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Report Title: Intelligent Transportation Systems - Full Report

Date Published: 01/05/2008

Publisher: Global Industry Analysts

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Transaction ID: 96803
Order Date (GMT): 09/06/2009 12:17:18
INTELLIGENT TRANSPORTATION SYSTEMS MCP-1109
A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS
I. INTRODUCTION, METHODOLOGY & Components of Advanced Traffic Management Systems .....II-10
PRODUCT DEFINITIONS Detection Systems.............................................................II-10
Loop-Emulation/In-ground Detectors – The Precursor ....II-10
Study Reliability and Reporting Limitations ........................... I-1 Advantages of Advanced Video Detectors.................II-11
Disclaimers ............................................................................. I-2 Pan-Tilt-Zoom Cameras – A Step Forward ...................II-11
Data Interpretation & Reporting Level.................................... I-2 Urban Traffic Control Systems.............................................II-11
Quantitative Techniques & Analytics .................................. I-3 SCOOT .............................................................................II-11
Product Definitions and Scope of Study.................................. I-3 SCATS..............................................................................II-12
Advanced Traffic Management Systems (ATMS)............... I-4 SCOOT and SCATS – A Comparison ..............................II-12
Electronic Toll Collection Systems...................................... I-4 Electronic Toll Collection Systems...................................II-13
Public Vehicle Transportation Management Components of ETC......................................................II-13
Systems (PVTMS) ........................................................... I-4 Automatic Vehicle Identification ...............................II-13
Commercial Vehicle Operations (CVO) Systems ................ I-4 Automatic Vehicle Classification...............................II-13
Advanced Vehicle Information Systems.............................. I-4 Violation Enforcement Systems.................................II-13
Public Vehicle Transportation Management Systems
(PVTMS).......................................................................II-13
II. EXECUTIVE SUMMARY Commercial Vehicle Operations (CVO) Systems .............II-14
Advanced Vehicle Information Systems ...........................II-15
1. A Disparate Industry .................................................. II-1
Partners in Success - Key Enablers of Intelligent 6. In-Vehicle Intelligent Transportation Systems:
Transportation Systems....................................................... II-1
A Review .................................................................... II-16
Traveler Data, Advisory Systems, and Wireless
2. Market Snapshots........................................................ II-2
Vehicle Products & Services.............................................II-16
In-Vehicle Products..............................................................II-16
3. Industry Overview ...................................................... II-3 In Vehicle Intelligent Transportation Systems in the Past ....II-16
Traffic Congestion – Overriding Concern of Many The Present Scenario............................................................II-17
a Nation .............................................................................. II-3 Passenger Vehicle Applications ...........................................II-17
Intelligent Transportation Systems – Solution for Commercial Vehicle Applications........................................II-18
Today’s Traffic Congestion ................................................ II-3 Adopting Alliance as a Growth Strategy ..............................II-18
Efforts Towards Reducing Injuries & Easing Qualcomm ........................................................................II-19
Traffic Congestion.............................................................. II-3 Etak...................................................................................II-19
Rationale Behind Installation of ITS ...................................... II-3 General Motors .................................................................II-20
Factors Influencing ITS Market ............................................. II-4 Microsoft ..........................................................................II-20
Global Capabilities ............................................................. II-4 IBM/Sun Microsystems ....................................................II-20
Favorable Factors ............................................................... II-5 Other Alliances .................................................................II-21
Restraints............................................................................ II-5 Outlook ................................................................................II-21

4. Technological Trends & Enabling Technologies ...... II-6 7. Review of Application Areas .................................... II-22
Internet, X-Ray and DSRC: The Powerful Electronic Toll Collection ....................................................II-22
Trio Enabling ITS… ........................................................... II-6 Commercial Vehicle Operations...........................................II-22
Key Technological Trends in the ITS Market ........................ II-6 Incident Management........................................................II-22
Integration of ITS with Cellular Technology ...................... II-6 Commercial Vehicle Electronic Clearance........................II-22
ASTM’s Endeavor for ITS Architecture Standardization ... II-6 Automated Roadside Safety Inspection.............................II-22
Satellite-Based Truck-Tracking System.............................. II-7 On-Board Safety Monitoring ............................................II-23
Enabling Technologies........................................................... II-7 Commercial Vehicle Administrative Processes.................II-23
Radio-Frequency Identification (RFID).............................. II-7 Hazardous Material Incident Response .............................II-23
Electronic Tags................................................................... II-7 Commercial Fleet Management ........................................II-23
RDS-TMC .......................................................................... II-7 Traffic Management.............................................................II-23
Dedicated Short Range Communications (DSRC).............. II-7 En-Route Driver (Advisory) Information..........................II-23
Traffic Control ..................................................................II-23
5. Product Overview........................................................ II-8 Incident Management........................................................II-23
Introduction............................................................................ II-8 Travel Demand Management............................................II-24
ITS Integration.................................................................... II-8 Emissions Testing & Mitigation .......................................II-24
ITS Integration Program Objectives................................ II-9 Emergency Vehicle Management .....................................II-24
ITS System Architecture ................................................. II-9 Emergency Notification and Personal Security.................II-24
Segment Overview................................................................. II-9 Vehicle Safety Systems ........................................................II-25
Advanced Traffic Management Systems (ATMS).............. II-9 Longitudinal Collision Avoidance ....................................II-25

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page 1
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INTELLIGENT TRANSPORTATION SYSTEMS MCP-1109
A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS
Lateral Collision Avoidance ............................................. II-25 10. Recent Industry Activity........................................... II-35
Intersection Crash Warning & Control ............................. II-25 M.Tech Pockets Dambach....................................................II-35
Vision Enhancement for Crash Avoidance ....................... II-25 Magellan Partners with Primordial.......................................II-35
Safety Readiness............................................................... II-25 Iteris Wins Supply Contract for ITS Designs .......................II-35
Pre-Crash Restraint Deployment ...................................... II-25 The OHL Brasil Awards Contract to Telvent .......................II-35
Automated Vehicle Operations......................................... II-26 DRI Bags Order from WestCAT ..........................................II-35
Fleet Management................................................................ II-26 Telvent to Install Traffic Control System in Xinxiang..........II-35
Others (Control & Warning Devices)................................... II-26 NPRA Awards Service and Maintenance Contract to
Q-Free...............................................................................II-36
8. Key Issues .................................................................. II-27 INRIX Expands Partnership withTomTom Navigator..........II-36
Interoperation of ITS............................................................ II-27 Odeco Acquires Addco ........................................................II-36
Differences Between US & EU............................................ II-27 Nokia to Take Over NAVTEQ .............................................II-36
Government Policy Vis-à-vis ITS Projects........................... II-27 Telvent Pockets Caseta.........................................................II-36
Environmental and Safety Issues.......................................... II-28 Atlantia to Acquire Stake in ETC.........................................II-36
Privacy Issues....................................................................... II-28 IRD Buys 50% Stake in Xuzhou-PAT Control
Technologies.....................................................................II-36
9. Product Innovations/Introductions.......................... II-29 Federal Signal Takesover PIPS ............................................II-37
Addco and Odeco Enters Partnership ...................................II-37
Magellan Expands Roadmate® Series ................................. II-29
Total Traffic Network Expands Partnership with Inrix.........II-37
TeleNav Launches TeleNav Vehicle Tracker™ ................... II-29
Western Systems to Distribute Iteris' Vantage®
Iteris Unveils First LDW Data Collection Product............... II-29
Product Line .....................................................................II-37
Siemens Introduces Video Detection System,
Telvent Wins Supply Contract for Road Safety Systems......II-37
EagleVision ...................................................................... II-29
ICx to Supply Enhanced Transportation Systems for
Iteris Unveils New ITS Products.......................................... II-29
I-15 Corridor in San Diego ...............................................II-37
Image Sensing Systems Introduces Autoscope® Terra™ .... II-30
RouteMatch Bags US$1.6 Million Contract from
Traficon NV Introduces a Stand Alone, Multifaceted Rhode Island Public Transit Authority..............................II-38
VIP-T box......................................................................... II-30
Sam Houston Tollway Receives Approval ...........................II-38
Sirit Introduces Identity MaX in Europe .............................. II-30
Nestor Traffic Systems Secures Public Safety Contract
New Electronic Toll Collection System from From Californian Province................................................II-38
Japanese Inventors ............................................................ II-30
IRD Secures Work Zone Safety Contract Worth
Tele Atlas Provides Digital Maps to Egypt and CAD $ 550,000.................................................................II-38
Saudi Arabia ..................................................................... II-30
Siemens to Install New Traffic Management
Siemens Introduces Traffic Signal Control Equipment, System in Lithuania ..........................................................II-38
Sitraffic C900 ................................................................... II-31
Nissan to Test New ITS Technology....................................II-39
Siemens Introduces Traffic Control System, Steria to Expand Taxi Management System at London’s
Sitraffic Scala ................................................................... II-31
Heathrow Airport..............................................................II-39
Siemens Introduces Modular Tunnel Control Center ........... II-31 TransCore Chosen by Halifax-Dartmouth Bridge
Hertz Launches PlatePass™ Electronic Toll Technology .... II-31 Commission to Upgrade Toll System ...............................II-39
RouteMatch Introduces ITS Solution for Urban Siemens Consortium Secures Largest UTC Project
Transportation Providers................................................... II-31 in China.................................................................................. II-40
IPICO and Dyna Group Unveil Passive RFID Electronic SpeedInfo Installs Sensors on Nebraska Highways ..............II-40
Toll Collection System ..................................................... II-32 Iteris Appoints Western Systems as New Distribution
Kyocera Wireless to Launch Active Nuclear Source Partner ..............................................................................II-40
Tool Alarm ....................................................................... II-32 Siemens Secures Contract for Traffic Control Systems
New On-Board Units from Q-Free....................................... II-32 in Switzerland ...................................................................II-40
Iteris Launches New Video Transmission Product Siemens Completes Traffic Control System Project
for Traffic Surveillance..................................................... II-32 in Turkey ..........................................................................II-40
INIT Offers Novel ITS Solutions ......................................... II-32 RouteMatch Users receive MSAA Funding .........................II-41
Alpine Electronics Launches New Navigation Device......... II-33 Nestor Secures Traffic Management Contract from the
Citilog Launches Two New ITS Products ............................ II-33 Cities of Hudson and Corrigan..........................................II-41
Delphi Unveils New Portable Navigation System................ II-33 IRD Receives WIM Contract from Zignego.........................II-41
NAVTAQ Unveils New System for Mobile Networks ........ II-33 Imtech Acquires Peek Traffic...............................................II-41
Nestor Traffic Systems Introduces New Video Product ....... II-33 Siemens Secures Key Contract from Sharjah .......................II-41
Siemens VDO Launches Adaptive Cruise Siemens Secures Traffic Management System Contract
Control System ................................................................. II-34 in Bangkok........................................................................II-42
Steria Launches New Traffic Supervision System ............... II-34 Citilog Equips New York’s Throgs Neck Bridge
Traficon Launches TrafiCam ............................................... II-34 With Traffic Management System ....................................II-42

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© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page 2
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INTELLIGENT TRANSPORTATION SYSTEMS MCP-1109
A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS
SpeedInfo Installs new Traffic Flow Solution in ItraMas Alliances with AdvancedInformation Technology.....II-49
Washington D.C. .............................................................. II-42 INIT Secures CAD$35 Million Contract..............................II-49
ItraMAS Launches National Traffic Control Center ............ II-42 Intermap Enters into Agreement with Several German
Transdyn Secures Contract from the City of Melbourne ...... II-42 Automotive Manufacturers ...............................................II-50
Siemens Secures Contract in Prague for Traffic ObjectVideo Alliances with CTI’s Video Convergence .......II-50
Modernization................................................................... II-43 Telvent Signs a Deal with Computer Sciences Corporation....II-50
TransCore Secures Contract for Traffic Monitoring WWT Bags Order from Arizona Department of
System from Californian City........................................... II-43 Transportation...................................................................II-50
Siemens Chosen to Deliver Traffic Management Raytheon Receives a Contract from Florida Turnpike..........II-50
Solution to Havering......................................................... II-43
Iteris Secures ITS Contract Worth US$1.25 Million 11. Focus on Select Players ............................................. II-51
in California...................................................................... II-43 Developers of Key Enabling Technologies ..........................II-51
Nestor Secures Automated Red Light Solution Contract ADDCO LLC (US)...........................................................II-51
From Texas City of Diboll................................................ II-43 ARINC Incorporated (US) ................................................II-51
NAVTEQ Acquires Traffic.com .......................................... II-43 Image Sensing Systems Inc (US) ......................................II-51
Diboll Enters into a 2-year Contract with Nester Traffic...... II-44 INIT Innovation In Traffic Transportation Systems, AG
Tele Atlas and MCH GeoPoints Enter into (Germany) .....................................................................II-51
Partnership Agreement ..................................................... II-44 Magellan Navigation Inc. (US) .........................................II-52
TransCore Secures New Contract......................................... II-44 MARK IV IVHS (Canada) ...............................................II-52
NAVTEQ Enters into a Contract with Uniden America....... II-44 NAVTEQ Corporation (US) .............................................II-53
Citilog Supplies Smart SunGuide with Intelligent Siemens Transportation Systems Inc. (US).......................II-53
Video Surveillance ........................................................... II-44 Sirit Inc. (Canada).............................................................II-53
Shah Capital Acquires Thales Navigation ............................ II-44 TransCore Inc. (US)..........................................................II-54
NAVTEQ Acquires Map Network ....................................... II-45 System Integrators................................................................II-54
Telvent GIT SA Takes Over PB Farradyne.......................... II-45 Affiliated Computer Services Inc. (US) ............................II-54
NAVTEQ Acquires gedas MapIT ........................................ II-45 Citilog SA (France)...........................................................II-55
Extreme CCTV Acquires Forward Vision CCTV ................ II-45 ItraMAS Corporation Sdn Bhd (Malaysia) .......................II-55
HTA Partners with Cendant Car Rental Group .................... II-45 Q-Free ASA (Norway)......................................................II-55
Image Sensing Systems Supplies ITS Related Equipment ... II-45 Swarco Holdings AG (Germany) .....................................II-55
INIT Enters into an Agreement with Metropolitan SpeedInfo, Inc. (US) .........................................................II-56
Transportation Authority of New York............................. II-46 Tacel Ltd. (Canada) ..........................................................II-56
Mark IV and ETC Enter into Partnership Deal..................... II-46 Traficon N.V. (Belgium)...................................................II-56
V-Traffic Enters into Partnership with Masternaut............... II-46 Transdyn Controls, Inc. (US)............................................II-56
V-Traffic Collaborates with University Paul Sabatier .......... II-46 XATA Corporation (US) ..................................................II-57
NAVTEQ Secures Contract from Primus Geographics........ II-46
NAVTEQ Enters into Licensing Agreement 12. Global Market Perspective ....................................... II-58
with LandSonar ................................................................ II-46
Table 1: World Recent Past, Current & Future Analysis for
Q-Free Secures Contract for Deploying Toll System
Intelligent Transportation Systems by Geographic Region – US,
on Tamar Bridge............................................................... II-46
Japan, Europe and Rest of World Markets Independently
EFKON USA and Sirit Enter into Partnership Deal ............. II-47 Analyzed with Annual Sales in US$ Million for Years 2000
SpeedInfo Secures Contract from MTC ............................... II-47 through 2010 (includes corresponding Graph/Chart) ..........II-58
Tele Atlas Signs Licensing Agreement with MapIT ............ II-47
TeleAtlas Enters into an Agreement with Beijing Table 2: World Long-term Projections for Intelligent
Changdi Youhao............................................................... II-47 Transportation Systems by Geographic Region – US, Japan,
Tele Atlas Collaborates with WindSpring............................ II-47 Europe and Rest of World Markets Independently Analyzed
with Annual Sales in US$ Million for Years 2011 through
Tele Atlas and PT Navindo Enter into a Joint
2015 (includes corresponding Graph/Chart) .......................II-59
Venture Agreement........................................................... II-47
Image Sensing Systems Joins Forces with Wavetronix........ II-47 Table 3: World 10-Year Perspective for Intelligent
Zeus Technology Enters into Partnership with Itlog............. II-48 Transportation Systems by Geographic Region – Percentage
Inrix Enters into Agreement with TeleNav........................... II-48 Breakdown of Dollar Sales for US, Japan, Europe and
Iteris Bags Five-Year Contract from FHWA........................ II-48 Rest of World Markets for 2003, 2008 & 2012(includes
Telvent Enters into Contract with Transportation corresponding Graph/Chart)................................................II-60
Departments...................................................................... II-48 Table 4: World Recent Past, Current & Future Analysis for
TransCore Bags Contract to Implement Traffic Advanced Traffic Management Systems (ATMS) by Geographic
Control Technology.......................................................... II-49 Region – US, Japan, Europe and Rest of World Markets
Intermap Inks Letter of Intent with Tele Atlas ..................... II-49 Independently Analyzed with Annual Sales in US$ Million for
RouteMatch Software Bags ITS Technology Years 2000 through 2010 (includes corresponding
Solution Contract.............................................................. II-49 Graph/Chart)........................................................................II-61

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A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS
Table 5: World Long-term Projections for Advanced Traffic Table 15: World 10-Year Perspective for Commercial Vehicle
Management Systems (ATMS) by Geographic Region – US, Operations (CVO) Systems by Geographic Region – Percentage
Japan, Europe and Rest of World Markets Independently Breakdown of Dollar Sales for US, Japan, Europe and
Analyzed with Annual Sales in US$ Million for Years 2011 Rest of World Markets for 2003, 2008 & 2012 (includes
through 2015 (includes corresponding Graph/Chart).......... II-62 corresponding Graph/Chart)................................................II-72
Table 6: World 10-Year Perspective for Advanced Traffic Table 16: World Recent Past, Current & Future Analysis for
Management Systems (ATMS) by Geographic Region – Other Intelligent Transportation Systems by Geographic
Percentage Breakdown of Dollar Sales for US, Japan, Region – US, Japan, Europe and Rest of World Markets
Europe and Rest of World Markets for 2003, 2008 & Independently Analyzed with Annual Sales in US$ Million
2012 (includes corresponding Graph/Chart) ....................... II-63 for Years 2000 through 2010 (includes corresponding
Graph/Chart)........................................................................II-73
Table 7: World Recent Past, Current & Future Analysis for
Electronic Toll Collection (ETC) Systems by Geographic Table 17: World Long-term Projections for Other Intelligent
Region – US, Japan, Europe and Rest of World Markets Transportation Systems by Geographic Region – US, Japan,
Independently Analyzed with Annual Sales in US$ Million Europe and Rest of World Markets Independently Analyzed
for Years 2000 through 2010 (includes corresponding with Annual Sales in US$ Million for Years 2011
Graph/Chart) ....................................................................... II-64 through 2015 (includes corresponding Graph/Chart) ..........II-74
Table 8: World Long-term Projections for Electronic Toll Table 18: World 10-Year Perspective for Other Intelligent
Collection (ETC) Systems by Geographic Region – US, Japan, Transportation Systems by Geographic Region – Percentage
Europe and Rest of World Markets Independently Analyzed Breakdown of Dollar Sales for US, Japan, Europe and
with Annual Sales in US$ Million for Years 2011 through Rest of World Markets for 2003, 2008 & 2012 (includes
2015 (includes corresponding Graph/Chart) ....................... II-65 corresponding Graph/Chart)................................................II-75
Table 9: World 10-Year Perspective for Electronic Toll
Collection (ETC) Systems by Geographic Region –
Percentage Breakdown of Dollar Sales for US, Japan,
III. MARKET
Europe and Rest of World Markets for 2003, 2008 &
2012 (includes corresponding Graph/Chart) ....................... II-66 1. The United States ....................................................... III-1
A. Market Analysis .............................................................. III-1
Table 10: World Recent Past, Current & Future Analysis for
US – World’s Largest Market........................................ III-1
Public Vehicle Transportation Management Systems (PVTMS)
by Geographic Region – US, Japan, Europe and Rest of World The Federal Government & ITS .................................... III-2
Markets Independently Analyzed with Annual Sales US Federal Government – Primary Supporter
in US$ Million for 2000 through 2010 (includes of ITS ..................................................................... III-2
corresponding Graph/Chart) ............................................... II-67 Budgetary Constraints of the Federal Government .... III-2
Equipping Vehicles with Intelligent Vehicle
Table 11: World Long-term Projections for Public Vehicle Technology............................................................. III-2
Transportation Management Systems (PVTMS) by Geographic ITS Integration .............................................................. III-2
Region – US, Japan, Europe and Rest of World Markets Standardization & Privacy Issues .................................. III-2
Independently Analyzed with Annual Sales in US$ Million for
Privacy Issue.............................................................. III-3
Years 2011 through 2015 (includes corresponding
Graph/Chart) ....................................................................... II-68 ITS Application in the US ............................................. III-3
ITS’ Deployment at the Frontiers............................... III-3
Table 12: World 10-Year Perspective for Public Vehicle ITS Application in Rural Areas.................................. III-4
Transportation Management Systems (PVTMS) by Geographic ITS to the Rescue of Commercial Vehicles................ III-4
Region – Percentage Breakdown of Dollar Sales for US, Japan, Traveler Information ..................................................... III-4
Europe and Rest of World Markets for 2003, 2008 & 2012 OnStar........................................................................ III-5
(includes corresponding Graph/Chart) ................................ II-69
Associations, Groups/Bodies & Acts............................. III-5
Table 13: World Recent Past, Current & Future Analysis for ITSA – Intelligent Transportation Society of
Commercial Vehicle Operations (CVO) Systems by Geographic America.................................................................. III-5
Region – US, Japan, Europe and Rest of World Markets US - Federal Communications Commission (FCC) ... III-5
Independently Analyzed with Annual Sales in US$ Million National Association Working Group (NAWG) ........ III-6
for Years 2000 through 2010 (includes corresponding Intermodal Surface Transportation Efficiency Act..... III-6
Graph/Chart) ....................................................................... II-70 Safe, Accountable, Flexible, Efficient Transportation
Table 14: World Long-term Projections for Commercial Equity Act: A Legacy for Users (SAFETEA-LU) .. III-7
Vehicle Operations (CVO) Systems by Geographic Region – Transportation Equity Act (TEA-21) ......................... III-7
US, Japan, Europe and Rest of World Markets Independently Product Innovations & Introductions............................. III-8
Analyzed with Annual Sales in US$ Million for Years 2011 Strategic Corporate Developments .............................. III-10
through 2015 (includes corresponding Graph/Chart).......... II-71 Select Players .............................................................. III-20

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A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS
B. Market Analytics ............................................................III-25 Table 23: European Long-term Projections for Intelligent
Transportation Systems by Product Segment – Advanced
Table 19: US Recent Past, Current & Future Analysis for Traffic Management Systems (ATMS), Electronic Toll
Intelligent Transportation Systems by Product Segment – Collection (ETC) Systems, Public Vehicle Transportation
Advanced Traffic Management Systems (ATMS), Management Systems (PVTMS), Commercial Vehicle
Electronic Toll Collection (ETC) Systems, Public Vehicle Operations (CVO) Systems, and Other Markets
Transportation Management Systems (PVTMS), Independently Analyzed with Annual Sales
Commercial Vehicle Operations (CVO) Systems, in US$ Million for the Years 2011
and Other Markets Independently Analyzed with through 2015 (includes corresponding
Annual Sales in US$ Million for the Years 2000 Graph/Chart)............................................................... III-38
through 2010 (includes corresponding
Graph/Chart) ...............................................................III-25 Table 24: European 10-Year Perspective for Intelligent
Transportation Systems by Product Segment – Percentage
Table 20: US Long-term Projections for Intelligent Breakdown of Dollar Sales for Advanced Traffic
Transportation Systems by Product Segment – Management Systems (ATMS), Electronic Toll Collection
Advanced Traffic Management Systems (ATMS), (ETC) Systems, Public Vehicle Transportation
Electronic Toll Collection (ETC) Systems, Management Systems (PVTMS), Commercial Vehicle
Public Vehicle Transportation Management Operations (CVO) Systems, and Other Markets for
Systems (PVTMS), Commercial Vehicle 2003, 2008 & 2012 (includes corresponding
Operations (CVO) Systems, and Other Markets Graph/Chart)............................................................... III-39
Independently Analyzed with Annual Sales
in US$ Million for the Years 2011 through
2015 (includes corresponding Graph/Chart) ...............III-26
3. Japan ......................................................................... III-40
A. Market Analysis ............................................................ III-40
Table 21: US 10-Year Perspective for Intelligent Japan – Third Largest Market...................................... III-40
Transportation Systems by Product Segment – Percentage Steps Towards Deployment of ITS.............................. III-40
Breakdown of Dollar Sales for Advanced Traffic Strategic Developments............................................... III-41
Management Systems (ATMS), Electronic Toll Collection
(ETC) Systems, Public Vehicle Transportation B. Market Analytics ........................................................... III-42
Management Systems (PVTMS), Commercial Vehicle Table 25: Japanese Recent Past, Current & Future
Operations (CVO) Systems, and Other Markets for Analysis for Intelligent Transportation Systems by
2003, 2008 & 2012 (includes corresponding Product Segment – Advanced Traffic Management
Graph/Chart) ...............................................................III-26 Systems (ATMS), Electronic Toll Collection (ETC)
Systems, Public Vehicle Transportation Management
2. Europe....................................................................... III-27 Systems (PVTMS), Commercial Vehicle
A. Market Analysis .............................................................III-27 Operations (CVO) Systems, and Other Markets
Independently Analyzed with Annual Sales
Europe & Japan in the Forefront of ITS’......................III-27 in US$ Million for the Years 2000
European ITS’ Market – The Second Largest ..............III-27 through 2010 (includes corresponding
ITS Finds Place in the EU’s €620 Million Trans- Graph/Chart)............................................................... III-42
European Infrastructure Project ................................III-27
SCOOT – A Key Traffic Management System ............III-27 Table 26: Japanese Long-term Projections for Intelligent
Market Snapshots.........................................................III-28 Transportation Systems by Product Segment – Advanced
Ertico............................................................................III-28 Traffic Management Systems (ATMS), Electronic Toll
Collection (ETC) Systems, Public Vehicle Transportation
Product Introductions/Innovations ...............................III-28
Management Systems (PVTMS), Commercial Vehicle
Strategic Corporate Developments ...............................III-31
Operations (CVO) Systems, and Other Markets
Select Players ...............................................................III-34 Independently Analyzed with Annual Sales
B. Market Analytics ............................................................III-37 in US$ Million for the Years 2011
through 2015 (includes corresponding
Table 22: European Recent Past, Current & Future Graph/Chart)............................................................... III-43
Analysis for Intelligent Transportation Systems by
Product Segment – Advanced Traffic Management Table 27: Japanese 10-Year Perspective for Intelligent
Systems (ATMS), Electronic Toll Collection (ETC) Transportation Systems by Product Segment – Percentage
Systems, Public Vehicle Transportation Management Breakdown of Dollar Sales for Advanced Traffic
Systems (PVTMS), Commercial Vehicle Management Systems (ATMS), Electronic Toll Collection
Operations (CVO) Systems, and Other Markets (ETC) Systems, Public Vehicle Transportation
Independently Analyzed with Annual Sales Management Systems (PVTMS), Commercial Vehicle
in US$ Million for the Years 2000 Operations (CVO) Systems, and Other Markets for
through 2010 (includes corresponding 2003, 2008 & 2012 (includes corresponding
Graph/Chart) ...............................................................III-37 Graph/Chart)............................................................... III-43

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© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page 5
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INTELLIGENT TRANSPORTATION SYSTEMS MCP-1109
A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS
4. Rest of World............................................................ III-44 B. Market Analytics ........................................................... III-53
A. Market Analysis .............................................................III-44 Table 28: Rest of World Recent Past, Current & Future
Select Markets: A Review............................................III-44 Analysis for Intelligent Transportation Systems by
Canada......................................................................III-44 Product Segment – Advanced Traffic Management
Awakening Governmental Support to ITS Systems (ATMS), Electronic Toll Collection (ETC) Systems,
Projects ..............................................................III-44 Public Vehicle Transportation Management Systems
Asia-Pacific ..............................................................III-44 (PVTMS), Commercial Vehicle Operations (CVO) Systems,
Australia – A Well Developed ITS and Other Markets Independently Analyzed with Annual
Market ...............................................................III-44 Sales in US$ Million for the Years 2000 through 2010
ITS Australia......................................................III-45 (includes corresponding Graph/Chart) ....................... III-53
SCATS...............................................................III-45 Table 29: Rest of World Long-term Projections for
India – A Potential Market ....................................III-45 Intelligent Transportation Systems by Product Segment –
Latin America ...........................................................III-46 Advanced Traffic Management Systems (ATMS), Electronic
Market Analysis ....................................................III-46 Toll Collection (ETC) Systems, Public Vehicle
Brazil: Largest Transportation Network.............III-46 Transportation Management Systems (PVTMS),
Market Snapshots ...........................................III-46 Commercial Vehicle Operations (CVO) Systems, and
Product Introduction ....................................................III-47 Other Markets Independently Analyzed with Annual
Strategic Corporate Developments ...............................III-47 Sales in US$ Million for the Years 2011 through
Select Players ...............................................................III-50 2015 (includes corresponding Graph/Chart)............... III-54
Aecon Group Inc (Canada) .......................................III-50 Table 30: Rest of World 10-Year Perspective for Intelligent
Delcan Corporation (Canada) ...................................III-50 Transportation Systems by Product Segment – Percentage
Extreme CCTV Inc (Canada)....................................III-50 Breakdown of Dollar Sales for Advanced Traffic
International Road Dynamics Inc (Canada) ..............III-51 Management Systems (ATMS), Electronic Toll Collection
MARK IV IVHS (Canada) .......................................III-51 (ETC) Systems, Public Vehicle Transportation
Sirit Inc. (Canada).....................................................III-52 Management Systems (PVTMS), Commercial Vehicle
Tacel Ltd. (Canada) ..................................................III-52 Operations (CVO) Systems, and Other Markets for 2003,
ItraMAS Corporation Sdn Bhd (Malaysia) ..............III-52 2008 & 2012 (includes corresponding Graph/Chart) .... III-55

