Telcontar Remains Confident in its Corporate Strategy Despite Recent Dissolution of Customer Wingcast

    SAN JOSE, Calif.--June 4, 2002--Telcontar, the provider of the premier software platform for location-based services, today announced that the recent dissolution of Wingcast, one of its best-known telematics customers, has not materially damaged the company's financial position or caused it to back away from its commitment to the OEM telematics market.
    "Although we are disappointed by the loss of a prominent industry player and one of our key customers, Telcontar's cash position, strong customer base and core intellectual property give us confidence that the company can remain viable for the long term," stated Eric Carlson, president and CEO of Telcontar. "Telcontar remains the provider of the premier software platform for location-based services to companies in the Internet portal, wireless telecommunication, and telematics markets. Since launching the new Yahoo!(R) Maps web site with location-based services developed using Telcontar's technology more than three months ago, Yahoo! has successfully delivered millions of maps and routes without any unscheduled downtime at all. Yahoo!'s volume combined with that of Vicinity gives Telcontar a leading position in the portal mapping market. Our recent signing of a major worldwide wireless carrier represents a significant step into the telecommunications market. Telcontar's telematics customer list, featuring leaders such as ATX Technologies, the InfoGation group of BSQUARE, Ford Motor Company, Infomove and BMW continues to lead this market. Ford has stated that it remains committed to providing telematics features in its vehicles, and we are confident that the overall industry growth rate will not be substantially impacted by the failure of a single player such as Wingcast."
    Telcontar's cash reserves remain strong and its R&D team continues to provide substantial new enhancements for its flagship Drill Down Server product and associated platform technology. "Our recent Drill Down Server 2.5 product release has proven exceptionally stable and fast while establishing us as a real competitor in the European market." pointed out David Wood, Sr. VP Marketing. "The recent acquisition of Gravitate's assets and key technical staff to our own has strengthened our intellectual property portfolio while positioning us to support our customers as they develop advanced systems with features such as traffic enabled routing, fleet tracking, hybrid telematics or personalized and alert driven consumer LBS services."

    About Telcontar

    Telcontar is the provider of the premier software platform for location-based services. Telcontar's clients use its Drill Down Server(TM) to offer their own customers such services as driving directions, real-time traffic information, and maps. The company's services are also used by emergency response call centers as well as for fleet tracking and dispatch. The company specializes in integrating digital maps with content drawn from multiple sources. Telcontar is privately held and headquartered in San Jose, California with field offices in Los Angeles, Houston, and the United Kingdom.

    TRADEMARKS: Telcontar and Drill Down Server are trademarks or registered trademarks of Telcontar. All other product names are trademarks or registered trademarks of their respective holders.