Omron Cellport Telematics, Inc. Set to Launch

Part of Larger Global Alliance, Joint Venture Takes Aim at Emerging Asian Telematics Markets

BOULDER, Colo., and KYOTO, Japan, December 12, 2001 -- The new global alliance announced last June between Cellport Systems, Inc., a leading provider of automotive wireless communications technologies and products, and Omron Corporation, a diversified technology company, bore its first fruit today as the two companies set the launch date for Omron Cellport Telematics, Inc. (OCTI), a joint venture company based in Japan. Aiming to begin business in January, 2002, OCTI will operate throughout Asia to provide rapid and flexible development of new telematics products for Japanese auto manufacturers both in Japan and the U.S. and for the Asian aftermarket.

Furthering their alliance, the partners also announced Omron will begin manufacturing Cellport universal hands-free connectivity platforms through its wholly owned subsidiary, Omron Okayama, in Japan. Omron plans to supply these units to Cellport beginning in July 2002, and then gradually start supplying them directly to auto manufacturers around the world. As demand for their products grows, Omron expects to expand production to its manufacturing facilities in China and North America.

"Through our strong alliance with Cellport Systems, Omron is now in the best position to develop and exploit the rapidly growing telematics market," said Hideki Masuda, executive vice president and director of Omron Corporation. "Together, Omron, Cellport, OCTI and Cellport Global Partners are creating an irresistible force to drive the establishment of a global telematics connectivity standard."

OCTI will marry Cellport's advanced wireless, in-vehicle connectivity technologies and products with Omron's extensive machine-to-machine (M2M) expertise and "information sensing" technologies. By combining their strengths, the two companies believe they can achieve a leadership position in developing, producing and marketing innovative gateway technologies and products for delivering and accessing in-vehicle cell phone and Internet-based services, and set a de facto global standard for the telematics industry.

"Cellport's innovative technology portfolio combined with Omron’s global production and servicing networks sets the stage for a new telematics juggernaut," said Pat Kennedy, chairman and CEO of Cellport Systems. "We look forward to working closely with Omron on this exciting new venture."

Cellport and Omron will also work together through the joint venture and Cellport Global Partners to develop and produce new products and technologies and market them in the high-growth telematics markets of Japan, China and the rest of Asia.

Mitsubishi Research Institute estimates the Japanese telematics market will reach 945 billion yen in 2010, up from an estimated 460 billion yen in 2001.

About Cellport Systems

Cellport Systems is a world leader in providing in-vehicle wireless communications and telematics systems. The company’s products include the Cellport 3000, the industry’s first universal hands-free platform and the Cellport 3000 with Voice Command. The company’s substantial patent portfolio positions it to continue its leadership position as the telematics industry is further developed and defined. The Cellport Systems Global Partners program is rapidly expanding Cellport 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 and Cisco Systems. The company is privately held, with corporate headquarters in Boulder, Colo. and regional offices in Detroit, Michigan and Tokyo, Japan. 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.