IV. COMPETITION

A. Primary Players ...........................................................IV-1 5. Image Sensing Systems, Inc. (USA) ................................... IV-29
1. Addco, Inc. (USA) ................................................................ IV-1 Table 37: Half Yearly Sales Comparison:
2. Affiliated Computer Services, Inc. (USA) ............................ IV-3 2007 Vs. 2006 (In US$ thousands) ............................... IV-29
Table 31: Nine Months Sales Comparison: Table 38: Annual Sales Comparison:
2007 Vs. 2006 (Nine Months Ended, March) 2006 Vs. 2005 (In US$ thousands) ............................... IV-29
(In US$ million) ............................................................. IV-4 Flow Traffic Ltd. (Hong Kong)......................................... IV-31
Table 32: Nine Months Sales Comparison by 6. INIT - Innovation In Transportation Systems AG
Business Segment (2007 Vs. 2006) – Commercial (Germany)........................................................................... IV-32
and Government (Nine Months Ended, March)
Table 39: Annual Sales Comparison:
(In US$ million) ............................................................. IV-5
2006 Vs. 2005 (In € thousands).................................... IV-32
Table 33: Annual Sales Comparison:
2006 Vs. 2005 (In US$ million)...................................... IV-5 Table 40: Annual Sales Comparison by
Geographic Region (2006 Vs. 2005) – Germany,
Table 34: Annual Sales Comparison by Business North America and Rest of the World
Segment (2006 Vs. 2005) – Commercial and (In € thousands) ........................................................... IV-32
Government (In US$ million)......................................... IV-5
INIT Innovations In Transportation, Inc. (USA)............... IV-35
Table 35: Annual Sales Comparison by 7. ItraMAS Corporation (Malaysia) ........................................ IV-36
Service (2006 Vs. 2005) - Business Process
8. Magellan Navigation, Inc. (USA) ....................................... IV-39
Outsourcing, Information Technology
Services and Systems Integration Services Magellan GPS (France)..................................................... IV-44
(In US$ million) ............................................................. IV-5 9. Mark IV Industries, Inc. (USA)........................................... IV-45
3. Arinc, Inc. (USA)................................................................ IV-14 Table 41: Percentage Breakdown of Annual
Sales (Value) by Business Segment (2007) -
Table 36: Annual Sales Comparison: Transportation Technologies, Aftermarket,
2006 Vs. 2005 (In US$ million).................................... IV-14 Heavy-Duty, Power Transmission, and
4. Citilog SA (France)............................................................. IV-27 Air Admission and Cooling .......................................... IV-47

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Table 42: Percentage Breakdown of Annual Sales 22. Advanced Communications And Information Systems
(Value) by Geographic Region (2007) – (United Kingdom)............................................................... IV-89
North America, Europe and Rest of the World............. IV-47 23. Advanced Information Technology PLC (Thailand)........... IV-90
Mark IV IVHS (Canada)................................................... IV-48 Table 56: Annual Sales Comparison:
10. NAVTEQ Corporation (USA) ............................................ IV-52 2006 Vs. 2005 (In Baht million) ................................... IV-90
Table 43: Annual Sales Comparison: 24. Aecon Group, Inc. (Canada) ............................................... IV-92
2006 Vs. 2005 (In US$ million).................................... IV-52 Table 57: Half Yearly Sales Comparison:
Table 44: Quarterly Sales Comparison: 2007 Vs. 2006 (In Can$ million) .................................. IV-94
2006 Vs. 2005 (In US$ million).................................... IV-53 Table 58: Half Yearly Sales Comparison by
Table 45: Annual Sales Comparison by Quarter: 2007 Vs. 2006 (In Can$ million) ................... IV-94
Geographic Region (2006 Vs. 2005) – EMEA, Table 59: Annual Sales Comparison:
Americas and Asia Pacific (In US$ million)................. IV-53 2006 Vs. 2005 (In Can$ million) .................................. IV-94
Traffic.Com, Inc. (USA)................................................... IV-59 Table 60: Quarterly Sales Comparison:
11. Q-Free ASA (Norway)........................................................ IV-60 2006 Vs. 2005 (In Can$ million) .................................. IV-95
Table 46: Half Yearly Sales Comparison: Table 61: Annual Sales Comparison by
2007 Vs. 2006 (In NOK million) .................................. IV-60 Geographic Region (2006 Vs. 2005) – Canada,
Table 47: Annual Sales Comparison: United States, Ecuador, Israel, India,
2006 Vs. 2005 (In NOK million) .................................. IV-60 and others (In Can$ million) ........................................ IV-95
Table 48: Annual Sales Comparison by Table 62: Annual Sales Comparison by Segment
Geographic Region (2006 Vs. 2005) – Europe, (2006 Vs. 2005) – Infrastructure, Buildings,
Asia Pacific and North America (In NOK million)....... IV-61 Industrial, and Concessions (In Can$ million)............. IV-95
Table 49: Percentage Breakdown of Annual Sales 25. Alpine Electronics of America, Inc. (USA)......................... IV-99
(Value) by Geographic Region (2006 Vs. 2005) – 26. Ariel Group (Israel)........................................................... IV-104
Europe, Asia Pacific and North America ..................... IV-61 27. Ascom Holding Limited (Switzerland) ............................. IV-106
Q-Free Ticketing AS (Norway) ........................................ IV-63 Table 63: Annual Sales Comparison:
Q-Free Tolling AS (Norway)............................................ IV-63 2006 Vs. 2005 (In CHF million)................................. IV-107
12. Siemens Transportation Systems Inc. (USA) ...................... IV-64 Table 64: Percentage Breakdown of Annual Sales
13. Sirit, Inc. (Canada).............................................................. IV-65 (Value) by Business Segment (2006) – Wireless
Table 50: Half Yearly Sales Comparison: Solutions, Security Solutions, Special Products
2007 Vs. 2006 (In Can$ thousands) ............................. IV-66 and Corporate............................................................ IV-107
Table 51: Annual Sales Comparison: 28. AT&T, Inc. (USA) ............................................................ IV-109
2006 Vs. 2005 (In Can$ thousands) ............................. IV-66 Table 65: First Quarter Sales Comparison:
Table 52: Quarterly Sales Comparison: 2007 Vs. 2006 (In US$ million).................................. IV-110
2006 Vs. 2005 (In Can$ thousands) ............................. IV-66 Table 66: First Quarter Sales Comparison by
Table 53: Annual Sales Comparison by Business Segment (2007 Vs. 2006) – Wireline,
Geographic Region (2006 Vs. 2005) – Canada, Wireless, Advertising and Publishing, and
United States, South America, UK & Europe, Others (In US$ million).............................................. IV-110
Asia & Middle East (In Can$ thousands)..................... IV-66 Table 67: Annual Sales Comparison:
14. SpeedInfo, Inc. (USA) ........................................................ IV-72 2006 Vs. 2005 (In US$ million).................................. IV-110
15. Tacel Ltd. (Canada) ............................................................ IV-74 Table 68: Quarterly Sales Comparison:
16. Traficon NV (Belgium)....................................................... IV-75 2006 Vs. 2005 (In US$ million).................................. IV-110
17. TransCore, Inc. (USA)........................................................ IV-77 Table 69: Annual Sales Comparison by Business
18. Transdyn Controls, Inc. (USA) ........................................... IV-81 Segment (2006 Vs. 2005) – Wireline, Wireless,
19. XATA Corporation (USA).................................................. IV-84 Directory, and Others (In US$ million)...................... IV-111
Table 54: Nine Months Sales Comparison: Table 70: Percentage Breakdown of Annual Sales
2007 Vs. 2006 (Nine Months Ended, June) (Value) by Customers (2006) – Wireline, Business,
(In US$ million) ........................................................... IV-85 Wholesale, Consumer, Directory/Other ..................... IV-111
Table 55: Annual Sales Comparison: 29. Atlantia SpA (Italy)........................................................... IV-126
2004-2006 (In US$ million) ......................................... IV-85 Table 71: First Quarter Sales Comparison:
2007 Vs. 2006 (In € million)....................................... IV-126
B. Niche & Other Players ..............................................IV-87 Table 72: Annual Sales Comparison:
20. 3M Traffic Safety Systems (USA) ...................................... IV-87 2006 Vs. 2005 (In € million)....................................... IV-127
21. ACS Solutions Schweiz AG (Switzerland) ......................... IV-88 Autostrade Per L'italia Società Per Azioni (Italy) ........... IV-128

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30. Cambridge Systematics, Inc. (USA) ................................. IV-129 Table 86: Percentage Breakdown of Annual Sales
31. Canadian Highways International Corporation (Value) by Product (2006 Vs. 2005) – Routers,
(Canada) ........................................................................... IV-131 Switches, Advanced Technologies and Others............ IV-147
32. Charys Holding Company, Inc. (USA) ............................. IV-132 34. Clever Devices Ltd. (USA) ............................................... IV-174
Table 73: Nine Months Sales Comparison: 35. Cornet Technology, Inc. (USA) ........................................ IV-175
2007 Vs. 2006 (Nine Months Ended, January) 36. Dambach-Werke GmbH (Germany) ................................. IV-181
(In US$ million) ......................................................... IV-134 37. Delcan (Canada)................................................................ IV-182
Table 74: Nine Months Sales Comparison by 38. Delphi Corporation (USA) ................................................ IV-185
Quarter: 2007 Vs. 2006 (Nine Months Ended, Table 87: Half Yearly Sales Comparison:
January) (In US$ million) .......................................... IV-134 2007 Vs. 2006 (In US$ million).................................. IV-188
Table 75: Nine Months Sales Comparison by Business Table 88: Half Yearly Sales Comparison by
Segment (2007 Vs. 2006) - Disaster Restoration and Business Segment (2007 Vs. 2006) – Electronics
Remediation Services, Technology Implementation and Safety, Thermal Systems, Powertrain Systems,
and Integration Services, Data & Communication Electrical/ Electronic Architecture, Steering,
Services, Tower and Infrastructure Services and Automotive Holdings Group, Corporate
Professional Administrative Services and Other (In US$ million) ........................................ IV-188
(In US$ million) ......................................................... IV-134 Table 89: Annual Sales Comparison:
Table 76: Percentage Breakdown of Nine Months 2006 Vs. 2005 (In US$ million).................................. IV-188
Ended Sales (Value) by Business Segment Table 90: Quarterly Sales Comparison:
(2007 Vs. 2006) Disaster Restoration and 2006 Vs. 2005 (In US$ million).................................. IV-188
Remediation Services, Technology Implementation Table 91: Annual Sales Comparison by
and Integration Services, Data & Communication
Geographic Region (2006 Vs. 2005) – North America,
Services, Tower and Infrastructure Services, and Europe, Middle East and Africa, Asia Pacific,
Professional Administrative Services......................... IV-134 and South America (In US$ million) .......................... IV-189
Table 77: Annual Sales Comparison: Table 92: Annual Sales Comparison by Business
2006 Vs. 2005 (In US$ million).................................. IV-135 Segment (2006 Vs. 2005) - Electronics and Safety,
33. Cisco Systems, Inc. (USA) ............................................... IV-144 hermal Systems, Powertrain Systems,
Electrical/Electronic Architecture, Steering,
Table 78: Nine Months Sales Comparison:
Automotive Holdings Group, Corporate and
2007 Vs. 2006 (Nine Months Ended, April)
Other (In US$ million) ............................................... IV-189
(In US$ million) ......................................................... IV-145
39. Denso Corporation (Japan)................................................ IV-202
Table 79: Nine Months Sales Comparison by
Geographic Region (2007 Vs. 2006) – USA Table 93: First Quarter Sales Comparison:
and Canada, European Markets, Emerging Markets, 2007 Vs. 2006 (In ¥ billion) ....................................... IV-203
Asia Pacific, and Japan (Nine Months Ended, Table 94: Annual Sales Comparison:
April) (In US$ million)............................................... IV-145 2004-2006 (In ¥ billion) ............................................. IV-204
Table 80: Nine Months Sales Comparison by 40. Deutsche Telekom (Germany) .......................................... IV-208
Product (2007 Vs. 2006) – Routers, Switches,
Table 95: Annual Sales Comparison:
Advanced Technologies, Service and Others
2004-2006 (In € billion) ............................................. IV-209
(Nine Months Ended, April) (In US$ million) ............ IV-145
Table 96: Annual Sales Comparison by
Table 81: Annual Sales Comparison:
Geographic Region (2006 Vs. 2005) – Domestic
2006 Vs. 2005 (In US$ million).................................. IV-146
and International (In € billion) .................................. IV-209
Table 82: Quarterly Sales Comparison: Table 97: Annual Sales Comparison by Business
2006 Vs. 2005 (In US$ million).................................. IV-146 Segment (2006 Vs. 2005) - Mobile Communications,
Table 83: Annual Sales Comparison by Broadband/ Fixed Network, Business Customers,
Geographic Region (2006 Vs. 2005) - USA and Group Headquarters and Shared Services
Canada, European Markets, Emerging Markets, (In € billion)............................................................... IV-210
Asia Pacific, and Japan (In US$ million)................... IV-146 Table 98: Annual Sales Comparison by
Table 84: Percentage Breakdown of Annual Sales Geographic Region (2005 Vs. 2004) – Domestic
(Value) by (2006 Vs. 2005) - USA and Canada, and International (In € billion) .................................. IV-210
European Markets, Emerging Markets, Table 99: Annual Sales Comparison by Business
Asia Pacific, and Japan ............................................. IV-146 Segment (2005 Vs. 2004) - Mobile Communications,
Table 85: Annual Sales Comparison by Business Broadband/Fixed Network, Business Customers,
Segment (2006 Vs. 2005) – Product and Service Group Headquarters and Shared Services
(In US$ million) ......................................................... IV-147 (In € billion)............................................................... IV-210

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41. Diamond Traffic Products (USA) ..................................... IV-215 Table 113: Half-Yearly Sales Comparison by
42. Digital Traffic Systems, Inc. (USA).................................. IV-217 Business Segment (2007 Vs. 2006) –Safety
43. DMJM Harris – Aecom (USA) ......................................... IV-218 and Security Systems, Fire Rescue, Environmental
44. DRI Corporation (USA).................................................... IV-221 Solutions, and Tool (In US$ million)............................. IV-246
Table 100: First Quarter Sales Comparison: Table 114: Annual Sales Comparison:
2007 Vs. 2006 (In US$ million).................................. IV-222 2006 Vs. 2005 (In US$ million).................................. IV-246
Table 115: Quarterly Sales Comparison:
Table 101: First Quarter Sales Comparison by
Geographic Region (2007 Vs. 2006) – 2006 Vs. 2005 (In US$ million).................................. IV-247
North America, Europe, Asia Pacific, Middle East, Table 116: Annual Sales Comparison by
and South America (In US$ million) .......................... IV-222 Geographic Region (2006 Vs. 2005) – US,
Europe, and Canada (In US$ million)........................ IV-247
Table 102: First Quarter Sales Comparison by
Business Segment (2007 Vs. 2006) - Transportation Table 117: Annual Sales Comparison by Business
Communications, Law Enforcement and Segment (2006 Vs. 2005) –Safety and Security
Surveillance (In US$ million)..................................... IV-222 Systems, Fire Rescue, Environmental Solutions,
and Tool (In US$ million) .......................................... IV-247
Table 103: Annual Sales Comparison:
2006 Vs. 2005 (In US$ million).................................. IV-223 54. Florida’s Turnpike Enterprise (USA) ................................ IV-251
55. Fortran Traffic Systems Limited (Canada)........................ IV-252
Table 104: Quarterly Sales Comparison:
2006 Vs. 2005 (In US$ million).................................. IV-223 56. France Telecom SA (France) ............................................ IV-254
Table 105: Annual Sales Comparison by Business Table 118: Annual Sales Comparison:
Segment (2006 Vs. 2005) – Transportation 2006 Vs. 2005 (In € million)....................................... IV-254
Communications, Law Enforcement and Table 119: Annual Sales Comparison by
Surveillance (In US$ million)..................................... IV-223 Geographic Region (2006 Vs. 2005) – France,
UK, Poland, Spain, Rest of Europe, and
Table 106: Annual Sales Comparison by
Rest of the World (In € million).................................. IV-255
Geographic Region (2006 Vs. 2005) – North America,
Europe, Asia Pacific, Middle East, and 57. Golden River Traffic Ltd. (UK) ........................................ IV-259
South America (In US$ million) ................................. IV-223 58. Groupe Steria SCA (France) ............................................. IV-260
45. Dyna Group SA (Argentina) ............................................. IV-227 Table 120: Annual Sales Comparison:
46. Econolite Control Products, Inc. (USA)............................ IV-228 2006 Vs. 2005 (In € million)....................................... IV-262
47. Efkon AG (Austria) .......................................................... IV-231 Table 121: Annual Sales Comparison by Segment
Efkon USA (USA).......................................................... IV-233 (2006 Vs. 2005) – Consulting and Systems
48. Electronic Transactions Consultants Corporation (USA) ....... IV-235 Integration and Outsourcing (In € million) ................ IV-262
49. ERG Group (Australia)..................................................... IV-236 Table 122: Annual Sales Comparison by
Geographic Region (2006 Vs. 2005) - France,
Table 107: Annual Sales Comparison:
UK, Germany, and Other Europe (In € million)......... IV-262
2006 Vs. 2005 (In A$ million) .................................... IV-237
59. Grupo Algar (Brazil)......................................................... IV-265
50. ETL Électronics Ltée (Canada)......................................... IV-240
60. Hertz Corporation, The (USA).......................................... IV-266
51. Extreme CCTV, Inc. (Canada).......................................... IV-241
Table 123: First Quarter Sales Comparison:
Table 108: Nine Months Sales Comparison by 2007 Vs. 2006 (In US$ million).................................. IV-268
Quarter: 2007 Vs. 2006 (Nine Months Ended,
June) (In Can$ million).............................................. IV-241 Table 124: First Quarter Sales Comparison by
Business Segment (2007 Vs. 2006) – Car Rental
Table 109: Nine Months Sales Comparison by and Equipment Rental (In US$ million) ..................... IV-268
Geographic Region (2007 Vs. 2006) – United States,
Table 125: Annual Sales Comparison:
Canada and Europe (In Can$ million)....................... IV-241
2006 Vs. 2005 (In US$ million).................................. IV-268
Table 110: Annual Sales Comparison:
Table 126: Quarterly Sales Comparison:
2006 Vs. 2005 (In Can$ million)................................ IV-242
2006 Vs. 2005 (In US$ million).................................. IV-268
Table 111: Annual Sales Comparison by
Table 127: Annual Sales Comparison by
Geographic Region (2006 Vs. 2005) –
Geographic Region (2006 Vs. 2005) –
United States, Canada and Europe
United States and Foreign (In US$ million)............... IV-269
(In Can$ million) ....................................................... IV-242
Table 128: Percentage Breakdown of Annual Sales
Forward Vision CCTV Ltd. (UK)................................... IV-243 (Value) by Geographic Region (2006) –
52. Federal Highway Administration (USA)........................... IV-244 United States and International ................................. IV-269
53. Federal Signal Corporation (USA).................................... IV-245
Table 129: Annual Sales Comparison by
Table 112: Half-Yearly Sales Comparison: Business Segment (2006 Vs. 2005) – Car Rental
2007 Vs. 2006 (In US$ million).................................. IV-246 and Equipment (In US$ million)................................. IV-269

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Table 130: Percentage Breakdown of Annual Sales Table 143: Half Yearly Sales Comparison by
(Value) by Business Segment (2006) – Quarter: 2007 Vs. 2006 (In Can$ million) ................. IV-307
Car Rental and Equipment......................................... IV-269 Table 144: Annual Sales Comparison:
61. Highway Toll Administration LLC (USA) ....................... IV-273 2006 Vs. 2005 (In Can$ million) ................................ IV-307
62. Hitachi Ltd. (Japan) .......................................................... IV-274 Table 145: Quarterly Sales Comparison:
Table 131: Annual Sales Comparison: 2006 Vs. 2005 (In Can$ million) ................................ IV-307
2005-2007 (In ¥ billion)............................................. IV-275 Table 146: Annual Sales Comparison by Geographic
Table 132: Annual Sales Comparison by Business Region (2006 Vs. 2005)-Canada, United States and
Segment (2007 Vs. 2006) - Information and Offshore (In Can$ million)......................................... IV-307
Telecommunication Systems, Electronic Devices, Table 147: Percentage Breakdown of Annual Sales
Power and Industrial Systems, Digital Media (Value) by Geographic Region (2006 Vs. 2005)-
and Consumer Products, High Functional Materials Canada, United States and Offshore .......................... IV-307
and Components, Logistics, Services and
Table 148: Percentage Breakdown of Annual Sales
Others, Financial Services (In ¥ billion).................... IV-276
(Value) by Business Segment (2006 Vs. 2005) –
Table 133: Annual Sales Comparison by Projects, Products, Service & Maintenance............... IV-308
Geographic Region (2007 Vs. 2006) – Japan,
68. IPICO (Canada) ................................................................ IV-313
Asia, North America, Europe and Other
Areas (In ¥ billion)..................................................... IV-276 69. Iteris, Inc. (USA)............................................................... IV-314
Table 134: Annual Sales Comparison by Geographic Table 149: First Quarter Sales Comparison:
Region (2006 Vs. 2005) - Japan, Asia, North America, 2008 Vs. 2007 (In US$ million).................................. IV-315
Europe and Other Areas (In ¥ billion) ....................... IV-276 Table 150: Annual Sales Comparison:
Table 135: Percentage Breakdown of Annual Sales 2005-2007 (In US$ million) ....................................... IV-315
(Value) by Geographic Region (2006 Vs. 2005) - Table 151: Quarter Sales Comparison:
Japan, Asia, North America, Europe 2007 Vs. 2006 (In US$ million).................................. IV-316
and Other Areas......................................................... IV-277 70. ITS Australia (Australia)................................................... IV-319
Table 136: Annual Sales Comparison by Segment 71. Kyocera Wireless Corporation (USA)............................... IV-320
(2006 Vs. 2005) - Information and Telecommunication 72. LandSonar, Inc. (USA) ..................................................... IV-327
Systems, Electronic Devices, Power and Industrial 73. Masternaut (UK) Ltd. (UK) .............................................. IV-328
Systems, Digital Media and Consumer Products, 74. MCH GeoPoints (USA) .................................................... IV-329
High Functional Materials and Components,
75. Mediamobile (France)....................................................... IV-330
Logistics, Services and Others, Financial Services
(In ¥ billion)............................................................... IV-277 76. Metodo Telecomunicacoes (Brazil) .................................. IV-330
77. Metropolitan Transportation Authority of New York
Table 137: Percentage Breakdown of Annual Sales (USA)................................................................................ IV-331
(Value) by Segment (2006 Vs. 2005) - Information
and Telecommunication Systems, Electronic Devices, Table 152: Annual Sales Comparison:
Power and Industrial Systems, Digital Media and 2006 Vs. 2005 (In US$ million).................................. IV-332
Consumer Products, High Functional Materials 78. Mitsubishi Electric Intelligent Transportation Systems
and Components, Logistics, Services and Others, (Japan) .............................................................................. IV-333
Financial Services...................................................... IV-277 79. Motorola, Inc. (USA) ........................................................ IV-334
63. HTS Group Ltd. (New Zealand) ....................................... IV-285 Table 153: Half Yearly Sales Comparison:
64. Imtech NV (The Netherlands)........................................... IV-286 2007 Vs. 2006 (In US$ million).................................. IV-336
Table 138: Half Yearly Sales Comparison: Table 154: Half Yearly Sales Comparison by Business
2007 Vs. 2006 (In € million) ...................................... IV-286 Segment (2007 Vs. 2006) - Mobile Devices, Home and
Table 139: Annual Sales Comparison: Networks Mobility, and Enterprise Mobility Solutions
2006 Vs. 2005 (In € million) ...................................... IV-286 (In US$ million) ......................................................... IV-336
65. Inrix, Inc. (USA)............................................................... IV-292 Table 155: Annual Sales Comparison:
66. Intermap Technologies Corporation (USA) ...................... IV-296 2006 Vs. 2005 (In US$ million).................................. IV-336
Table 140: Half Yearly Sales Comparison: Table 156: Annual Sales Comparison by
2007 Vs. 2006 (In US$ million).................................. IV-296 Geographic Region (2006 Vs. 2005) – USA,
China, UK, Germany, Israel, Singapore and
Table 141: Annual Sales Comparison: Other Nations (In US$ million) .................................. IV-336
2006 Vs. 2005 (In US$ million).................................. IV-297
Table 157: Percentage Breakdown of Annual Sales
67. International Road Dynamics, Inc. (Canada) .................... IV-306 (Value) by Geographic Region (2004-2006) –
Table 142: Half Yearly Sales Comparison: USA, Europe, Asia Excluding China, China,
2007 Vs. 2006 (In Can$ million)................................ IV-306 Latin Amercia, and Others.............................................. IV-337

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Table 158: Annual Sales Comaprison by Table 172: Quarterly Sales Comparison:
Business Segment (2006 Vs. 2005) - Mobile Devices, 2006 Vs. 2005 (In US$ million).................................. IV-405
Networks and Enterprise, and Connected Table 173: Annual Sales Comparison by Business
Home Solutions (In US$ million) ............................... IV-337 Segment (2007 Vs. 2006) - Security Group,
Table 159: Percentage Breakdown of Annual Sales Healthcare Group, Optoelectronics and
(Value) by Business Segment (2005) – Mobile Devices, Manufacturing Group (In US$ million)...................... IV-406
Networks, Connected Hone Solutions ........................ IV-337 Table 174: Annual Sales Comparison by Business
80. Nestor Traffic Systems, Inc. (USA) .................................. IV-349 Segment (2006 Vs. 2005) - Security Group,
81. Nissan Motor Co., Ltd. (Japan)......................................... IV-352 Healthcare Group, Optoelectronics and
Manufacturing Group (In US$ million)...................... IV-406
Table 160: Annual Sales Comparison:
2006 Vs. 2005 (In ¥ billion) ....................................... IV-352 Table 175: Annual Sales Comparison by
Geographic Region (2006 Vs. 2005) –
Table 161: Annual Sales Comparison by
North America, Europe, And Asia (In US$ million) .......... IV-406
Geographic Region (2006 Vs. 2005) – Japan,
North America, Europe, and Other Rapiscan Systems (USA) ................................................ IV-411
Foreign Countries (In ¥ billion)................................. IV-353 89. Peek Traffic BV (The Netherlands) .................................. IV-413
Table 162: Annual Sales Comparison by Business 90. Preco Electronics, Inc. (USA) ........................................... IV-415
Segment (2006 Vs. 2005) - Automobile, 91. Promon SA (Brazil) .......................................................... IV-417
and Sales Financing (In ¥ billion).............................. IV-353 Table 176: Annual Sales Comparison:
82. Nokia Corporation (Finland)............................................. IV-362 2006 Vs. 2005 (In R$ thousands) ............................... IV-418
Table 163: Half Yearly Sales Comparison: 92. PT Navindo Geosat (Indonesia) ........................................ IV-419
2007 Vs. 2006 (In € million) ...................................... IV-365 93. QinetiQ Group PLC (UK) ................................................. IV-420
Table 164: Annual Sales Comparison: Table 177: Annual Sales Comparison:
2006 Vs. 2005 (In € million) ...................................... IV-365 2005-2007 (In £ million) ............................................ IV-421
Table 165: Annual Sales Comparison by Geographic Table 178: Annual Sales Comparison by Business
Region (2006 Vs. 2005) – Finland, China, Segment (2007 Vs. 2006) - Defense and technology,
USA, Great Britain, India, Germany, and Security and Dual use, North America and
Others (In € million) .................................................. IV-365 Ventures (In £ million) ............................................... IV-422

Table 166: Percentage Breakdown of Annual Sales by Table 179: Annual Sales Comparison by Geographic
Region (2007 Vs. 2006) – UK, North America,and
Geographic Region: (2006 Vs. 2005) – Europe,
Asia- Pacific, China, North America, Continental Europe (In £ million) .............................. IV-422
Latin America, Middle East and Africa...................... IV-365 Table 180: Annual Sales Comparison by Business
Segment (2006 Vs. 2005) - Defense and technology,
Table 167: Annual Sales Comparison by Business
Security and Dual use, North America,
Segment (2006 Vs. 2005) – Mobile Phones,
and Ventures (In £ million) ........................................ IV-422
Multimedia, Enterprise Solutions, Networks
and Others (In € million) ........................................... IV-366 Table 181: Annual Sales Comparison by Geographic
Region (2006 Vs. 2005) – UK, North America,
83. Northrop Grumman Information Technology (IT)
and Continental Europe (In £ million) ....................... IV-422
(USA) ............................................................................... IV-382
84. ObjectVideo, Inc. (USA) .................................................. IV-383 94. Quixote Traffic Corporation (USA) .................................. IV-427
85. OKI Electric Industry Co., Ltd. (Japan) ............................ IV-386 95. Raymar Information Technology, Inc. (USA)................... IV-431
96. Raytheon Company (USA) ............................................... IV-432
Table 168: Annual Sales Comparison:
2005-2007 (In ¥ billion)............................................. IV-386 Table 182: Half Yearly Sales Comparison:
2007 Vs. 2006 (In US$ million).................................. IV-435
Table 169: Annual Sales Comparison by
Business Segment (2007 Vs. 2006) - Info-Telecom Table 183: Half Yearly Sales Comaprison by Business
Systems, Semiconductors, Printers Segment (2007 Vs. 2006) - Integrated Defense Systems,
and Others (In ¥ billion) ............................................ IV-387 Intelligence and Information Systems, Missile Systems,
Network Centric Systems, Space and Airborne Systems,
Table 170: Annual Sales Comparison by Technical Services and Others (In US$ million) ........ IV-435
Geographic Region (2007 Vs. 2006) – Japan,
North America, Europe, Asia (In ¥ billion) ................ IV-387 Table 184: Annual Sales Comparison:
2004-2006 (In US$ million) ....................................... IV-436
86. OnStar (USA) ................................................................... IV-398
Table 185: Annual Sales Comparison by Business
87. Orbital - Transportation Management Systems (USA) ..... IV-401
Segment (2006 Vs. 2005) - Integrated Defense Systems,
88. OSI Systems, Inc. (USA) .................................................. IV-404 Intelligence and Information Systems, Missile Systems,
Table 171: Annual Sales Comparison: Network Centric Systems, Space and Airborne Systems,
2005-2007 (In US$ million) ....................................... IV-405 Technical Services and Others (In US$ million) ........ IV-436

