RF Monolithics, Inc. Endorses NHTSA's Tire Pressure Monitoring Proposal

DALLAS--Sept. 16, 2004--RF Monolithics, Inc. (RFM) endorses the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) proposed new safety standard regarding regulations under the Transportation Recall Enhancement, Accountability, and Documentation Act (commonly known as the TREAD Act). These proposed new standards require that all new vehicles be equipped with tire pressure monitoring (TPM) systems. These new proposed standards are expected to become final after a 60-day public comment period.

"RFM is excited about yesterday's NHTSA ruling to comply with the TREAD Act. We believe tire pressure monitoring systems provide a cost effective way to improve consumer safety and promote efficiency in the operation of motor vehicles. The automotive market is a large part of our business and we provide products to the industry's leading OEMs which enable them to meet these regulations," stated Larry Miller, RFM's Low-Power Group, Product Manager. "We have a history of success in the automotive industry and have provided various low-power wireless solutions, including TPM applications. Over the last year, we estimate that we have provided TPM low-power components for approximately 10% of the vehicles manufactured for use in the United States. We are still analyzing what impact the new regulation may have on us, but we feel we will be prepared to accommodate the increased demand that these regulations may generate."

The proposed Federal Motor Vehicle Safety Standard covers an estimated 16 million new vehicles sold in the U.S. annually and requires automotive manufacturers to equip all new vehicles with a TPM system under a three-year phase-in schedule: In the first model year, beginning Sept. 1, 2005, 50 percent of all light vehicles manufactured would be required to comply followed by a 90 percent requirement in the second model year, beginning Sept. 1, 2006. After Sept. 1, 2007, all light vehicles manufactured would be required to comply. According to the Alliance of Automobile Manufacturers, the automotive industry was well on its way towards meeting the previous NHTSA requirements with about 10 percent of new cars already being offered with "direct" tire pressure monitoring systems.

The NHTSA had established a previous ruling published June 5, 2002, to fulfill requirements of the TREAD Act, passed by Congress. This initial mandate called for 10 percent of new vehicles to employ tire pressure monitoring technology in the first year, 35 percent in the second, 65 percent in the third and 100 percent in the fourth year. The mandate also contained provisions for two methods of tire pressure monitors: one using "direct" RF links to every wheel and the other, known as the "indirect" method, in conjunction with a vehicle's existing antilock-braking (ABS) system. Three consumer advocate organizations went to court to dispute the NHTSA's fulfillment of the TREAD Act. The U.S. Court of Appeals for the Second Circuit in New York determined in August 2003 that the NHTSA final rule was "arbitrary and capricious" in its inclusion of the indirect method. In its written opinion, the court said that a "direct" four-tire method TPM would "prevent more injuries, save more lives and be more cost-effective" than the indirect method. The court's opinion stated that the NHTSA could not consider indirect methods, which only infer tire pressure and could prove to be unreliable.

RFM has developed dependable low-power, long battery life wireless products which enable "direct" TPM systems to operate in the harsh environments to which vehicles and tires are subjected. RFM has been providing these wireless components in TPM systems for suppliers to original equipment manufacturers (OEMs) since the technology was first commercialized domestically in 1996.

About NHTSA

For more information about the NHTSA visit their website: www.nhtsa.gov.

About RFM

Celebrating over 25 years in business, RFM, headquartered in Dallas, is a leading developer, manufacturer and supplier of a broad range of radio frequency components and modules based on surface acoustic wave technology for the automotive, consumer, distribution, industrial, medical, security and telecommunication markets worldwide. For more information on RF Monolithics, Inc., please visit our websites at www.rfm.com and www.wirelessis.com.