Frost & Sullivan Recognizes ATX Technologies' Business Development Strategy Leadership in Telematics

Business Wire, Sept 8, 2004

LAS VEGAS -- In a recent study entitled North American Passenger Vehicle Telematics Market, Frost & Sullivan named ATX Technologies, Inc. as the recipient of the 2004 Business Development Strategy Award for the company's development and introduction of telematics-based vehicle relationship management (vRM).

Recognizing that the benefits of telematics extend beyond vehicle owners to automakers and dealers, ATX pioneered the concept of vRM, which reinforces the reality that most telematics installations occur at the automakers' initiative, rather than at the vehicle buyers' initiative.

"Strengthening long-term relationships with automakers has been pivotal to ATX's success in the telematics industry," says Frost & Sullivan senior industry analyst Joerg Dittmer. "Its constant efforts toward developing an open architecture, flexible client/server structure, and customized solutions enhance the industry's total value proposition."

The vRM product is essentially an outcome of ATX's vast industry experience and motivation to continually reinvent itself in the telematics industry. In fact, ATX is the second largest telematics service provider for the automotive industry and the largest provider that is independent of automaker ownership..

The mid-2003 acquisition of Vodafone Passo GmbH expanded ATX's European presence. The company now provides response center services for telematics-enabled BMW, Mercedes-Benz, and other upscale vehicles in Western Europe and North America. ATX is also looking to make in-roads in the mid-range vehicles segment.

The vRM concept has been instrumental in supplementing ATX's subscription revenues from vehicle owners. Under the vRM strategy, ATX captures and delivers data from vehicles to the manufacturers of the vehicles in question.

Greater customer satisfaction, reduced warranty costs, quicker product development, increased share of aftermarket revenues through remote vehicle diagnostics, and easy scheduling of service appointments at franchised dealerships are a few of the many benefits automakers can derive from the vRM strategy.

"By placing greater emphasis on automakers' interest in telematics, ATX benefits not only itself in terms of greater market penetration, but also stimulates growth of the entire telematics industry," concludes Dittmer.

Through extensive analysis of each specific market, Frost & Sullivan presents the Business Development Strategy Leadership Award to a company that leads the development and introduction of an innovative product or service that effectively meets customer needs within its industry. The recipient company has also demonstrated superior market growth skills by identifying new opportunities and expanding the existing customer base.

Held in Las Vegas, Frost & Sullivan's 2004 Excellence in Mobile Communications Awards Banquet honors world-class companies for outstanding performance and achievements in wireless and mobile strategy, technology, platforms, and services. An annual event, the banquet recognizes the quality and merit of distinguished individuals and companies.

About ATX

Based in the Dallas-Fort Worth, Texas, area and Dusseldorf, Germany, ATX Group is the world's second largest provider of telematics services for the automobile industry, serving both North America and Europe. ATX telematics services are designed to provide enhanced safety, security and driving convenience to vehicle owners. These services include location-specific emergency and roadside assistance, automatic collision notification, stolen vehicle recovery, remote diagnostics and real-time traffic and navigation assistance. ATX, the largest independent telematics provider not owned by an automobile manufacturer or telecommunications firm, also provides telematics services designed to help automobile manufacturers and their affiliated dealerships to use telematics data to reduce costs, enhance vehicle servicing, and more closely manage customer relationships. ATX services are provided to vehicle owners through the brand names of its customers -- Mercedes-Benz, BMW, Maybach, and Rolls-Royce Motor Cars. For more information, visit www.atxg.com.

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan Awards are presented to companies that demonstrate best practices in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine Award recipients in a broad spectrum of industries. For further information, visit www.frost.com.