Delphi Partners With DuraSwitch For New Switch Technology
25 April 2000
Delphi Partners With DuraSwitch to Bring New Switch Technology Into Automotive Market
PHOENIX, April 25 Delphi Automotive Systems (NYSE: DPH)
signed a licensing agreement today with DuraSwitch Industries Inc. (Amex: DRA)
for exclusive rights to utilize and manufacture DuraSwitch's revolutionary
magnetically coupled switch technology for the automotive industry, announced
David R. Heilman, president, Delphi Packard Electric Systems and vice
president, Delphi.
Delphi's Packard Electric Division will utilize its knowledge of switches
and switch packaging to adapt the DuraSwitch technology to the automotive
industry, as well as the non-automotive switch markets. Along with the
licensing and manufacturing agreement, Delphi has an option to acquire
slightly under 20 percent of DuraSwitch.
"This is a significant win for Delphi and for DuraSwitch," said Heilman.
"I'm confident that the marketplace acceptance of this innovative technology
will be great, yielding substantial sales that will benefit both Delphi and
DuraSwitch. Our potential for an equity position in DuraSwitch will not only
cement our relationship, but will allow us to participate in their value
growth."
Delphi's diversified customer base and solid manufacturing footprint will
help take DuraSwitch global. The automotive switch market is valued at
$4 billion, with a 6.8 percent compounded average annual growth rate.
Heilman said, "This is exactly the switch technology that is needed to
provide the multitude of switching and electronic features that today's
automotive customers demand. We consider DuraSwitch to be a next generation
switch technology, which has a straightforward design that fits perfectly with
our manufacturing capabilities."
DuraSwitch utilizes a patented, revolutionary magnetic-based design that
provides previously unheard of levels of reliability and durability, with a
consistent tactile feedback or "click." This specialized technology enables
the switches to be used in applications where either membrane or
electro-mechanical switches are currently used. It easily incorporates into
flat-panel, electronically integrated switch packaging, currently required in
advanced electrical/electronic architectures and in demand by vehicle
manufacturers.
"We are excited to be part of the Delphi Team, combining our switch
technology with their state-of-the-art manufacturing capabilities," said Terry
Dunlap, chief executive officer and chairman, DuraSwitch. "I'm confident that
by working together the opportunities to apply this technology will quickly
extend well beyond the automotive market."
"We see Delphi as the perfect partner," said Bob Brilon, president and
chief financial officer, DuraSwitch. "Their strong global presence and solid
customer base will help us achieve our vision of leadership in human-machine
interface technology."
This partnership with DuraSwitch will enable Delphi to maintain and grow
its current switch business. The intent is to begin moving away from some of
the electro-mechanical switches typically used in vehicles and replace them
with DuraSwitch technology, which has fewer parts, Heilman said. By doing so,
switch degradation and failure rates can be minimized leading directly to more
satisfied vehicle buyers.
"Our exclusive licensing agreement with DuraSwitch will help Delphi become
a leader in automotive switch technology," said Carl Rausch, director of
marketing, planning and business development, Delphi Packard Electric. "We
see this switch technology fitting nicely with Delphi's infotainment systems
and devices, as well as other automotive communication applications. It also
lends itself well to the custom styling, differentiation and higher quality
that our customers are requesting."
Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world
leader in transportation and mobile electronics components and systems
technology. Delphi's three business sectors -- Dynamics & Propulsion; Safety,
Thermal & Electrical Architecture; and Electronics & Mobile Communication --
provide comprehensive product solutions to complex customer needs. Delphi has
approximately 214,200 employees, and operates 178 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 27
technical centers in 39 countries. Regional headquarters are located in
Paris, Tokyo and Sao Paulo, Brazil. Delphi can be found on the Internet at
http://www.delphiauto.com.
DuraSwitch Industries, Inc. engineers, distributes and licenses flat panel
and rotary switches under its patented switch technology (US Patents No.
5,523,730 / 5,666,096 / 5,867,082 / 5,990,772 / 6,023,213). For more
information about DuraSwitch products, visit the website at http://www.duraswitch.com
or call (480) 586-3300.
The statements and implications in this release regarding the development
of new products, the acquisition of new customers and anticipated revenues,
sales and profitability of the company are forward-looking statements, which
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially.
Factors that could cause or contribute to such differences include, but are
not limited to, unanticipated problems relating to the development,
manufacture and introduction of new products, costs of raw materials,
marketing and sales of company products, market acceptance of new products and
competitive and economic conditions encountered by the company and existing
and potential customers. The forward-looking statements should be considered
in light of these risks and uncertainties. For a more complete description of
the risks and uncertainties that face the company, please see the company's
year-end report on Form 10-KSB dated December 31, 1999, and other documents
filed by the company with the Securities and Exchange Commission.