Code Technologies Chooses Paradigm as Location Based Service Technology Provider

    TORONTO--Sept. 4, 2001--PowerLOC Technologies Inc., a subsidiary of Paradigm Advanced Technologies, Inc. (OTCBB:PRAV), (www.powerloc.com) announced today that Code Technologies Inc. (CTI) has selected the PowerLOC division of Paradigm to be their technology provider of location-based security products throughout North America.
    As part of the master agreement between the two companies, PowerLOC will sell to CTI its proprietary Vehicle Location Devices (VLD's) and will also make available to CTI use of its L-BIZ(TM) Tracker Server until such time that CTI acquires its own server. PowerLOC's technology will be used by CTI to provide their customers with enhanced vehicle security and road assistance services through CTI's response centers, the precise location and status of the vehicles via the Internet. PowerLOC's L-BIZ(TM) Tracker Server technology offers mapping, fleet management, customer care, billing and wireless network access and Internet connectivity to their users.
    CTI has introduced Guidepoint, the world's only Internet based Telematics solution, with an advertising launch scheduled for Michigan in September of 2001. As part of the agreement, CTI will acquire up to 40,000 Vehicle Location Devices over the next 12 months with an option to increase quantities. CTI is a mobile wireless and GPS integration company formed by Code Alarm, Inc. and Auto Club of America to exploit the burgeoning consumer telematics industry.
    PowerLOC's solution also includes additional features such as a bi-directional message center, panic button, crash detection gear, and a geo-fence logic that sets an electronic fence around the asset or vehicle that can, for example, stop the vehicle's operation if it is reported stolen.
    Paradigm CEO Eduardo Guendelman said, "This contract is further confirmation of PowerLOC's superior wireless location technology and our ability to provide location based services using our smart, Global Positioning System (GPS) enabled wireless devices. For us, this agreement with Code Technologies is another leap forward in achieving our strategy to become a pre-eminent world provider of products that utilizes GPS technology for the purpose of vehicle and asset tracking. We see this agreement as a stepping stone towards creating a long term relationship with CTI and to work with them in the future as they continue identifying additional control and security-based services."
    Rand Mueller, President and CEO of CTI, said, "We are pleased to have concluded this agreement with Paradigm which enables CTI to rapidly deploy in-vehicle, internet based navigation, driver assistance, diagnostic and convenience capabilities to their customers."
    The PowerLOC technology enables dispatchers, managers, and individuals to monitor the current position and status of vehicles, or other mobile assets like boats and construction equipment, track them and generate precise reports. The system has three main elements: (1) PowerLOC's Vehicle Location Device (VLD) which consists of a state-of-the-art GPS receiver that computes the location using information received from the GPS satellite constellation, a central processing unit and a cellular radio transceiver, (2) L-BIZ(TM) Tracker which is the Location Services Center, and (3) L-BIZ(TM) Client Software that allows customers to manage the fleets or find their assets through the Internet.

    About Paradigm Advanced Technologies, Inc.

    Paradigm Advanced Technologies, Inc. provides a full range of wireless location tracking technology solutions to service providers in the telematics, GPS, M-business, L-solutions and CRM markets. Paradigm's servers, software and devices locate, track, communicate with and manage vehicles and other assets. Paradigm owns the exclusive licensing rights to a broad-based wireless location patent (US Patent No. B1 5,043,736) covering the apparatus and method of transmitting position information from satellite navigational signals (such as GPS) over cellular systems to a base unit, and displaying the location of an object so equipped. Paradigm's ownership covers all fields of use for the patented system, excluding criminal justice applications. Paradigm wholly owns PowerLOC Technologies, Inc. For further information on Paradigm and PowerLOC, visit www.powerloc.com or call (905) 764-3701 ext. 229.
    Paradigm is also listed on the Frankfurt Stock Exchange - symbol - PG8.

    About Code Technologies Inc.

    Code Technologies, Inc. is a mobile wireless and GPS integrator formed by Code Alarm, Inc. and Auto Club of America to exploit the burgeoning consumer vehicle telematics industry. CTI successfully launched the world's first comprehensive Internet based navigation, driver assistance, diagnostic and convenience system at the Consumer Electronics Show in January of this year. CTI's GuidePoint System integrates PowerCode(TM) vehicle control system from Code Alarm, Inc., PowerLOC's VLD, and the extensive roadside assistance and concierge network of Auto Club of America. Once installed in any vehicle subscribers can access numerous services in and around their vehicle from roadside assistance or concierge services to remote engine starting, over the Internet. For more information on CTI's products, visit www.guidepointsystems.com or call 800-372-6843.

    About Code Alarm, Inc.

    Code-Alarm manufactures remote vehicle control systems for the world's top automakers, including General Motors, Ford, DaimlerChrysler, Kia and Mazda. The Company also sells its products in multiple locations around the globe under the Code-Alarm(TM) and Chapman(TM) brand names. Code-Alarm builds its products to automotive specifications and is certified under the QS-9000 quality system designated by the Big Three. Drawing on more than 15 years experience working with the world's top automakers, Code-Alarm's systems are designed specifically to work with the sophisticated electrical systems found in today's cars, trucks, minivans and sport utility vehicles. Code-Alarm works closely with automotive engineers on three core product categories: vehicle security and content protection, remote keyless-entry and remote car starters. Code-Alarm recently announced it will work with Ford Motor Co. to introduce its new PowerCode(TM) all-in-one remote vehicle control system(TM). The Madison Heights, Mich. manufacturer of vehicle electronic systems said the agreement makes Ford the first automaker to allow PowerCode Technology(TM) the opportunity to be part of a vehicle option package, and will allow Ford to acquire a minority stake in Code-Alarm over a five-year period through an equity incentive program. Visit Code-Alarm on the web at www.code-alarm.com.

    About Auto Club of America

    The Auto Club of America was founded in 1976 to serve the needs of motorists and travelers. It serves consumers directly from its website at www.autoclubofamerica.com, through affiliated sites such as warrantygold.com, driverrshield.com and Autoworld.com and through an independent sales force. It also has a strong business-to-business presence, providing private label programs for companies such as Liberty Life Insurance Company, American Airlines Federal Credit Union, and Bank of Hawaii. ACA's unique quality is to properly define market segments and package programs that are attractive to those segments. Its support staff processes all consumer communications professionally and in a timely manner. For complete information about Auto Club of America, visit its website at www.autoclubofamerica.com

    This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm Advanced Technologies, Inc., and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, Paradigm's actual results may differ significantly from the results discussed or implied in such forward-looking statements.