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LOCKHEED AND AT&T FORM DEVELOPMENT AND MARKETING ALLIANCE FOR INTELLIGENT TRANSPORTATION SYSTEMS

 LOCKHEED AND AT&T FORM DEVELOPMENT AND MARKETING ALLIANCE
 FOR INTELLIGENT TRANSPORTATION SYSTEMS
 SHORT HILLS, N.J., April 13 /PRNewswire/ -- The Lockheed Corporation (NYSE: LK) and AT&T (NYSE: T) today announced a business alliance to apply their technical and systems to expertise to the emerging "intelligent" transportation market.
 The two Fortune 50 companies have signed an agreement to jointly pursue such opportunities in the United States and abroad. This initiative is a response to the Intermodal Surface Transportation Efficiency Act of 1991, which calls for enhancing roadway capacity, safety, efficiency and air quality through the development of new systems and applications -- collectively identified as Intelligent Vehicle Highway Systems (IVHS).
 The IVHS marketplace is valued at more than $200 billion over the next 20 years in the United States alone, according to industry experts.
 "We are delighted to take up the challenge and turn our collective strengths toward bringing the nation's surface transportation system into the 21st century," said Daniel M. Tellep, chairman of the Lockheed Corporation, noting that the effort would also serve Lockheed's diversification goals. "This partnership will provide Lockheed with an excellent opportunity to leverage its technology toward non-defense initiatives. Together, Lockheed and AT&T will help government confront problems that cause many billions of hours of delay, waste billions of gallons of fuel annually, and add sharply to pollution and the costs of doing business," he said.
 "Our companies are ideally paired to tackle these crucial tasks," said Robert Kavner, group executive, AT&T Communications Products. "We have the technology, experience and commitment to make a significant difference in providing solutions for the road and transportation networks of the future. IVHS is a logical extension of AT&T's commitment to help people communicate any time, anywhere," he said.
 AT&T brings to the partnership its expertise in computer processing; "smart card" technology; wireless and lightwave transmission of voice, data and video; and the design and management of complex communications networks. Lockheed brings its sophisticated systems integration skills, software capabilities and in-depth knowledge of the transportation marketplace.
 The two companies are at the cutting edge of the Intelligent Vehicle Highway Systems field.
 Electronic collection of vehicle tolls is a key component of IVHS, and Lockheed has already installed the first electronic toll collection system in the United States. Lockheed is also operating the first automatic truck revenue collection and weigh-in-motion highway network-- linking six states and British Columbia.
 AT&T Bell Laboratories has developed an electronic toll collection system that utilizes smart cards -- credit-card-sized devices with embedded microelectronics. Last year AT&T began working with Vapor Canada, Inc., to develop a smart-card-based toll collection system, and a similar system is also now in use in Italy. A single AT&T smart card could be used for many purposes -- for example, to pay tolls in different states, parking fees and mass transit fares.
 AT&T is also developing a system for monitoring traffic flow via video transmissions from the roadside, and is pioneering the use of speech recognition and synthesis for traveler information services.
 AT&T and Lockheed will pursue other opportunities to manage traffic and provide strategic information to drivers. For example, new systems can detect accidents or breakdowns literally seconds after they occur. With this information, highway authorities can take remedial action immediately to reroute traffic and re-set signal lights to accommodate the increased flow diverted around the breakdown. With the early detection of the problem, repair vehicles can be dispatched instantly to remove the blockage.
 Drivers will also benefit in the future from advance information on traffic and road conditions so they can make the best choice before departure and avoid tie-ups en route. The advice could be provided by electronic road signs, in-car information screens and computer- synthesized voice instructions. It may even be possible for drivers in the future to call up live images of the road miles ahead of them on their video screens.
 The efficiency of freight delivery can also be greatly enhanced. Most toll booths, weigh stations and ports of entry require trucks to stop, with costs ticking away at a dollar per minute. Modern technology can detect all the required regulatory information -- from weight to fuel tax allocation -- and ensure that appropriate revenue is collected, while trucks maintain highway speed.
 "It's time to begin creating state-of-the-art highways," said Peter Skarzynski, managing director of IVHS Communications Systems at AT&T. "Pouring concrete is no longer the best answer to our traffic problems. We should be making our roads smarter, not wider," he said.
 "With highway volume projected to increase exponentially, we have no choice -- we either confront the problems or face the dire consequences," said John Brophy, president of Lockheed IMS (Information Management Services), which will coordinate Lockheed's role. "Fortunately, government has taken the lead -- and companies like Lockheed and AT&T are investing their resources, talents and energies to provide innovative solutions to protect and enhance our quality of life," he said.
 Lockheed IMS, headquartered in Teaneck, N.J., is a full-service data processing and systems integration company specializing in providing solutions for transportation issues for 140 local and state government agencies. It is a subsidiary of Lockheed Corporation, headquartered in Calabasas, Calif., a world leader in space systems technology, software engineering, computer science and intelligent systems, communications and surveillance satellites, and military defense aircraft.
 AT&T IVHS Communications Systems, headquartered in Bridgewater, N.J., is responsible for developing and marketing products and related services for the intelligent-transportation industry. It is a unit of AT&T, the world's leading information movement and management company.
 Additional Background on
 Intelligent Vehicle/Highway Systems
 Most people consider their bumper-to-bumper commute to and from work to be their own personal nightmare. But the fact is that traffic congestion in the United States has become a national problem with ramifications from our balance of trade to the quality of our air.