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CONTENTS
Table 186: Annual Sales Comparison by Business Table 196: Percentage Breakdown of Annual Sales
Segment (2005 Vs. 2004) - Integrated Defense Systems, (Value) by Business Segment (2006 Vs. 2005) –
Intelligence and Information Systems, Missile Systems, Automotive, Information and communications,
Network Centric Systems, Space and Airborne Systems, Electronics, Engineering, Industrial materials
Technical Services and Others (In US$ million) ........ IV-436 and others .................................................................. IV-510
97. Redflex Traffic Systems, Inc. (USA) ................................ IV-452 107. Swarco Holding AG (Austria)........................................... IV-517
98. Robert Bosch GmbH (Germany)....................................... IV-453 108. TaxiTronic, Inc. (USA) ..................................................... IV-518
99. Routematch Software, Inc. (USA) .................................... IV-465 109. TC IP Ltd. – Transcore (USA) .......................................... IV-519
100. Saab Systems (Australia) .................................................. IV-467 110. TEC Traffic Systems (The Netherlands) ........................... IV-521
101. Schaim Cury (Brazil) ........................................................ IV-468 111. TeleAtlas NV (The Netherlands) ...................................... IV-522
102. Siemens AG (Germany).................................................... IV-469 Table 197: Half Yearly Sales Comparison:
Table 187: Half Yearly Sales Comparison: 2007 Vs. 2006 (In € million)....................................... IV-522
2007 Vs. 2006 (In € million) ...................................... IV-471
Table 198: Half Yearly Sales Comparison by
Table 188: Half Yearly Sales Comparison by Business Product Segment (2007 Vs. 2006) – Automotive
Segment (2007 Vs. 2006)- Siemens Business Services navigation, Data products navigation, Personal
(SBS), Automation and Drives (A&D), Industrial navigation, Enterprise and government,
Solutions and Services (I&S), Siemens Building and Other Segments (In € million) ............................. IV-523
Technologies (SBT), Power Generation (PG),cn
Table 199: Half Yearly Sales Comparison by
(PTD), Transportation Systems (TS), Siemens VDO
Geographic Region (2007 Vs. 2006) – EMEA,
Automotive (SV), Medical Solutions (Med), Osram,
Americas and APAC (In € million)............................. IV-523
Financing and Real Estate, and Other
Operation (In € million)............................................. IV-471 Table 200: Annual Sales Comparison:
Table 189: Annual Sales Comparison: 2006 Vs. 2005 (In € million)....................................... IV-523
2006 Vs. 2005 (In € million) ...................................... IV-471 TeleAtlas North America, Inc. (USA)............................. IV-525
Table 190: Annual Sales Comparison by 112. TeleNav, Inc. (USA) ......................................................... IV-526
Geographic Region (2006 Vs. 2005) – Germany, 113. Telvent GIT SA (Spain).................................................... IV-528
Europe (Except Germany), US, Americas Table 201: Half Yearly Sales Comparison:
(Except US), Asia- Pacific, Africa, Middle East, 2007 Vs. 2006 (In € million)....................................... IV-529
C.I.S (In € million) ..................................................... IV-472
Table 202: Half Yearly Sales Comparison by
Table 191: Percentage Breakdown of Annual Sales Business Segment (2007 Vs. 2006) – Energy,
(Value) by Geographic Region (2005) – Germany, Transportation, Environment, Public
Europe (Except Germany), The Americas, Administration, Global Services (In € million).......... IV-529
Asia- Pacific, Africa, Middle East and C.I.S .............. IV-472
Table 203: Annual Sales Comparison:
Table 192: Percentage Breakdown of Annual Sales
2006 Vs. 2005 (In € million)....................................... IV-530
(Value) By Business Segments (2005) – Automation
and Control, Information and Communications, Table 204: Annual Sales Comparison by
Transportation, Power, Medical and Lighting ........... IV-472 Geographic Region (2006 Vs. 2005) – Euorpe,
Latin America, North America, Asia-Pacific
Siemens VDO Automotive AG (Germany) .................... IV-499
(In € million) .............................................................. IV-530
Siemens Intelligent Traffic Systems (Germany) ............. IV-503
Siemens Industrial Solutions and Services Group (I&S) Table 205: Annual Sales Comparison by Business
(Bulgaria).................................................................... IV-503 Segment (2006 Vs. 2005) – Energy, Traffic,
103. Siemens International Trading Co., Ltd. (SITL) (China)........ IV-504 Transport and Environment (In € million) ................. IV-530
104. Sigtec Pty., Ltd. (Australia) .............................................. IV-505 Table 206: Percentage Breakdown of Annual Sales
105. Stratech Systems Limited (Singapore) .............................. IV-506 (Value) by Business Segment (2006 Vs. 2005) –
106. Sumitomo Electric Industries Ltd. (Japan)........................ IV-508 Energy, Traffic, Transport and Environment ............. IV-530
Table 193: Annual Sales Comparison: Telvent Farradyne, Inc. (USA)........................................ IV-538
2005-2007 (In ¥ billion)............................................. IV-509 Telvent Traffic North America, Inc. (USA) .................... IV-539
Table 194: Annual Sales Comparison by 114. The Mississippi Department of Transportation (USA)...... IV-540
Geographic Region (2006 Vs. 2005) – Japan, 115. Toyota Motor Corporation (Japan).................................... IV-542
Americas, Asia and Others (In ¥ billion).................... IV-509 Table 207: First Quarter Sales Comparison:
Table 195: Annual Sales Comparison by 2008 Vs. 2007 (In ¥ billion) ....................................... IV-544
Business Segment (2006 Vs. 2005) – Automotive, Table 208: First Quarter Sales Comparison by
Information and communications, Electronics, Geographic Region (2008 Vs. 2007) –
Engineering, Industrial materials and others Japan, North Amercia, Europe and Asia
(In ¥ billion)............................................................... IV-510 (In ¥ billion)............................................................... IV-544

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CONTENTS
Table 209: First Quarter Sales Comparison by Table 221: Quarterly Sales Comparison:
Business Segments (2008 Vs. 2007) – Automotive 2006 Vs. 2005 (In US$ billion)................................... IV-579
and Financial Services (In ¥ billion).......................... IV-544 Table 222: Annual Sales Comparison by Geographic
Table 210: Annual Sales Comparison: Region (2006 Vs. 2005) – North America, Europe,
2005 – 2007 (In ¥ billion) .......................................... IV-544 Asia and South America (In US$ billion) ................... IV-579
Table 211: Annual Sales Comparison by Table 223: Percentage Breakdown of Annual Sales
Geographic Region (2007 Vs. 2006) – (Vlaue) by Geographic Region (2006 Vs. 2005) –
Japan, North America, Europe, Asia, and North America, Europe, Asia and South America ...... IV-580
Other Regions (In ¥ billion) ....................................... IV-545 Table 224: Annual Sales Comparison by Business
Table 212: Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Climate, Electronics,
Segment (2007 Vs. 2006) – Automotive and Interiors, Other Products, Services and ACH
Financial Services (In ¥ billion)................................. IV-545 (In US$ billion) .......................................................... IV-580

Table 213: Annual Sales Comparison by Table 225: Percentage Breakdown of Annual Sales
Geographic Region (2006 Vs. 2005) – Japan, (Value) by Business Segment (2006 Vs. 2005) –
North America, Europe, Asia, and Climate, Electronics, Interiors and Services .............. IV-580
Other Regions (In ¥ billion) ....................................... IV-545 Table 226: Annual Sales Comparison by Product
Segment (2006 Vs. 2005) - Chassis Products and
Table 214: Percentage Breakdown of Annual Sales
Systems, Interior Products and Systems, Climate
(Volume) by Geographic Region (2006) – Japan,
Control Products and Systems, Powertrain Products
North America, Europe and Asia ............................... IV-546
and Systems, Electronic Products and Systems,
Table 215: Percentage Breakdown of Annual Sales Exterior Products and Systems, Glass Products,
(Value) by Geographic Region (2006) – Japan, and Service Operations (In US$ billion) .................... IV-581
North America, Europe and Asia ............................... IV-546 128. V-Traffic (France)............................................................. IV-588
Table 216: Annual Sales Comparison by B0usiness 129. Wavetronix LLC (USA).................................................... IV-589
Segment (2006 Vs. 2005) – Automotive and 130. Webtech Wireless, Inc. (Canada) ...................................... IV-593
Financial Services (In ¥ billion)................................. IV-546
Table 227: Nine Months Sales Comparison:
116. Trafficmaster PLC (UK) ................................................... IV-552 2007 Vs. 2006 (Nine Months Ended, April)
Table 217: Annual Sales Comparison: (In US$ million) ......................................................... IV-593
2006 Vs. 2005 (In £ million) ...................................... IV-552 Table 228: Nine Months Sales Comparison by
Geographic Region (2007 Vs. 2006) – Canada,
117. TransLink (Canada) .......................................................... IV-555
USA, Europe and South America (Nine Months
Table 218: Annual Sales Comparison: Ended, April) (In US$ million) ................................... IV-594
2006 Vs. 2005 (In US$ million).................................. IV-555 Table 229: Annual Sales Comparison:
118. Transmart Technologies, Inc. (USA) ................................ IV-558 2006 Vs. 2005 (In US$ million).................................. IV-594
119. Transport Security Systems (The Netherlands)................. IV-561 Table 230: Quarterly Sales Comparison:
120. T-Systems Enterprise Service GmbH (Germany) ............. IV-563 2006 Vs. 2005 (In US$ million).................................. IV-594
121. Uniden America Corporation (USA) ................................ IV-564 Table 231: Annual Sales Comparison by Geographic
122. VeriFone Transportation Systems, Inc. (USA).................. IV-566 Region (2006 Vs. 2005) – Canada, US, Europe
123. Viasys Corporation (USA)................................................ IV-568 and South America (In US$ million) .......................... IV-594
124. Video Convergence (USA) ............................................... IV-570 Table 232: Percentage Breakdown of Annual Sales
125. VidSys, Inc. (USA)........................................................... IV-572 (Value) by Geographic Region (2006 Vs. 2005) –
126. Virginia Department Of Transportation (USA)................. IV-576 Canada, US, Europe and South America ................... IV-595
127. Visteon Corporation (USA) .............................................. IV-577 131. WindSpring, Inc. (USA) ................................................... IV-599
Table 219: Half Yearly Sales Comparison: 132. World Wide Technology Inc. (USA) ................................ IV-601
2007 Vs. 2006 (In US$ billion)................................... IV-579 133. Wuhan E-Fly Technology Co., Ltd. (China) ..................... IV-604
Table 220: Annual Sales Comparison: 134. Xuzhou PAT Control Technology Co., Ltd. (China)......... IV-605
2006 Vs. 2005 (In US$ billion)................................... IV-579 135. Zeus Technology Limited (UK) ........................................ IV-606

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I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

The primary purpose of this study is to provide comprehensive market intelligence on a global
level for Intelligent Transportation Systems (ITS). This report attempts to provide a comprehensive
review of the market situation and analyzes trends by each country/region to the year 2015.
A combination of primary and secondary research has been used for all findings. The usage of
obtained information is based on the perceived reliability of the source by the researcher. In many
cases, a combination of such sources was used. Global Industry Analysts Inc. (GIA) provides an in-
depth analysis of the market segments. The critical strategy at Global Industry Analysts, Inc. (GIA)
is to design, analyze, and report on various markets on a global basis.
Our analysts identify and discuss most competitors in the global marketplace in a given segment.
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discussions in our studies pertinent and useful. Management consultants, investment bankers,
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are amongst our regular clientele served.
Worldwide competitors in each segment are identified in this report. Key competitors are
extensively discussed throughout our reports. The Competitive Intelligence section profiles large
diversified players as well as small private niche players that are seldom reported in the news or by
most researchers. Profiles of such local and less prominent players are intended to provide a
general perspective of the market makeup.
In our market determination efforts, an extensive secondary research was initially completed to
gain a good perspective of the market in that region. The next step was to conduct primary
research, involving levels 1 & 2 questionnaires targeting marketing and sales executives
worldwide.
Another primary research technique useful in supplemental market research was sending focused
and detailed letters to senior management in companies worldwide, particularly those operating in
markets that are not well reported in secondary research feeds. These letters sought answers to
specific questions pertinent to the region.

STUDY RELIABILITY AND REPORTING LIMITATIONS


Primary and secondary research was completed over a four-month period to determine market size,
growth trends, major impacting factors, and relative strengths and weaknesses of companies.
Extensive effort is made to provide reliable information. However, we do not accept responsibility
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is constrained by the credibility of the primary and secondary research sources. Often times
hundreds of such secondary source feeds are used to derive the final published data. It is beyond
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data.
Researchers at GIA make extensive efforts to obtain the best mix of information through
established research techniques, to present extensive and yet reliable information about the

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markets. Most of the data is drawn from secondary research sources. Sometimes very little
information may be reported requiring another effective method – historic cross linking of
published data and using period growth CAGR to derive analytics. Most of the company-related
information is extracted from company websites and several other online published sources. We
never use econometric modeling techniques to derive market analytics. It is important to recognize
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diverse multilingual information sources to collect, analyze and publish research that is rarely
reported.

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DATA INTERPRETATION & REPORTING LEVEL


The "recent past, current & future analysis" covering the period of 2000 through 2015 has been
drawn from an extensive list of secondary sources combined with primary source feeds.

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Quantitative Techniques & Analytics
All the figures and forecasts provided in this report are presented in US$ Million at the
Manufacturer’s Level unless otherwise specified. Each data table is followed by a list of notes.
Error tolerance in these notes indicates the actual reliability of the data. The reliability of the data
used in this report is based on an overall essence of all the sources used for the estimates. Data
tolerance is based on several parameters that were standardized and/or used for estimates that have
margin for error.
Global Industry Analysts automatically places a 5% (+/-) error tolerance on all market data. Some
geographic markets will be accurately reported with a tolerance of less than 5% (+/-) while others
could have a tolerance of 10% to 15% (+/-).
The dollar figures provided in this report have not been adjusted for inflation. They are in nominal
terms and not real terms. The impact of exchange rates fluctuations on the market has not been
analyzed. The weakening US dollar against the Euro, Yen and other currencies can affect market
and industry trends.
Exchange rates used for standardizing data in the tables are 1 US $ = 1 Canadian Dollar, 106.40
Japanese Yen, 0.67 Euro, 0.50 British Pound and 24.43 Russian Rubles. Data is standardized to the
currency values as on February 01, 2008.

PRODUCT DEFINITIONS AND SCOPE OF STUDY


Intelligent Transportation Systems (ITS) are integrated networks of communication technologies,
independent modules of sophisticated pc/satellite-based navigation systems, and other electronic
data sensing, collection and transmission systems that collectively enhance transportation
experience in terms of highly regulated and congestion-free traffic flow, guided, hassle-free, safer
and collision-free on-road travel, faster emergency response times, automated & unobtrusive
vehicle recognition & tracking, toll collection and fleet management. With the help of advanced
traffic monitoring systems, data is transmitted to the appropriate authorities for readying rescue
teams on time, and the motoring public to keep track of possible delays or dangers on the road
via VMS (variable message signs), HAR (highway advisory radio), or broadcast radio traffic
reports.

The report analyzes the market for Intelligent Transportation Systems by the following product
segments:
1. Advanced Traffic Management Systems (ATMS)
2. Electronic Toll Collection (ETC) Systems
3. Public Vehicle Transportation Management Systems (PVTMS)
4. Commercial Vehicle Operations (CVO) Systems
5. Others (Include Advanced Vehicle Information Systems among others)
(Note: Due to ambiguity in definitions of the ITS’ segments in different geographic regions, scope of the study has
been limited to the above mentioned product segments. The study excludes services pertaining to the ITS
industry and ‘In-Vehicle Intelligent Transportation Systems’, which generally form a part of the consumer
segment of ITS.)

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Advanced Traffic Management Systems (ATMS)
ATMS make use of cameras, detectors, and communication systems for monitoring traffic,
optimizing signal timings, and for regulating the flow of traffic. ATMS’ facilitate the integration of
freeway and surface arterial operations for effective management of travel routes; also improve
communication for emergency vehicle operations. The components that make up advanced traffic
management systems include hardware and software for controlling, monitoring, and managing
road traffic, such as electronic signs, signals, and their controllers; commercial vehicle credentials
readers; surveillance and monitoring equipment; and support equipment/road side infrastructure.
Electronic Toll Collection Systems
Electronic toll collection systems encompass technologies that enable drivers to pay toll fee without
stopping at the tollgate. Since toll collection is accomplished through wireless communication,
drivers need not halt at tollgates. Carrier/transponder enabled electronic purse-based toll collection
system aids in efficient traffic flow at tollgates, offers well located toll collection with no cash
handling, and saves management expenditure. ETC system uses vehicle-to-roadside communication
technology such as Automatic Vehicle Identification (AVI), Automatic Vehicle Classification
(AVC), and Violation Enforcement Systems for electronic financial transaction between a vehicle
and a toll station. Deployment of ETC systems enables the reduction of traffic congestion, queues
at toll stations, fuel consumption, waiting times, and number of stops on the road.
Public Vehicle Transportation Management Systems (PVTMS)
Public transportation services enable streamlining of transit, allow transit companies in locating
vehicles, and provide safety to commuters. The public transportation management systems offer
automatic analysis of real-time vehicle and facility status for enhancing transit operations and
maintenance. The analysis identifies deviations and offers solutions to drivers and dispatchers. The
integration of this feature with traffic control services enables scheduling of transportation
operations and ensures transfer connections in inter-modal transportation. Information relating to bus
running times, passenger loading, and mileage accumulated improve service and administrative
reporting. They also comprise dedicated user information systems, onboard databus, fare collection
system elements and passenger & driver safety, surveillance and alarm systems. In addition, automatic
recording and verifying tasks executed by transit workers also improves transit personnel management.
Commercial Vehicle Operations (CVO) Systems
CVOs are ITS technologies applied to enhance motor carrier productivity and safety while
journeying the interstate frontiers. CVO systems ease the interstate movement of commercial
vehicles by removing the need for manual paperwork through electronic paperwork. They also
facilitate weighing the trucks-on-the-move, thus, eliminating the need for vehicles to stop at weigh
stations. Besides, the systems examine operations for providing safety and enhancing efficiency
and offering instantaneous alerts to authorities in the event of tragedies.

Advanced Vehicle Information Systems


Advanced Vehicle Information Systems (AVIS) include a host of applications that enable commuters
to have a safe journey. These systems include collision-avoidance systems (CAS), and telematics
solutions such as radio data system - traffic message channel (RDS-TMC) and traffic master systems.

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INTELLIGENT TRANSPORTATION SYSTEMS - EXECUTIVE SUMMARY

(Note: Due to ambiguity in definitions of the ITS segments in different geographic regions, scope of the study has
been limited to Advanced Traffic Management Systems (ATMS), Electronic Toll Collection (ETC) Systems,
Public Vehicle Transportation Management Systems (PVTMS), Commercial Vehicle Operations (CVO)
Systems, and Other Intelligent Transportation Systems. The study excludes services pertaining to the ITS
industry and ‘In-Vehicle Intelligent Transportation Systems’, which generally form a part of the consumer
segment of ITS.)

A DISPARATE INDUSTRY

Intelligent Transportation Systems (ITS) is a disparate industry, where teamwork of various


module makers is what counts more than individual performances of system integrators. Intelligent
Transportation Systems refer to the collection of various modules of sophisticated parallel
communication/sensing/control platforms and/or information technologies that together constitute
an integrated futuristic transportation system that flaunts performances such as a highly controlled
traffic flow and enhanced travel experience, while minimizing traffic incidents, congestions &
emergency response times and improving vehicle tracking & transit scheduling. Unlike any other
manufacturing industry that has witnessed phenomenal value migration from manufacturing to the
systems integrators, the ITS industry is still fragmented, and each module maker plays a key role in
the market. Technology enablers and system integrators equally share the responsibility for
advancing the industry’s future and are hence, accorded equal importance. Apparently, in the ITS
industry, strategies when combined across board, comprise the industry size!

Partners in Success - Key Enablers of Intelligent Transportation Systems

Modular Technologies Manufacturer/Solutions Developer


Alpine, Bosch, Denso, Pioneer, VDO, Mitsubishi, Motorola, Panasonic,
Automotive Electronics
Mannesmann, Siemens, Magneti-Marelli, Delphi, Sumitomo and Visteon
Digital Map Databases TeleAtlas/Etak and NAVTEQ
ITS-Related Technologies &
Mark IV, Sirit, TransCore, Q-Free, International Road Dynamics and Siemens
Devices
GM OnStar, Mediamobile, Mannesmann Passo, Tegaron, VW Gedas,
ITS Services
Toyota/Monet, and Ford Wingcast
Telecommunications and
Deutsche Telecom, Vodaphone, France Telecom, and AT&T
Wireless Carriers
Traffic Signals & Controls Siemens, Automatic/Eagle Signal, Image Sensing
Wireless Solutions Motorola, Ericsson, Mannesmann, Siemens, Nokia

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MARKET SNAPSHOTS

• World market for intelligent transportation systems is estimated at US$9.8 billion for 2008, as
compared to US$8.7 billion in 2007. The market is projected to reach US$12.45 billion by 2010,
registering a CAGR of 11.6% over the period 2000-2010.
• The US represents the largest market for intelligent transportation systems, accounting for
40.1% share of the total world intelligent transportation systems market, estimated for 2008.
• Japanese market is projected to record a CAGR of 12.6% over the period 2000-2010, to reach
US$2.1 billion by 2010.
• Advanced Traffic Management Systems (ATMS), the leading category of Intelligent
Transportation Systems, is estimated to clock sales of US$3.9 billion for 2008, as against
US$3.6 billion posted in 2007.
• Electronic Toll Collection systems, the fastest growing product segment, surging ahead at a
robust CAGR of 17.1% through the years 2000-2010, are expected to perk up the market value
to US$3.0 billion in the year 2010.
• TransCore Inc. of the United States is one of the global leaders in Intelligent Transportation
Systems (ITS) market. Other leading players in various segments of ITS market include:
• XATA - A worldwide leader in providing fleet management solutions
• Mark IV - A developer of dedicated short-range communication (DSRC) equipment that
finds application in ITS areas such as electronic toll collection and commercial vehicle
operations (e.g. automated weigh station bypass).
• Siemens Transportation - A global leader in transportation systems, and traffic signals
• Magellan - A premier manufacturer and provider of global satellite positioning, navigation,
and guidance equipment.
• Rising impetus for enhancing road safety and escalating socio-environmental and economic
implications of traffic congestions worldwide are the key rationale for investments in Intelligent
Transportation Systems. Banking on the ever-growing fundamental vitality of the said implications,
these are likely to remain strong growth propellants for the sector in the forthcoming years.
• With a broad market vertical encompassing numerous technology and application developing
companies innovating a diverse range of complementary products and integration platforms, the
industry is likely to witness a wealth of strategic technological and product development alliances
attempting to buck up the mushrooming popularity of intelligent transportation worldwide.
• Given the overwhelmingly shrunk development cycles, enormous costs of research and design,
and evolving multiplicity of complementary technologies, alliances are emerging as the only
way to cash in on the fast rising opportunity, without entailing big-ticket investments, both in
terms of time and money.

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INDUSTRY OVERVIEW

Traffic Congestion – Overriding Concern of Many a Nation


The exacting demands on the road network due to rising vehicular population is straining the
road infrastructure. The number of vehicles exceeds the design limit of highways and roadways.
Slow movement of traffic, deterioration in air quality, frequent accidents, fuel wastage, and other
factors can all be attributed not only to rising traffic but also to the road network becoming
inadequate. Constrained capital and physical resources further aggravate the problem of
infrastructure inadequacy, leaving no cue for the governments to overcome the ‘necessary evil’. Of
late, advancement of sensor technologies, cross deployment of engineering ideas, and enhanced
reliability of networking systems, the most prominent aspects of the IT era, are emerging as the key
enablers of traffic management solutions, together dubbed as Intelligent Transportation Systems.

Intelligent Transportation Systems – Solution for Today’s Traffic Congestion


Through the use of computer and communications technologies, Intelligent Transportation Systems
(ITS) address road transportation problems such as congestion, safety and security. The
composition of ITS include information processing, communications, and electronics. Integration
of these technologies with the transportation system is expected to save lives, time and money. In
comparison to other technologies that have made life easier and productive, the same cannot be
said of the present transportation system, wherein, the technology is still the four-way traffic
signal. In other words, the technology, since its invention, has not evolved much. Dependence on
the conventional system is resulting in poor productivity, fuel wastage, and is grossly ineffective in
limiting the number and incidences of vehicular accidents.
Ensuring minimal traffic congestion and enhanced road safety entails more than overcoming the
infrastructural problem; it is about cultivating an efficient and speedier transportation system; fruits
of which are unrealizable unless governments across the world adopt a strategic vision to actively
promote & integrate evolving technologies with conventionally proven systems. ITS Installation is
expected to solve these very problems and facilitate in transporting goods and people safely and
economically by way of a sophisticated inter-modal transportation system. Nowadays, cars and
trucks are equipped with computer systems for processing data from sensors and subsystems. The
objective of ITS, apart from improving safety, is to improve productivity, efficiency, driving
experience, mobility, and to reduce pollution by the application of computer and telecom expertise.

Efforts Towards Reducing Injuries & Easing Traffic Congestion


ITS installation improves transportation network by improving its efficiency and providing safety
to commuters. Authorities concerned such as policymakers, lawmakers, and others are intensifying
efforts to bring down casualties and to ease traffic congestion by exploiting the ITS technology.
Efforts are also being directed towards interlinking compatible technologies into a unified system
for setting up an efficient transportation network.

Rationale Behind Installation of ITS


The objective of intelligent transportation system is not only to enhance the on-road safety and
efficiency, but also to increase traveling comfort by improving the functionality of cars and road

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networks through the deployment of information technology. Moreover, deployment of ITS
results in improved air quality through reduction of recurrent traffic jams entailing massive
emissions of noxious gases. The following sum up the key rationale behind deployment of
ITS:
• To gather and disseminate the data on traffic conditions and transportation schedules for
commuters. Cautioned against dangers and delays, commuters can alter their plans in advance
and thereby, not only get rid of botheration, but also reduce the strain on the road network.
• To bring down the number of traffic clogs, for freeing the traffic as rapidly as possible, for
providing alternative route for traffic flow, and for collecting toll fee.
• To facilitate drivers in reaching right destinations with the assistance of navigation systems
equipped with path finding or route guidance.
• To improve the productivity of heavy vehicles by employing automated systems such as
tracking, dispatching, and weigh-in-motion systems, that enhance the speed of the vehicles.
• To aid the public agencies in realizing cost savings and rendering efficient services.
• ITS help in improving commuters’ driving experience on road, enhances safety, and saves
resources such as time and money for commuters and transportation organizations.
Despite the already wide use of ITS, the segment unfurls bountiful prospects, yet to be harnessed,
especially in the remotely connected rural areas and mid sized cities. Apart from saving time,
reduction in operating costs, prevention of accidents, reduction in emissions, and improvement in
fuel efficiency, other dimensions of ITS deployment that have a multiplier effect include:
• Increased global competitiveness, for instance, through reduced transportation costs
• Optimum infrastructure utilization
• Improvement in private sector productivity (e.g., just-in-time, access to labor markets)
• Boosting technological advancement and complementary applications development
• Improvement in quality of life such as reduced driving stress, and
• Rendering of such services that require swift response time as during emergency and disaster-
relief operations

Factors Influencing ITS Market

Global Capabilities
Intelligent Transportation Systems market is a truly global market with ITS makers increasingly
targeting the whole world’s market with their exceptional products and services and systems
integration capabilities. Capability of first and second tier sellers to manufacture and supply
reliable products globally is a key driver of the market. Few ITS products are targeted at exclusive
regional markets and operated under specific regional regulatory or social limits. Nevertheless,
several ITS products are designed for global installation or application in passenger cars, trains,
ferries, buses, and commercial vehicles.

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Favorable Factors
• Standardization of technologies and compatibility of network architectures imbue reliability and
underscore applicability across numerous end uses not withstanding geographical barriers,
spiking the market’s growth, both in terms of scale and scope.
• Interoperability of ITS systems center stages the required thrust for market growth, amid
superfluous existence of overlapping technologies.
• Strategic alliances skillfully consolidate the fragmented developmental efforts of enthusiastic
players, further enriching the industry’s systems and services’ portfolio.
• Growing popularity and rising awareness of benefits further boost the market penetration of
intelligent transportation systems.

Restraints
Despite the trend catching up of late, the existing low level of awareness regarding the positive
outcomes of ITS deployment discount the bountiful prospects of the technology. Overabundance of
technologies causes technological fragmentation, while privacy issues and high end user prices
upstage strong public opposition. Liability issues and poor funding and/or reluctance of
governments in furthering research in the development of advanced technologies further impede
the market evolution and expansion.

