Strategy Analytics Expands Coverage, Moves to New Headquarters; Directors of Global Practices Offer Predictions for 2002

    BOSTON--Jan. 7, 2002--Bucking a trend towards downsizing, Strategy Analytics, Inc. continues to grow despite hard times in the high-tech sector. "By maintaining our focus on providing responsive, dedicated client support, we have been able to add staff and services when others are cutting back," says Harvey Cohen, Chairman of Strategy Analytics.
    The international analyst and consulting firm, which recently moved its headquarters to larger offices in Newton, Massachusetts, is offering its clients a broader range of services to assist them in meeting the challenges of a difficult business environment:

-	Two new services, Broadband Entertainment Strategies and Broadband Device Strategies replace the former Interactive Home Service. David Mercer, VP of the Global Broadband Practice states, "In broadband, a new wave of broadband Internet entertainment applications will drive new revenue streams for service providers, and broadband internet will reach 7% of European households. In interactive television, the Echostar/DirecTV deal will be rejected by regulators, while MHP rollouts will begin, with Asia taking the lead." He adds, "Six million US homes will have access to Video on Demand before year's end."
-	Randall Nottingham, Director of the new Energy Market Strategies, says, "As Texas fully opens up to electricity deregulation, successful competitors will have to reduce their customer acquisition and service costs, and manage their power price risk. This will require significant investment in IT infrastructure and applications, such as CRM systems and trading support systems." In the petroleum markets, Nottingham expects that following the announced Phillips-Conoco merger, Strategy Analytics expects that at least one of the remaining mid-tier majors, including Marathon Oil, Valero, Sunoco, and Amerada Hess, will be involved in a merger or acquisition within six months.
-	In-vehicle Telematics & Multimedia Strategies Director, Joanne Downie, adds that in 2002 the use of remote diagnostics by carmakers in improving vehicle reliability and managing servicing/recall operations will become widely recognised as a future cost-saving and CRM "killer app." for telematics technologies. The 2002 telematics market will continue to be characterized by high levels of fragmentation and market testing as players define their strategies. Specialist and very focused telematics players will have the most success in building revenue growth. The players to watch in 2002 include ATX, Delphi, ComRoad and Vodafone Passo.
-	Chris Webber, VP of Automotive Electronics & Telematics, expects that carmaker marketing and product development activity for 2002 will be focused on safety related systems. More than ever before, the automakers' mantra of "safety sells" will find resonance with consumers' heightened concerns for personal safety. A net result could be car makers shifting certain safety systems (e.g. side airbags, electronic stability control, tire pressure warning) from the "option" to the "standard" feature list, with ensuing business upside for safety system suppliers.
-	As VP of the Strategy Analytics Global Wireless Practice, David Kerr foresees Global Cellular Subscribers passing 1.1B, while a mega-merger involving Siemens/Samsung and/or Alcatel/Phillips will reshape the wireless terminal landscape in 2002. User created content emerges as the next volume messaging market in wireless, but major headaches await operators as billing and customer care solutions limit marketing innovation.

    The Strategy Analytics US headquarters are now located at 199 Wells Avenue, Newton, MA. The main telephone number is +1 617 614 0700. Newton-based staff members have new extensions and direct dial numbers, so main-number callers are encouraged to consult the dial by name directory.

    Company Background:

    Strategy Analytics supports the planning efforts of organizations active in wireless communications, broadband services and devices, automotive electronics, telematics, energy, and IT enabling technologies. Analysts and consultants located around the world provide ongoing Strategic Advisory Services and decision-focused marketing consulting to clients in North America, Europe, Japan and the Far East.