Cellport Systems and Omron Corp. Form Alliance

Partnership Seeks to Become Global Force in Emerging Automotive Telematics Industry

BOULDER, Colo., and KYOTO, Japan, June 25, 2001 -- Seeking to set the standard for the emerging automotive telematics industry, Cellport Systems, Inc., a leading provider of automotive wireless communications technologies and products, and Omron Corporation, a diversified technology company, today announced an extensive partnership agreement to develop, produce and market globally new products and technologies to enable wireless, in-vehicle voice and data services. Cementing their relationship, Omron and Cellport systems will establish a joint venture company based in Japan. Omron also will invest approximately $10 million in Cellport Systems, and the two companies will join forces through a global partner agreement to promote open telematics technology and business.

The partnership will combine Cellport's advanced wireless, in-vehicle connectivity technologies and products with Omron's extensive machine-to-machine expertise and sensing and voice/face recognition 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.

"The next generation of always-on mobile telephone networks combined with M2M telematics will create one of the most exciting and potentially lucrative communications environments for voice and data services, and Japan leads the world in making it a reality," said Pat Kennedy, chairman and CEO of Cellport Systems. "Working together, we are ideally positioned to seize this opportunity and set the global telematics standard the auto industry needs to open the door to a flood of new in-vehicle applications."

"Our two companies share a common vision of how the telematics industry will evolve and what is needed to make it a reality, and today's announcement underscores our commitment to become a driving force in the industry," said Hideki Masuda, executive vice president and director of Omron Corporation.

The partnership enables Omron to develop new products based on Cellport's core patented technologies, which are the key enablers to creating smart telematics vehicles: interfacing portable phones universally to vehicles and connecting vehicles electronics to the Internet over diverse wireless networks. Omron will immediately begin marketing Cellport's current products, including the new Cellport 3000 with Voice Command. Cellport and Omron will also work together through the joint venture 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.

Omron's investment in Cellport makes it the second largest investor after Cisco Systems and on the same level with AT&T Wireless. The decision to invest was based on Omron's expectations of greater expansion through technological exchanges and joint development.

According to McKinsey & Company, automotive telematics could generate up to $100 billion -- depending on customer demand and regulatory decisions -- in the United States, Japan and Western Europe by 2010.

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.