Motorola, OnStar and Saturn Electronics Collaborate to Develop Next-Generation Wireless Communications Products for GM Vehicles Starting in 2000

Edge: Work-Group Computing Report, May 22, 2000

The Integrated Electronics Systems Sector (IESS) of Motorola (NYSE: MOT) has teamed with OnStar, the country's leading in-vehicle communication and information service, and Saturn Electronics & Engineering, a leading manufacturer of electronic components, to develop and produce Telematics devices for GM vehicles. Under the arrangement, it is contemplated that advanced wireless products will be offered on virtually every GM car and truck -- more than a million vehicles -- beginning with model year 2001. The value of this initiative could approach $1 billion over its lifetime,

Telematics is an emerging market for automotive communications technology that combines wireless voice and data to provide location-specific security, information, productivity and in-vehicle entertainment services,

The multi-year, multi-million-unit contract with OnStar, a unit of General Motors that develops in-vehicle safety, security and information services, further advances the state of automotive communications technology. Based on a Motorola Telematics platform that uses global positioning system (GPS) satellite technology and wireless communication, OnStar links drivers with a 24-hour call center to provide roadside assistance, emergency calling, remote door unlock and other services,

Saturn, based in Auburn Hills, Mich., is a minority-owned company that will manufacture certain telematics components under Motorola's contract for OnStar,

"Our partnership with OnStar will leverage Motorola's unique strengths in the emerging automotive communications market," said Joe Guglielmi, executive vice president and president of Motorola's Integrated Electronics Systems Sector. "Motorola pioneered the technologies upon which these new products are based, and our core expertise in automotive electronics, communications and embedded computing reinforce our position as the market leader. This major contract underscores the growing importance of wireless communications in the automotive market."

The product offering incorporates technologies from Motorola's Telematics Communications Group (TCG), which combines Motorola's GPS receiver and wireless communications capabilities, including cellular voice and data transmission. Motorola TCG offers one of the most widely used communications platforms deployed in the Telematics market today,

"This is an exceptional opportunity to foster innovation and it recognizes our commitment to minority sourcing," said Harold Kutner, General Motors group vice president worldwide purchasing and North American control and logistics. "Motorola is a premier electronic system supplier and Saturn is an outstanding electronics manufacturing company. We are pleased to work with them to develop Telematics products."

Continuing its track record of Telematics leadership, Motorola's future products will enable drivers and passengers to access unprecedented levels of information, entertainment and services and will greatly improve the hours spent by consumers in their vehicles,

Through a combination of technologies, Telematics products enhance consumers' driving experiences and safety on the road. OnStar was one of the first in-vehicle systems to capitalize on the benefits of Telematics products,

Motorola IESS Motorola Integrated Electronic Systems Sector (IESS) is a unit of Motorola, Inc. (NYSE: MOT). IESS designs and manufactures a range of electronic components, modules and integrated electronic systems and products for automotive, computer, industrial, transportation, navigation, energy system and consumer markets. IESS consists of four closely related business units that work together to form a seamless partnership. These units include the Energy Systems Group (ESG), Motorola Computer Group (MCG), Automotive & Industrial Electronics Group (AIEG) and the Telematics Communications Group (TCG). IESS is a leading provider of advanced electronic products and systems for customers integrating electronics into their products. Motorola IESS solutions provide the brains -- the DigitalDNA -- that make electronic systems smart, powerful and easy to use,

OnStar

OnStar, launched in 1996, is the in-vehicle safety, security and information service that uses global positioning system (GPS) satellite technology and wireless communication to link the driver and vehicle to a 24- hour OnStar center, where advisors provide real-time, person-to-person help. In addition to emergency calls, OnStar offers stolen vehicle tracking, remote door unlock, remote vehicle diagnostics, route support, convenience services locator and concierge services,

Saturn Electronics & Engineering

Saturn Electronics & Engineering, Inc. is a supplier of electronic systems and components in the electronics manufacturing services (EMS) industry. Its highly innovative products are designed, engineered and manufactured worldwide for the communications, automotive, computer, medical and military industries. Saturn operates manufacturing facilities in five countries serving the North American, European and Asian markets. It is a value-added supplier that supplies Fortune 100 companies worldwide. Saturn works closely with its customers to provide integrated solutions to complex design, engineering and manufacturing problems. Its products and capabilities are strategically aligned into three operating divisions: electronic, electromechanical and electrical,