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TECHNOLOGICAL TRENDS & ENABLING TECHNOLOGIES

Internet, X-Ray and DSRC: The Powerful Trio Enabling ITS


Intelligent transportation system know-how is being integrated with the Internet for enabling
vehicles to obtain required information while they are on the go - at tollbooths, highway
restaurants, or at truck stops. ITS technology is used to promote pass-through toll collection and
highway pre-clearance for truckers. The same technology is also deployed at international borders
for promoting quicker and efficient customs checks. ITS technology is being combined with X-ray
technology for pass-through searches of trucks and trains, thereby, enhancing the safety of custom
checks without causing disruption to the traffic. Furthermore, on-road communications are
enhanced through the application of Dedicated Short Range Communications (DSRC) that
enable vehicles on road to communicate with the roadside readers and transponders. American
Society for Testing Materials Subcommittee (ASTM)’s approval of wireless DSRC network
standards is a key development promising opportunities further a field. The new standard for
transponder design operates on the 5.9-gigahertz frequency and enables the convergence of
DSRC and Internet technologies. Just around the corner, these emerging technologies are likely
to revolutionarily improve the highway safety and disaster relief, onboard entertainment, pass-
through toll functions, highway pre-clearance and pass-through highway purchases or m-
commerce.

Key Technological Trends in the ITS Market

Integration of ITS with Cellular Technology


Integration of ITS with cellular technology is a big time opportunity presenting bountiful prospects.
Eyeing the stellar growth opportunities, cellular giants such as Motorola and leading chipmakers
such as Texas Instruments are partaking in joint development of interconnecting technologies. At
present, intelligent transportation systems are mainly used for pass-through toll collection for
trucks and passenger vehicles. Another common application of intelligent transportation
systems includes highway pre-clearance, namely, safety checks and weigh-in-motion and in-
vehicle safety. Trial runs are in progress to speed up border crossings using ITS in North
America.
Integration of ITS with cellular technology facilitates the embedding of the required data into a
single transponder (transponder is fitted in vehicles to receive roadside messaging) for retrieval of
data from tollbooths or from any stationary kiosk. Federal Communication Commission’s (FCC)
decision to allocate 5.9GHz band for ITS applications is further pacing up the integration of ITS
technologies with cellular communication technologies.

ASTM’s Endeavor for ITS Architecture Standardization


Standardization enhances system reliability and interoperability. American Society for Testing
Materials Subcommittee (ASTM) is endeavoring to develop internationally accredited
standards for ITS, in order to simplify the deployment of ITS technologies. The association’s
endeavor is likely to dawn standardization of tags, systems and processes that in turn lowers
overall system costs.

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Satellite-Based Truck-Tracking System
Australia’s Intelligent Transport Systems launched the Intelligent Access Program, which is a
satellite-based truck-tracking system. The system utilizes satellite-based tracking for checking the
position of a truck in Australia. This helps in ensuring heavy vehicles use roads built specifically
for them, and avoid road damage and congestion. The use of satellite-based truck-tracking systems
eliminates the conventional system of traffic police going around the roads for checking whether
trucks are using the intended roads and penalizing defaulters.
In addition, the system assists government in reducing costs of road up gradation by determining
which roads require to be upgraded for trucking use. In addition, savings can be realized through
decreased fuel costs and travel time could be brought down by determination of efficient paths.
Private companies and state authorities were involved in the Intelligent Access Project.

Enabling Technologies
Intelligent transportation systems encompass a diverse range of technologies including
microelectronics, communications and computer informatics. The following is a description of a
few technologies that form a component part of ITS.

Radio-Frequency Identification (RFID)


RFID is an electronic identification procedure, which utilizes radio-frequency signals for reading
on-vehicle tags for automatic identification of vehicles.

Electronic Tags
Electronic tags are automatic vehicle identifiers that are in-built in vehicle’s windshields. Laser,
infrared and radio frequency are the commonly deployed methods of electronic tag identification,
of which, radio frequency emerged as the technology of choice for vehicle identification in
electronic toll collection systems.

RDS-TMC
Radio Data System Traffic Message Channel (RDS-TMC) is a system that gathers, aggregates, and
disseminates traffic data as per a uniform worldwide standard. Data is gathered from the traffic
information center and is disseminated through RDS-TMC traffic service provider. The RDS-TMC
receiver employs sophisticated digital technology to decode the unprocessed traffic data and
converts it into traffic information. Later, the information could be sent across either visually
through a navigation center deployed in the vehicle, or through an audio wave.

Dedicated Short Range Communications (DSRC)


DSRC is an application specific broadband technology that offers two-way communications over
short distances across small areas. One of the main applications comprises interface from road to
vehicle based on spot area communications technology utilizing microwave and infrared media.

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PRODUCT OVERVIEW

Introduction
Intelligent Transportation Systems are integrated networks of communication technologies,
independent modules of sophisticated pc/satellite-based navigation systems, and other electronic
data sensing, collection and transmission systems that collectively enhance transportation
experience in terms of highly regulated and congestion-free traffic flow, guided, hassle-free,
safer and collision-free on-road travel, faster emergency response times, automated &
unobtrusive vehicle recognition & tracking, toll collection and fleet management. With the help
of advanced traffic monitoring systems, data is transmitted to the appropriate authorities for
readying rescue teams on time, and the motoring public to keep track of possible delays or
dangers on the road via VMS (variable message signs), HAR (highway advisory radio), or
broadcast radio traffic reports.
ITS, entailing the application of information, communication, sensor and control systems to
improve surface transportation systems’ performance, can be classified into areas that address
different transportation requirements such as travel security, reliability, higher mobility and
lowered traffic jams. The technology comprises of traffic signal controls, electronic fare payment,
and constantly updated traveler data in conjunction with multimodal scheduling data. Superior
navigation, communications, operations monitoring, and data-collecting technologies are applied to
improve the mobility, security and efficiency of transportation. Traveler management systems help
in easing congestion on roads and in significantly reducing the response times in case of
emergencies. ITS for public transportation services aid in streamlining transit, enable transit firms
in identifying the precise location of vehicles, and ensuring safety of commuters. Electronic
payment systems deploy information technology for making payments hassle-free and automatic.
Commercial vehicle services facilitate efficient and cost effective truck transport. Advanced
vehicle safety systems prevent accidents. Additionally, ITS systems gather transportation data,
which can be archived and used for analyzing traffic and travel patterns.
ITS was initially restricted to highway-based systems including traffic monitoring devices.
However, presently, it has assumed a wider definition and includes back office, transaction, and
regulatory systems. Many advanced technology systems, including electronic toll collection
systems and synchronized traffic signals, can be utilized in rail, highway, and other transportation
modes to enhance mobility, decrease accidents, and upgrade transportation in general.
Examples of standard ITS transport applications include Intermodal transportation systems, in-
vehicle technologies, intelligent traffic control systems, safety enhancement technologies, and
traveler advisory systems.

ITS Integration
ITS integration is a close inter-connection among system components, there by, optimizing
resource usage. A national architecture is a prerequisite for efficient functioning of the ITS
systems. In order to attain this objective, the Departments of Transportation of various countries
devise standardized national architectures that in turn place the ceil on efficiency and
interoperability of various ITS systems.

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ITS Integration Program Objectives
ITS integration program’s objectives are:
• Facilitate installation across geographical area
• Prove commitment to stakeholder collaboration and to national ITS architecture
• Promote and leverage private sector participation
• Establish compliance with national ITS architecture
• Demonstrate inclusion in stateside or metropolitan transportation planning processes
• Guarantee long lasting functioning and maintenance without the need for governmental support
for funds
• Ensure that workforce have requisite skills for effective operations
• Meet additional economic or developmental objectives
ITS System Architecture
When for the first time ITS was launched in the market, it was used for offering one specific
service. With growing sophistication, technologies and applications were integrated for enabling
stand-alone systems to offer more than one service. The integration of various systems and services
gives rise to a regional architecture. Regional architectures enable integration of varied electronic
systems and applications for offering a comprehensive structure for the national ITS strategy.
Besides, ITS architecture enables ITS programs to be integrated in stages depending upon the need
and funds available.
For instance, in the US, the integration between ITS technologies and applications, collectively
referred as architecture, combines over thirty types of services that play a key role in the
nationwide transportation network. Increased compatibility between ITS say within a specific area
or among many areas enables ITS in executing the defined service efficiently. The architecture can
display the travel picture, together with possible traffic management and public transit options, and
thereby, aid in providing latest information. The National ITS architecture of the USA endeavors to
coordinate efforts among traffic, transit, police, fire, and rescue departments for improving
management of transportation network.

Segment Overview

Advanced Traffic Management Systems (ATMS)


ATMS make use of cameras, detectors, and communication systems for monitoring traffic,
optimizing signal timings, and for regulating the flow of traffic. ATMS facilitate the integration of
freeway and surface arterial operations for effective management of travel routes; also improve
communication for emergency vehicle operations. The components that make up advanced traffic
management systems include hardware and software for controlling, monitoring, and managing
road traffic, such as electronic signs, signals, and their controllers; commercial vehicle credentials
readers; surveillance and monitoring equipment; and support equipment/road side infrastructure.
Traffic management and control systems category encompasses a network of transportation
architecture, displays, computers, two-way data connections to adjoining systems and centers,

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dynamic message signs, information feeds from field equipment and other public and private
sources, field equipment controllers, communication and software protocols, outbound data feeds
to controllers and field equipment, commercial vehicle tag readers/transmitters, traffic signals,
CCTV and other video surveillance devices, vehicle detectors, wired and fiber networks.
Advanced traffic management system, which is a computerized transportation communication
system, employs fiber optic technology. The system allows Transportation Control Center (TCC)
to identify traffic incidents and congestion, and send across signal timing data to traffic signals and
messages to variable signboard. Travelers can utilize the data for making informed decisions
relating to their travel. Installation of ATMS helps -
• Enhance safety
• Improve air quality
• Reduce traffic delays
• Decrease gasoline consumption
• Improve mass transit operations
• Improve transportation system capacity
• Improve incident response and management
• Improve regional transportation integration and information sharing

Components of Advanced Traffic Management Systems

Detection Systems
Detection systems are sophisticated image-processors that gather traffic and incident data either
from analog or digitally encoded video format that is further processed to analyze and monitor on
road traffic by collating the images from various parts of the network. They also ensure advance-
warning systems based on analysis of the traffic data and enable prevention of collisions and
expedite emergency rescue in the event of collisions.
Firstly, the detector receives signal/video stream indicating the data related to on coming vehicles
from the CCTV cameras deployed in the pathways. The image data corresponding to the traffic
speed and number of vehicles on roads, bridges, & tunnels, is then collated with automated
detection algorithms/vehicle tracking video data to obtain information on traffic clearance, road
occupancy. Video images further enable advanced video surveillance and collision avoidance at
intersections and on highways. For incidence control and emergency response, the detection
systems dispatch audio-visual alarms and incidence image clippings, both live and recorded, to
traffic monitoring stations for further action within few seconds of the occurrence.
Loop-Emulation/In-ground Detectors – The Precursor
Video detectors based on loop-emulation are generally embedded in the ground and have limited
view field. They can detect only vehicles appearing within that field and are usually deployed for
presence detection and intersection control using simple binary detection algorithms based on
analog/digitally streamed image data from CCTVs. They entail huge traffic disruption while
installing and re-configuring to the changes in the system and road architecture. Of late, advanced

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video surveillance systems based on vehicle tracking are however bypassing the utility of these
conventional detection systems with a host of advantages.

Advantages of Advanced Video Detectors


• Easy to install, flexible and adaptable to changes in road configuration and do not entail
reconfiguration of existing CCTV cameras, even in areas that are hard to be surveyed by in-
ground detectors
• Unobtrusive to traffic flow and can be installed on roadside cabinets or traffic control centers
• Enable faster and high volume processing of image data that aid in speedy reporting of incident
occurrence
• Highly sensitive to incident data and automated triggering of alarms
• Low incidences of false alarms
• Standardized protocol data and open architecture for easy and flexible communications with any
traffic system
• Enable the assessment of the severity of incident and minimizes emergency response time by
digitally modeling incidences based on pre-recorded and live incident data in real-time
• Additionally, they facilitate queue length measurement and tracking of spatial occupancy and
combine virtually all image data for enabling efficient and effective ramp metering, urban traffic
monitoring, tunnel management and advanced traffic supervision.

Pan-Tilt-Zoom Cameras – A Step Forward


With limitations capping the advantages of conventional CCTVs, Pan-Tilt-Zoom cameras are
garnering growing importance in video surveillance and traffic monitoring. They operate
complementary to the existing image capture infrastructure and provide high detection rate along
with low false alarms with the help of real time traffic data tracking for incidence & vehicle
detection and intersection control.

Urban Traffic Control Systems


With the ever-growing number of vehicles on road, urban traffic management has become an
intimidating task for the traffic controllers and a stress factor that impacts the quality of life of the
individuals traveling on the road. In a bid to improve the situation by continuously tracking and
providing alternative path information for guided travel, many cities and countries are investing in
advanced traffic monitoring equipment. Urban traffic control systems are such sophisticated traffic
analyzers that collect and analyze traffic data and enable incidence control and collision
prevention. SCATS of Australia and SCOOT of UK are two such world-famous technologies
developed in Australia and the UK respectively and deployed world over. Other technologies in
use for optimizing traffic flow are UPOPIA/SPOT deployed in Scandinavia and under
experimentation in certain parts of the world and NEMA, RT-TRACS and others.

SCOOT
SCOOT, the acronym for ‘Split Cycle Offset Optimization Technique’, is a real-time full-service
centralized traffic management system incorporating computerized routines to gather and analyze

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traffic data for easing traffic flow and undertaking incident control on surface arterial networks.
Jointly developed by the Transport Research Laboratory (TRL) and UK’s traffic system suppliers,
SCOOT emerged as the preferred adaptive control tool for urban traffic management allover the
UK, Australia, Toronto, Bangkok, San Diego and Anaheim. Currently, TRL, Siemens Traffic
Control and Peek Traffic Co-Own the SCOOT.
SCOOT obtains traffic flow data with the help of loops or detectors embedded in the surface
arterial networks. This data is analyzed along with preset travel schedules and details of road
capacity to obtain insights into the length of the queues, waiting times, and intersections, including
cycle length and phase splits. The traffic measurement and updating of queuing model is
continuous and in a cyclic flow, based on the vertical queue model. Based on the data, the signal
settings are optimized incrementally varying the length of signals in accordance with the traffic
density. SCOOT uses three optimizers for this purpose – the split optimizer, the offset optimizer
and the cycle time optimizer, all of which work together to change the signal timing data at each
phase, junction and each cycle, synchronizing the cycle timing with the traffic flow. Hence,
SCOOT is highly utilitarian on networks featuring optimal flow of traffic and intersections at
shorter distances and is not very practical for busy and congested networks where the flow is
usually at/nearing full capacity and where downstream link congestion impacts the upstream flow.
Problems erupt when there is a queue spillback, and because impacts of downstream congestion are
virtually not considered, signal optimization becomes difficult.

SCATS
SCATS - the Sydney Coordinated Adaptive Traffic System is an unmanned, fully computerized
and vertical queue based advanced traffic management system attempting to minimize traffic
congestions and travel delays by efficiently regulating the traffic flow through signal
time/Phase optimization. The SCATS was developed by New South Wales Department of Main
Roads.
Though developed in Australia, the system’s growing popularity world over rendered it as a global
system, ready-to-use anywhere in the world, further commended by exports to over 50 countries.
Tyco Integrated Systems is the leading distributor of SCATS worldwide. SCATS is successfully
implemented in various cities of Australia, Mexico, USA, China, Indonesia, New Zealand, Ireland,
Malaysia, The Philippines and Singapore.
SCATS deploys embedded inductive loop detectors and obtains traffic data in real time. Based on
the information received, the data is concurred with the most probable travel time schedules and
the queue lengths to arrive at the precise time and number of the vehicles approaching a junction
and further computes the optimal signal timing and accordingly matches the real-time signal
changeover to minimize delays and congestions. The adaptive control enabled SCATS to emerge
as one of the world’s most efficient urban traffic management and control system linking multiple
traffic signal controllers.

SCOOT and SCATS – A Comparison


Both SCOOT and SCATS are operator intervention-free advanced traffic management systems that
detect & track traffic flows, disruptions and queue spill backs based on the vertical queuing model
and optimize signal timing within real-time.

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An important point of difference between the two systems is regarding the usage of vehicle
detectors that in turn impacts the resolution of the image data and the time lapse for
communication. SCOOT features an additional set of vehicle detectors whose usage enables the
system to ‘view and project’ traffic better, faster, and respond quicker. The detectors are affixed at
about 50-300 meters upstream of stop line and provide a detailed account of number of oncoming
vehicles and length of the queue far before these vehicles approach the stop line, there by, ensuring
faster signal timing optimization, including just-in-time signal changeover. On the other hand,
SCATS deploys occupancy detectors and times the signals by splitting the phases for existing
traffic. Another line of difference is the control architecture. SCOOT sports a centralized control,
while SCATS offers a distributed control. Similarly, while SCOOT offers dynamic offsets,
SCATS’ offsets are pre-determined.

Electronic Toll Collection Systems


Electronic toll collection systems encompass technologies that enable drivers to pay toll fee without
stopping at the tollgate. Since toll collection is accomplished through wireless communication,
drivers need not halt at tollgates. Carrier/transponder enabled electronic purse-based toll collection
system aids in efficient traffic flow at tollgates, offers well located toll collection with no cash
handling, and saves management expenditure. ETC system uses vehicle-to-roadside communication
technology such as Automatic Vehicle Identification (AVI), Automatic Vehicle Classification
(AVC), and Violation Enforcement Systems for electronic financial transaction between a vehicle
and a toll station. Deployment of ETC systems enables reduction in traffic congestion, queues at toll
stations, fuel consumption, waiting times, and number of stops on the road.

Components of ETC
Automatic Vehicle Identification – Identifies the owner of a vehicle by means of a transponder
fitted in the vehicle and automatically deducts the toll fee from the account of the motorist. AVI
features electronically encoded tags that are deployed in the windshield of a vehicle with unique
identification (ID) number. Roadside antennas are mounted on overhead structures or as part of the
electronic toll collection station along the road. These antennas produce radio frequency signals
(RF) across the freeway lanes. As and when a vehicle nears a tag reader site, the roadside antenna
produces a signal that is reflected back by the tag located on the windshield. The signal emitted is
altered to some extent by the vehicle’s tag for allotting a unique tag ID number to the vehicle. The
ID number is then forwarded to a roadside reader site where it obtains a time, date, and location
stamp. A centralized system uses the code for determining the account for charging the toll fee.
Automatic Vehicle Classification – This system categorizes vehicles as per types and class for
accurate deduction of toll fee.
Violation Enforcement Systems – These undertake the tasks of identification of toll violators
and penalizing them. Systems utilized for detecting toll violators include video tape recording
systems and license plate recognition system.

Public Vehicle Transportation Management Systems (PVTMS)


Public transportation services enable streamlining of transit, allow transit companies in locating
vehicles, and provide safety to commuters. The public transportation management systems offer

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automatic analysis of real-time vehicle and facility status for enhancing transit operations and
maintenance. The analysis identifies deviations and offers solutions to drivers and dispatchers.
The integration of this feature with traffic control services enables scheduling of transportation
operations and ensures transfer connections in inter-modal transportation. Information relating to
bus running times, passenger loading, and mileage accumulated improve service and
administrative reporting. They also comprise dedicated user information systems, onboard
databus, fare collection system elements and passenger & driver safety, surveillance and alarm
systems. In addition, automatic recording and verifying tasks executed by transit workers also
improves transit personnel management.

Commercial Vehicle Operations (CVO) Systems


CVOs are ITS technologies applied to enhance motor carrier productivity and safety while
journeying the interstate frontiers. CVO systems ease the interstate movement of commercial
vehicles by removing the need for manual paperwork through electronic paperwork. They also
facilitate weighing the trucks-on-the-move, thus, eliminating the need for vehicles to stop at weigh
stations. Besides, the systems examine operations for providing safety and enhancing efficiency
and offering instantaneous alerts to authorities in the event of tragedies.
In other words, commercial vehicle operation systems enable unhindered movement of freight
traffic across states and international borders, and also make truck transport more efficient and
cost effective. These systems involve applying technology to commercial vehicles for enabling
safe and efficient movement of trucks and buses. The systems employ electronic screening and
vehicle identification systems, automated inspections and reporting, hazardous materials
response and on-board monitoring for ensuring safe and efficient movement of commercial
vehicles. Fleet management systems include GPS and other location sensing technologies,
software and communication protocols, satellite, cellular, and/or other communications between
base station and fleet.
Of all the vehicles, commercial vehicles such as vans, large trucks, buses, and special purpose
vehicles account for a large portion of traffic on roads. Owners and operators of these vehicles face
difficulties such as numerous regulations, driver fatigue, frequent inspections and congested roads.
Technology is being used for addressing these very challenges and thereby, to help operators and
drivers to minimize the impact of these challenges on their business operations. Various benefits of
commercial vehicle operations systems include:
• Incident Management – facilitating and expediting the identification of incidents and taking
instantaneous action
• Commercial Vehicle Electronic Clearance (Pre-clearance) – enabling domestic and
international border crossings through pre-clearance service
• Automated Roadside Safety Inspection – facilitating hassle-free safety inspection of commercial
vehicle operations
• On-board Safety Monitoring – cautioning drivers about roadway characteristics such as safe
speed limit to be maintained
• Commercial Vehicle Administrative Processes – offering electronic purchasing of credentials
and automated mileage and fuel reporting

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• Hazardous Material Incident Response – offering hazard spill alert to emergency response
personnel
• Commercial Fleet Management – offering the capabilities to efficiently manage commercial
movement of goods

Advanced Vehicle Information Systems


Advanced Vehicle Information Systems (AVIS) include a host of applications that enable
commuters to have a safe journey. These systems include collision-avoidance systems (CAS), and
telematics solutions such as radio data system - traffic message channel (RDS-TMC) and traffic
master systems. Information gathered from various points is processed and conveyed to other road
users through various means such as cellular phones, and RDS-TMC, enabling a safer driving
experience. The systems include vehicle-to-infrastructure and vehicle-to-vehicle communications
for collecting data. While RDS-TMC is part of the road system, the Japanese counterparts include
technologies such as advanced cruise-assist highway system (AHS), which enable prevention of
accidents, by eliminating the potential causes of accidents in high-speed environments, and
advanced safety vehicle (ASV) or ‘smart driving’, enabled through vehicle-to-vehicle
communications.

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IN-VEHICLE INTELLIGENT TRANSPORTATION SYSTEMS: A REVIEW

In-vehicle intelligent transportation systems are systems deployed within vehicles that integrate the
automobile’s on-board electronics with public safety warning systems, positioning and traffic
information systems, and electronic toll collection systems, with an aim to enhance on-road safety
and travel experience. Escalating safety concerns and evolving multiplicity of traffic problems are
fueling the sophistication of in-vehicle IT systems. Some important functions of in-vehicle
intelligent transportation systems are as follows:
• Assisting drivers with navigation devices for route guidance
• Providing safety and security to drivers
• Providing communications, computing, entertainment to drivers and passengers
• Enhancing commercial vehicle productivity by means of automated tracking, dispatching and
weigh-in-motion systems
Over the years, the importance of in-vehicle intelligent transportation systems witnessed steady
growth. From a modest beginning with a few firms exploring new applications for their
technologies, the industry has grown in size with participants from sectors such as automotive,
communications, computer, and software companies. With automotive OEM vendors being the key
propelling forces in advancing the technologies, and alliances emerging as key risk and cost
sharing strategies, the in-vehicle ITS market is set to soar, leveraging on the growing awareness of
benefits offered.

Traveler Data, Advisory Systems, and Wireless Vehicle Products & Services
These are the systems used as support equipment for in-vehicle systems for travel data assistance,
route guidance and wireless communication services. They include information feeds from public
and private sources, display devices at passenger terminals and on buses, two-way data connections
between communications services and users, traveler information kiosks, one- and two-way data
connections connecting communications services with vehicles, the internet, kiosks, dial-in users,
and wireless PDA users, wireless access to the internet for travelers, and software &
communication protocols.

In-Vehicle Products
In-vehicle products mainly comprise of transponders, infrared and other visual sensors,
identification tags, software protocols, map databases, and mobile/portable multimedia products
and other communications devices that enhance the automobile’s communication with intelligent
transportation networks and systems.

In Vehicle Intelligent Transportation Systems in the Past


A decade ago, few companies began looking at avenues in using wireless communications,
information, and computing technologies for helping drivers. The market, which was relatively an
untapped one, proved a risky venture. In other words, the response of end-users to the products was
not known. Therefore, companies entered into alliances in a bid to reduce risk, to shorten the time taken
to market the product, and to have access to certain expertise not available within their organizations.

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Two companies Etak and Navtek concentrated on offering digital maps for the in-vehicle
navigation market and Qualcomm and @Track (earlier HighwayMaster) ventured into fleet
management systems for long distance trucking. With the passage of time, in-vehicle traffic
information, safety and security, and wireless communications were combined and became a part
of ITS. In the mid 1990s, companies in aerospace and defense who were exploring diversification
possibilities partook joint development programs to provide products and services such as MayDay
(Devices that allow travelers who encounter problems while traveling to seek for help. MayDay
devices such as a mobile phone or a pager have buttons that travelers can use for emergency help
or ask for first aid or mechanical help or for directions) and GPS and tracking for vehicles. The
move by these companies encouraged other companies involved in sectors such as communications,
IT, and entertainment to explore commercial prospects in the personal vehicle market.
Industry giants such as Microsoft, Sun Microsystems and others offered their operating system
services for in-vehicle computing systems and Hewlett Packard, Motorola, and IBM provided their
expertise in hardware, interactive voice, and other applications. Still other companies such as
Philips, Sony, Bosch and Clarion cooperated to design in-vehicle units that offer a range of
entertainment services. As competition was severe, companies came together for developing
standards.
In the early 1990s, US automakers, unlike their Japanese and European counterparts, evinced little
interest in the field of ITS. However, in Europe and Japan, automakers were vigorously integrating
telematics (infrastructure comprising in-vehicle navigation, communication, information and
entertainment services) with vehicle safety ITS applications for differentiating their upscale
automotives. GM and Ford learnt that safety coupled with security were uppermost in the minds of
drivers in the US. This prompted them to provide their own in-vehicle telematics systems – Ford
offered Rescu and GM offered OnStar. Through the support of companies, the Society of
Automotive Engineers started developing an industry standard for an in-vehicle electronics
appliance databus. In 1998, a fully integrated in-vehicle information system was launched in the
US market and since then, the number of offerings of in-vehicle systems is growing. Almost all
automakers provide telematics or some form of in-vehicle information systems either as an option
or as a standard feature. Besides, several aftermarket devices are also made available such as
AutoPC and Alpine’s Navigation System. In most of family cars and vans, entertainment systems
have become a common feature.

The Present Scenario


Currently, commercial and passenger vehicle markets are the key end-users of in-vehicle intelligent
transportation systems. While passenger vehicle applications underscore safety, security,
communication, information, and entertainment, commercial vehicle applications emphasize cost
reduction. However, these devices occupy most of the dashboard space and are expensive, there by,
full-scale commercialization of these technologies is limited to high-end vehicles.

Passenger Vehicle Applications


Banking on the growing awareness of telematics systems, automakers are equipping their vehicles
with sophisticated navigation and cruise control systems to differentiate their products in the
market. European and Japanese markets are well developed, while the US market is also catching

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up in telematics sales. Popular telematics services include Emergency Roadside Assistance, turn-
by-turn navigation assistance, airbag deployment notification, and stolen vehicle tracking. Other
safety and security equipment viz., driver status monitoring, collision warning and avoidance,
hazard warning, and night vision would take some time for commercialization due to liability
issues. Presently, in-vehicle telematics systems are very pricey and hence are fitted in high-end
vehicles. Prices are expected to come down as and when volumes go up and also when there is a
corresponding decrease in the cost of GPS, wireless communications, and computing equipment.
Most of the companies are engaged in continuous enhancement and up-gradation of their systems.
For example in the mobile operating system applications, Microsoft introduced Car.Net in the
place of AutoPC, to deliver news, navigation support, traffic information, and other traveler
information. Sun Microsystems enhanced its Car Java features to include Java Speech Application
Programming Interface and Java Telephony Adaptive Programming. Telematics gadgets on
concept cars are equipped with advanced technologies such as smart cards, small-screen Internet
displays, voice recognition, and docking devices. The critical success factors for telematics lies in
voice recognition, voice command, and in product integration.
Though automobile producers enjoy a distinct advantage in regulating the direction of in-vehicle
systems yet they are dependent on alliance partners and after market vendors. With new
technologies coming up with regular frequency, the need for standardization arises in order to
avoid problems such as wiring bundles and reengineer vendor products. The Telematics
Suppliers Consortium comprising Hewlett-Packard, AMP, Navtech (Navigation Technologies),
and Motorola is taking steps to promote open standards. On the other hand, the Automotive
Multimedia Consortium representing twelve major automotive firms is developing low-speed and
high-speed buses for plug and play capabilities. Development of new innovative ITS products is
being accelerated with automotive OEMs, such as Mercedes Benz, General Motors, and BMW
setting up research facilities. Siemens, Motorola, Visteon, Delphi, and others are associating
themselves with OEMs in the product development efforts and software giants such as IBM,
Microsoft, and Sun Microsystems are offering the requisite services for supporting mobile
computing capabilities. Alliances are common among these said companies and are adaptive as
per industry’s varying needs.

