Vetronix Joins ETAS -- a Subsidiary of Robert Bosch GmbH; Combination of Strengths & Product Offerings Will Create Synergies for Future Growth

SANTA BARBARA, Calif.--Aug. 2, 20036, 2003--Vetronix Corporation is pleased to announce that, effective July 9, 2003, it has been acquired by Robert Bosch GmbH. Managed by ETAS GmbH, a subsidiary of Bosch, plans are to leverage the synergies between Vetronix and ETAS to strengthen both companies' market presence and product offerings. This marks an historic landmark for Vetronix, which was founded in 1984. Under the terms of the deal, Vetronix will be the global product center for Diagnostics and Fleet Management Solutions within the companies and will continue to operate from its primary location in Santa Barbara, California.

"This is an exciting moment in Vetronix history," said President and Founder Jim Zaleski. "We've been in business for almost twenty years, and over the last two years we've been looking for the right partnership in order to position Vetronix for the future. At first we were looking for a financial investor, but it became clear that a strategic partner was the most appropriate avenue for long-term success."

ETAS GmbH was founded in 1994, as a spin-off from Robert Bosch GmbH, the second largest automotive Tier One supplier in the world. ETAS, a global leader in providing development tools for embedded automotive software systems, started their American Operations in 1997 with an office located in Ann Arbor, Michigan. ETAS was looking for a company to partner with in order to further the goals of their Diagnostic LifeCycle Solutions(TM) when they approached Vetronix in mid-2002. "Since we were initially looking for a partner in the information technology field, ETAS wasn't on our radar screen at the time," Zaleski confessed, "but at the first meeting it became clear that there were exceptionally strong synergies between our companies." Further talks revealed that ETAS and Vetronix were extraordinarily compatible in many ways: both companies have similar corporate cultures, both are technology centric, both are employee oriented, and both companies have a global organization.

Manfred Schon, formerly President of ETAS' American Operations, has joined Vetronix's management team, and will be based in Santa Barbara. "ETAS and Vetronix are a natural fit," said Schon. "The synergy between our technologically oriented approach to the automotive industry, combined with our joint worldwide operations, will create many exciting opportunities for growth, innovation and success in the years to come. Vetronix is a pioneer in automotive diagnostics and telematics enabled fleet management, and I look forward to working with the great team Jim Zaleski has assembled." Vetronix currently employs 265 people worldwide.

Customers can expect the seamless continuation of both companies' operations, with the strength of synergies realized over time. "The best part of this partnership between Vetronix and ETAS is that there is virtually no overlap, and it is all focused on growing together on the basis of our synergies," Zaleski said.

About Vetronix

Vetronix currently serves the automotive OEM, aftermarket and fleet 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 telematics behind advanced vehicle diagnostics products and "next generation" telematics fleet solutions.

About ETAS

ETAS offers a complete spectrum of products and services for the development, manufacturing, and service of automotive industry embedded systems. ETAS systems comprise powerful hardware and software components, are modular and scalable, and can be used separately or combined. ETAS currently employs 530 people worldwide.

About Bosch

With sales of approximately 35 billion euro in 2002, Bosch is one of Germany's largest industrial enterprises, with a significant international presence. At the beginning of 2003, a total workforce of some 224,000 were employed in the three business sectors: Automotive Technology, Industrial Technology, Consumer goods and Building Technology. The company began as a "Workshop for Precision Mechanics and Electrical Engineering," which the founder Robert Bosch opened in Stuttgart in 1886.