Vetronix And IBM To Roll Out New Solutions For World Of Commercial Vehicles

SANTA BARBARA, CA., and ARMONK, NY--(INTERNET WIRE)--Apr 28, 2002 -- The notion of fully integrated, virtual value chains wirelessly linking global transportation companies to their mobile assets is about to become reality with a new strategic alliance announced today between Vetronix Corporation and IBM. The alliance will focus on enterprises that use vehicles as major components of their business processes and that also work in close cooperation with worldwide automobile manufacturers.

Vetronix, a leading California-based vehicle diagnostics and telematics solution developer, will provide Internet-based, wireless fleet-management solutions that help companies within the transportation industry companies drive down costs and boost quality through improved asset control and risk management. It will also drive up the productivity of vehicle operators who use the solutions, thereby improving customer service levels, satisfaction and profit.

Vetronix will use IBM's leading wireless and infrastructure technology, including WebSphere Everyplace Suite, Wireless Gateway and DB2 database software, to develop next-generation telematics solutions and integrated, high-value services. IBM Global Services (IGS) will provide consulting, systems integration and general contractor roles.

The Vetronix solutions will provide advanced information exchange between fleet management systems and individual vehicles, enabling the extraction of raw data that can be converted into a broad range of decision-support applications. This information will then be used for enhanced asset management, increased productivity and improved customer relationship management (CRM). The new technology is currently under test worldwide, with rollout expected before year's end.

The extensive new portfolio of applications and services being pioneered by Vetronix and powered by IBM will advance industry practices of depreciation management, fuel management, risk management, logistics management, preventive maintenance, prognostics, communications and customer convenience. Solutions developed by Vetronix can be customized to alert drivers as well as dispatch offices to a wide range of vehicle needs, provide location and logistics capabilities, monitor fuel efficiencies, remotely diagnose vehicle performance or redirect trucks around traffic bottlenecks to ensure on-time deliveries.

Additionally, wireless alerts can be sent to telematics service centers for improved fleet management. Implementation of such applications will help to maximize the use and resale value of a commercial fleet's physical assets, reduce fuel and insurance costs, improve driver and vehicle safety and optimize route selection. Benefits will include improved knowledge of how goods are handled in transit, increased vehicle uptime, reduced operating costs, better maintenance and enhanced overall driver productivity. Other valuable services for the fleet industry will be the automation of fuel-tax reporting and weigh-stations processes.

"The world of commercial vehicles is hungry for this kind of advancement," said Raj Desai, director of IBM Telematics Solutions. "In this industry, it's all about establishing better control over your mobile assets while preparing to succeed in a world of higher operating costs and stricter government regulations. Our goal is to work with Vetronix to offer the technologies and services that will help commercial vehicle companies increase efficiencies, manage their assets on a real-time basis -- no matter where they are -- and better serve their customers."

"Most of the industry is currently focused on consumer-related applications for telematics," said Jim Zaleski, President of Vetronix. "The partnership between IBM and Vetronix is focused on optimizing telematics technology, infrastructure, and applications for commercial use by vehicle-centric businesses. Using Vetronix's core expertise in vehicle instrumentation and applications coupled with IBM's infrastructure products and system integration capabilities, we are able to deliver high value, telematics-enabled products and services that enable transportation companies to effectively exploit the benefits afforded by this newly emerging technology."

The agreement between IBM and Vetronix is the first step toward creating a common approach for telematics focused on the commercial market. The resulting comprehensive solutions will drive the architecture, software, hardware, tools, integration skills and education necessary for companies to succeed in automating fleet management.

The strategic alliance with Vetronix is another example of IBM's commitment to go-to-market with leading independent software vendors through the PartnerWorld for Developers program (www.developer.ibm.com). The goal is to provide developers with access to new customers and revenue opportunities through IBM's marketing, sales, and solutions resources. In return, developers will lead with IBM's middleware, server platforms and services.

About Vetronix

Vetronix currently serves the automotive OEM, fleet and aftermarket sectors, dominating the OEM diagnostic equipment market with more than 40 percent of all new vehicles at the dealership level, worldwide, being serviced using Vetronix's diagnostic products. The company is focused on innovations in software and telemetry behind advanced vehicle diagnostics products and "next generation" telematics solutions.

About PartnerWorld for Developers

PartnerWorld for Developers is the developer resource for IBM Business Partners. It is a worldwide program designed to help software developers reach broader markets, lower their costs of doing business, and take their products to market faster. For more information, visit www.ibm.com/partnerworld/developer, or call 1-800-627-8363 in North America, 1-770-835-9902 outside North America.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM is among the first companies to offer leading-edge technology and tools to its customers and enable them to deliver advanced telematics solutions. Through years of expertise and research in the automotive industry, IBM and IBM Business Partners have built a flexible and reliable portfolio of software (such as speech recognition and wireless technologies), hardware, IT services, development platforms and innovative tools. IBM's end-to-end architecture fully integrates open standards. It links both portable and embedded hardware devices to the Internet via wireless networks and leverages Java applications to exchange data to and from the vehicles with Wireless Telematics Service Providers. Addressing issues such as safety, privacy, convenience and connectivity, our in-vehicle information systems and solutions enable our customers to deliver hands-free and eyes-free technology as part of developing invaluable and long-term relationships with their customers. As the telematics revolution is now gaining momentum in other industries such as insurance, petroleum and commercial market, IBM's vision will prepare customers for the next generation of e-business infrastructure for many years to come. More information on telematics solutions is available at www.ibm.com/industries/automotive.

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