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Code-Alarm Adds Mazda as OEM Partner

8 February 2000

Code-Alarm Adds Mazda as OEM Partner
    MADISON HEIGHTS, Mich., Feb. 8 -- Code-Alarm, Inc.
(OTC Bulletin Board: CODL) announced today that it has been selected to
partner with Mazda North American Operations to develop and bring to market
new vehicle security and convenience systems.
    The Madison Heights, Mich. manufacturer of vehicle security, remote
keyless-entry and remote car starters recently added the Japanese automaker as
an OEM customer, with initial plans to supply a security upgrade package for
the Protege.  The two companies plan to jointly engineer new products to
safeguard Mazda vehicles and their contents.
    "This is the first step in what we hope will become a long-term
relationship with Code-Alarm," said Camilo Gonzalez, Buyer with Mazda's North
American Operations.  "We have been very impressed with the innovative
products Code-Alarm offers and look forward to the new technology they plan to
introduce this year.
    "We see this partnership as an opportunity to forge a strategic alliance
with a supplier that will allow us to anticipate -- and then fulfill -- the
security needs of all Mazda customers in North America."
    Mazda joins Code Alarm's growing portfolio of OEM customers.  The Company
started 21 years ago as an aftermarket manufacturer and distributor of remote
keyless-entry and security products, but began selling directly to automakers
a dozen years ago.  CEO and Chairman Rand Mueller said that OEMs now account
for half of Code-Alarm's annual sales -- and that percentage continues to
grow.
    "We are pleased to add a partner of Mazda's caliber to our OEM lineup,"
Mueller said.  "Mazda enjoyed record sales in 1999, led by strong performance
in the U.S. market.  This new partnership with Mazda shows another significant
gain for Code-Alarm in our efforts to attract new OEM business.
    As its first package for Mazda, Code-Alarm will begin supplying a security
upgrade package for the Protege.  The upgrade will be available as an option
package at Mazda's five ports of entry and at its U.S. dealers.  The Code-
Alarm systems work in conjunction with the OEM keyless-entry system offered on
LX and ES models.
    The security upgrade package for the Protege will feature:

    *  Entry Protection.  The system alerts -- in no uncertain terms -- that
someone other than the owner has tried to enter the vehicle.
    *  Vehicle immobilization.  The system automatically disables the starter
to prevent someone who has broken into a vehicle from driving it away.
    *  Warning light.  A blinking light signifies when the system is engaged
to deter would-be thieves.
    *  Trunk protection.  The system alerts the owner if someone has tried to
break into the trunk.

    Drivers can also choose to add optional:

    *  Content Protection.  Code-Alarm uses a dual-stage impact sensor
(IR-s)(TM) to safeguard the contents of your vehicle.  The sensor's patented
optical technology allows the system to distinguish minor bumps from major
bruises to a vehicle.  For example, a slight impact will trigger a short chirp
of the vehicle's horn while a broken window will cause the parking lights to
flash and the horn to sound repeatedly.
    *  Additional hood protection, as well as a siren.

    Peter J. Stouffer, Code-Alarm's President and Chief Operating Officer,
said the upgrade package offers simple security for the vehicle.
    "The system interfaces with the Protege's existing keyless entry feature
to add security functions, working with a multi-layered program where we have
perimeter protection to safeguard the doors and trunk, as well as optional
protection against glass breakage," Stouffer explained.  "When the driver
locks his door using the OEM transmitter, the security system engages
automatically -- he doesn't have to remember to do anything else.  Unlocking
the door, either by using the OEM transmitter or the key, disarms the system.
It's very simple to use."
    And its popularity is growing, according to Mike Schroeder, Vice President
of Sales and Marketing.
    "We're finding that security systems, once found only in luxury vehicles,
are becoming a vital part of the ownership of any car," Schroeder said.
"While the theft rate for vehicles has dropped consistently over the past
seven years, the theft rate for contents -- particularly air bags and
electronics -- has been rising steadily.
    "One of the primary ways to steal air bags and other items is the basic
'smash-and-grab,' and that occurs on lower-end vehicles as often as it does on
higher-end vehicles.  A Code-Alarm security system allows automakers like
Mazda to stay a step ahead of their competition."

    About Code-Alarm
    Founded in Detroit in 1979 by CEO and Chairman Rand Mueller, Code-Alarm
manufactures car security and remote keyless-entry products for the world's
top automakers, including General Motors, Ford, DaimlerChrysler, Mitsubishi,
Subaru, Honda, Toyota, and Volkswagen.  The Company also sells its products in
2,000 locations in 35 countries around the globe under the Code-Alarm(TM) and
Chapman(TM) brand names.  Code-Alarm builds its products to automotive
specifications and is certified under the QS-9000 quality system designated by
the Big Three.  Drawing on more than 15 years experience working with the
world's top automakers, Code-Alarm's systems are designed specifically to work
with the sophisticated electrical systems found in today's cars, trucks,
minivans and sport utility vehicles.  Code-Alarm employs more than 30
engineers and technical specialists who work closely with automotive engineers
on three core products categories: vehicle security, remote keyless-entry and
remote car starters.