Microheat Secures Contract with General Motors for its HotShot(R) System

FARMINGTON HILLS, Mich., May 7, 2003 -- Microheat Inc. has been selected by General Motors Corporation to supply its HotShot fluid technology system for heated cleaning and de-icing of windshields for future full size sedan and sport utility vehicles.

HotShot is a compact, easy-to-use system that enhances visual safety and offers all-season convenience for drivers in all climates. It interconnects to the vehicle windshield washer fluid tubes and electronic controls, quickly heating and spraying washer fluid on demand. This enables drivers to rapidly remove ice, snow, road grime, insects and other visual deterrents that smear, fog or obscure windshield glass. It takes about 30 seconds for Hotshot to generate hot fluid to 135 to 150 degrees Fahrenheit, depending on ambient temperature (that's faster than the initial operation of seat heating or rear windshield defrosters).

"We are pleased that the HotShot design meets GM's high performance standards for thermal systems," said Asher Segev, Sr. Vice President and director of OEM business for Microheat. "Our team of expert product development engineers has worked closely with GM engineers over the past five years to successfully pass the rigorous GM product qualification process, mainly involving the in-house development of our intelligent (computerized) solution to heating fluid, controlling the washer pump and the wiper motor systematically."

"This substantial, long-term contract is very significant to Microheat since it underscores the capability of Microheat to work with OEMs professionally as a Tier 1 supplier. It also firmly establishes the strength of our partnership with GM as well as our continuing commitment to providing value-added systems in large volumes," said Solomon Franco, Microheat founder and CEO.

The intelligent Hotshot system is optimally designed to meet GM demands for a flexible concept that can be tailored to any GM model without altering system performance or comfort features.

Under development for nearly seven years at technical centers and advanced test facilities in Farmington Hills, Mich., Netanya, Israel, and St. Petersburg, Russia, Hotshot has led to the filing of 27 patents.

Microheat will manufacture the new Hotshot systems for GM at its Farmington Hills facility, where the company has been producing Hotshot systems for the aftermarket.

Recent market research conducted for Microheat by J. D. Power and Associates, a well-known automotive research firm, clearly shows that consumers perceive advanced windshield cleaning systems, such as HotShot, as a desirable feature for their cars and trucks. According to the research, eight out of ten consumers surveyed believe that such a system provides both convenience and safety benefits to drivers. In other research done by J.D. Power and Associates, consumer interest in advanced windshield cleaning systems ranked among the highest of approximately 40 emerging technologies studied.

"We firmly believe that the demand will increase on luxury and mid-size vehicle lines for heated washer fluid as standard equipment, and expect significant future growth in the high-volume mini- and small-car segments as well," said Franco.

Microheat is a Michigan-based, privately-held company fully focused on the design, production and sale of advanced fluid heating system products and other components for integration into washer/wiper system modules of cars and trucks. For more information, visit www.microheat.com.