North American Telematics Market Projected to Surge to $7B By 2007

    SAN JOSE, Calif., Aug. 13 The North American market for
automotive telematics is poised for tremendous growth with the integration of
wireless telecommunications and information technologies.  By facilitating an
interactive exchange of data over wireless networks, telematics systems will
bring vehicles and drivers into the information age.

    According to new analysis by Frost & Sullivan
(http://www.transportation.frost.com ), North American Automotive Telematics Market,
the total market rose from $60 million in 1999 to $380 million in 2000.
Double-digit growth could bring this market to $7 billion in 2007.

    Automobile manufacturers are increasingly implementing telematics
technologies, from onboard navigation systems to remote vehicle diagnostics,
to differentiate their products from those of their competitors.  To maximize
revenues, however, companies will need to meet growing consumer demands.

    "So far, the telematics market has been characterized by the 'push' from
automakers rather than the 'pull' from vehicle buyers," says Frost & Sullivan
Industry Analyst Joerg Dittmer.  "Telematics must extend its appeal beyond
technology lovers to mainstream car buyers."

    Market participants must meet real, profound consumer needs so that
telematics will become a "must have" feature for the average vehicle owner.
To this end, manufacturers must research consumer preferences and develop
telematics systems that are easy to use to ensure widespread adoption.

    "Fast implementation of new technologies will play a key role in
participants' success," says Frost & Sullivan Industry Analyst Meenakshi
Ganjoo.  "To stay ahead in the ever-changing and evolving telematics business,
participants need to evaluate and quickly implement emerging technologies and
new products."

    Standardization of telematics systems will help industry participants to
ward off obsolescence of technologies.  Collaborative projects, such as the
Automotive Multimedia Interface Collaboration (AMI-C), could foster
development of open architecture specifications for information,
communications, and entertainment systems.

    Frost & Sullivan presents the 2001 Marketing Engineering Awards to
companies that have worked diligently to make a positive contribution to the
automotive telematics industry.  These market-specific awards are presented
to: Acunia NV, Motorola, Inc., OnStar, Webraska Mobile Technologies, and
Wingcast LLC.

    Frost & Sullivan is a global leader in international strategic market
consulting and training.  This ongoing research is part of the ITS/Emerging
Technologies Subscription, which also includes market analyses on the European
Telematics Market and North American Remote Vehicle Diagnostics Market.  Frost
& Sullivan also offers custom consulting to a variety of national and
international companies.

    Executive summaries and interviews are available to the press.

                 North American Automotive Telematics Market
                                   7830-18