Cellport and Magna Donnelly in Licensing Pact

Tier 1 Auto Supplier Adopts Cellport's Two-Part Universal Connectivity Architecture

BOULDER, Colo., November 4, 2002 -- Cellport Systems, a world leader in providing universal connectivity solutions for automotive wireless communications and telematics systems, today announced it has entered into a worldwide technology licensing, engineering and marketing collaboration agreement with Magna Donnelly, a technology-driven, customerfocused automotive supplier based in Holland, Michigan.

Magna Donnelly is the latest participant in the Cellport licensing community comprised of leading vendors from the wireless and automotive industries working together to advance Cellport’s communications and connectivity platforms for automotive telematics. By licensing Cellport's patent portfolio of core wireless connectivity technologies and other intellectual property, vendors are able to develop, manufacture and sell universal hands-free wireless phone and advanced telematics products and services for automotive OEM applications and aftermarket installations. Cellport's other licensees include Motorola, Omron Corporation of Japan, Peiker Acustic and ALAC GmbH, both of Germany.

"This agreement with Magna Donnelly is an endorsement of our two-part universal connectivity architecture and our belief that consumers are most interested in automotive telematics systems that make use of the wireless phones they already have, something also borne out by a recent Gartner survey," said Pat Kennedy, chairman and CEO of Cellport Systems. "Last year, we saw tremendous growth in Europe for products based on our patents, and with the addition of a highly skilled Tier 1 automotive supplier like Magna Donnelly, we have high expectations for similar success in the US and other parts of the world."

In a new report, "Telematics Industry Outlook: Think Outside the Vehicle," Gartner researchers found that only 1.3 percent of U.S. households said they would choose telematics services in a new vehicle over the next year. However, the survey also showed that nearly 50 percent of U.S. consumers would likely get a telematics application in their next new vehicle if it let them to use their existing cell phones in a hands- free, voice-activated manner. According to Kennedy, sales of products based on the Cellport two-part universal connectivity architecture have grown in Europe from 80,000 units in 2001 to 450,000 units this year, and could easily double again next year.

Today's announcement also marks a significant milestone in Cellport's efforts to transition away from directly providing products to the automotive industry to focusing solely on developing and promulgating solutions for in- vehicle wireless connectivity. Cellport and other licensees will continue to develop Pocket Adapters in conjunction with wireless phone OEMs. Cellport's two-part universal connectivity architecture consists of a patented Universal Docking Station and phone-specific Pocket Adapters that accommodate cell phones of various makes and models. This system enables drivers to easily dock different cell phone models and take advantage of future technologies such as Bluetooth with the added benefits of critical battery charging and external antenna capabilities.

Cellport's intellectual property portfolio is a key strategic asset of the business and representative of its vision of wireless and Internet connectivity focused on vehicle environments. The initial work in universal handset connectivity sparked a parallel track of development in wireless data connectivity to vehicular networks. Cellport has created a substantial body of intellectual property related to these areas, providing a unique assembly of "glue" technologies that enables interoperability among devices and services.


About Cellport Systems
Cellport Systems is a world leader in providing in-vehicle wireless communications and telematics systems. The company's substantial patent portfolio positions it for continued leadership in the telematics industry. The Cellport Global Partners program is rapidly expanding Cellport's connectivity technology around the globe through unique strategic partnerships and licensing relationships with partners in Europe, North America and Asia. Investors in Cellport Systems include AT&T Wireless Services, Cisco Systems and Omron Corporation. The company is privately held, with corporate headquarters in Boulder, Colorado and a regional office in Tokyo. For more information, please visit the Cellport Systems web site at www.cellport.com

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Cellport 3000 is a trademark of Cellport Systems.
For additional information contact Cellport at 303-541-0722.