Commercial Vehicle Applications


The commercial vehicle market is witnessing transition from basic communications and tracking
systems to advanced applications that connect trucks to supply chains and highway infrastructure.
Main highways are equipped with weigh-in-motion and pre-clearance programs such as PrePass,
which communicate with in-vehicle equipment. This equipment keeps track of mileage by state and
reduces the amount of paperwork involved. The commercial vehicle ITS applications include
Radio Frequency Identification (RFID) and bar coding that facilitate tracking and monitoring
freight in motion. New applications are being developed to automate international border crossings.
The commercial vehicle ITS products are expected to reduce the costs for the logistics industry.

Adopting Alliance as a Growth Strategy


Alliances form an important part of the in-vehicle ITS industry, as the development of ITS
products and services requires expertise from various sectors such as computer hardware, computer

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software, consumer electronics, wireless communications, and automotive technology. During the
early stages of ITS development, no single company claimed expertise in all the areas, and
obtaining such specialized knowledge was expensive in terms of investing and time consuming for
supporting a project that was untested such as in-vehicle ITS information products as vehicle
navigation and location systems.
So as a way out, companies went into collaboration for financing and supporting untried projects
for sharing the risk. On one hand, companies entered into short-term alliances by establishing
cross-functional groups for achieving a specific task, after which the group was dismantled. While
on the other hand, a few alliances that withstood for a long time enabled companies to share
expertise and form elastic building blocks for successful development of products. Over a period of
time with the transfer of know-how taking place, the need for shared services and expertise
diminished as a result of which the structure of alliances in the ITS industry witnessed
transformation. Mergers and acquisitions are being witnessed in the ITS space and alliances are
also being formed for market penetration and service support. A few important strategic alliances
and collaborations formed in the pursuit include:

Qualcomm
The first in-vehicle ITS sector to exhibit market potential was fleet management systems for the
trucking industry. The payback time period was less than twelve months for ITS fleet management
products for larger long-haul freight companies. Qualcomm was the first to enter this market with
its OmniTrac in-vehicle communications system.
OmniTrac was designed based on satellite communications that offered two-way mobile terminals
with messaging services. After successful market penetration, the company enhanced the product
features by adding location capabilities and also maintained ongoing service centers to monitor and
maintain communications between trucking companies and their fleets. During early 1990s the
company joined the Globalstar satellite consortium for enabling further up-gradation to its satellite
based communications system.
Qualcomm formed alliances with software companies for further development of its OmniTrac
system. Revenues from OmniTrac were utilized for development of CDMA technologies, which
forms its principal business. The company took several routes such as joint ventures, purchases,
and licensing agreements to enter the Asian, European and South American markets. Qualcomm’s
joint venture partners were responsible for establishing the business and maintaining local
operations. On the other hand, the company fabricated the equipment and maintained control of the
monitoring facilities in San Diego and Las Vegas. Qualcomm improved its navigational
capabilities with the acquisition of NavTek in 1998. Through partnership with Microsoft, the
company employed Windows CE software and applications for its dashboard mounted computers.
The company’s CDMA technology was well received in the market, and it partnered with Ford
Motors for a foray into personal vehicle market by forming Wingcast, which provides CDMA-
based services for the automobile market.

Etak
Etak, established in 1983, was the first to develop digital mapping for ITS navigation systems. The
company was first acquired by New Corporation and later by Sony, and then, by Tele Atlas of

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Gent, the Netherlands. Etak formed an alliance with Metro Networks for national real time traffic
reporting and also joined Compusearch of Toronto, Canada, for mapping population centers. The
company provides mobile GPS-guided maps and navigation systems through its partnership with
SkyMap, and co-distributes the product in Asia through IPC. Etak was able to establish its presence
in the global market through these alliances.
General Motors
General Motors and other automakers realized that major IT companies were aiming at personal
vehicle dashboard market for in-vehicle information systems and were supporting an open
architecture model for in-vehicle ITS products and services. With open architecture model proving
a success for computer technologies, companies in the IT sector planned to extend the model to
automotive applications. In Europe, companies with limited resources in terms of expertise and
financing found the model suitable. But the industry giant GM did not let go off its control of the
dashboard to IT companies due to the fact that in-vehicle products offer distinct product
differentiation. Besides, they also provide a source of revenue through service contracts.
In association with its alliance partners including Delphi, EDS and Hughes, GM developed OnStar
for its Cadillac models. OnStar features include automatic notification of air bag release, roadside
assistance with location, route support, and emergency services. The system was also improved to
incorporate new information services such as service station and hotel information that were
developed in partnership with major US firms such as Mobil Oil, Fodor's Travel Publication,
Promus Hotel Corporation, Hilton Hotels Corporation, HFS Incorporate, American Floral Services,
and LesConcierges of California. GM also developed a database or interface that links the ITS
products to the vehicle in partnership with other auto makers. GM formed alliance with Sun
Microsystems for operating system requirements for its OnStar applications, and also to improve
its in-vehicle ITS products and services. In the US, Microsoft (Windows CE) and Sun
Microsystems (Car Java) represent the two main developers of mobile in-vehicle information
operating systems.
Microsoft
Microsoft formed alliances with a wide range of companies, including its competitors at the
aftermarket level, to promote its Windows CE operating system. Its alliances include Intel,
Trimble, systems integrators such as Visteon and Mannesmann, established aftermarket suppliers
including Samsung, Alpine, Hitachi, Clarion, and Daewoo, and automotive OEMs such as Citroen
and Nissan. All partners of Microsoft use Windows CE, the vehicle computer operating system,
and assist in the development of integrated systems based on the Auto PC.
IBM/Sun Microsystems
Sun Microsystems collaborated with IBM, Delphi Electronics, and Netscape Communications to
develop a prototype car computer/information system. Each of these companies played a role by
contributing a major integrated electronics component. The IBM/Sun Microsystems alliance differs
from that of Microsoft and GM alliances, with no single player dominating the alliance. The
alliance was instrumental in producing the Network Vehicle to exhibit the in-vehicle ITS
capabilities provided by the team members. Automotive giants such as General Motors, Ford,
Saab, and other automakers use the Car Java system.

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Other Alliances
In addition to big companies forming alliances to leverage each other’s expertise for the
development of ITS products and services, several small (two and four companies coming
together) alliances were formed for offering certain components to ITS products. As the alliance
companies represented different regions, it enabled the sharing both technical and region specific
knowledge.

Outlook
The telematics market is expected to do well in the future, as these devices would be fitted in new
commercial and passenger vehicles. Partnerships or alliances are expected to give a boost to the
development and commercialization of ITS in-vehicle information technology and products. These
alliances offer vital support to in-vehicle ITS product development by means of sharing the
expertise, resources, and risks, as well as, enabling the minimization of time. As no single company
possesses expertise in numerous technologies, the business is dependent on specialized knowledge
of various technologies.
When the industry goes through the maturity phase, the characteristic of alliance is expected to
change from being focused on technology and R&D to market structure, and eventually, impart
virtual monopoly to big OEMs and other industry giants. Major automotive OEMs are taking
initiatives in the field of in-vehicle ITS development through in-house research centers. Yet,
alliances are common in new ventures/technology due to the need to form elastic building blocks
for sharing specialized knowledge pertaining to new technologies.

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REVIEW OF APPLICATION AREAS
Electronic Toll Collection
ETC systems are mainly deployed on bridges, tunnels, toll roads or turnpikes. Sometimes they are
installed on new roads or on existing roads as retrofits. Toll collection systems on roads are
classified into open and closed systems. The closed system comprises tollbooths at the entrances
and exits and the toll is decided at the point of exit (given the point of entrance to the facility). The
open system encompasses toll systems installed along the facility so that a single journey may
require payment at a number of toll stations.
Drivers are the principal subscribers to an electronic payment system. Following the subscription,
they are provided with Radio Frequency (RF) transponders, which communicate with the toll collection
system. Vehicles going across the toll lane (entrance/exit) need not stop at the tollgate as their toll fee is
automatically deducted from their account. Electronic payment is also utilized for collecting transit fares
and commercial vehicle operating fees. Electronic toll collection can process over thousand vehicles in
one hour as against four hundred vehicles by manual toll lane. Thus, ETC systems help in realizing
cost savings by obviating the need to construct tollbooths and the consequent administration costs.

Commercial Vehicle Operations


Commercial vehicle operations end-uses can be classified as per the following user services:

Incident Management
The service assists in identifying incidents and initiating the necessary action for minimizing the
impact of the incident. When integrated with other services such as tracking and credentials
management, harmful materials incidents would be managed in an efficient manner and thereby
mitigate risks to truck operators and commuters.

Commercial Vehicle Electronic Clearance


This service under commercial vehicle operations helps in domestic and international border pre-
clearance procedures and thereby helps in cutting down on stops at crossings. While meeting regulatory
provisions related to issuance of licenses and permits, tax collections, inspections and weighing
across domestic and international borders, the service also offers point-to-point non-stop operation.
Automated Roadside Safety Inspection
The objective of this user service is to improve safety of commercial vehicle operations. Automated
roadside safety inspections comprise roadside access to records pertaining to vehicles, carriers, and
driver safety. The access to records helps in deciding not only what should be examined but also how
to make optimum use of resources allocated to safety. Sophisticated diagnostics also examine vital
vehicle systems and drivers’ fitness for the intended work. These features offer safer, efficient and a
thorough inspection of commercial vehicles. Other features of the service include:
• Enforcement officials have access to essential safety information and records of commercial vehicles.
• Automated inspections also offer pass/fail assessments of vital systems including expected life
projections of systems
• Carriers can carry out automated safety checks in preventive maintenance programs.

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On-Board Safety Monitoring
This service is aimed at improving the safety of commercial and private vehicles. The service is
also applicable to pre-and post-trip inspections. Communicating safety aspects such as safe speed
limits, geometry, and other safety related data while the vehicle is in motion is a part of the
commercial vehicle pre-clearance service and automated roadside safety inspection services.

Commercial Vehicle Administrative Processes


The service offers electronic purchasing of credentials and automated mileage and fuel reporting.
Electronic purchasing of credentials enables carriers in buying annual and temporary credentials
through a computer link with proper jurisdictions. Commercial vehicle pre-clearance services enable
in streamlining processes as and when automatic deductions are made from the carriers’ account.

Hazardous Material Incident Response


This service alerts emergency personnel about dangerous spills and enables in expediting
emergency response for decreasing exposure time to harmful material and thereby avoids traffic
congestion brought about by road closures and cleanup activities.

Commercial Fleet Management


The service enables in efficient movement of not only commercial goods vehicles but also public
transportation vehicles. Technological strides in the field of public transportation management are
also becoming relevant in the field of commercial vehicles transporting goods.

Traffic Management

Traffic management systems’ end-uses can be categorized under the following services:

En-Route Driver (Advisory) Information


In order to offer convenience, safety, and efficiency, en-route driver information provides audio
advisories and in-vehicle signing. Vehicles are utilized as smart probes to test road conditions and
communicate the information to a traffic management center. In-vehicle signing is employed to
inform drivers about road conditions. In rural areas, a virtual TMC is utilized to disseminate traffic
information in the place of a central Transportation Management Center (TMC).

Traffic Control
Traffic control services direct the movement of traffic on the transportation network. These
services optimize and organize freeway and signalized street operations with public transportation
operations for matching demand with capacity.

Incident Management
Incident management offers remedial measures for traffic incidents, hostile road conditions, and
road construction programs. Incident management consists of incident management planning,

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which includes the development of response plans for emergency operations, scheduled special
events and scheduled lane closure activities. Additionally, incident management also consists of
incident response, wherein the objective is to focus on detection and verification of traffic incidents
and then send across equipments and personnel to the incident site.

Travel Demand Management


Travel demand management endorses plans that promote improvement in air quality and reduce
congestion on roads. The service can be implemented in areas where traffic congestion and
pollution are worse and requires immediate attention. Applications of travel demand
management consists of enforcement of High Occupancy Vehicle (HOV) lane use, parking
control and incentives, and road access pricing and prioritizing schemes. Travel demand
management approach is implemented to bring down single occupancy vehicle use, by
encouraging use of higher occupancy vehicles, transit modes, non-motorized alternatives, or
non-travel options.

Emissions Testing & Mitigation


Emissions testing and mitigation offers the means to monitor and manage air quality and emissions
of vehicles by employing sensors. The service is utilized at fixed locations depending on regional
preferences and priorities. Strategies can be put to use for reducing emissions based on information
gathered. Moreover, other environmental risks such as icy conditions of roads or dense fog can also
be monitored.

Emergency Vehicle Management


Emergency vehicle management enables in swift response to incident alerts. Police, fire and
medical personnel use the service. This user service pertains to Hazardous Material Incident
Management under commercial vehicle operations group. Emergency vehicle management service
comprises:
• Enhancing the display of emergency vehicle locations and assist in sending rescue personnel to
the incident site.
• Using route guidance to direct emergency vehicles and
• Using signal priority for freeing traffic signals on an emergency vehicle’s path.

Emergency Notification and Personal Security


The service offers instant notice of an incident and also requests for assistance. This service
comprises two features:
Driver/personal security capabilities offer user-initiated distress signals for incidents such as
mechanical breakdowns, injuries and car jacking. The transmitted message contains vehicle
location and the receiver in turn sends a reply back to the user.
Automatic collision notification identifies a collision and disseminates data on such aspects as its
location, nature, and gravity to emergency officials.

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Vehicle Safety Systems

Applications of vehicle safety systems are classified under the following categories:

Longitudinal Collision Avoidance


Longitudinal collisions includes head-on and rear-end collisions of vehicles, and collisions relating
to commuters. The avoidance of these collisions would aid in reducing the number and the gravity
of collisions. The avoidance involves determining probable collisions and momentarily controlling
acceleration and braking for reducing injury and damage.

Lateral Collision Avoidance


Lateral collisions comprises two-vehicle and single-vehicle collisions and vehicles leaving their
path of journey while moving forward. Lateral collision avoidance technology reduces collisions
through crash warnings by alerting drivers, and provides assistance for lane changes, blind spots,
and road departures.

Intersection Crash Warning & Control


This involves crash avoidance at intersections where there are recurring collisions and violations
relating to ambiguous right-of-way laws. Intersection collision avoidance combines information
concerning crossing traffic with signal status information for enhancing situational awareness.
Besides, intersection collision avoidance also involves lateral and longitudinal collision avoidance.

Vision Enhancement for Crash Avoidance


Vision enhancement (driver visibility improvement) technology enhances the driver’s ability to see
objects in and around the journey path for avoidance of probable collisions with other vehicles or
obstacles along the route. It also helps the driver in obeying traffic signs and signals.

Safety Readiness
Safety readiness comprises issuing warnings irrespective of the condition of the driver, vehicle, and
roadway infrastructure. In-vehicle equipment examines a driver’s condition and issues a warning.
Apart from checking standard oil pressure and engine temperature, the service internally examines
vital components of a vehicle. Additionally, in-vehicle equipment communicates in real-time with
roadside sensors for identifying road conditions such as bridge icing and still water on roads.
Further, this technology can also be useful to rail systems in detecting spaces between rail tracks.

Pre-Crash Restraint Deployment


Pre-crash restraint technology averts impending collision by triggering passenger safety
mechanisms based on information relevant to the vehicles or objects. Information could be relating
to mass, velocity, and direction of the vehicle and objects involved, including the number, location,
and physical attributes of vehicle occupants. The resulting responses could comprise tightening
lap-shoulder belts, arming and deploying air bags at an optimal pressure, deploying roll bars, and
restraining wheelchairs. The responses are based on data from the collision/crash avoidance
system, impairment system, and on-board safety monitor.

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Automated Vehicle Operations
Integration of lateral and longitudinal control functions facilitate in keeping an automated vehicle
in the intended lane and thus maintain a safe distance away from adjacent vehicles. Integration of
these functions is possible through advances in four technological areas and those are actuators,
sensors, computers, and communications. Incidentally, fully automated vehicles enhance the safety
and efficiency of transportation infrastructure and as a result of which the need to build new
facilities becomes redundant.

Fleet Management
Public transport and commercial operators have fleets to manage and maintain. During a vehicle’s
journey various applications support the fleet operators and vehicle drivers. A few applications also
enable to observe the physical state and administrative status of a cargo. The following are a few
instances of freight and fleet operations:
• Checking the safety related operations of a vehicle and archiving the data on-board for roadside
interrogations.
• Scheduling of vehicles and drivers for the purpose of public transport and commercial operators,
and also for automatic compilation of travel reports.
• Optimal routing for all vehicles including for huge vehicles
• In case of perishable goods monitoring their location for knowing the physical status
• Automating commercial and regulatory documentation that are required for commercial vehicles
and goods
• Monitoring the location of an automobile during its journey for having two-way contact with the
driver

Others (Control & Warning Devices)


Vehicles fitted with an in-vehicle safety and warning system caution the driver against obstacles
and road conditions prevailing in advance. An ITS-based crash prevention and safety system
includes advisory crash avoidance for alerting the driver with a warning as and when the vehicle
detects that a crash is about to occur.

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KEY ISSUES

Interoperation of ITS
The efforts to develop Intelligent Transportation Systems that can operate not only in the US but
also in Europe appear to be close to realization. ITS comprise systems that address transportation
problems employing data processing, communications, and control. These include systems that
gather and disseminate information on traffic conditions, carry out tracking and dispatching, and
also help in navigation.
The move by the Federal Communication Commission (FCC) of US to develop standards for the
new 5.9GHz is expected to result in inter-operation of ITS products’. Till recently the US focused
on the 915MHz bandwidth and interoperation posed a problem. Once the US moves over to
5.9GHz then there would be several functions where companies could utilize comparable
frequency bands. The US – EU ITS coordination using the 5.9GHz band would enable aligning the
US with markets in Japan, EU and other regions and represents a step towards global ITS standard.
Though steps are being taken to endorse standardization of 5.9GHz yet it would take some time for
standardization as the Dept. of Transportation is constrained by guidelines which say that ITS
standard be based on the 915 band.
Differences Between US & EU
The move by the US to go in for 5.9GHz may not help in patching up the differences with the EU.
Standards developers in the US feel that Europe’s move towards ITS standardization is limited to
one aspect of ITS i.e., electronic toll collection. In other words, European standards efforts do not
match with the needs of the US in developing a national interoperable ITS system.
Thus differences have arisen as the US feels that Europe is promoting its standards in foreign
markets that are detrimental to the US approach. Incidentally, ITS standards of Europe are getting
approval in countries such as Malaysia, Australia, and Brazil, which translates into more market
share for EU companies. Besides, manufacturers are rolling out devices as per standards set by
Europe. The US, Japanese, Canadians and others feel that Europe is not taking into account their
plans in ITS standardization. They also believe that Europe may present its new ITS standards to
the ISO – International Organization for Standardization for approval. Authorities concerned in the
US say that EU is hindering the development of international ITS standard by not making it
compatible with US technology. However, the EU disputes the argument put forth by the US and
others and says that it is just taking efforts to upgrade its current ITS standards that are acceptable
and publishable as European standards. The new standards developed would be downward
compatible to the earlier EU specifications for ITS.

Government Policy Vis-à-vis ITS Projects


The government plays a vital role in ITS implementation by eliminating legal hurdles to develop
ITS and providing funding support to ITS projects. The government’s initiative in integrating
technology with the transportation infrastructure is expected to give a boost to the development of
ITS. The step not only helps the state in realizing cost savings in terms of construction and
maintenance of new highways but also commuters can save time, reduce wear and tear of vehicles
and cut down on unnecessary kilometers traveled.

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Environmental and Safety Issues
Vehicular pollution is one of the major causes of environmental pollution. The number of vehicles
on the road went up exponentially as a result of which there are frequent traffic jams, air pollution,
and road tragedies. The slow or idling traffic due to traffic congestion is resulting in excessive air
pollution that is damaging the environment and also there is a rise in number of traffic accidents in
most parts of the world.
In the past, aircraft pilots or for that matter drivers had to concern themselves with their safety and
destination. Safety became an important aspect when the aircraft grew in size and became faster.
Sophisticated air traffic management systems emerged for meeting the rising traffic requirements.
The same thing can be said of the situation prevailing on the ground i.e., surface/road transport. For
instance, the global vehicular population went up to almost 400 million that represented an increase
of 500% since 1960. With so many vehicles on the road, hassles or responsibilities such as
pollution, traffic jams, safety of commuters, building of road networks (for accommodating the
rising vehicular population) cannot be far away.
Intelligent transportation systems comprise transportation systems that employ both hardware and
software technology for dealing with and ameliorating transportation congestion problems. One of
the components of ITS i.e., advanced surveillance systems detects potential traffic jams and
enables in rerouting the traffic to other routes for easing congestion and providing faster routes to
drivers. The technology allows surveillance and guidance response to take place in real time and
hence potential traffic jam conditions can be resolved before they acquire serious proportions. Thus
ITS not only addresses safety issue of pedestrians or commuters but also environmental issue as
idling or slow traffic and the resultant deterioration in air quality due to traffic jams can be curbed.

Privacy Issues
A matter of concern for the developers of ITS solutions is the privacy factor. Vehicular owners are
skeptical about the video footage and data collected on the highways would be used for purposes
other than intended for. For instance, the information thus collected would be employed by the
government agencies for issuing traffic citations or by advertising agencies for advancing products
to the target audience. These issues if left unanswered by the powers that be viz., public and private
market participants then it is feared that the ITS acceptance would be that much slower.

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PRODUCT INNOVATIONS/INTRODUCTIONS

2008

Magellan Expands Roadmate® Series


Magellan, a global leading brand of GPS (Global Positioning Satellite System), expanded the
company’s RoadMate series of vehicle navigation products with the launch of three new
widescreen units. The new RoadMate® 1400 series comprises a 4.3-inch anti-glare touch screen
display and a user-friendly interface with QuickSpell™ and SmartDetour™ technologies that
facilitate rapid input and traffic guide. The RoadMate 1415, which includes NAVTEQ® full
European map, announces direction of the turns and street names. The RoadMate 1425 offers live
traffic updates and route guidance through a permanent traffic subscription.

TeleNav Launches TeleNav Vehicle Tracker™


TeleNav introduced a new GPS service TeleNav Vehicle Tracker™ under the company’s Mobile
Resource Management (MRM) product line. The product comprising a GPS-enabled modem
integrated with vehicle battery offers an ingenuous fleet monitoring method to companies. The new
TeleNav Vehicle Tracker also records the mileage of vehicles on daily basis.

2007

Iteris Unveils First LDW Data Collection Product


Iteris Inc., a leading provider of traffic management solutions, launched Safety Direct™, the
industry’s first lane departure warning (LDW) data collection device, for the heavy truck segment.
The Iteris Safety Direct™ system collects and scrutinizes real-time LDW information and
transmits to fleet operators by utilizing the fleet communication system of the truck.

Siemens Introduces Video Detection System, EagleVision


Siemens ITS introduced a new video detection system, EagleVision. The system enables traffic
control center to monitor the traffic flow at intersections, bridges and tunnels. The system has been
designed with no requirement of additional hardware, is easy to install and runs on a Java user-
interface, which is independent of Operating Systems. With the new camera, operators can focus
on particular sections of a road without having to adjust the camera manually. The camera can be
made to focus in different angles through a computer. Additionally the system also features color
video output, advanced detection capabilities, and also includes eight detector zones and outputs
for each camera.

Iteris Unveils New ITS Products


Iteris, Inc, a maker of Intelligent Transportation Systems (ITS), unveiled new set of advanced ITS
products in the US market. The new products include Edge2-4 processor, a first of its kind and
advanced rack mounted 4-channel video detection system, and other products such as Input/Output
Module 32 (IOM32), TS2 Interface Module (TS2 IM), and V Rack, which enable easier
installation and improve the functioning of the Edge2-4 processor. The Edge2-4 processor is

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manufactured to fit into standard NEMA detector racks and Type 170 input files. The new
processor is a cost effective, and small modular system, which includes four cameras for various
vehicle detection applications including traffic signal control.

Image Sensing Systems Introduces Autoscope® Terra™


Image sensing systems, a promoter of road safety with better traffic flow, and associate company
Econolite Control Products have introduced sophisticated video detection solutions for use in ITS.
The new solution, Autoscope® Terra™ was developed using the DaVinci™ technology of Texas
Instruments (TI). Two solutions, Autoscope Solo Terra and Autoscope RackVision Terra systems
are available to meet the requirements of different users.
Autoscope Terra products assist in monitoring and controlling traffic by processing video images
and converting them into high quality streaming mpeg-4 digital video. The videos converted are
digitally transmitted over the Internet to base stations to be viewed by traffic personnel. With the
introduction of the system at busy traffic intersections, and tunnels, incidents can be reported faster
with the system alerting the appropriate emergency responding agency. This results in reduced time
response, and improved efficiency for various enforcement agencies.

Traficon NV Introduces a Stand Alone, Multifaceted VIP-T box


Traficon introduced a stand alone and multifaceted automatic incident detection system, VIP-T
box. The fully functional feature of the system makes it unique with MPEG4 compatibility. The
new system offers the flexibility of a stand-alone system with the benefits of a networked system.
The system is specifically designed for busy roads and facilitates solutions in flow speed, inverse
direction, objects, pedestrians, presence detection, slow moving vehicles, smoke detection and
stopped vehicle detection.

Sirit Introduces Identity MaX in Europe


Sirit Inc introduced a European version of the company’s popular Identity MaX UHF RFID reader
to assist motorists with parking and related services. The system comes with inbuilt ‘Automatic
Vehicle Identification’ (AVI) feature that works excellently for single-lane traffic. The European
version operates in the 865 – 868 MHz band, and can be easily retrofitted to existing infrastructure
owing to its Power over Ethernet capabilities.

New Electronic Toll Collection System from Japanese Inventors


A group of inventors from Japan developed a new ETC (electronic toll collection) device for toll
road. The new device includes a vehicle sensor to detect an incoming ETC/non-ETC vehicle, and
an antenna that transmits radio signals. The incoming ETC vehicle is detected by noticing the radio
response to transmitted radio signal. If the radio response is not received for a transmitted radio
signal, then the vehicle is considered as a non-ETC vehicle.

Tele Atlas Provides Digital Maps to Egypt and Saudi Arabia


Tele Atlas further expanded its market reach by providing digital maps to Egypt and Saudi Arabia,
and thus increasing the number of countries that use these digital maps to 64. The inclusion of

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these two countries was immediately preceded by the company’s decision to provide map-related
coverage to South Africa and, Eastern and Central Europe. The clientele base of Tele Atlas is
widely spread across the globe. Tele Atlas is a company engaged in supplying digital maps that
easily integrate into diverse navigational systems.

2006

Siemens Introduces Traffic Signal Control Equipment, Sitraffic C900


Siemens Industrial Solutions and Services Group (I&S) introduced series of advanced traffic signal
control equipment, C900 family, an upgraded version of C800. The system allows control of upto
48 signal groups. The system comes with energy-saving 40-volt LED signal heads and runs on a
Linux PC with minimum processor speed of 266 Mhz.

Siemens Introduces Traffic Control System, Sitraffic Scala


Siemens Industrial Solutions and Services Group (I&S) introduced a first-of-its-kind traffic control
system, Sitraffic Scala, built on standards based technology platform. The cost-effective system
implements the complete functions of Traffic Management System and enables intelligent traffic
guidance to all the motorists. Sitraffic Scala is designed to withstand data redundancy and
duplication of data. The system has a unique map display unit that is powered by the GIS
(Geographical Information Systems).

Siemens Introduces Modular Tunnel Control Center


Siemens Industrial Solutions and Services Group (I&S) Launches modular tunnel control center,
Sitraffic ITCC (International Tunnel Control Center). The system has been developed with high
standards and is adaptable to most of the situations irrespective of national regulations. Sitraffic
ITCC is designed to control and optimize traffic automatically and also gives a choice of manual
control. In case of an accident the system is capable of analyzing the traffic and transmitting the
data to the control center and at the same time take necessary precautions to avoid further
damage.

Hertz Launches PlatePass™ Electronic Toll Technology


Hertz Corporation launched PlatePass™ electronic toll payment system in New York, permitting
renters to use high-speed E-Z Pass electronic toll collection lanes, thereby avoiding backups at
regular cash toll roads. The device allows renters to travel through the electronic lanes, and charge
toll amounts to their credit cards, without stopping for toll payment. American Traffic Solutions
Inc., a supplier of traffic management solutions, supports the PlatePass technology.

RouteMatch Introduces ITS Solution for Urban Transportation Providers


RouteMatch Software, Inc. introduced RouteMatch ITS product collection, that includes varied ITS
solutions, specifically developed for the public transportation providers who serve urban markets.
The company’s ITS solutions simplify the complications related to ITS, by offering a fully
integrated solution that is ready for implementation, and is guided by support staff.

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IPICO and Dyna Group Unveil Passive RFID Electronic Toll Collection System
IPICO, Inc. of Canada and Dyna Group SA of Argentina unveiled the passive Radio Frequency
Identification (RFID) system designed on the IP-X™ technology of IPICO, for electronic toll
collection in South America. Passive and active RFID systems are used in open lane tolling, for
reduction in traffic congestion, restricting excessive speeding, and combating crime.

Kyocera Wireless to Launch Active Nuclear Source Tool Alarm


Kyocera Wireless Corp. teamed up with International Road Dynamics (IRD), to launch Active
Nuclear Source Tool Alarm, a radiation tampering alarm system developed by the latter. The
system incorporates CDMA wireless communication system, and Kyocera 200 Module, and
safeguards vehicles transporting hazardous nuclear materials.
The alarm system meets the US Nuclear Regulatory Commission (NRC) standards for safe
transportation of hazardous radioactive source materials; and is allowed for deployment with major
CDMA network carriers in North America, and other regional carriers across Canada and the US.

New On-Board Units from Q-Free


Q-Free ASA (Q-Free), a leading producer of automatic toll collection systems, launched new on-
board units under the brand name, QBU. The new units are offered in three versions -
communicative, autonomous, and receptive. The communicative QBU includes buttons, and
displays, and offers versatile services. The unit can function as a parking meter within the car. The
autonomous QBU allows the communication between roadside infrastructure and the car, and
enables the users to make payments for road tolls, petrol or parking lot fees. The version is
developed to assist drivers while traveling through congestion charging areas and tolling points.
The receptive QBU offers exceptional services. It enables vehicle users to insert a personalized
smart card to activate discount schemes/bonus or to access various other services.

