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Belgium's SmartMove Launches U.S. Division To Serve US Auto Manufacturers

18 February 2000

Belgium's SmartMove Launches U.S. Division To Serve North American Auto Manufacturers and Suppliers

               Vehicle Telematics Specialist Comes to the U.S.

    LOUVAIN, Belgium, Feb. 18 -- SmartMove N.V., one of Europe's
leading developers of intelligent vehicle communications software and hardware
architecture, today announced the formation of its U.S. division which will be
located in Cambridge (Boston), Massachusetts.
    SmartMove has developed an open JAVA-based intelligent in-vehicle
communications computer that allows service providers to dynamically download
unlimited information and service applications into cars.  SmartMove's open
telematics concept is a world's first.  The unique concept, together with the
expertise the company has been able to acquire, has moved SmartMove to the
forefront of telematics development in Europe.
    "Several OEMs and software and communication providers have shown interest
in our concept because they can see the impact that SmartMove technology could
have on the value chain of their enterprises and their customers.  We believe
our unique technology will allow us to become a significant player in this
market and expect our first commercial products to be available in mid-2000,"
says Marc Maes, co-CEO of SmartMove.
    According to Steven Buytaert, co-CEO, locating the company's U.S.
operations in Cambridge is key to its future.  "Cambridge is the Silicon
Valley of the East Coast.  Locating our operations there will allow us to draw
upon top software and hardware developers to maintain our lead in innovative
in-car communications solutions and support our growth strategy in the North
American automotive and telecommunications industries."
    SmartMove's U.S. division will initially launch with seven staff members.
This number is expected to double by the end of the year.  In order to do so,
the company plans on developing a knowledge-exchange program with U.S.
universities and research centers, similar to its arrangement with IMEC and
KULeuven in Belgium.

    About SmartMove:
    Belgium-based SmartMove is a high-technology company active in the field
of vehicle telematics.  The company was founded in 1996 and received funding
of $10 million from several European venture capitalists (Flanders Language
Valley Fund, IT-Partners, Lessius, Mercator-Noordstar, Rendex and Fortis).
The company holds several international patents in the field of vehicle
telematics and employs 70 persons, most of them engineers.
    SmartMove USA Inc. is led by co-founders and co-CEOs Marc Maes and Steven
Buytaert.  The marketing and financial organization is managed by Marc Maes,
while Steven Buytaert heads its technology division.

    About the emerging vehicle telematics marketing and common platform:
    "Vehicle Telematics is all about bringing an unlimited range of services
as seamlessly as possible to the customer-driver.  To accomplish this, a
common platform is needed, and this is what drives the SmartMove team in the
development of its future proof Open Vehicle Telematics architecture.  The
SmartMove module is a generic computing platform on which many services can be
based.  It is an open multi-layered architecture which facilitates easy
delivery of any service to the driver in his or her car or truck," says Steven
Buytaert, co-CEO of SmartMove.
    Vehicle telematics represent a growth market.  Market analysts foresee the
telematics market growing from $40 million today to $5.1 billion by 2003.  And
some analysts expect the number of subscribers to in-vehicle telematics
services to grow from 200,000 today to more than 11 million in five years.
Others predict vehicle manufacturers to offer some kind of telematics services
in 25% of all new cars.  (Sources:  Strategies Group, Washington DC; Allied
Business Intelligence.)