AT&T Wireless Services invests in technology lab to accelerate creation of local area networks in vehicles; CellPort technology to transform relationship between car and driver, offering wireless subscribers increased safety options, new venue for voice and data applications.

BOULDER, Colo.--(BUSINESS WIRE)--Oct. 23, 1995--AT&T Wireless, the nation's largest wireless services provider, has purchased an equity stake in CellPort Labs Inc., a developer of wireless-connectivity technology providing a universal interface to create local area networks (LANs) in vehicles.

The investment will enable CellPort Labs to rapidly bring to market technology that will accelerate the long-awaited convergence of wireless communications and vehicle electronics systems.

"CellPort, our universal-connectivity adapter for wireless and electronic devices, has the potential to shift this nation's fundamentally isolated automobiles into the world of interactivity," said Pat Kennedy, chairman and chief executive officer of CellPort Labs. "AT&T's financial and strategic support will be instrumental in moving CellPort's patented technology quickly from development into the hands of our licensees."

The CellPort technology breakthrough will transform the wiring of electronic devices in today's cars and trucks into mobile, intra-vehicular LANs. The vehicular devices could be connected to any analog or digital cellular/PCS (personal communications services) handheld telephone -- regardless of brand or airlink standard used -- with a "smart" universal interface.

This capability will provide additional solutions to consumer safety demands, create a new revenue opportunity for auto manufacturers, and encourage additional wireless-industry growth through new voice and data applications.

"AT&T Wireless wants to accelerate development of this technology because we believe CellPort will benefit not only current cellular subscribers but eventually anybody who drives or rides in a car," said Steve Hooper, chief executive officer of AT&T Wireless Services. "The universal-phone to vehicular-LAN concept will revolutionize the way people use their cars in the same way both LANs and modems transformed the way people use personal computers. The wealth of potential safety applications alone is tremendous."

"As the leading provider of cellular data services and an innovator in wireless data technology, we are pleased to support the development of CellPort Labs' technology," said Kendra VanderMeulen, vice president and general manager of the Wireless Data Division of AT&T Wireless Services. "By incorporating data capabilities into the CellPort universal-connectivity adapter, CellPort Labs will help us ensure that our customers can use vehicle-based data applications to their maximum benefit."

Possible applications for CellPort include:

-- Automatic 911 dialing when an airbag is deployed. The vehicle would be located using a global positioning system (GPS), with paramedics dispatched to the site.

-- Short message display on dashboard. Incoming short messages and news on cellular/PCS telephones would be relayed to a display on the dashboard so the driver doesn't have to pick up the handset.

-- Intelligent traffic systems. Using GPS systems once again, the vehicle would be located and provided -- upon the driver's request -- with route guidance and recommendations for bypassing traffic jams. Information would be displayed on a dashboard screen.

-- Remote vehicle access. An automobile mechanic, at the car owner's request, could remotely dial into the car's computer system to determine a mechanical problem, make recommendations for repairs, provide a repair cost estimate, schedule an appointment or even unlock a car door.

-- Car-jacking protection. A driver in the process of being car-jacked could press an emergency button, which automatically would be set to dial the police upon activation to inform them a car-jacking is in progress. GPS would be used to locate the crime scene and track the car if it is stolen from the person.

-- Package-delivery management. Vehicle- and package-tracking software could be centrally located at the cellular switch or remote server, with the software capabilities distributed so that smaller delivery companies could afford the same management capabilities as larger companies.

Technology and Market Background

CellPort is an enhancement to the successful first product developed from CellPort Labs' universal-connectivity technology. The universal car kit, marketed under the trade name CellBase(TM) by the company's licensee Hello Direct, enables any wireless phone to interface with a common base unit through an adapter "pocket" that automatically configures the base unit for use with the specific phone being used.

The universal car kit, which offers hands-free, power, charging and external-antenna capabilities, has provided a cost-effective solution for handheld phone users who want to use their phones in multiple cars. Traditionally, car kits have been manufactured for a specific handheld -- meaning other phones are not compatible with it. Switching phones or cars thus has meant buying a new car kit.

The universal interface used in the car kit serves as the basis for the CellPort universal-connectivity technology. The new product enhances the universal car kit's features by adding a connectivity-control platform for creating a wireless-phone to vehicular-LAN capability.

"CellPort offers a framework for safer and more flexible wireless-phone operation as well as additional applications for handheld users, which now make up 80 percent of the cellular market and use their phones predominately in vehicles," said Kennedy.

"CellPort also provides the auto industry with an opportunity to make money in the wireless business," Kennedy said. "Auto manufacturers have had problems making a profit from installing cellular phones in their cars. This technology enables them to install a universal interface at a much lower cost and let customers decide what type of phone they want."

It also keeps auto makers out of the "alphabet soup" airlink dilemma of whether to install CDMA (Code Division Multiple Access), TDMA (Time Division Multiple Access) or GSM (Global System for Mobile Communications) phones.

CellPort Labs already is in discussions with automotive and component manufacturers. Prototypes will be available in early 1996, with initial production capabilities in the second half of 1996. The consumer price for CellPort is expected to be just over $100.

CellPort Labs Inc., based in Boulder, Colo., is a privately held development and licensing laboratory specializing in wireless universal-connectivity technology. Its mission is to create, develop and license technology and products that expand the safety, value and capabilities of wireless voice and data communications in vehicle, home and office environments.

CONTACT: CellPort Labs Inc.

Pat Kennedy, 303/541-0722

Patrick Corman, 415/326-9648

or

AT&T Wireless Services

Bob Ratliffe, 206/828-8685