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Code-Alarm Introduces First OEM-Branded Remote Starter

5 September 2000

Code-Alarm Introduces First OEM-Branded Remote Starter

    MADISON HEIGHTS, Mich., Sept. 5 After 10 years of
producing remote car starters for the aftermarket, Code-Alarm, Inc.
(OTC Bulletin Board: CODL) has unveiled its first remote starter product to be
branded by an original equipment manufacturer (OEM).
    The Madison Heights, Mich. manufacturer of vehicle security and
convenience systems said that it is developing and producing the technology
for Ford Motor Co. .  The automaker's Customer Service Division will
offer Code-Alarm's remote starter as a Ford-branded option at its North
American dealerships as part of a plan to grow sales of automotive accessories
at the dealership level.
    "From the hand crank to the electric ignition to the simple touch of a
button, the way we start our vehicles has changed dramatically over the past
100 years," said Michael Schroeder, vice president of marketing and business
development.  "We are pleased that Ford has joined with Code-Alarm to be the
first automaker to offer this innovative option as a dealer-installed, branded
accessory for its customers.
    "We are excited that Ford is putting its name on Code-Alarm technology in
order to bring drivers this increasingly high-demand product.  Ford is now the
only OEM in the world that can offer an approved remote car start product,
another distinction that will keep the automaker a step ahead of the
competition."
    Beginning today, Ford and Lincoln Mercury customers can have a Code-Alarm
remote starter installed on any car, truck, van or sport utility vehicle (SUV)
equipped with an automatic transmission.  The new product will be launched to
coincide with Ford's 2001 model year introduction.  The remote starters allow
drivers to start their vehicles with the push of a button up to 500 feet away
in order to warm up the engine and heat or cool the interior prior to driving.
    "Remote starters are particularly popular items during cold-weather months
in northern climates, when you want your vehicle to be warm by the time you
get into it, and during warm-weather months in southern climates, when you
want your vehicle to be cool," said Jim Gillette, vice president of
International Resource Network, Inc., a Grand Rapids firm that tracks the auto
industry and advises suppliers.  "As with other electronic options for
vehicles, remote starters are enjoying increasing popularity and market
penetration.
    "I think Code-Alarm and Ford will do very well by partnering to introduce
a branded remote starter.  Putting a Ford badge on Code-Alarm's technology
will give the dealer a high level of credibility, as such branding is really
worth a price premium.  Offering the remote starter at the dealer level will
make it an easy add-on option for consumers and allow dealers to enjoy margin
benefits.  I think other OEMs will be interested in this technology."
    Code-Alarm will use a "good-better-best" approach to produce three remote-
starter products for Ford, under the names Bronze, Silver and Gold.  The
Bronze package features the long-range remote starter, car find and panic
alert; the Silver package adds remote keyless entry and trunk release to the
remote starter; and the Gold package adds complete vehicle and content
security to the remote starter and keyless entry options.
    The Gold model features additional security and convenience options,
including:

    -- Theft protection against glass breakage, towing and vehicle/content
       damage
    -- Vehicle starter disabling
    -- Optional remote control rear window defroster activation and remote
       headlight illumination

    "Code-Alarm's remote starters continue to enjoy increasing popularity as
an aftermarket product," Schroeder said.  "I'm confident that Ford's 'early-
adopter' status will give the company a head start in the race to offer
consumers this affordable and reliable convenience option."
    Code-Alarm began working with Ford officials 18 months ago to develop and
bring to market this first branded OEM remote starter.  Schroeder said
Code-Alarm trimmed six to eight months off the typical development timetable
in order to bring the product to market in August.  He expects the first-month
orders will bring in between $600,000 and $1 million to Code-Alarm, with the
potential of adding $4 million to $6 million in revenue to the company after
its first 12 months on the market.
    "We see this partnership with Ford as a cornerstone in our plan to
regenerate top-line growth and bottom-line profitability at Code-Alarm,"
Schroeder said.  "Next month, Code-Alarm plans to launch an exciting new
technology that we know will revolutionize the mobile electronics marketplace.
Ford's adoption of the remote starter technology now means it will be well
positioned to take full advantage of our new cutting-edge products over the
months to come."