank Hapoalim Ltd.                                         To: Mr. Yoram Oron

Nachalat Yitzhak Branch

Tel Aviv

Dear Sir,

Re: Request to Issue a Deed of Undertaking to an Overseas Branch
    ------------------------------------------------------------

As the legal adviser of Ituran Location and Control Ltd. (Hereinafter: "the
Company"), I am pleased to hereby certify that the request referred above, dated
26 September 2000, was signed by the Company's authorized signatories, and
obligates the company according to the company's founding documents and in
accordance with every law.

/s/ Guy Aharonov

Attorney Guy Aharonov, legal adviser

Ituran Location and Control Ltd.

                                       4

            APPENDIX A - REQUEST TO ISSUE A DEED OF UNDERTAKING TO AN
                                OVERSEAS BRANCH

Name of Client: Ituran Location and Control Ltd.

Address:

ID/Company No. 520043811

To:

Bank Hapoalim Ltd., Branch ________________

        Re: Request to Issue a Deed of Undertaking to an Overseas Branch
            ------------------------------------------------------------

We request that you issue a Deed of Undertaking to your overseas branch,
according to the following details:

1.       Name of beneficiary: Bank Hapoalim Ltd. New York branch.

2.       Beneficiary's address:

3.       Name of lender (the beneficiary's client):

4.       Amount of principal: US 3,000,000 (three million dollars)

5.       The amount of the principal plus interest, will hereinafter be called
         the amount of the undertaking.

6.       The undertaking will be in force until the end of business on March
         15, 2007 at the location of the beneficiary noted in Section 1 above.

7.       The undertaking is issued in conjunction with guaranteeing the lender's
         debts and obligations towards the beneficiary.

8.       The undertaking issued by you will constitute an absolute undertaking
         without any condition, to pay the beneficiary noted in Section 1 above,
         the amount of the undertaking. Moreover, said undertaking will be an
         independent undertaking that will not depend on the relationships
         between us and the lender.

9.       All of the conditions of the Deed of Undertaking regarding the issue of
         bank guarantees (MS-16) will apply to our request, as of _____________.

10.      Our undertakings towards you will remain in force even if the payment
         to your overseas branch will not be requested or carried out by means
         of TELEX or SWIFT or WIRE.

26 November 2002           /s/ Illegible
----------------           --------------------------------

Date                       Signature of requesting client

                           Ituran Location and Control Ltd.

                                       5

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