NEXIQ Technologies Acquires Diversified Software Industries

    MANCHESTER, N.H. & STERLING HEIGHTS, Mich. & CORALVILLE, Iowa--May 14, 2001--

    - Strengthens Leadership in Commercial Vehicle Diagnostics
    and Telematics -

    - Favorable Impact on Current Fiscal Year Revenues Expected -

    NEXIQ Technologies, Inc. (OTCBB:NEXQ) today announced its acquisition of Diversified Software Industries, Inc. (DSI), which is 40 percent owned by Motorola, Inc. , one of the world's leading integrated communications and electronics technology providers. DSI is an independent software solutions developer, based in Coralville, Iowa. NEXIQ will issue 1.7 million shares of common stock in exchange for all outstanding shares of DSI. With the acquisition, Motorola becomes an important strategic investor in NEXIQ as the Company builds on its industry leadership in transportation diagnostics and telematics services. The acquisition gives Motorola 7.9 percent of NEXIQ's total shares outstanding - 1.9 percent on a fully diluted basis. DSI's operations will remain in Coralville and DSI President, James Griffin, will report to NEXIQ President, Jack Schang, as Executive Vice President, Telematics Services.
    The acquisition is expected to have a positive effect on NEXIQ's current fiscal year (2001) revenues and it gives NEXIQ significant added management and software engineering resources. In addition, NEXIQ acquires two "industry first" software solutions that enable the Company to immediately broaden its presence in the commercial vehicle and automotive markets. Prior to the sale, DSI provided NEXIQ substantial software consulting and development support related to the Company's e-Technician telematics services. e-Technician is scheduled for release in early fall of this year.
    Commenting on the acquisition, NEXIQ Chairman and CEO, John Allard, said, "The addition of DSI to NEXIQ builds on our unique competitive advantage in the transportation diagnostics and telematics world. For the past 20 years, NEXIQ's MPSI team has led the heavy-duty vehicle diagnostics tools (hardware and software) market with innovative products and superb customer understanding. Over that period, we have obtained more approvals for access to commercial vehicle OEM data than any other company in the world."
    Allard continued, "With DSI resources in place, we now have the proven software engineering and management resources to continue aggressively developing a wide range of innovative new products for the fast-growing facilities-based diagnostics business. And, we further strengthen our ability to continue leading the industry in the development and ASP deployment of vehicle-based telematics for commercial vehicles.
    "On the product side," Allard added, "DSI brings us two additional and successful software products - In-Vehicle Information System (IVIS) and Electronic Proof Of Delivery (ePOD). These products will add significantly to our revenue, beginning immediately. They also give us entry to related market sectors we have targeted for aggressive penetration - automotive telematics, pick-up and delivery-based transportation companies. NEXIQ and DSI have strong, complementary relationships with vehicle and component OEMs, fleet operators and vehicle leasing firms. Our integration under NEXIQ allows us to provide customers with a more comprehensive range of facilities- and vehicle-based products and services, beginning immediately."