Daimler-Benz Research and Technology previews first "Internet on Wheels" technology; future Mercedes-Benz drivers and passengers to access Cyberspace from their seats.

PALO ALTO, Calif.--(BUSINESS WIRE)--April 30, 1997--Daimler-Benz Research and Technology Center (RTC) has marked its first 18 months in operation by demonstrating technology, for the first time, to link cars to the Internet.

"This demonstration offers a glimpse of the directions we are pursuing and services we will offer," said Paul Mehring, RTC director and president of Daimler-Benz Research and Technology North America.

"Orchestrating advanced technologies into a system that enables a car to function as a node on the Internet opens up a completely new dimension of options and services that will be delivered to the car and back to the information infrastructure. Needless to say, while such systems are likely to be five to ten years away from market reality, we are delighted to be first to demonstrate these concepts."

The Internet Multimedia on Wheels concept car demonstrated today integrates the Internet, multimedia, wireless connectivity and other advanced technologies like speech recognition to demonstrate some of the possibilities for bringing the computing and communications revolution into a mobile environment while, at the same time, optimizing driver and passenger safety.

"This concept demonstration shows the exciting potential of this technology," said Dataquest industry analyst, Xavier Pucel. "Since the design cycle for automobiles is at least three or four years long, it's very important that this technology is being premiered in its earliest stage so that it can be included in future plans."

Today's announcement caps a series of technology announcements by Daimler-Benz this month. On April 11, Daimler-Benz InterServices launched the world's largest intelligent route guidance system in Tokyo, and on April 14, Daimler-Benz AG and Ballard Power Systems announced their agreement to combine their efforts to further develop their industry leading fuel cell engine technology for production vehicles.

Inside the "Cyber Mercedes"

In the front seat, the driver and front passenger share a multi-media computer screen for Internet-based services in the center of the dashboard, which in the future could include traffic conditions and dynamic navigation services.

The back seat is more visual and interactive. With their multi-media screens, which are embedded in the backs of the front head restraints, passengers can use various interactive devices like handheld controls and wireless keyboards to access interactive games and the Internet as well as navigational services, infotainment, and office applications. Built-in infrared transceivers will allow passengers to integrate their handheld personal computers (HPCs) into the car's embedded system.

In addition, the center armrest in front has a slot for a personal device like an electronic organizer or a smart card (similar to a phone card) to enable the driver to bring in personal information and preferences such as electronic calendars and bookmarks for Internet services. From the car, this information can be updated and synchronized with the home or office over the Internet.

"The engineering wizards at Daimler-Benz have done it again, but this time the innovation is not in the automotive technology, it is in the information technology," said Randy H. Katz, UMC Distinguished Professor and Department Chair, Electrical Engineering and Computer Science Department, University of California, Berkeley. "It is much more than GPS position location, or tracking stolen cars. We are talking about always staying connected and getting work done, even while you are stuck on California's freeways!

"This is the start of a revolution in connectivity to the true business mobile platform: the automobile. It is the kind of engineering breakthrough we expect from a company like Daimler-Benz: the first fully Internet-capable automobile."

Emerging Markets

Access to Internet services from a car will create a new market for products and services. Examples include: intelligent roadside assistance, in which the car can be located and diagnosed remotely and personal intelligent travel software that programs a route, taking into account the latest updates on traffic conditions and road work.

Additionally, personalization and "push" technologies that enable users to receive only the type of information they wish (customized Pointcast-style headlines, regional weather reports, stock quotes, etc.) will provide drivers and passengers with a customized mobile information environment they might access with voice commands. The Daimler-Benz RTC expects to preview the first of these services later this year.

About RTC

Daimler-Benz Research and Technology North America, Inc., is Daimler-Benz's first inter-continental research outpost. Its Research and Technology Center in Silicon Valley conducts original research for the entire Daimler-Benz Group, and it focuses on four areas:

-- Transportation and Mobility includes research on Internet Multimedia on Wheels, Internet-based customer services, advanced mobility systems and services, and advanced automotive technologies.

-- The NET focuses on Internet multimedia, online services and ubiquitous Internet.

-- Intelligent Systems deals with personalization, adaptive agents, and distributed intelligence and provides both Transportation and Mobility and The NET with learning and smart technologies.

-- Society and Technology surveys and analyzes factors in the business environment, societal change and lifestyles, and systems and methods to support future products and production processes.

About Daimler-Benz

Daimler-Benz is the world's most comprehensive provider of technologically advanced transportation products, traffic systems and services, with 290,000 employees and revenues of approximately $70 billion. Daimler-Benz is focused on the development and manufacture of Mercedes-Benz cars and commercial vehicles, Freightliner trucks, rail systems, diesel engines and microelectronics. Daimler-Benz Aerospace builds aircraft and space systems and Daimler-Benz InterServices provides leasing and sales financing, mobile communications and information technologies.

North America, where Daimler-Benz employs more than 18,000 people, is the largest regional market outside of Europe, accounting for approximately 20 percent of worldwide revenues. In 1993, Daimler-Benz became the first German company to list its stock on the New York Stock Exchange (symbol: DAI). -0-

Note to Editor's: Full press kit, including Internet on Wheels white paper, schematic diagrams, glossary and fact sheet available.

Photos available via PhotoWire and www.rna.daimlerbenz.com/news/mmc.html or http://www.daimler-benz.com/presse/foto.htm

Location: 1510 Page Mill Road Palo Alto, CA 94304 Tel: [phone] Fax: [phone] [e-mail] http://www.rtna.daimlerbenz.com

CONTACT: Daimler-Benz Research and Technology Center

Paul M. Mehring, 415/845-2510

[e-mail]

or

Daimler-Benz North America Corporation

Bernhard Harling, 212/909-9717

[e-mail]

or

Public Relations Consultant

Winnie Shows, 415/323-7721

[e-mail]