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ERG/Motorola Alliance Wins Contract To Supply Smart Card System for Singapore Public Transit Network.

SINGAPORE--(BUSINESS WIRE)--April 5, 1999--ERG Limited and Motorola's Worldwide Smartcard Solutions Division (WSSD) have been awarded a US $78 million contract to supply an integrated smart card fare collection system for the public transport network of Singapore. The Land Transport Authority of Singapore awarded the contract for the Enhanced Integrated Fare System to the ERG/Motorola alliance following an extensive international tendering process over the past seven months.

Five public transport operators will use the system, which includes approximately 3,750 buses as well as mass rapid transit (MRT) and light rapid transit (LRT) operations. The system will involve a total of 22,000 readers and an initial 5 million smart cards, making the Singapore system one of the largest integrated smart card based transit systems in the world.

Additionally, the contract provides for the alliance to deliver the infrastructure for smart card and back office operations. The back end system will be based on ERG's proven, highly automated and sophisticated central clearinghouse and data processing network. Motorola also will provide customized support services, including systems integration and maintenance.

When the system is fully commissioned in 2002, Singapore's travelling public will load money onto the smart card and then flash the card in front of a card reader, which deducts the appropriate fare. The system also supports a reload facility whereby the cards can be reloaded directly from the cardholder's bank account when the balance runs low.

The system will be designed so that further smart card applications can be added to the initial transit application. In the future, the system could also integrate electronic cash payments and other non-financial applications. There will also be an interface with the existing NETS cash smart card scheme.

The ERG/Motorola alliance bid for the project as a consortium that also involves key local Singaporean companies, including Singaporean Technologies Computer Systems, Keppel Engineering and Knowledge Engineering, to help carry out the work.

"Together with Motorola and our key subcontractors, we will expand our already proven smart card technology architecture to deliver Singapore the most advanced transit solution currently available," said Peter Fogarty, ERG's chief executive officer. "The transit authorities in Singapore have always been considered market leaders, and their decision to choose our technology is a great endorsement. The ERG/Motorola Alliance intends establishing a smart card center of excellence in Singapore to support this project, and to promote the use of multi-application smart cards throughout the region."

"We are committed to making the Singapore Project a showcase for the smart card industry. It is a critical project in our strategy to provide our valued customers worldwide with the most user-friendly and most advanced integrated smart card transit solution," said Francois Dutray, Motorola's vice president and general manager, WSSD. "Motorola already has a strong presence in Singapore, and we look forward to expanding our activities there."

The award of the contract to the ERG/Motorola Alliance follows the recently announced smart card contract in Berlin.

The ERG/Motorola alliance combines ERG's world-leading smart card and magnetic ticket-based integrated fare collection application expertise with Motorola's innovative M-Smart(tm) world of flexible smart card platform solutions, its systems integration and its operational management capabilities. Complementary strengths of the alliance include complete wireless voice and data communication systems, location tracking and management and electronic purse operating experience.

ERG is a world leader in the development and supply of technologically advanced smart card systems and services; automated fare collection products and systems; and telecommunications products and services. ERG provides turnkey solutions to customers, from design and manufacture, to supply, installation, commissioning and ongoing service and maintenance. In 1997/98, Australian-based ERG's revenue totaled A$242 million. For more information on ERG visit: www.erg.com.au.

Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions such as software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers. Sales in 1998 were $29.4 billion. For more information on Motorola, visit www.motorola.com.

Motorola & M-Smart Venus are trademarks of Motorola, Inc.
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Publication:Business Wire
Geographic Code:9SING
Date:Apr 5, 1999
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