Iteris Launches New Video Transmission Product for Traffic Surveillance


Iteris, Inc. launched a new video transmission system, under the brand name eAccess™. This
technology connects various cameras fixed in diverse locations to remote users by sending high
quality video. eAccess thereby enables both effective monitoring and controlling of traffic from a
single point thus, eliminating expenses related to fieldwork. Various latest and sophisticated
technologies went into the manufacture of eAccess.

INIT Offers Novel ITS Solutions


INIT offered an advanced ITS technology for various transportation companies that are engaged in
rendering public transportation services. These solutions of INIT that are available under the brand
name MOBILE, blends various software and hardware technologies in addressing various issues of
public transportation including fleet management, automated passenger counting and passenger
information, and ticketing in form of smart cards. This system has the ability to be used both as a
stand-alone unit, as well as a one that integrates into another system. In addition, MOBILE
constantly keeps providing relevant information to drivers that enable them to avoid congested
zones. Globally, many leading transportation companies have successfully implemented ITS system.

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Alpine Electronics Launches New Navigation Device
Alpine Electronics launched a unique portable navigation contraption that would go a long way in
easing traffic related woes. The brand new device - Alpine Blackbird, is equipped to constantly
receive traffic related updates from NAVTEQ Traffic RDS Service, encompassing 42 markets of
US. Based on this information, drivers have the convenience to choose their respective routes and
thereby enable them to avoid congested zones. As the device is a portable one, users have the
convenience of changing it from one car to another, as per their requirements. Blackbird is also
equipped with maps of USA and Canada, in addition to being fitted with a MP3 music system and
a LCD screen. A 90-day free trial offer is the special feature of this product, and after completion
of this duration, drivers can go for full-fledged purchase.

Citilog Launches Two New ITS Products


Citilog launched two novel products, MediaCity and Media TD, which successfully address two
diverse aspects of urban traffic. MediaTD processes images of traffic flow that are captured by a
camera, through its sophisticated software, and subsequently, relevant data is provided by this
system. The data gives reliable information pertaining to various aspects of traffic including speed,
occupancy and flow, which is highly useful for professionals like consultants, statisticians, traffic
engineers and city planners. The second product, MediaCity, essentially provides information
related to factors like pedestrians at crossings and quantity of vehicles present in a specific zone.
Based on this, drivers can plan their route of travel. Apart from that, MediaCity also plays a vital
role in regulation of traffic, as is evident from its efficient regulation of trams and cars on the busy
streets of Paris. Similar to MediaTD, this product is also equipped with sophisticated image
processing software.
Delphi Unveils New Portable Navigation System
Delphi Corporation launched its latest portable navigation system, NAV200, which is an effective
combination of various special features, in a single compact device. The contraption comes with
pre-loaded digital maps of the US, Canada, Hawaii, Alaska and Puerto Rico. NAV200 is
accompanied by back-up DVD of map files and a LCD screen, and also gives voice-based
navigational directions to users. When the system is not being used for navigation, it plays the role
of an entertainer by enabling features like music system and movie player. Many latest and
sophisticated technologies have gone into NAV200, for making it a small tool that doesn’t
compromise on aspect of efficiency.
NAVTAQ Unveils New System for Mobile Networks
NAVTEQ unveiled its latest system, NAVTEQ Traffic Mobile™, which provides information
pertaining to average traffic speed, accidents and construction, and covers 67 major segments of
the US. The Traffic Mobile is supplied through mobile phone networks, and the software used in
this system is from Telmap, which ranks amongst leaders providing innovative solutions for mobile
mapping and navigation.
Nestor Traffic Systems Introduces New Video Product
Nestor Traffic Systems launched new product, VASCAR™ (Visual Average Speed Computation
and Recording), which records speeds of vehicles using various latest technologies. This enables

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authorities to easily identify drivers who exceed specified speed limits. The fact that recordings of
this particular device are even accepted as evidence in courts, with respect to concerned cases,
speaks volumes about efficiency of VASCAR.

Siemens VDO Launches Adaptive Cruise Control System


Siemens launched a latest adaptive cruise control (ACC) system that successfully tackles the
problems caused on account of poor visibility while driving, which is caused due to fog and rain.
The sophisticated technologies present in this system warn the drivers about the distance at which
the vehicle ahead is present, based on which they can decide about braking or decelerating.

Steria Launches New Traffic Supervision System


Steria launched a new system of traffic supervision at Swiss Canton of Zurich. Steria is a company
based in France, and engaged in providing solutions for management and regulation of rail, air and
road traffic.

Traficon Launches TrafiCam


Traficon launched its latest traffic surveillance camera and detector - TrafiCam, which is equipped
with just a single sensor. TrafiCam can be conveniently installed on any traffic signal, and is
designed to provide an aesthetic look. This is in response to preferences of modern-day consumers,
who, along with performance, are also keen on look of the product.

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RECENT INDUSTRY ACTIVITY

2008

M.Tech Pockets Dambach


German traffic technology group M.Tech Technologie und Beteiligungs AG (M.Tech AG), a
subsidiary of Swarco Holdings AG, acquired Dambach-Werke GmbH. The transaction strengthens
Swarco’s position in the German traffic market, in addition to complementing the product lines of
Swarco and its subsidiary Signalbau Huber. Dambach-Werke is a leading producer and supplier of
electronic traffic control systems in the country.
Magellan Partners with Primordial
Magellan formed partnership with Primordial Inc. to provide its customers with off-road routing on
a GPS device, which is capable of identifying natural and artificial obstructions. Primordial is a
global leading provider of off-road navigation through the flagship product, Ground Guidance®.
Iteris Wins Supply Contract for ITS Designs
Iteris Inc. received a contract worth US$0.9 million to deliver Intelligent Transportation Systems
(ITS) design services for I-15 Design-Build project of North Corridor Constructors (NCC). The
project involves expansion of the 5.5-mile long I-15 freeway between Craig Road in Las Vegas and
the US-95. The deal allows Iteris to take part in the project’s ITS improvements, including a
Communications System, Traffic Monitoring Sensors, Trailblazer Signs, Systems Integration and
Testing, and CCTV Surveillance Cameras.
The OHL Brasil Awards Contract to Telvent
The OHL Brasil construction company selected Telvent GIT S.A. for the supply, implementation
and start-up of the latter’s SmartToll system on three of the Brazilian federal highways. The
contract includes installation of 19 toll booths, three control centers, and 348 tollways, in addition
to Telvent’s SmartToll management software. The project worth more than €8 million is likely to
be completed within a year.
DRI Bags Order from WestCAT
DRI Corporation, through the subsidiary Digital Recorders Inc. (DR), obtained an order worth
US$0.55 million from the California based Western Contra Costa Transit Authority (WestCAT) for
the supply of intelligent transportation systems. As per the agreement, DR produces and delivers
Digital Recorders® automatic vehicle location system, Talking Bus® automatic voice annunciation
system and Otvia® software to WestCAT.

Telvent to Install Traffic Control System in Xinxiang


Telvent GIT S.A. announced plans to install an urban traffic control system in the city of Xinxiang
in China. The project worth more than €4 million is part of an agreement signed by the company
with Bureau of Public Safety of Xinxiang in 2004. Under the terms of the agreement, Telvent
would integrate the city’s electronic police system, the geographical information system (GIS), the
integrated assistance system, and the traffic signal control system during project execution.

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NPRA Awards Service and Maintenance Contract to Q-Free
Norwegian Public Roads Administration (NPRA) awarded a contract worth NOK 98 million to Q-
Free ASA to deliver maintenance and service for the AutoPASS infrastructure. Under the four-year
contract, Q-Free would provide corrective and precautionary service as well as maintenance for
over 26 systems.

INRIX Expands Partnership withTomTom Navigator


INRIX® extended its partnership with TomTom Navigator GPS to offer INRIX traffic information,
fuel pricing and incident alert services for TomTom portable navigation devices in the US through
Tom Tom Plus. INTRIX is one of the leading traffic flow information providers in the US, where
as TomTom ranks among the largest providers of navigation solutions worldwide.

2007

Odeco Acquires Addco


Odeco Electronica S.A., a Spanish maker of video screens, acquired the US based traffic control
systems manufacturer Addco Inc. The transaction helps Odeco to explore other business fields in
the US, with a focus on advertising panels.

Nokia to Take Over NAVTEQ


Nokia, the largest manufacturer of mobile devices in the world, agreed to acquire NAVTEQ for an
approximate US$8.1 billion. NAVTEQ is one of the leading providers of digital map information
for mobile navigation devices, government and business solutions, Internet-based mapping
applications, and automotive navigation systems. Post acquisition, NAVTEQ’s map data business
becomes a Nokia Group company. The deal is expected to reinforce Nokia’s location based services.

Telvent Pockets Caseta


Telvent GIT S.A., through the subsidiary Telvent Traffic North America Inc., acquired Caseta
Technologies Inc., a US based manufacturer and distributor of electronic toll collection systems.
The transaction helps Telvent consolidate position in supplying intelligent transport and electronic
toll collection systems in the US as well as international markets. Telvent GIT S.A. is a Global
RealTime IT Company based in Spain.

Atlantia to Acquire Stake in ETC


Atlantia SpA, through its US subsidiary Autostrade International US Holdings Inc., signed an
agreement to purchase 45% of Electronic Transaction Consultants Corporation (ETC) for US$27
million. The Texas-headquartered ETC is one of the leading providers of free flow electronic toll
collection systems.

IRD Buys 50% Stake in Xuzhou-PAT Control Technologies


International Road Dynamics Inc. (IRD) purchased 50% stake in Xuzhou-PAT Control
Technologies Limited (XCPT) of China for CDN$4.5 million. Xuzhou Construction Machinery

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Group (XCMG), one of the largest manufacturers of construction machinery in China, holds the
remaining 50%. XCPT is a designer, manufacturer and service provider of high technology
Intelligent Transportation Systems (ITS) to the Chinese roadway infrastructure market.

Federal Signal Takesover PIPS


Federal Signal Corporation, in a move to enhance the company’s market for public safety and
security solutions, acquired a manufacturer of automatic license plate recognition (ALPR) systems,
PIPS Technology for an estimated US$ 115 million.

Addco and Odeco Enters Partnership


Addco Inc., a US based manufacturer and distributor of work zone safety solutions and traffic
control equipment, formed partnership with Odeco Electronica S.A. of Spain. The deal expands
Addco’s product line, besides enhancing growth opportunities. Odeco Electronica, a part of the
global consortium specializing in traffic and LED technology, offers intelligent transportation
systems, fixed dynamic messaging signs and access panels in North America and Europe.

Total Traffic Network Expands Partnership with Inrix


Total Traffic Network, a part of Clear Channel Radio, extended partnership with Inrix Inc. to add
real-time traffic speed data from the latter’s Smart Dust Network. Total Traffic Network offers
real-time traffic information through broadcast media, Internet and portable navigation systems.
The deal enables Total Traffic Network to expand market for real time speed data. Intrix ranks
among the leading US providers of historical, real-time, and anticipated traffic information.

Western Systems to Distribute Iteris' Vantage® Product Line


Iteris Inc. selected Western Systems, a Washington based local distributor of signal and traffic
control systems, as a distributor for the company’s video vehicle detection devices under Vantage®
product line. Iteris is a leading provider of Intelligent Transportation Systems and vision related
technologies.

Telvent Wins Supply Contract for Road Safety Systems


Telvent GIT S.A. received a contract worth €5 million from the Chinese City of Bayannur Police
Department to provide road safety and traffic control systems to the latter. As per the agreement,
Telvent installs a computerized control center, which connects a variety of other systems installed
by Telvent, such as traffic flow supervision on the main roads, traffic monitoring and control
through cameras as well as traffic regularization and optimization at traffic lights.

ICx to Supply Enhanced Transportation Systems for I-15 Corridor in San Diego
ICx Technologies obtained a contract valued at US$1.57 million to expand the Reversible Lane
Control System (RLCS) on the San Diego’s Interstate 15 corridor. Under the terms of the
agreement, ICx Transportation, the Intelligent Transport Systems business of ICx Technologies,
provides improved technologies for the I-15 corridor’s extended Managed Lanes section. I-15
corridor is a four-lane car pool (HOV) facility on the freeway median of San Diego’s I-15.

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RouteMatch Bags US$1.6 Million Contract from Rhode Island Public Transit Authority
RouteMatch Software, Inc (RouteMatch), an Atlanta based provider of technology and services in
the fields of transportation and logistics, bagged US$1.6 million contract from Rhode Island Public
Transit Authority (RIPTA) to provide an array of Intelligent Transportation Systems (ITS)
solutions. The development provides people with high-end traffic management, reduce
maintenance costs of transportation and also enable better service.
RouteMatch’s transportation solution consists of a GIS dependant paratransit scheduling
application, novel interactive voice response (IVR) and automated vehicle location/mobile data
communication (AVL/MDC) technologies. The system enables RIPTA in providing automation,
real-time scheduling and dispatching of vehicles, driver management, billing, reporting and
communication with drivers.
The RITPA human services transportation program, named RIde, provides transportation services
for disabled individuals, senior citizens, people with lesser incomes, and also Medicaid and ADA
transportation services.
Sam Houston Tollway Receives Approval
Sam Houston Toll way received approval for setting up of “Intelligent Transportation Systems”
(ITS). The development witnesses setting up of CCTV (closed circuit television) cameras, fiber-
optic cable and dynamic message signs worth US$ 20 million, out of which US$2 million is
contributed by the county, while the state department of transportation contributes the remaining
cost. Installation of ITS along stretches of the tollway enables the county to better manage the
increasing flow of traffic in the region. Commuters would be informed about traffic pileups along
the tollway, and would also be advised on alternatives through message signs. Installation of ITS
equipment is scheduled for completion by the end of 2009.
Nestor Traffic Systems Secures Public Safety Contract From Californian Province
Nestor Traffic Systems, Inc, a prominent provider of Advanced Traffic Management Systems, secured
five-year contract from the Californian city of San Juan Capistrano in Orange County. The contract
involves the deployment of Nestor’s CrossGuard® red light traffic management solution across four
approaches, with plans for the addition of four new approaches. Nestor also assists the city to
transition from the existing solution provided by Redflex Traffic Systems, Inc. to the new system. The
project is expected to bring significant positive changes to the safety of pedestrians and motorists.
IRD Secures Work Zone Safety Contract Worth CAD $ 550,000
International Road Dynamics (IRD) secured work zone safety contract from Scott Bridge Company
and United Contractors Inc worth CAD$ 550,000 in the US. As per the terms of the contract, IRD
supplies, installs and operates Automated Portable Real-Time Workzone Information System on I-
20 and I-520 near Augusta, Georgia. IRD uses ADAPTIR™ technology, licensed from The
Scientex Corporation in this project.
Siemens to Install New Traffic Management System in Lithuania
Siemens Industrial Solutions and Services Group expressed plans to install new Traffic
Management System, Sitraffic, in the city of Vilnius in Lithuania. Siemens is implementing the

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project through a consortium with Eismas Ltd., Fima Ltd., and Hnit-Baltic GeoInfoservisas being
the other partners. The project, estimated at €7 million is scheduled for completion in the year
2008, eliminates traffic jams and improves traffic flow in the city. The system combines raw traffic
data gathered from sources to make it a completely refined, accurate and reliable data that helps
motorists, transportation agencies, fleet operators and traffic control centers to adapt to the existing
traffic or take the alternate route.
The system gathers information through standards based CCTV (Closed Circuit Television) and after
refining, transmits the same through SMS, e-mail, Internet, or traffic display panels. The system
also makes use of TMC (Traffic Message Channel) for broadcasting information through radio.

Nissan to Test New ITS Technology


Nissan Motors Co. Ltd (Nissan), announced plans to test a new Intelligent Transportation System
(ITS) for traffic management, which enables vehicle-to-infrastructure communication, designed
keeping in view the rising number of road accidents at intersections and easing the traffic
congestion. The test is expected to be conducted till March 2009.
Nissan would install an advanced traffic signal infrastructure at the Nissan Technical Centre in
Kanagawa Prefecture, Japan and collect data from employee cars to practically test its efficiency
and limitations.
The test would be carried out at select stretches of the road within the Nissan Technical Centre where
the company employees frequently drive. The ITS architecture includes standard traffic lights as well
as roadside optical beacons linked to an advanced traffic light system. Data from the vehicles and the
traffic lights would be computed by the advanced traffic light system. The test does not entail any
modifications to in-vehicle systems but the company has equipped cars of participating employees
with Vehicle Information and Communications System units for obtaining additional data.
Steria to Expand Taxi Management System at London’s Heathrow Airport
Steria, a France based IT services provider, secured a contract from the British Airport Authority
(BAA) to install and maintain taxi management system at London Heathrow Airport’s new
Terminal 5. The project scheduled to open in the first half of the year 2008, enables the airport
authority systematically control and track taxi services. The BAA awarded the project, owing to
satisfactory performance of Steria’s Taxi management system at terminals 1 to 4 at the airport. The
terminal 5-taxi management system is planned and designed specifically to cater to the heavy rush
expected during the 2012 London Olympics.
TransCore Chosen by Halifax-Dartmouth Bridge Commission to Upgrade Toll System
Transcore Inc. secured a contract from the Halifax-Dartmouth Bridge Commission to upgrade the
existing 24-lane Toll Collection System and toll plazas on the two bridges operated by the
commission. As per the terms of the contract, TransCore would replace all the lane controllers;
install new automatic vehicle identification (AVI) systems in all the lanes, and video detection
systems in select lanes. The company would also build a new network that would connect all the
lanes, plazas, host, and workstations, and would also install host servers and applications, and new
plaza. The company would also install new touch-screen terminals, and receipt printers in attended
lanes. The upgradation is scheduled for completion by mid 2008.

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Siemens Consortium Secures Largest UTC Project in China
A consortium led by Siemens Limited China Industrial Solutions and Services (SLC I&S) secured
a contract to install the largest Urban Traffic Control (UTC) system in the city of Wuhan in China.
The total estimated cost of installing the system is about €7.9 million. The project has been
awarded by the Wuhan Urban Construction Utilization on behalf of the Wuhan Traffic Police. As
per the terms of the contract, the consortium installs CCTV cameras, traffic detection systems, and
traffic lights at about 420 junctions in Wuhan. The project also involves the deployment of
advanced communication systems linking the main control center with 2 sub-centers in Wuhan.
Apart from SLC I&S; other members of the consortium include Siemens AG, Siemens
International Trading, Ltd. Shanghai (SITL), and Wuhan E-Fly Technology Co., Ltd. The project is
scheduled for completion in early 2009.

SpeedInfo Installs Sensors on Nebraska Highways


SpeedInfo Inc. installed about 70 Doppler radar sensors to provide information for travelers under
the state’s 511 Traveler Information System. The company signed a contract with the Nebraska
Department of Roads (NDOR) for providing real time traffic data. The installation of the 70
sensors is part of the first phase of the project, along highways, bridges, tunnels and motorways in
Nebraska. The move comes after NDOR plannned to relieve the traffic congestion in the state. The
second phase of the project covers the state’s highways and important routes. The project involves
deployment of the sensors along I-80, I-480, I-680, I-75, I-6 and US Highway 77, and enables
NDOR to better manage traffic.

Iteris Appoints Western Systems as New Distribution Partner


Iteris, Inc, a maker of Intelligent Transportation systems (ITS), appointed Western Systems, a
supplier of traffic control and signal systems, as the company’s distributor for the Vantage line
of video vehicle detection products in the Pacific Northwest region, including Alaska, Idaho,
Oregon, Montana, and Washington in the US. The development enables Iteris to introduce new
products in the region at a faster pace. Iteris also benefits from Western Systems’ goodwill in
the region.

Siemens Secures Contract for Traffic Control Systems in Switzerland


The Siemens Industrial Solutions and Services Group secured a supply and installation contract for
Traffic Control Systems (TCS) from the Swiss canton of St. Gallen. The contract worth €5.7
million involves installation of computer systems to monitor and gather traffic information at five
tunnels and 96 all-lane display panels on the public freeway. The contract, scheduled to finish in
the first quarter of 2009, would significantly reduce traffic congestion, accidents and ensure a safe
and smooth drive.

Siemens Completes Traffic Control System Project in Turkey


Siemens Industrial Solutions and Services’ (I&S) Intelligent Traffic Systems (ITS) division
completed the installation of traffic control system at Nefise-Akçelik tunnel, the longest tunnel in
Turkey. Siemens completed the project at a cost of about €17.5 million. The project includes

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camera monitoring equipment with video detection system, fire protection equipment, lighting,
power distribution system, radio systems, traffic guidance systems, tunnel control center and
ventilation. The system and solution is built to monitor and automatically make any changes in
terms of air quality, and lighting, and also includes firefighting equipment. Commuters can be
informed about the traffic conditions through variable message signboards and 252 loudspeakers in
the tunnel.
RouteMatch Users receive MSAA Funding
RouteMatch Software Inc users, Kentucky based Paducah Area Transit System and South
Carolina’s Lower Savannah Council of Government, have been selected for funding of Mobility
Services for All Americans (MSAA) initiative. The two transportation providers were chosen
based on their adaptation of the Intelligent Transportation System (ITS) designed by RouteMatch
Software and for providing advanced coordinated human service transportation systems.
The U.S. Department of Transportation (USDOT) launched the MSAA initiative to recognize and
fund a transportation system that strives for human excellence.
Nestor Secures Traffic Management Contract from the Cities of Hudson and Corrigan
US based Nestor Traffic Systems, Inc, secured a 3-year contract for implementation of Automated
Traffic Management Systems from the Cities of Hudson and Corrigan in Texas. As per the terms of
the contract, Nestor would install, maintain and operate CrossingGuard® automatic red light traffic
management solution at 3 approaches in Hudson, and 2 approaches in Corrigan, Texas.
Additionally, Nestor would supply the PoliScanSpeed™ scanning LiDAR Technology enabled
innovative mobile speed unit for speed control in Hudson.
IRD Receives WIM Contract from Zignego
Canada based International Road Dynamics Inc. (IRD) received a contact to supply, install,
maintain Weigh-In-Motion (WIM) equipment from Wisconsin, US based Zignego Company, Inc.
The total cost of the project is estimated at about Canadian $1.4 million. The Automated Safety
and Weight Enforcement Facility enables Zignego to prescreen commercial trucks at highway
speeds in the main lanes of the highway. Additionally installation of the equipment allows
routing as well as tracking of vehicles safely through the Weigh Station. As part of the contract,
IRD installs the company’s proprietary Single Load Cell WIM Scales, vehicle movement
compliance system, video verification system, and software required to operate the facility.
Installation of the WIM system enables truckers complying with weight restrictions to pass the
facility without having to stop.

Imtech Acquires Peek Traffic


Imtech NV, a technical services provider in the Netherlands and Belgium, acquired Peek Traffic
Holdings Limited, an intelligent mobile traffic solutions provider in the European countries of
Croatia, the Netherlands, Poland and the United Kingdom.
Siemens Secures Key Contract from Sharjah
Siemens secured key contract from the Middle Eastern emirate of Sharjah for the supply,
installation and maintenance of Traffic management systems and solutions. The main focus is on

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equipping the city with Siemens’ Comet, PC SCOOT, and ST800 Traffic controllers. The
development is part of the strategy to contain the growing number of accidents along with the
growing movement of vehicles on the city’s roads.

Siemens Secures Traffic Management System Contract in Bangkok


Siemens Industrial Solutions & Services Group (I&S) secured an installation, supply and
maintenance contract for Toll Collection, Traffic Control and Communication Systems in Bangkok
from Thailand’s Expressway & Rapid Transit Authority. The project worth €6.3 million is
scheduled for completion by the year 2008, and would reduce traffic congestion and enhance
traffic flow. As part of the project, the company would supply, install and maintain CCTV video
camera system, emergency telephone system, fiber optic communications network, traffic
computer and variable message signs on the expressway.

Citilog Equips New York’s Throgs Neck Bridge With Traffic Management System
Citilog installed video-based Traffic Incident Detection, an Advanced Traffic Management System
on New York’s Throgs Neck Bridge. The system monitors the flowing traffic on 6 lanes of the
bridge, and assists in alerting Traffic enforcement center incase of any mishap resulting in traffic
congestion. The 3-mile long bridge runs between the Bronx and Queens witnesses traffic to the
tune of about 105,000 vehicles every day. The move significantly reduces the response time for
concerned authorities to attend to incident victims, saving many lives and ensuring a smooth flow
of traffic.

SpeedInfo Installs new Traffic Flow Solution in Washington D.C.


US based SpeedInfo Inc installed about 50 SpeedInfo Doppler radar based sensors to measure the
traffic speed on the roads in Washington D.C. The main focus is on the Interstate 295 and 395
where the tests are conducted for emergency signal timing pattern and emergency transportation
communication protocol. SpeedInfo monitors and record the traffic data that can be of significant
use in traffic flow measurement. The company provides the data free to the Department of
Transportation, in exchange for roadside space to install the equipment.

ItraMAS Launches National Traffic Control Center


ItraMAS Corporation Sdn Bhd launched National Traffic Control Centre (NTCC) that combines all
privatized Malaysian highway networks, and is responsible for traffic control and surveillance
functions on these roads. The control center has been established as part of the Malaysian Highway
Authority (MHA)/ Lembaga Lebuhraya Malaysia (LLM)’s initiative to provide real-time traffic
information to commuters through various means such as variable message boards, SMS, MMS,
and the internet.

Transdyn Secures Contract from the City of Melbourne


Transdyn secured a contract from the Transurban’s CityLink Melbourne Limited (CML) to install
and maintain the CityLInk road network’s traffic and plant operations. The contract includes the
design and building of Central computer system, DYNAC™, to manage the 22-kilometre CityLink
automated tollway in Melbourne. The Enterprise Server Software suite, DYNAC™, assists in

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monitoring City Link’s access control, electrical distribution, electronic message signs, emergency
telephones, environmental systems, fire detection, lighting, motorist advisory radios, vehicle
detectors, ventilation, video cameras, weigh-in-motion and counting stations.

Siemens Secures Contract in Prague for Traffic Modernization


Siemens Industrial Solutions and Services Group secured traffic modernization contract in Prague.
The contract entails installation of traffic control centers and integrating them with the central
traffic computer in all the ten zones of the city.
The city of Prague’s technical municipal authority, Technicka Sprava Komunikaci and Siemens
and Eltodo EG’s joint venture, Eltodo Dopravni Systemy S.R.O. would jointly execute the €156
million contract that would be completed over a period of 15 years.

TransCore Secures Contract for Traffic Monitoring System from Californian City
TransCore Inc. secured a contract from the Santa Rosa, California to install a real-time traffic
monitoring system. The move would witness implementation of famous adaptive traffic control
technology, SCATS, along the 2.5-mile length of College Avenue upgrading nine intersections.
The adaptive traffic management system is expected to reduce traffic bottlenecks in the city, which
witnesses uneven traffic flow rate depending on the flow of tourists.

Siemens Chosen to Deliver Traffic Management Solution to Havering


Siemens secured a contract to deliver traffic management solution to the London Borough of
Havering for reducing congestion, roadblocks, accidents, and ensuring a smooth flow of traffic.
The development entails installation of Siespace System and 16 Variable Message signs that
provide motorists with car park and travel information.

Iteris Secures ITS Contract Worth US$1.25 Million in California


Iteris Inc, a prominent global supplier of Intelligent Transportation System (ITS), secured US$ 1.25
million contract from the City of Westminster, California. The contract involves design and
integration of some existing ITS infrastructure as well as new addition of new equipment. Iteris
would replace about 58 traffic signal controllers, 13 CCTV (closed circuit television) cameras, and
12 new video detection locations, and design of about 8 miles of fiber optic cable. Additionally,
Iteris integrates the filed devices and the Traffic Management Center.

Nestor Secures Automated Red Light Solution Contract From Texas City of Diboll
Nestor Traffic Systems, Inc, secured a 2-year contract from the city of Diboll, Texas to provide
the company’s CrossGuard® red light traffic management solution including the maintenance
service.

NAVTEQ Acquires Traffic.com


NAVTEQ acquired Traffic.com, Inc., a company involved in offering personalized traffic
information for drivers for a consideration of about US$179 million.

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Diboll Enters into a 2-year Contract with Nester Traffic
Texas based company, Diboll entered into a 2-year contract with Nestor Traffic Systems, for
implementation of the latter’s Crossing Guard® red light enforcement solution at all major
crossings and intersections of Texas.
Tele Atlas and MCH GeoPoints Enter into Partnership Agreement
Tele Atlas and MCH GeoPoints entered into an agreement concerning integration of technology.
As per this agreement, data of MCH GeoPoints is integrated into digital maps of Tele Atlas, which
enables various organizations and institutions like utility and insurance companies, to have ready
access to important information pertaining to their respective fields of activity. GeoPoints’ unique
database, places2protect™, which provides vital information related to various relevant institutions,
will be blended into digital maps of Tele Atlas.
TransCore Secures New Contract
TransCore secured a contract for deploying the technologies on a 2.5-mile stretch, encompassing
nine intersections. The technology is termed as SCATS (Sydney Coordinated Adaptive Traffic
System), which is technically enabled to alter signal timings, based on volume of traffic. Globally,
well over 20,000 busy intersections are now managed by SCATS, with corresponding figure for the
US being, about 900 intersections.
NAVTEQ Enters into a Contract with Uniden America
NAVTEQ entered into a contract with Uniden America Corporation for supply of digital maps that
are used in Uniden’s personal navigation devices (PNDs). NAVTEQ preloads these devices with
maps of Canada and the US, and the contraption is equipped with unique user-friendly features like
voice-based instructions and rapid map processing. In addition, it’s a sleek and compact device that
enables portability. The device is also featured with a technologically sophisticated LCD screen.
Apart from Uniden, NAVTEQ supplies these PNDs to many other institutions and departments, in
both the US and Canada.

