IMS Announces Usage Based Insurance Pilot Program for Media

Program to Inform and Educate Media, Advocacy Groups and Policy Makers on UBI

WATERLOO, ON, Feb. 3 -- Intelligent Mechatronic Systems Inc. (IMS), a world leader in usage based insurance (UBI) technologies, is pleased to announce its year-long iPAID(TM) pilot program in North America and the United Kingdom. The pilot will allow the media, advocacy groups and government policy makers to evaluate the effectiveness of UBI programs in improving driver safety, potential insurance savings, and its ability to alleviate traffic congestion and decrease the levels of vehicle-emitted pollutants.

iPAID(TM) is a GPS vehicle tracking system for usage-based insurance (UBI). It securely tracks individual trips and accumulative mileage. At a more detailed level, iPAID(TM) tracks when, where, how far, how fast and how aggressively a vehicle is being driven. This information is tracked via GPS satellites and stored on the iPAID(TM) in-vehicle device and USB data key. Results are viewed by detaching the data key and inserting it into a computer USB port. Data is encrypted and uploaded to the iPAID(TM) server, where it is generated into reports, maps and usage alerts. These reports are accessed via a secure, password-protected website.

By providing conclusive proof of vehicle use and driver behaviour, iPAID(TM) enables drivers to guide their auto insurance rates and coverage based on how often and how safely they drive. This can lead to variable insurance costs, which encourages less driving, subsequently reducing the number of cars on the road. Fewer cars means reduced traffic volume and congestion, and decreased levels of vehicle-emitted pollutants.

With so many benefits to insurance companies, individuals and the community, UBI is expected to become a standard auto insurance offering worldwide. UBI pilots are currently being run in the UK, the Netherlands, Israel and other countries. In fact, IMS just successfully completed the initial phase of their multi-phase pilot with Winterthur Group (a division of Credit Suisse) in Germany. As more insurance companies adopt UBI or PAYD (pay as you drive) programs, the demand for products like iPAID(TM) will only increase.

The iPAID(TM) pilot program is open to accredited media, advocacy groups and government policy makers dedicated to the education and advancement of safe, cost effective and eco-friendly driving. The pilot provides participants the opportunity to learn more about UBI and become the forefront experts on the topic. Likewise the pilot will help evaluate the effectiveness of GPS based technology in supporting UBI programs.

Parties are invited to email IMS with their interest at ipaid@intellimec.com before March 3, 2006. The pilot is expected to launch March 24, 2006 and run for 12 months. Pilot participants will have first access to articles and resources on UBI/PAYD pilot programs from around the world.

About IMS

IMS is a company specializing in the creation, development and marketing of leading edge proprietary technology that blends mechanical engineering, electronic control and information systems to make technologically advanced products. IMS has three divisions; Safety Devices for use in automotive applications, Telematics which includes iPAID(TM) and is focused on UBI, and Automedia delivering consumer products into the automotive aftermarket. IMS is based in Waterloo, Ontario, Canada. www.intellimec.com