Aftermarket Telematics Supplier GPSi Announces Financing

Private equity, expanded credit facility will spur growth for Pontiac firm

PONTIAC, Mich., Feb. 3 -- GPSi, LLC, which supplies telematics systems and services to the automotive aftermarket, today announced it has closed a round of financing that will help accelerate its growth in the $7 billion telematics market.

The Pontiac, Mich.-based supplier of vehicle tracking, safety and convenience systems said the financing consisted of a combination of private equity and an expanded credit facility with Comerica Bank. The Company, which supplies the Guidepoint(TM) telematics service to auto dealers, said the equity investors consisted primarily of executives from metropolitan Detroit and Chicago.

GPSi said it plans to expand its sales staff and launch new marketing initiatives to help increase retail sell-through of the Company's aftermarket telematics service. Guidepoint (www.guidepointsystems.com ) is an aftermarket theft recovery and convenience system sold at leading automotive dealers nationwide. With Guidepoint, drivers can track their vehicle on the Web and access a range of services, including roadside assistance, emergency dispatch, navigation, travel and dining discounts, and more.

"This financing puts us in a strong position to pick up the pace of our growth and increase our service to car dealers, expediters and subscribers," said Rand Mueller, president and chief executive officer of GPSi. "Volume is growing exponentially each month, as we continue to add new dealers and new programs that are increasing sell-through at retail. Having sold aftermarket products to car dealers over the past three decades, we know the importance of providing the tools, promotions and incentives to sell our telematics products and services."

GPSi builds on Mueller's three decades of experience supplying mobile electronics to the automotive aftermarket, as well as 15 years experience in vehicle tracking. Mueller founded and served as chief executive officer of Detroit-based Code-Alarm, one of the best-known brands in the vehicle security and convenience market.

While at Code-Alarm, Mueller oversaw the Company's expansion into a leading supplier of alarms, keyless entry and remote car starters to aftermarket retailers, automotive dealerships and original equipment manufacturers (OEMs) including the Big Three. In 1988, Mueller helped lead development of Intercept, a vehicle tracking and recovery system based on the cellular phones and the LORAN, a radio-navigation system that preceded the global positioning system (GPS) used commonly in telematics today.

In 2000, following a recapitalization of Code-Alarm, Mueller shifted from chief executive officer to "chief entrepreneurial officer" to spearhead the Company's telematics initiative. That initiative became Code Technologies, Inc., which was spun out of the Company in 2002 as Guidepoint.

"We are making strong progress since commercially launching Guidepoint 22 months ago, following three years of development," Mueller said. "Today, we have established distribution to automotive dealerships in key markets, and provide service to consumers in all Mexico, Canada and all 50 states through our global GPS technology and nationwide service center. We sell exclusively in the aftermarket, which is where every major new automotive accessory of the past half-century got its start."

Today, Guidepoint is sold at nearly 250 auto dealerships in key markets, offering a comprehensive safety, security and convenience service that's similar to General Motors' OnStar(R). Guidepoint ties together GPS satellite technology, a 24/7 call center and a range of driver amenities in several service packages for vehicle owners.

"While there are many new products that track vehicles on the Web, Guidepoint is among the select few to provide a complete range of location- specific mobile services -- tracking your car via the Web, getting fast roadside assistance, summoning emergency help, vehicle diagnostics, navigation or making discounted reservations wherever you're traveling. Exclusive features like Security Fence(TM) and E-Call(TM) will keep your car -- and its passengers -- safe and sound. Our concierge services and conveniences like remote start offer the ultimate in creature comforts. We've bundled a range of amenities into our GPS service plans that will completely change a driver's in-car experience."

Mueller concluded: "After several fits and starts, the telematics business seems be gaining some traction among consumers and car dealers. Likewise, the commercial opportunity appears poised for growth. With the increase in funding for Homeland Security, the market opportunity appears better than ever as municipalities look to track buses, fire trucks, ambulances and other vehicles."