2006

Citilog Supplies Smart SunGuide with Intelligent Video Surveillance


Citilog supplied Intelligent Video Surveillance (IVS) to the Traffic Management Center (TMC),
SMART SunGuide in Florida in the US. Citilog’s ITS uses the images and videos captured by the
installed CCTVs on the highways, motorways, bridges and tunnels to give a precise picture and
situation of the traffic at any given point of time. The system, incase of an emergency, alerts the
concerned authorities to provide better incident management, productivity, dispatch, response time
and safety.
Shah Capital Acquires Thales Navigation
An investment group headed by Shah Capital Partners acquired Thales Navigation to form a new
company - Magellan, which has many innovative navigational products to its credit. Tudor Group,
Consolidated Press Holdings, Galleon Group, Eli Broad and AIG SunAmerica, are the other
partners in this transaction, which was valued at $170 million.

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NAVTEQ Acquires Map Network
NAVTEQ acquired The Map Network for a cash consideration of about $37.5 million. The Map
Network’s field of activity is almost similar to one of NAVTEQ, and now the latter can fully utilize
capabilities of the former, in reinforcing its own business and quality of products.

Telvent GIT SA Takes Over PB Farradyne


Telvent GIT S.A. of Spain took control over the assets of the US-based ITS company, PB
Farradyne (Farradyne); and operates the combined company under the name Telvent Farradyne.
The move is a part of Telvent’s strategy to expand its transportation and traffic business, globally,
and to gain from widespread growth opportunities. The acquisition brings in a professional team
that serves both public and private clientele, including local/regional transportation agencies, state
transportation departments, and the Federal Highway Administration. Besides, the acquisition
enhances Telvent’s Traffic IT platform, and offer long-term growth potential.

NAVTEQ Acquires gedas MapIT


NAVTEQ, a major supplier of digital maps for location-based solutions and vehicle navigation,
acquired gedas MAPIT, Mexico’s leading digital map provider. The coverage of NAVTEQ® digital
map is enhanced through this acquisition, which also provides effective domestic base for future
growth. The acquisition facilitates gedas MapIT to supply geographic product for customers in
Mexico in reply to the customer’s demands for extensive coverage including boundaries, street
names, geometry and demographic data all over Mexico.

Extreme CCTV Acquires Forward Vision CCTV


Extreme CCTV Inc acquired Forward Vision CCTV Ltd for a consideration of C$10 Million. The
development enables Extreme CCTV to offer a wide portfolio of products with enhanced
performance and functionality for the critical surveillance projects across the globe.

HTA Partners with Cendant Car Rental Group


Highway Toll Administration, LLC (HTA) signed a partnership deal with Cendant Car Rental
Group, Inc., a part of Cendant Corporation, to install electronic toll collection systems on
Cendant’s vehicles in E-ZPass region, including bridges, tolls, and tunnels in Virginia, Maine,
Illinois, and the SunPass toll collection device in Florida. The purpose of the deal is to install E-
Zpass/SunPass program in Avis and Budget sites in almost all parts of the nation, where electronic
toll collection devices are used.

Image Sensing Systems Supplies ITS Related Equipment


Image Sensing Systems, Inc., through its subsidiary, Flow Traffic Ltd., supplied ITS related
equipment for installation of 192 Autoscope Rack Vision Video Detection Systems at Seoul Traffic
Management Center, South Korea. The system effectively records both speed and volume of
traffic. The system is useful to the road users in calculating the journey times and traffic related
information. Earlier, the company installed about 235 Autoscope RackVision systems to the
Korean Highway Corporation and this new supply brings the total to 427 Autoscope Systems. This
new installation further reinforces the company’s presence in the South Korean market.

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INIT Enters into an Agreement with Metropolitan Transportation Authority of New York
INIT entered into an agreement with Metropolitan Transportation Authority of New York for
effective implementation of Intelligent Transportation System (ITS). The new system - Automatic
Vehicle Location and Monitoring (AVLM) provides both wireless communications network, as
well as Global Positioning Satellite System (GPS). The system is equipped with a graphical screen
that enables drivers to view map of the route that they plan to travel, in addition to providing two-
way messaging facility between driver and command center. These facilities ensure that congested
zones are avoided. AVLM also enables recording of mileage and passenger details, in addition to
providing both audio and visual-based navigational support.
Mark IV and ETC Enter into Partnership Deal
Mark IV Industries and Electronic Transactions Consultants (ETC) entered into a partnership
agreement for installing Open Road Tolling (ORT) at 20 mainline plazas of Illinois Tollway and
offering 85 ORT lanes.
V-Traffic Enters into Partnership with Masternaut
V-Traffic and Masternaut entered into a partnership agreement for implementation of Intelligent
Transportation System (ITS). The partnership between the companies is aimed at providing
effective solutions to various traffic-related issues. Masternaut will utilize the pertinent information
provided by V-Traffic, for rendering efficient services to its customers. V-Traffic studies data from
about 24,000 vehicles and provides relevant information to Masternaut. The Floating Car Dated
(FCD) Technology of the latter is used for this study.
V-Traffic Collaborates with University Paul Sabatier
V-Traffic and University Paul Sabatier entered into a collaboration agreement. This collaboration
enables analysis of traffic-related issues with a statistical perspective, which assists V-Traffic in
coming out with ITS services and solutions conforming to exemplary standards.

NAVTEQ Secures Contract from Primus Geographics


NAVTEQ received a contract from Primus Geographics for supply of map data. The data of
NAVTEQ will be used to power both open source portfolio Explorer geocoder software and SRC’s
portfolio Guzzler drive time engine. This data successfully addresses limitations imposed by
previous maps.
NAVTEQ Enters into Licensing Agreement with LandSonar
NAVTEQ and LandSonar entered into a licensing agreement, which enables NAVTEQ to gain
rights over LandSonar product - LandSonar Predictive Speed (LPS™), which predicts speed on
road network of the US. LPS provides enhanced benefits with respect to precise route plan and
journey time estimation.

Q-Free Secures Contract for Deploying Toll System on Tamar Bridge


Q-Free secured a contract for implementing its sophisticated toll system on Tamar Toll Bridge. As
per this contract, valued at about NOK 3 million, Q-Free supplies OBUs (On Board Units) to the
UK’s market, for installation on Tamar toll bridge, Plymouth.

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EFKON USA and Sirit Enter into Partnership Deal
EFKON USA and Sirit entered into a partnership agreement with respect to toll technologies. As
per this partnership agreement, the 21-based toll tag technology of Sirit would be utilized by
EFKON for its latest toll products. The 21-based toll tag will be used as a platform for effective
functioning of these technologies. The agreement also conferred selling rights on EFKON, with
respect to some products of Sirit.

SpeedInfo Secures Contract from MTC


SpeedInfo secured a contract from San Francisco Metropolitan Commission (MTC) for supplying
real-time traffic flow data. The sensors of SpeedInfo function round the clock and records speeds
of traffic well over million times a day. This enables concerned departments to respond quickly, in
situations like heavy traffic congestion and accidents. SpeedInfo is a company based in the US, and
ranks among leaders in providing traffic sensor technologies and real-time traffic data networks.

Tele Atlas Signs Licensing Agreement with MapIT


TeleAtlas and MapIT entered into an agreement for jointly providing coverage of digital maps to
seven African countries - South Africa, Namibia, Zimbabwe, Botswana, Lesotho, Swaziland and
Mozambique. Growing popularity of South African region as a destination for tourists increased
the necessity of digital maps, and led TeleAtlas to initiate this agreement.

TeleAtlas Enters into an Agreement with Beijing Changdi Youhao


Tele Atlas entered into a distribution agreement with Beijing Changdi Youhao Mapping
Technologies Co., Ltd, for providing comprehensive map coverage to 337 cities of China. This
bestows a leadership position to TeleAtlas in the region, with respect to zones covered by digital
maps.

Tele Atlas Collaborates with WindSpring


Tele Atlas and WindSpring Inc. entered into a collaboration agreement for marketing Data
Miniaturization Technology (DMT) ™ of the latter. This technology will also be integrated into
digital maps of Tele Atlas for further enhancing their standards. For this purpose, there is no
necessity to upgrade existing hardware and storage systems, as is the case with integration of most
of other technologies. DMT converts large map and data files into Micro Data Format (MDF)™,
without affecting the quality and quantity of content. This is highly useful for integrating them into
smaller devices like personal navigation systems and mobile phones.
Tele Atlas and PT Navindo Enter into a Joint Venture Agreement
Tele Atlas and PT Navindo Technologies entered into a joint venture agreement, resulting in
formation of another entity, PT Tele Atlas Indonesia. This agreement is essentially targeted at
providing a highly precise digital map database in Indonesia.
Image Sensing Systems Joins Forces with Wavetronix
Image Sensing Systems (ISS), Inc. joined forces with Wavetronix LLC, to co-brand and
distribute Wavetronix SmartSensor™ as ISS Autoscope® SmartSensor in Europe. As per the deal,

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ISS Europe Ltd (ISS Subsidiary), through its widespread distribution network, delivers
Autoscope SmartSensor, and Wavetronix Command™ range of appliances to the European
transportation market. The addition of Autoscope SmartSensor enables ISS Europe Ltd, the
integration of advanced video detection technologies with the Digital Wave Radar technology of
Wavetronix.

Zeus Technology Enters into Partnership with Itlog


Zeus Technology, an application specific traffic management software provider, entered into a
partnership with Itlog, a supplier of IT management applications. As per the deal, Itlog distributes
Zeus Extensible Traffic Manager (ZETM) to medium to large Brazilian organizations, providing
the latest Application Delivery Controller (ADC). The partnership allows Itlog to gain from Zeus’
flexible software in creating an inclusive solution for traffic management, and application
acceleration, and offer it either as a service or a project.

Inrix Enters into Agreement with TeleNav


Inrix Inc. entered into an agreement with TeleNav, Inc., to deliver traffic data to the latter for
offering GPS navigation service on the mobile phones. TeleNav is the first US Company to
introduce mobile phone based GPS navigation systems. TeleNav GPS Navigator™ with GPS
navigation service provides automatically updated business locations/maps, Wi-Fi hotspot finder,
speech recognition, moving maps, lowest price fuel finder, and many more. The latest addition to
TeleNav GPS Navigator, TeleNav Traffic™ feature GPS-enabled on-screen and voice navigation
service with quick traffic notification, and single click rerouting functionality. TeleNav Traffic is
primarily offered on select mobile phones, and is developed to monitor traffic regularly, and alert
users about incidents and slowdowns all along their routes.
TeleNav Traffic™ include Inrix’s Smart Dust Network that comprise traffic-related information
gathered from nearly 250 private/public sources, including conventional road sensors, and statistics
from Clear Channel Total Traffic Network. The Traffic Fusion Engine from Inrix uses advanced
statistical methods to combine, aggregate, and improve traffic-related data, and ensures high
accuracy of road speeds, and road coverage.

Iteris Bags Five-Year Contract from FHWA


Iteris Inc bagged a five-year highway administration contract from the Federal Highway
Administration (FHWA). As per the contract, Iteris operates as a part of the Booz Allen Hamilton
team, a technology consulting company, wherein Iteris offers key technical aid and support for the
intelligent transportation systems. The technical support offered by Iteris facilitates in reduction of
recurring and non-recurring congestion, improving transportation management, enhancing freight
operations and management as well as improving day-to-day operations.

Telvent Enters into Contract with Transportation Departments


Telvent Farradyne Inc, traffic business of Telvent GIT S.A., entered into a US$12 million traffic
contract with Virginia Department of Transportation (VDoT). Under the terms of the contract,
Telvent provides expertise, services and operations personnel for VDoT’s Northern Virginia based
Smart Traffic Center, for a period of five years.

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Besides, the company entered into a traffic contract worth US$4 million with Missouri Department
of Transportation, to offer operational support for the Gateway Guide traffic management system
located in St. Louis, Missouri. As per the deal, Telvent provides operations supervisor, and system
operators for a period of four years. Additionally, the company offers training on advanced
standard operating procedures, incident management techniques, and operational techniques of an
enhanced Traffic Management Center.

TransCore Bags Contract to Implement Traffic Control Technology


TransCore received a contract for the instigation of adaptive traffic control technology to reduce
traffic congestion and backups in the City of Santa Rosa, California. The company is the US-
based reseller of Sydney Coordinated Adaptive Traffic System (SCATS), with real-time
operating features designed to modify signal timing based on the traffic changes. SCATS is one
of the most broadly deployed adaptive traffic control devices in the market, with over 20,000
intersections globally, and nearly 900 intersections in the US. The system measures traffic by
using video detection equipment fixed inside the road pavement, and adjusts traffic flows by
altering the timing of signal lights at various junctions. This results in abridged travel times and
traffic congestions.

Intermap Inks Letter of Intent with Tele Atlas


Intermap Technologies Corporation in conjunction with Tele Atlas North America, Inc inked a
letter of Intent for the development of 3-D and 2-D digital road maps. The digital road maps
intended for vehicle navigation segment, is a combination of Intermap’s 3-D NEXTMap data along
with the 2-D road data of Tele Atlas.

RouteMatch Software Bags ITS Technology Solution Contract


RouteMatch Software, Inc., a leading provider of logistics and transportation technologies and
services, bagged an ITS (intelligent transportation systems) technology solution contract. As per
the contract RouteMatch provides its RouteMatch TS™ paratransit software to the City of Corona
situated in California. The RouteMatch TS™ software is a computer aided dispatching and
passenger registration system comprising of highly advanced vehicle mapping and geographic
information system.

ItraMas Alliances with AdvancedInformation Technology


ItraMas, a leading provider of intelligent transportation systems in Malaysia, entered into a joint
venture with AdvancedInformation Technology Plc to provide several light emitting diodes and
intelligent transportation systems based products, services and solutions in Thailand.

INIT Secures CAD$35 Million Contract


INIT Innovation In Transportation Systems, Inc., a subsidiary of INIT Innovation in Traffic
Systems AG, North America, bagged a contract worth CAD$35 million from TransLink, the
transportation authority in Vancouver. As per the contract, INIT provides TransLink with several
intelligent transportation and electronic management systems including the state of the art GPS,
digital private mobile voice and data radio systems and Windows XP based on board computers.

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Intermap Enters into Agreement with Several German Automotive Manufacturers
Intermap Technologies Corporation entered into a development contract with several Germany
based automotive manufacturers wherein, as per the contract, Intermap provides the manufacturers
with the company’s NEXTMap 3-D road data geospatial databases for enhancing the vehicle
engine control in Germany’s intelligent transportation systems segment.

ObjectVideo Alliances with CTI’s Video Convergence


ObjectVideo® entered into a partnership with Video Convergence (VC) for enabling the installation
of ObjectVideo’s Object Video OnBoard® (intelligence video surveillance) into VC’s Intelligent
Transportation and Surveillance (ITS) solutions. VC’s partnership with Object Video is in order to
focus primarily on waxing the companies’ product range with the integration of Intelligent
Analysis to companies’ surveillance and interactive video security solutions. ObjectVideo’s
intelligent video surveillance software offers automated, identification, real-time detection, safety
incidents and issues, analysis and tracking of potential threats.

Telvent Signs Deal with Computer Sciences Corporation


Telvent Farradyne, traffic business of Telvent GIT S.A., signed a US$22 million contract with
Computer Sciences Corporation. As per the deal, Telvent Farradyne offers its smart transportation
systems expertise to develop software for Maryland State Highway Administration ITS, and
Computer Sciences Corporation would carry out the systems development, deployment, testing and
integration.
Additionally, Telvent Farradyne offers professional and technical services to Coordinated
Highways Action Response Team (CHART) system, a new transportation management system of
Maryland State Highway Administration. The CHART system offers traveler information,
including average vehicle speed, incident reports, weather reports, delays, and other variable
details, apart from real-time traffic information.

WWT Bags Order from Arizona Department of Transportation


World Wide Technology, Inc. (WWT), bagged a contract from Arizona Department of
Transportation (ADOT) to provide wireless equipment and services to state government entities,
universities, political subdivisions, and schools in Arizona. The multi-year, statewide contract
forms a part of ADOT’s wireless communications project, to provide ITS and a traffic signal for
homeland security and transportation applications.

Raytheon Receives a Contract from Florida Turnpike


Raytheon Co received a US$229 million contract from Florida Turnpike Enterprise, to deliver
electronic toll collection system. The deal includes technology for open-road tolling, and a central
processing device, and audit system. The Florida Turnpike Enterprise operates toll road systems in
different parts of Florida.

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FOCUS ON SELECT PLAYERS

Developers of Key Enabling Technologies

ADDCO LLC (US)


ADDCO LLC, a part of Imago Group of Spain, is a leading company engaged in providing
industrial products and traffic management products and solutions. The company is also a leading
provider of portable intelligent transportation systems (ITS) solutions and services to several
intelligent transportation systems, traffic management and work zone safety markets. The
company’s ITS based solutions include Flex Trailer, SmartQueue™ - Queue detection system,
SmartMerge™ - an innovative lane merge system, SmartZone®, SmartFLOW and SmartEye™ - a
portable video surveillance system.
ADDCO’s traffic management products and solutions include portable ITS platforms, dynamic
message signs, traffic management software, portable traffic signs and smart traffic solutions.
Major customers of the company include consulting engineers, contractors, DOT officials, planners
and several other traffic control and barricade companies. Industrial products of the company
include electric remote control, hand controls, latches, joysticks and actuators.

ARINC Incorporated (US)


ARINC Inc., a portfolio company of Carlyle Group, is a global leading provider of transportation
communications and systems engineering. The company develops and operates information
processing systems and communications, in addition to offering systems engineering and
integration solutions to a variety of industries. ARNIC’s products and services find application in
airports, aerospace and defense, aviation, government, healthcare, networks, security, and
transportation sectors. ARINC was established in 1929.

Image Sensing Systems Inc. (US)


Image Sensing Systems Inc., established in 1984, is a global leader in systems applying video
imaging expertise in the field of freeway incident detection, advanced traffic management systems,
and traffic data collection. The company’s Autoscope® line of computer enabled detection (CED)
products help in easing traffic congestion and enhance roadway planning. Autoscope® wide area
video vehicle detection solution gathers traffic data as well as speed, roadway occupancy, volume,
headways, ramp queue lengths and vehicle classification. Image Sensing’s Systems are deployed
for maritime, railway and aviation traffic monitoring and security communication operations in
about 60 countries worldwide.

INIT Innovation In Traffic Transportation Systems, AG (Germany)


INIT Innovation In Traffic Systems, AG, a wholly owned subsidiary of INIT GmbH, is a global
provider of electronic fare collection systems and telematics solutions and services for public
transport. The company is also engaged in developing, manufacturing, installing and
maintenance of integrated hardware and software services and solutions for several transportation
companies.

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INIT’s telematics software and services products include PROservice, MOBILEreports,
MOBILEstatistics, MOBILEartist and MOBILEforms services. Mobile telematics systems
provided by the company include INFOS – Infrared location support system, LISA – traffic signal
priority system, COPILOT – onboard computer systems, PRESSit – mobile data terminal,
MOBILE-TLI – data network controller and PIDmobil – on board passenger information display
system. The company’s electronic payment system products include DATAstation, TOUCHcoin,
TOUCHmobil, TOUCHstation, EVENDportable and EVENDintegral.

Magellan Navigation Inc. (US)


Magellan Navigation Inc. is a pioneer in the survey, consumer, GIS and OEM GPS positioning and
navigation markets. Magellan is an innovator of award-winning products that include Magellan
eXplorist™ outdoor handheld navigation devices, Magellan® RoadMate™ series portable car
navigation systems, the Hertz NeverLost® car navigation system and ProMark™, a single frequency
GPS survey product. Other major products of the company are Magellan Maestro series in the
vehicle navigation market, and Magellan CrossoverGPS series in the GPS product category. The
company also offers GPS related software, maps and accessories.
Thales Navigation was renamed as Magellan in 2006, subsequent to the acquisition of the former
company by a private equity firm, Shah Capital Partners. Other partners involved in this
transaction included Consolidated Press Holdings, Eli Broad, Tudor Group, AIG SunAmerica
and Galleon Group. Prior to the acquisition, Thales Navigation was a leading developer and
provider of GPS based navigation and guidance equipment for both the consumer and the OEM
markets.

MARK IV IVHS (Canada)


MARK IV IVHS, a business segment of MARK IV Industries Corp., develops dedicated Short-
Range Communication (DSRC) equipment that finds application in ITS field such as electronic toll
collection and commercial vehicle operations (e.g. automated weigh station bypass). Highway, toll,
turnpike, tunnel and bridge authorities also utilize the devices for enabling the functioning of
intelligent transportation systems. The company, operating across 17 countries worldwide, was the
first to apply DSRC technology to electronic weigh station bypass/CVO programs. Mark IV IVHS
is the largest provider of radio frequency based transponder devices for ETC systems to the
Northeastern United States. E-Zpass™ system uses transponders of Mark IV and by far represents
the biggest and successful ITS execution programs in the world. Other end use segments of Mark
IV’s transponders are intelligent vehicle highway systems, vehicle mapping systems, railroad and
mass transit information systems, video displays for transportation and fixings and Information
Display Products.
Mark IV IVHS also played a crucial role in Canada’s Highway 407, which is the world’s first non-
stop all electronic toll-road. Mark IV IVHS is designing T3, a tag that integrates three DSRC
protocols in one transponder for providing commercial vehicles the facility for interoperability on
electronic toll roads across North America. Besides, the company also unveiled a prototype smart
card transponder system called Smart Fusion for facilitating the transition from electronic-
commerce to mobile-commerce. In 2008, an affiliate of Sun Capital Partners Inc. acquired Mark IV
Industries. As a result, MARK IV IVHS became a portfolio company of Sun Capital Partners.

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NAVTEQ Corporation (US)
NAVTEQ Corporation, formerly Navigation Technologies, is a provider of real-time digital route
guidance map databases to commuters in North America and Europe. NAVTEQ’s high precision
digital map database comprises of comprehensive information on vehicle routes for over 42
countries worldwide and is extensively used in fleet management systems, in-vehicle navigation
systems, personal navigation solutions, web sites and online services, kiosk-based directions,
advanced traffic and traveler information solutions and Geographic Information Systems (GIS). In
addition to the mainstay markets, NAVTEQ is expanding its base in Malaysia, Singapore, Mexico,
Puerto Rico, the Middle East as well as South Africa. NAVTEQ acquired US based producer of
maps, The Map Network through the end of 2006. NAVTEQ signed a definitive agreement with
global telecommunications major, Nokia, wherein the latter would acquire NAVTEQ for an
estimated US$8.1 billion.

Siemens Transportation Systems Inc. (US)


Siemens Transportation Systems Inc., a business segment of Siemens USA, which is a division of
Germany based Siemens AG, is a global leading provider of transportation systems as well as
technological and engineering know-how to the transportation industry. Transportation Systems
(TS) is a leading turnkey systems and engineering solutions provider for the mass transit rail
industry. Operating as a part of the Siemens group, the company offers complete design,
development and integration of equipment, signaling & communication systems, components and
vehicles for the rail industry.
Siemens GTS, operating under Siemens Energy & Automation, is a leader in the development and
integration of high-level transportation management solutions. The company focuses on offering
intelligent transportation systems integration services and products. The company also provides
software solutions based on open system architecture and industry standards.

Sirit Inc. (Canada)


Sirit Inc. is one of the leading providers of RFID (Radio Frequency Identification) enabling
technology in the world. The company provides host of technology solutions in low, high, and ultra
high frequencies that enable the company’s customers to provide fast and cost-effective RFID
solutions for varied applications such as Automatic Vehicle Identification, Inventory Control &
Management, Asset Tracking, Supply Chain & Logistics, Cashless Payment/ Electronic Tolling,
Access Control, Near Field Communications, and Product Authentication. Major solutions and
products offered by Sirit include Fixed Reader Solutions, and Embedded RFID Reader Solutions.
The company’s Fixed Reader Solutions include Traffic Management Products, Parking & Access
Control Products, Toll Management Products, and UHF Logistics Readers, while the Embedded
RFID Reader Solutions include high and ultra high frequency reader modules, near field
communication solutions, and Plug-N-Play readers. Sirit is also one of the four companies to be
contracted to develop first generation prototypes of 5.9 GHz DSRC technologies by the Federal
Highways Administration and the US Department of Defense.
In Automatic Vehicle Identification (AVI) applications, Sirit is one of the leading providers of
Traffic Probe solutions, Electronic Toll and Traffic Management (ETTM) solutions, and Toll
Integration solutions. Traffic Probe solutions offered by the company enable real time monitoring of

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traffic patterns for managing traffic and designing safety solutions. Sirit’s ETTM solutions include
electronic toll collection systems, and the company is the global leading provider of technologies
conforming to the California Department of Transportation’s Title 21 open standard. Sirit also offers
Microsoft® open standards based modular, flexible, scalable, and auditable electronic tolling systems.
Sirit’s Parking and Access Control solutions find application in parking lots, gated communities,
and other controlled areas, and offers convenience, security, and control to the users. Key products
offered by Sirit include IDentity MaX and IDentity FleX readers, and IDentity ZiP vehicle tag for
AVI systems, and IDentity Title 21 for highway toll collection systems among others.

TransCore Inc. (US)


TransCore Inc., a Roper Industries’ subsidiary, a worldwide leader in wireless RFID
communication technology, is a renowned developer of patented vehicle identification systems for
the intelligent transportation sector. Transcore undertakes turnkey design, development, integration
and contract operation of GPS, GIS and RFID based automation systems for the transportation,
aviation and highway access sectors. Transcore’s expertise in the design of futuristic transportation
access solutions is exemplified by the company being featured among the top 10 design firms
worldwide for ITS. Transcore’s products and services are available in 46 countries worldwide.
Transcore, a leader in transaction-based payment systems and services for mobile payment viz., toll
collection systems, also flaunts expertise in the development and integration of component systems
for advanced traffic management, traveler information, and enterprise-wide transportation
management & asset tracking. Roper Industries acquired the company in 2004.

System Integrators

Affiliated Computer Services Inc. (US)


Affiliated Computer Services Inc. (ACS) is a provider of Business Process Outsourcing (BPO),
Information Technology enabled services (ITes) and end-to-end product solutions. The company
offers solutions to commercial and government clients operating in various domains from all over
the world. ACS’ solutions find application in various domains such as education, energy, finance,
government, healthcare, retail, and transportation. ACS employs over 58000 personnel, with
operations in over 100 countries around the world. ACS acquired the transport division of
Switzerland Ascom AG towards the end of 2005, to emerge as one of leading providers of
transportation solutions to governments around the world.
ACS teams up with national, regional, public sector, government sector and commercial units to
offer Intelligent Transportation Solutions (ITS) enabling them to achieve business targets safely
and efficiently. ACS products ranges from ITS to Traffic Management Systems (TMS) including
Electronic Toll Collection (ETC) and Parking Management System (PMS). The company is one of
the leading providers of ETC systems, accounting for about 90% of all E-ZPass transactions in the
US. Other ETC operations handled by ACS in the US include FasTrak™ in the San Francisco Bay
area, PalmettoPass™ in South Carolina, and SunPass™ in Orlando.
Other Intelligent Transportation Systems solutions offered by ACS include PrePass® System for
truckers, Electronic Payment Systems solutions for parking and transit operators, MVS Express®
for motor vehicle services, and PierPass® fee collection system among others.

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Citilog SA (France)
Citilog SA, a French traffic management systems and video image processing solutions Company,
leads the global market in automatic incident detection systems and traffic surveillance systems.
Citilog’s systems find applications in enabling traffic data collection, video surveillance, automatic
incident detection, security, detection of PTZ cameras and intersection control for road
transportation and arterial networks, tunnel management and urban traffic monitoring.
Established in 1997, Citilog’s operations span throughout Europe and the US. Major customers of
the company include motorway companies, cities, as well as local authorities in France, Australia,
Canada, Switzerland, China and Spain, flaunting a host of successful implementations of Citilog’s
incident detection systems. Citilog is the industry pioneer in developing and deploying the world’s
first advanced video detection system – the VisioPaD that is easy to use and entails no calibration
on the similar lines of ‘plug-and-play’ devices.

ItraMAS Corporation Sdn Bhd (Malaysia)


ItraMAS Corporation Sdn Bhd (ItraMAS) is a technology driven intelligent traffic management
and road safety solutions provider engaged in the design, development and commercialization of
multimedia based intelligent transportation systems, LED products and traffic signaling &
management systems. ItraMAS also delivers Toll Collection System (TCS), Area Traffic Control
(ATC), Advanced Traffic Management System (ATMS)/Advanced Traveller Information System
(ATIS) and other related ITS modules and sub-systems. The company embarks on strategic
technology alliances and extensive in-house development efforts for producing and
commissioning high-performance intelligent transportation systems. The company was
incorporated in 1997.

Q-Free ASA (Norway)


Q-Free ASA (Q-Free) is a leading producer of automatic toll collection systems and is a pioneer in
technological developments related to Road Transport and Traffic Telematics (RTTT). The
company is involved in developing, marketing and operating electronic payment systems including
road pricing systems, access control systems, tracking systems for vehicles and goods, automatic
fare collection systems and operations services for the transportation sector. The company also
produces traffic information systems, parking fee collection and ticketing systems and container
management systems.