 The General Accounting Office last year estimated that delays from traffic congestion result in productivity losses of up to $100 billion annually in the United States. The same congestion wastes two billion gallons of fuel annually, contributing to our dependence on foreign oil and balance of payments problems.
 And the situation is getting worse: it has been estimated that if California doesn't find a way to eliminate its traffic congestion, by the year 2000, the average speed on highways in that state will be only 11 miles per hour.
 If it were just a matter of wasted time and commuter aggravation, it would be bad enough. But traffic congestion results in more accidents, added air pollution and an increased cost of doing business for any company needing to move products or materials from one place to another.
 This isn't a problem we can build our way out of. The construction of new highways and widening of existing roads is prohibitively expensive, cannot keep pace with the demand in our larger urban areas, and is actually prohibited in some cases by the Clean Air Act Amendments of 1990.
 AT&T and Lockheed have the technology and know-how to solve this problem today. The answer is a group of technologies known collectively as Intelligent Vehicle/Highway Systems, or IVHS. IVHS seeks to apply today's electronics, communications and information processing technologies to improve the efficiency and safety of surface transportation.
 The IVHS technologies can be grouped into five overlapping categories: commercial vehicle operations, electronic toll collection, traffic management, driver information systems, and automated vehicle control.
 Commercial vehicle operations systems allow specific vehicles to be located, classified, weighed and identified for taxation and other purposes while in motion. Lockheed is now operating the first automatic truck revenue collection and weigh-in-motion system in six Western states and British Columbia. The system uses transponders in each vehicle that send radio signals to antennas at fixed points along the highways. For weight information, the system uses road-mounted sensors.
 An extension of vehicle identification technology, electronic toll collection allows a driver to pay a toll without stopping or even slowing down -- or fumbling for change -- by identifying the moving vehicle and arranging for automatic payment. Lockheed is a leader in automatic vehicle identification and toll collection systems, and has systems installed in Louisiana, Delaware, Maryland, Virginia, New Jersey and Georgia.
 AT&T has taken electronic toll collection technology one step further, providing two-way communication between the car and tollbooth. In AT&T's systems, drivers use smart cards -- small plastic cards with embedded microprocessor and memory chips. The cards contain information about individual drivers and the amount of credit they have available.
 As they approach a toll-collection area, drivers merely insert their personal smart card into a small radio transponder. Receivers mounted above the road or in the pavement communicate with the dashboard card box, noting the locations where the car entered and exited the highway. The card could operate as a prepaid debit card, or as a credit card with a running account and monthly billing. The toll amount is transmitted back to the dash-top communicator and a record of the transaction is written onto the card.
 The entire transaction takes only milliseconds. The system could even be configured to calculate a variable toll, based upon the distance traveled.
 For commercial operators, the same smart card could also be used to record vehicle weight, manifest and state permits, as well as to pay for gas and repairs.
 Traffic management systems attempt to redistribute traffic from congested areas to routes with excess capacity by giving drivers early- warning advisories. Video motion detectors along highways and photonic sensors embedded in the roadway itself will detect stalled or stopped vehicles and traffic backups. This traffic flow data will be transmitted to a traffic control center, which will send messages back to approaching vehicles, advising them and routing them around the congested area. This system will also permit emergency vehicles to be dispatched much more quickly than is possible today.
 Advanced driver information systems will provide drivers not only with information on congestion, but also navigational assistance. Some of this information will come in the form of pre-trip electronic route planning and electronic signs along the roadside with variable messages. But in-car navigational and route planning systems are also being developed. A video screen in a car's dashboard, for example, could show the location of all traffic jams within a ten-mile radius -- or call up images of the traffic conditions at that moment miles ahead.
 Perhaps the most ambitious of the IVHS technologies is automated vehicle control. At their most basic level, such systems would provide drivers with warnings based on data collected by on-board sensors. More advanced systems would intervene to manage critical situations automatically.
 AT&T is offering the first automated system for registering vehicles. The system is based on the automated banking machines developed by AT&T's subsidiary, NCR, and is designed to be installed in shopping malls and other convenient locations. In the future, these same kiosks may also provide traveler information, such as public transit routes and schedules.
 The federal government clearly recognizes the potential of IVHS. With the enactment of the Intermodal Surface Transportation Efficiency Act in December 1991, the Administration and the Congress ratified $659 million in federal funding for IVHS over the next six years. In a 1991 report for Congress, the General Accounting Office predicted that IVHS has the potential to cut the average commute by as much as 50 percent in urban areas, and to reduce automobile emissions by up to 15 percent.
 The IVHS market in the United States is estimated at $212 billion over the next 20 years. This will make IVHS one of the largest transportation programs in history.
 Most of America's transportation infrastructure is based on technologies that originated in the late 19th and early 20th centuries. The limitations of these technologies are now becoming apparent. Together, AT&T and Lockheed will bring the nation's transportation network into the 21st century, making driving fun again.
 -0- 4/13/92
 /CONTACT: Michael Jacobs of AT&T, 201-564-3836, or home, 201-736-0939; Lloyd Kaplan, 212-489-6900, or home, 212-721-5521, or Ned Steele, 212-489-6900, both of Howard J. Rubenstein Associates, for Lockheed; or Wendy Kouba of Lockheed, 201-996-7120/
 (T LK) CO: AT&T; Lockheed Corporation ST: New Jersey IN: TRN SU: JVN


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