Car Industry Drives Bluetooth Into The Mainstream; Wireless Industry Sees In-Car Use as Definitive Application, says TDK Systems.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Oct. 22, 2002

Legislation prohibiting the use of handheld mobile phones in cars is spurring car manufacturers to fast-track the implementation of Bluetooth into the dashboards of many 2003 models.

Several car manufacturers, such as Saab, Ford, Volvo and Daimler Chrysler, have announced plans to integrate Bluetooth into the dashboard. A study by research firm Allied Business Intelligence (ABI) predicts that while just 1 percent of new vehicles will include embedded Bluetooth nodes in 2003, that number will swell to 19 percent by 2007. As a short-range radio frequency technology that carries both voice and data, Bluetooth provides a safe, hands-free and cordless option for making mobile calls whilst driving.

"The car industry has a lengthy development cycle with even the smallest design modifications taking years to appear on the showroom floor," said Nick Hunn, managing director of TDK Systems. "In the case of Bluetooth, however, all of the big players are moving mountains to make it happen by next year. It will go into the top-of-range models first but cascade into mid-range models by the year's end."

Nick Hunn explained the car industry's interest in Bluetooth by citing General Motors' research, which found that 70 per cent of all mobile calls in the US are made by people traveling in cars.(1)

"The car manufacturers want a universal solution that will enable them to match all of the cable permutations for the various entertainment systems, communications devices and `toys' that people want in their cars," said Hunn. "They want a Bluetooth profile that supports voice and data and is interoperable with the many different Bluetooth-enabled handsets that are available today."

For more information about TDK Systems, please visit the LEWIS Virtual Press Room at http://www.lewisvpr.com/clients/tdk.html or www.tdksystems.com.

(1) As stated at the Bluetooth World Congress 2002 in Amsterdam

About TDK Systems

TDK Systems, part of the $5.6 billion TDK Corp. (NYSE: TDK), specializes in the design and development of products for the wired and wireless markets. TDK Systems' strong understanding of both PC and telecoms places it in a unique position to develop solutions for the wireless market. The company is a founding member of the Bluetooth Consortium and is actively researching and developing solutions for next generation networks. All of TDK Systems' designs are aimed at turning wireless into a practical end-user solution, providing the ultimate in compatibility and interoperability.