Code-Alarm and Auto Club of America Team to Provide Telematics-based Navigation, Concierge and Emergency Services
3 January 2001
Code-Alarm and Auto Club of America Team to Provide Telematics-based Navigation, Concierge and Emergency Services
MADISON HEIGHTS, Mich., Jan. 3 Code-Alarm, Inc.
(Other OTC: CODL) today announced an alliance with Auto Club of America (ACA)
that will make ACA's established driver safety, security, and convenience
services an integral part of Code-Alarm's consumer vehicle telematics systems.
Earlier this month, Madison Heights-based Code-Alarm announced its intent
to develop telematics systems -- "location-specific" mobile Internet portals
for consumer vehicles. The company's first product is expected to launch in
the first quarter of 2001.
Under the alliance with ACA, the nationwide organization will provide
real-time, location-specific information and assistance for drivers with Code-
Alarm telematics systems. ACA will utilize its highly developed member
support infrastructure to deliver a variety of services, including:
* Emergency Medical Assistance
* Roadside Assistance, Towing and Repair
* Navigation Services
* Hotel Locator and Reservation Service
* National ATM Locator Service
A vehicle equipped with telematics can send and receive a wide variety of
navigation and helpful concierge data, such as nearest restaurants, gas
stations or parking lots. Since telematics systems utilize two-way
communications, they can also provide pinpoint location information in case of
an accident, health emergency or vehicle theft.
"Telematics technology has tremendous potential for consumers, but that
potential will only be realized through the delivery of reliable and useful
information. We are very pleased to have an alliance with Auto Club of
America, one of the most respected sources for travel information and support
anywhere," said Rand Mueller of Code-Alarm, Inc. "With this alliance, drivers
with Code-Alarm telematics systems will enjoy the highest possible levels of
safety, security and convenience."
"ACA is always looking for ways to extend our services through new
technologies. Code-Alarm clearly has the industry vision, technical
experience and distribution strength to establish itself as a leader in
consumer telematics. We see this alliance as the best way for ACA to bring
our strengths to a growing, highly discerning market," said Joe Belz of Auto
Club of America.
A recent report by UBS Warburg estimates a large potential market in
telematics, stating that consumers worldwide will spend about $4 billion to
connect their vehicles to outside data sources. The study predicts that
number to rise to $24 billion by 2005.
About Code-Alarm
Code-Alarm manufactures remote vehicle control systems for the world's top
automakers, including General Motors, Ford, DaimlerChrysler, Mitsubishi,
Subaru, Honda, Toyota, Kia, Mazda 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 and
content protection, remote keyless-entry and remote car starters. Visit Code-
Alarm on the web at http://www.code-alarm.com .
About The Auto Club of America
The Auto Club of America was founded in 1976 to serve the needs of
motorists and travelers. It serves consumers directly from its website at
http://www.autoclubofamerica.com , through affiliated sites such as
warrantygold.com , driversshield.com and Autoworld.com and through an
independent sales force. It also has a strong business-to-business presence,
providing private label programs for companies such as Liberty Life Insurance
Company, American Airlines Federal Credit Union, and Bank of Hawaii. ACA's
unique quality is to properly define market segments and package programs that
are attractive to those segments. Its support staff processes all consumer
communications professionally and in a timely manner. For complete
information about Auto Club of America, visit its website at
http://www.autoclubofamerica.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained in this news release include certain
predictions and projections that may be considered forward-looking statements
under securities law. These statements involve a number of important risks
and uncertainties that could cause actual results to differ materially
including, but not limited to, the performance of the automotive industry,
certain customers and affiliated companies, as well as other economic,
competitive and technological factors involving the Company's operations,
markets, services, products and prices.