Microsoft Automotive Business Unit Honoured With the 2006 Frost & Sullivan Excellence in Technology Award

LONDON, February 8 -- Acknowledging Microsoft Automotive Business Unit's development of the Windows Mobile for Automotive (WMfA), its novel three-tier standard software platform solution for telematics and infotainment, Frost & Sullivan presents the company with the 2006 Excellence in Technology of the Year Award. This common platform will greatly aid the telematics and infotainment market, where the costs of developing proprietary software are prohibitive.

Microsoft's platform could provide vehicle manufacturers with an effective method to introduce telematics and infotainment to mass-market vehicle models and thus share the revenue potential that was previously limited to high-end ones.

The WMfA's benefits of reusability, scalability and high application support levels enable vehicle manufacturers to reduce development period, cost and time to market. It will also allow them to buy the basic software platform and later upgrade it to include additional applications and functions. Moreover, with its Partner Eco System support, Microsoft's platform could be a breakthrough technology in the European telematics and infotainment industry.

Uniquely, Microsoft will release the WMfA platform in three versions, which offer three levels of increasing functionality and application support. This flexibility will enable vehicle manufacturers to choose an appropriate platform for their various vehicle segments.

The first variant includes the basic Bluetooth functionality with a speech recognition device (both text-to-speech and speech-to-text engines). It also includes a digital media player, which supports various media formats (MP3 and WMA) and connects mass storage devices to the media player through USB. Car producers will likely price this version lower than traditional hands-free car kits.

The second variant includes all functions of the first version along with an integrated global positioning system (GPS) receiver for geopositioning and navigation applications. Microsoft is planning to introduce three different types of navigation applications, namely on-board, off-board and hybrid navigation.

"Microsoft plans to use Bluetooth to send information for navigation to personal devices such as personal digital assistants (PDAs) and also to transport sound commands to the in-car audio system," says Frost & Sullivan Senior Research Analyst N. Praveen Chandrasekar. "This results in increased accuracy in navigation devices and smooth operation even inside tunnels."

The third version encompasses all functions of the second variant as well as an integrated phone function, breakdown calling as well as remote diagnostics/upgrades functionalities.

The WMfA platform can act as an effective gateway for connecting several consumer devices to the vehicle. This - coupled with the increasing popularity of portable systems such as PDAs, mobile phones and music players for applications including navigation and entertainment - can open up numerous revenue streams for vehicle manufacturers. It also helps them reduce their development time, thereby enabling them to keep pace with technological advancements in the consumer electronics industry.

Currently, vehicle manufacturers and associated Tier 1 suppliers share the bulk of hardware and software development for telematics and infotainment. However, they need to develop core expertise in software, which will translate into a cross-industry collaboration pattern, where traditional IT companies merge with the automotive industry.

"The Partner Eco System is an innovative initiative by Microsoft, whereby the company collaborates with vehicle manufacturers and works with a multitude of Tier 1, 1/2 and 2 positions and helps them find the right companies to implement different features in the platform," notes Mr. Chandrasekar. "This innovative business model is likely to take the burden off vehicle manufacturers and their Tier 1 collaborators so that they can concentrate on defining the functionalities and developing hardware based on the necessary software specifications."

About Microsoft Automotive Business Unit

Since 1995, Microsoft's Automotive Business Unit has worked collaboratively with the auto industry to deliver technology designed for advanced in-car information, navigation and entertainment systems. By extending its knowledge of software for use in the car to Windows Mobile-based Pocket PCs, Microsoft is able to deliver the easiest, most convenient and productive software designed specifically to help people take their connected lifestyle with them wherever they go. In addition to offering consumers an alternative means to experience in-car connectivity, Microsoft will continue to provide the automotive industry with its advanced telematics platform, Windows Automotive. Microsoft technology is on the road today in 61 preinstalled and aftermarket devices from 18 world-class automakers and suppliers, including BMW, Citroën, Clarion Co. Ltd., DaimlerChrysler, Fiat, Honda, Hyundai, Mitsubishi, NexTech, Subaru, Toyota and Volvo. For further information please see www.microsoft.com/automotive.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics. For more information, visit www.frost.com.