Swarco Holdings AG (Germany)


Swarco Holdings AG is a provider of an array of products, services and solutions in traffic
management and materials. The company is active in three business divisions – Traffic Materials,
Traffic Management, and Surface Treatment. The Traffic Management division comprises twelve
companies including Mizar Automazione S.p.A., Signelit ZRt., Swarco Danmark AS, Swarco Elsig
s.r.o., Swarco Finland OY, Swarco Futurit Verkehrssignalsysteme GesmbH, Swarco ITS, Swarco
Norge AS, Swarco Sverige AB, Swarco Technology APS, Swarco Traffic Management, Inc., and
Swarco V.S.M. GmbH. China based Swarco Intelligent Traffic Management System Equipment
Co., Ltd. (SITS) supplies advanced intelligent traffic management systems and products, as well as
market interurban traffic management systems. Swarco Futurit is one of the leading suppliers of

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variable message signs. Swarco operates more than 60 companies located in Austria, China,
Germany, Italy, Norway, Romania, Russia, Sweden, and the United States. The company was
established in 1969 as a manufacturer of glass beads in Austria.

SpeedInfo, Inc. (US)


SpeedInfo, Inc., established in 2002, is engaged in the business of developing real time traffic data
networks. These networks facilitate in waxing the precision and coverage of public traffic speed
sensors. The company’s key products include display devices, sensors and servers. The company
through a combination of network and server software technologies created a commercial data
infrastructure that reduces problems or glitches pertaining to reliability, comprehensive coverage
and data latency occurring in the system. SpeedInfo caters its services to several public,
commercial as well as consumer markets.

Tacel Ltd. (Canada)


Tacel Ltd. is a Canada based leading provider of traffic control equipment and services. The
product suite of the company include loop detectors, controllers, emergency preemption, traffic
signal heads, LED signals, loop sealants, speed signs, mounting hardware and the ACTRA-Central
advanced traffic management systems solutions. Other products of the company include Marc NX
closed loop traffic management software system, SCOOT – Adaptive traffic system, i2 traffic
management system, 2070 advanced transportation controller and intersection management
software. The company was incorporated in 1979.

Traficon N.V. (Belgium)


Traficon N.V. designs, develops, builds and installs automated traffic and incident detection and
intersection control & monitoring equipment that often form the enabling platforms for
intelligent transportation systems. Traficon’s video image processing devices for traffic analysis
include traffic cameras, detector & communication boards, PC Software and Rack systems.
Traficon video detection systems are used in several traffic applications such as ramp metering,
travel time calculation, dynamic speed indication, queue tail monitoring, congestion monitoring,
tunnel access control, ventilation control, rerouting, and dynamic queue indication during road
works. The company offers products for tunnel, road and urban applications. Leveraging on the
long-standing experience of over 20 years, Traficon’s custom-made detectors enhance the on-
road safety.

Transdyn Controls, Inc. (US)


Transdyn Controls, Inc. is a major systems integrator of security and surveillance, control,
information management and communication systems. The company is engaged in designing,
manufacturing and maintenance of information management and mission critical control systems.
Transdyn is also a leader in providing several systems and services for both public as well as
private sectors including security and surveillance sectors and transportation sectors. The
company’s DYNAC™ line of products help in providing integrated software solutions for several
markets including intelligent transportation systems (ITS), advanced traffic management systems
(ATMS), electric power distribution and transit power systems.

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XATA Corporation (US)
XATA, established in 1985, is a worldwide leader in providing fleet management solutions and a
leading provider of mobile information systems to the commercial trucking sector. The company
has the distinction of being the first to offer paperless electronic driver logs, exception-based
reporting and dynamically updated fleet standards for precise fleet intelligence. The company’s
products incorporate enterprise software, onboard computing, wireless communications and global
positioning to offer an enterprise-wide logistics management solution for North America’s largest
trucking fleets. XATA’s windows-based OpCenter™ is a leading fleet management system.
Another product is XATANET™, which is a web-based fleet management solution.

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GLOBAL MARKET PERSPECTIVE
TABLE 1: World Recent Past, Current & Future Analysis for Intelligent Transportation
Systems by Geographic Region – US, Japan, Europe and Rest of World Markets
Independently Analyzed with Annual Sales in US$ Million for Years 2000 through 2010
Region/Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
US 1721.77 1832.32 1966.42 2142.44 2363.66 2644.94 2999.26 3437.07 3934.63 4466.87 5019.98 11.29
Japan 642.89 792.41 860.43 941.51 1049.37 1186.60 1336.94 1504.59 1691.88 1893.17 2099.49 12.56
Europe 1333.09 1462.09 1607.68 1732.97 2106.68 2279.49 2486.64 2751.40 3021.77 3324.01 3601.40 10.45
Rest of World 442.15 478.37 525.17 581.73 647.92 724.75 829.37 969.13 1155.47 1406.06 1734.61 14.65
Total 4139.90 4565.19 4959.70 5398.65 6167.63 6835.78 7652.21 8662.19 9803.75 11090.11 12455.48 11.64

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
5500
4400
3300
2200
1100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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TABLE 2: World Long-term Projections for Intelligent Transportation Systems by
Geographic Region – US, Japan, Europe and Rest of World Markets Independently
Analyzed with Annual Sales in US$ Million for Years 2011 through 2015
Region/Country 2011 2012 2013 2014 2015 % CAGR
US 5600.83 6190.25 6778.63 7354.83 7897.66 8.97
Japan 2307.95 2510.69 2701.32 2880.63 3043.43 7.16
Europe 3911.54 4210.54 4505.73 4795.23 5067.64 6.69
Rest of World 2117.25 2533.78 2952.42 3335.94 3659.70 14.66
Total 13937.57 15445.26 16938.10 18366.63 19668.43 8.99
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
8500
7100
5700
4300
2900
1500
2011 2012 2013 2014 2015

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TABLE 3: World 10-Year Perspective for Intelligent Transportation Systems by
Geographic Region – Percentage Breakdown of Dollar Sales for US, Japan,
Europe and Rest of World Markets for 2003, 2008 & 2012
Region/Country 2003 2008 2012
US 39.68 40.13 40.08
Japan 17.44 17.26 16.26
Europe 32.10 30.82 27.26
Rest of World 10.78 11.79 16.40
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

2003 2008 2012


10.78 11.79 16.4

39.68 40.13 40.08

32.1 30.82
27.26

17.44 17.26 16.26

US Japan Europe Rest of World

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TABLE 4: World Recent Past, Current & Future Analysis for Advanced Traffic
Management Systems (ATMS) by Geographic Region – US, Japan, Europe and
Rest of World Markets Independently Analyzed with Annual Sales in
US$ Million for Years 2000 through 2010
Region/Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
US 863.88 907.42 959.60 1024.56 1104.58 1196.70 1303.80 1427.53 1569.00 1713.66 1859.49 7.97
Japan 436.32 460.06 486.56 516.78 555.02 601.31 656.39 718.81 791.19 869.28 949.78 8.09
Europe 727.33 741.88 757.83 781.17 809.37 845.31 886.31 941.08 987.49 1033.56 1045.92 3.70
Rest of World 229.14 247.59 271.26 300.42 334.52 373.79 423.17 485.88 565.81 668.84 792.78 13.22
Total 2256.67 2356.95 2475.25 2622.93 2803.49 3017.11 3269.67 3573.30 3913.49 4285.34 4647.97 7.49

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
1950
1620
1290
960
630
300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-61
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 5: World Long-term Projections for Advanced Traffic Management Systems
(ATMS) by Geographic Region – US, Japan, Europe and Rest of World Markets
Independently Analyzed with Annual Sales in US$ Million for Years
2011 through 2015
Region/Country 2011 2012 2013 2014 2015 % CAGR
US 2008.25 2161.88 2322.72 2492.28 2671.23 7.39
Japan 1030.61 1109.35 1183.23 1252.80 1316.94 6.32
Europe 1092.51 1129.38 1166.36 1202.82 1241.86 3.26
Rest of World 936.59 1097.12 1263.33 1416.32 1550.45 13.43
Total 5067.96 5497.73 5935.64 6364.22 6780.48 7.55
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
2800
2400
2000
1600
1200
800
2011 2012 2013 2014 2015

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-62
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 6: World 10-Year Perspective for Advanced Traffic Management Systems (ATMS)
by Geographic Region – Percentage Breakdown of Dollar Sales for US, Japan,
Europe and Rest of World Markets for 2003, 2008 & 2012
Region/Country 2003 2008 2012
US 39.07 40.09 39.32
Japan 19.70 20.22 20.18
Europe 29.78 25.23 20.54
Rest of World 11.45 14.46 19.96
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

2003 2008 2012


11.45 14.46 19.96

39.07 40.09 39.32

29.78 25.23
20.54

19.7 20.22 20.18

US Japan Europe Rest of World

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-63
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 7: World Recent Past, Current & Future Analysis for Electronic Toll Collection
(ETC) Systems by Geographic Region – US, Japan, Europe and Rest of World Markets
Independently Analyzed with Annual Sales in US$ Million for Years 2000 through 2010
Region/Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
US 265.44 285.43 312.95 353.54 406.75 483.46 587.55 734.32 908.50 1102.46 1302.34 17.24
Japan -- 108.12 128.48 153.32 191.88 244.19 290.88 336.14 379.20 419.21 455.43 17.33
Europe 261.62 325.16 387.30 404.00 641.38 652.86 662.08 692.80 719.04 766.28 817.70 12.07
Rest of World 90.26 98.62 109.66 122.80 138.13 155.89 181.88 217.64 265.80 331.69 424.13 16.73
Total 617.32 817.33 938.39 1033.66 1378.14 1536.40 1722.39 1980.90 2272.54 2619.64 2999.60 17.13

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
* Denotes CAGR for the period 2001-2010
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
1400
1120
840
560
280
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-64
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 8: World Long-term Projections for Electronic Toll Collection (ETC) Systems by
Geographic Region – US, Japan, Europe and Rest of World Markets Independently
Analyzed with Annual Sales in US$ Million for Years 2011 through 2015
Region/Country 2011 2012 2013 2014 2015 % CAGR
US 1504.85 1687.84 1850.55 1996.00 2125.94 9.02
Japan 490.09 522.34 552.95 582.64 611.42 5.69
Europe 873.71 937.93 1014.00 1090.15 1159.16 7.32
Rest of World 533.64 653.39 777.27 894.87 994.92 16.85
Total 3402.29 3801.50 4194.77 4563.66 4891.44 9.50
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
2300
1900
1500
1100
700
300
2011 2012 2013 2014 2015

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-65
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 9: World 10-Year Perspective for Electronic Toll Collection (ETC) Systems by
Geographic Region – Percentage Breakdown of Dollar Sales for US, Japan,
Europe and Rest of World Markets for 2003, 2008 & 2012
Region/Country 2003 2008 2012
US 34.21 39.97 44.40
Japan 14.83 16.69 13.74
Europe 39.08 31.64 24.67
Rest of World 11.88 11.70 17.19
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

2003 2008 2012


11.88 11.7 17.19

34.21
39.97
44.4

31.64
24.67
39.08

14.83 13.74
16.69
US Japan Europe Rest of World

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-66
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 10: World Recent Past, Current & Future Analysis for Public Vehicle
Transportation Management Systems (PVTMS) by Geographic Region – US, Japan,
Europe and Rest of World Markets Independently Analyzed with Annual Sales
in US$ Million for 2000 through 2010
Region/Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
US 245.15 266.99 292.51 326.79 369.08 423.45 494.84 578.67 662.87 743.14 821.39 12.85
Japan 90.79 99.65 110.24 123.38 139.25 159.75 186.41 219.09 256.75 297.44 339.85 14.11
Europe 142.46 163.70 190.99 225.12 268.25 318.52 385.31 456.32 525.95 589.85 644.94 16.30
Rest of World 51.48 55.96 61.72 68.51 76.64 86.59 100.67 119.72 146.44 184.25 238.07 16.55
Total 529.88 586.30 655.46 743.80 853.22 988.31 1167.23 1373.80 1592.01 1814.68 2044.25 14.46

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
900
720
540
360
180
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-67
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 11: World Long-term Projections for Public Vehicle Transportation Management
Systems (PVTMS) by Geographic Region – US, Japan, Europe and Rest of World Markets
Independently Analyzed with Annual Sales in US$ Million for Years 2011 through 2015
Region/Country 2011 2012 2013 2014 2015 % CAGR
US 898.44 971.75 1039.77 1101.22 1154.74 6.48
Japan 382.60 423.77 461.66 495.78 523.25 8.14
Europe 700.73 756.79 812.87 870.26 927.35 7.26
Rest of World 300.83 367.73 428.00 479.83 519.85 14.65
Total 2282.60 2520.04 2742.30 2947.09 3125.19 8.17
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
1250
1050
850
650
450
250
2011 2012 2013 2014 2015

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-68
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 12: World 10-Year Perspective for Public Vehicle Transportation Management
Systems (PVTMS) by Geographic Region – Percentage Breakdown of Dollar Sales
for US, Japan, Europe and Rest of World Markets for 2003, 2008 & 2012
Region/Country 2003 2008 2012
US 43.93 41.63 38.56
Japan 16.59 16.13 16.82
Europe 30.27 33.04 30.03
Rest of World 9.21 9.20 14.59
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

2003 2008 2012


9.21 9.2 14.59

38.56
41.63
43.93
30.27 33.04
30.03

16.59 16.13 16.82


US Japan Europe Rest of World

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-69
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 13: World Recent Past, Current & Future Analysis for Commercial Vehicle
Operations (CVO) Systems by Geographic Region – US, Japan, Europe and Rest of World
Markets Independently Analyzed with Annual Sales in US$ Million for
Years 2000 through 2010
Region/Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
US 141.74 152.30 164.36 180.52 201.24 229.03 263.89 302.81 344.81 388.50 430.54 11.75
Japan 61.35 66.00 71.70 78.60 86.68 96.73 109.33 125.88 147.76 176.07 206.90 12.93
Europe 88.43 101.59 119.79 143.03 172.44 206.84 244.53 292.31 347.21 410.54 483.37 18.51
Rest of World 36.51 39.16 42.46 46.28 50.77 56.02 64.80 77.84 96.05 120.70 153.78 15.46
Total 328.03 359.05 398.31 448.43 511.13 588.62 682.55 798.84 935.83 1095.81 1274.59 14.54

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
525
420
315
210
105
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-70
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 14: World Long-term Projections for Commercial Vehicle Operations (CVO)
Systems by Geographic Region – US, Japan, Europe and Rest of World Markets
Independently Analyzed with Annual Sales in US$ Million for Years 2011 through 2015
Region/Country 2011 2012 2013 2014 2015 % CAGR
US 475.10 522.61 573.62 626.05 679.33 9.35
Japan 238.31 267.57 292.72 314.50 332.17 8.66
Europe 552.54 616.47 670.23 717.88 759.88 8.29
Rest of World 190.75 229.15 267.12 301.07 328.32 14.54
Total 1456.70 1635.80 1803.69 1959.50 2099.70 9.57
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

US Japan Europe
800
680
560
440
320
200
2011 2012 2013 2014 2015

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-71
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 15: World 10-Year Perspective for Commercial Vehicle Operations (CVO) Systems
by Geographic Region – Percentage Breakdown of Dollar Sales for US, Japan,
Europe and Rest of World Markets for 2003, 2008 & 2012
Region/Country 2003 2008 2012
US 40.25 36.85 31.95
Japan 17.53 15.79 16.36
Europe 31.90 37.10 37.68
Rest of World 10.32 10.26 14.01
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

2003 2008 2012


10.32 10.26
14.01

31.95
36.85
40.25

31.9
37.1
37.68

16.36
17.53 15.79

US Japan Europe Rest of World

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-72
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 16: World Recent Past, Current & Future Analysis for Other Intelligent
Transportation Systems# by Geographic Region – US, Japan, Europe and Rest of World
Markets Independently Analyzed with Annual Sales in US$ Million
for Years 2000 through 2010
Region/Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
US 205.56 220.18 237.00 257.03 282.01 312.30 349.18 393.74 449.45 519.11 606.22 11.42
Japan 54.43 58.58 63.45 69.43 76.54 84.62 93.93 104.67 116.98 131.17 147.53 10.49
Europe 113.25 129.76 151.77 179.65 215.24 255.96 308.41 368.89 442.08 523.78 609.47 18.33
Rest of World 34.76 37.04 40.07 43.72 47.86 52.46 58.85 68.05 81.37 100.58 125.85 13.73
Total 408.00 445.56 492.29 549.83 621.65 705.34 810.37 935.35 1089.88 1274.64 1489.07 13.82

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)
# Includes Advanced Vehicle Information Systems among others

US Japan Europe
650
520
390
260
130
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-73
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 17: World Long-term Projections for Other Intelligent Transportation Systems# by
Geographic Region – US, Japan, Europe and Rest of World Markets Independently
Analyzed with Annual Sales in US$ Million for Years 2011 through 2015
Region/Country 2011 2012 2013 2014 2015 % CAGR
US 714.19 846.17 991.97 1139.28 1266.42 15.40
Japan 166.34 187.66 210.76 234.91 259.65 11.78
Europe 692.05 769.97 842.27 914.12 979.39 9.07
Rest of World 155.44 186.39 216.70 243.85 266.16 14.39
Total 1728.02 1990.19 2261.70 2532.16 2771.62 12.54
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 1 Canadian Dollar, 106.40 Japanese Yen, 0.67 Euro, 0.50 British Pound and
24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level.
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)
# Includes Advanced Vehicle Information Systems among others

US Japan Europe
1350
1080
810
540
270
0
2011 2012 2013 2014 2015

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page II-74
5645 Silver Creek Valley Road, San Jose, California 95138, USA
TABLE 18: World 10-Year Perspective for Other Intelligent Transportation Systems# by
Geographic Region – Percentage Breakdown of Dollar Sales for US, Japan,
Europe and Rest of World Markets for 2003, 2008 & 2012
Region/Country 2003 2008 2012
US 46.75 41.24 42.51
Japan 12.63 10.73 9.43
Europe 32.67 40.56 38.69
Rest of World 7.95 7.47 9.37
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
# Includes Advanced Vehicle Information Systems among others
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)

2003 2008 2012


7.95 7.47 9.37

41.24 42.51
46.75
32.67
40.56
38.69

12.63 10.73 9.43

US Japan Europe Rest of World

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INTELLIGENT TRANSPORTATION SYSTEMS - MARKET

THE UNITED STATES


A. Market Analysis
US – World’s Largest Market
In relation to Europe and Japan, the US is a latecomer in the ITS field. However, the region
represents the largest market for ITS and is estimated at US$3.9 billion for 2008, as compared to
US$3.4 billion in 2007. The market is projected to reach US$5 billion by 2010, registering a
CAGR of 11.3% over the period 2000-2010.
ATMS represents the largest segment, accounting for intelligent transportation systems 39.9%
share of the total intelligent transportation systems market, estimated for 2008. ETC is projected to
record a CAGR of 17.2% over the period 2000-2010, to reach US$1.3 billion by 2010.
The Federal Government & ITS
US Federal Government – Primary Supporter of ITS
The US federal government is a primary supporter of ITS with an intention to improve
transportation safety and efficiency. Its support is reflected in the fact that the federal funding for
ITS went up substantially over the past decade. There have been agendas towards enhancing road
capacities, reduce travel time, and check emission levels. If private and public agencies come
forward for spreading awareness among the general public then demand for ITS is expected to go
up further in the coming years.
State governments play a vital role in deployment of ITS systems, and are responsible for
allocation of funds to state departments or agencies to finance studies or other projects that use
intelligent transportation systems applications. A few states even reviewed budgetary amendments
regarding ITS programs during the 1999 and 2000 sessions.
Budgetary Constraints of the Federal Government
Notwithstanding the fact that over the past decade funding by the Federal government for ITS
projects went up yet it is faced with budgetary constraints. In order to tide over the problem the
government is encouraging private sector involvement. Participation of private sector in the
development of ITS can be as vendors, franchisees, end-users or data providers.
• Private sector as vendors – companies can be appointed as preferred vendors for supplying
equipments to public agencies mandated with ITS implementation.
• Private sector as franchisees – companies are allowed to operate a few ITS related applications
such as automatic toll collection or traveler information systems.
• Private sector as end users – ITS application in the field of commercial vehicle operations and
freight transit offers benefits to companies that are involved in or depend on the efficient
movement of freight.
• Private sector as information service providers – a few companies gather data from traffic operations
centers and repackage the data for further use by consumers and businesses. In other words, real-
time traffic information represents a source of revenue for companies engaged in these services.

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Equipping Vehicles with Intelligent Vehicle Technology
The federal government is urging automakers to intensify efforts in equipping the vehicles with
intelligent vehicle technology. With a target to bring down crash casualties by 20% and truck
casualties by 50%, the government unveiled a plan that employs latest electric technologies to
assist drivers in averting accidents. The plan outline encompasses the following:
• 10% of new light vehicles and 25% of new commercial vehicles marketed by 2010 be fitted
with Intelligent Vehicle Initiative (IVI) systems
• 25% of urban areas to install an intersection collision avoidance infrastructure systems by 2010

IVI technologies comprise adaptive cruise control, vision enhancement, vehicle stability
monitoring and drowsiness warnings, collision avoidance for lane changes, road departures, and
intersection crossings. The system cautions drivers of dangerous conditions, advises actions and
also takes control of a vehicle for averting collisions.
The technology is expected to address 75% of crashes caused by driver error and avoid around
50% of all lane change and merge accidents, 49% of rear-end crashes and over 1.0 million
hazardous road departure crashes each year. As many as three million are traumatized due to traffic
injuries and around forty thousand people lose their lives due to road accidents in the US and due
to which the cost to the exchequer is to the tune of US$150 billion every year. To limit such
tragedies and support the Intelligent Vehicle Initiative systems, the federal government enhanced
the allocation over the years, in the recent past.
The Dept. of Transportation entered into agreements with companies such as GM, Freightliner
Trucks, Volvo Trucks, Mack Trucks and Dept. of Transportation of Minnesota for designing
technologies that deal with big truck rollovers, rear-end collisions and roadway departure collisions.

ITS Integration
ITS integration is close inter-connection among system components, there by, optimizing resource
usage. In order to attain this objective, the US Dept. of Transportation (DOT) designed the
National ITS architecture for serving as a reference for guiding the installation of integrated ITS
systems and services. Later, the DOT came out with policies that require regions installing ITS and
utilizing the funds of Highway Trust Fund to develop a regional ITS architecture using National
ITS architecture as a resource for guiding their regional ITS installation.
A local transit authority in Washington launched the SmartTrip program. The program enables
consumers in buying a fare card pass and use it for both parking and the Metro fares. The card can be
passed across the readers on the Metro turnstiles and parking lot Kiosks for paying the fares and fees.

Standardization & Privacy Issues


The national architecture plan came into being for encouraging consistent, nationwide installation
of ITS systems. Standardization of systems is expected to give a push to the market by making sure
that products and systems would be interoperable across a given region. In order for ITS to become
interoperable there are issues pertaining to political and business factors that have to be resolved.
Once ITS system is installed in vehicles and readers or antennas are deployed on major highways,
truckers and emergency vehicles would have access to real-time data.

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The new standard dedicated Short-Range Radio Communications (DSRC) is expected to caution
vehicles about the direction, speed and distance of approaching emergency vehicles so that they do
not ram into their path. Besides, DSRC is also expected to avert collisions at traffic circles where
the signals are out-of-order. DSRC is a limited-range radio technology that is designed for very
short distances of 10 to 1,000 meters.

Privacy Issue
An issue that is being raised about electronically linking commercial vehicle technologies and
information is the privacy issue. Much information pertaining to carriers would be available on the
systems and efforts are being intensified to render proper protection to these systems. The
Washington Legislature bill introduced in the year 1999 states:
“That any information procured by governmental departments that is gathered by the use of a
motor carrier intelligent transportation system or any comparable information equipment attached
to a truck, tractor, or trailer is confidential and not subject to public disclosure under this chapter.
However the information may be given to other governmental agencies or the owners of the truck,
tractor, or trailer from which the information is obtained”.
The law in force protects the privacy of the driver when he furnishes required information to the
authorities concerned.

ITS Application in the US

ITS Deployment at the Frontiers


The US government’s anti-terrorism plan envisages deployment of ITS at the frontiers in a bid to
foil the activities of terrorists. The plan is to install ITS at many crossings to check the movements
of terrorists.
The objective (behind the installation of ITS) of the federal department of transportation, United
States Customs Service, state highway authorities and immigration officials is to bring down the
stringent security measures and help in easing the traffic at the border crossings. The work is apace
at the Otay-Mesa crossing between San Diego and Baja California in order to install ITS
technology. Some operational glitches have to be overcome such as the X-ray machine fitted is not
big enough to accommodate larger trailers and the chain used for towing the vehicles is not strong
enough. The vulnerable areas for ITS deployment include the Canadian border (where the threat of
infiltration remains) and Mexico due to the activities of drug trafficking and also the border being
busy with traffic.
Another vulnerable area is the northern border where it is impossible to have people manning the
crossings day in and day out. ITS deployment facilitates in keeping a tab on the movement of
people or goods and services. As and when an emergency arises such as traffic jam then ITS aids in
finding an alternative route for the emergency vehicles. Among the cities in the US, Chicago and
Dallas are being readied for ITS installation. During the fateful day of 9/11, cities such as
Philadelphia, where sensors are fitted into major arteries of the road, the civic officials managed to
reroute the traffic by posting traffic information on the web so that vehicles could get real-time data
on traffic movement and thereby avoid clogged roads or routes closed for contingency purposes.

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ITS Application in Rural Areas
Though developed for easing traffic jams and providing safety to commuters in urban areas, ITS
can also be deployed in rural areas. As rural roads are occasionally used, ITS can help travelers
who are not familiar with the rural landscape. The rural roads could become safer for those
traversing through and for those who inhabit the area. Notwithstanding the fact that these are
infrequently used yet most of the fatalities take place on these very paths. The average response
time for contingency service in rural areas is double in relation to urban area. With the help of
technology such as automated collision notification (ACN) system, which is mounted on the
vehicle and triggers a call to emergency and rescue personnel, the response time could be prompt.
Sending rescue workers to the incident site is also facilitated by the use of global positioning
systems.
Other services in rural areas are made available through the federal government’s Advanced Rural
Transportation System (ARTS). ARTS aids transit agencies and local governments in making
travel accident-free and easier on rural roads. ARTS can also provide information on road and
pavement conditions prevailing on distant roads. Sensors help in informing travelers about the road
conditions and they can accordingly alter their routes. In the state of Indiana, sensors are used for
assisting transportation personnel in redesigning their snowplow routes. As a result, the Indiana
state brought down the number of routes and realized cost savings to the tune of US$14 million in
operating and equipment costs.

ITS to the Rescue of Commercial Vehicles


In as many as twenty-one states of the US, electronic vehicle weight and paperwork clearance
systems decrease the time spent by trucks at weight points. The increasing use of transponders in
commercial vehicles would bring down the cost of verifying paperwork at weigh points by as much
as US$ 9.0 million annually for every state. Electronic information clearinghouses, functioning for
two interstate registration and fuel tax collection programs called the International Registration
Plan (IRP) and the International Fuel Tax Agreement (IFTA) assists in exchange of information
among participating jurisdictions and speeds up paperwork and payments for both programs. The
clearinghouses store and disseminate IRP and IFTA information from participating jurisdictions.
States can make use of the data and satisfy themselves that a carrier’s permits are up to date.
The Commercial Vehicle Information Systems Network, which interlinks technologies such as
PrePass, SAFER, and the IRP and IFTA clearinghouses, employs computer software systems for
integrating safety information, vehicle credentials and tax data technologies.

Traveler Information
A key element of ITS is the traveler information. Specialized phone lines, kiosks, radio broadcasts
and web sites provide latest information relating to traffic congestion, road conditions, and transit
schedules. Travelers can access the information and take decisions in terms of which path to take
and avoid getting stuck on the road. A Seattle traffic management web site provides information to
commuters about highway and public transit conditions. It also provides information as to how
long the wait is for the next ferry. In San Francisco and Atlanta, the Traffic Check television
service displays real-time traffic information on maps coupled with commentary on traffic
incidents and their site.

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OnStar
OnStar, a subsidiary of GM, is the country’s premier provider of in-vehicle safety, security and
information services. OnStar facility is made available on an array of vehicles from seven
automakers and is the country’s premier provider of in-vehicle safety, security and information
services employing the Global Positioning System (GPS) satellite network and wireless
technology. OnStar in association with scores of emergency and law enforcement departments
reports countless number of motor vehicle emergencies every year. OnStar services are available
on over sixty models including light trucks, SUV, minivans, large and midsize sedans, small cars,
and crossovers.

OnStar uses GPS and wireless systems to connect the car and the driver to a call center where
advisors (available 24 hrs a day) offer real-time help. Every month OnStar advisors:
• Act in response to around 400 stolen vehicle location requests
• Respond to over 650 air bag deployments
• Act in response to over 5,900 emergency requests such as medical emergency, dangerous
conditions on the road or any other emergency help
• Reply to over 0.2 million routing calls such as providing directions to local restaurants to points
of interest requests say from families journeying around the country
• Respond to around 15,000 roadside assistance requests and
• Carry out door unlocking operations

Associations, Groups/Bodies & Acts

ITSA – Intelligent Transportation Society of America


The development and deployment of a technology requires the support of both the public and the
private sectors. For instance, the rapid installation of ITS in developed countries/regions such as
Australia, Europe, and Japan was possible with the cooperation of both the public and private
sectors. Such cooperation is also needed in the US for development and deployment. In a few
regions of the world, the deployment of ITS is mandated by the state whereas the US needs a
voluntary obligation for cooperation for safeguarding the benefits of the free enterprise system and
also ensure that goals established by the Senate are met. The system of cooperation that is required
is the public/private partnership comprising a voluntary association of public and private interests
with an objective to develop and deploy ITS in the US. That mandate rests with the Intelligent
Transportation Society of America (ITS America), which is the only national public/private set-up
founded for managing the development and operation of ITS in the US.

US - Federal Communications Commission (FCC)


The Federal Communications Commission in order to enable access to local data endorsed a three-
digit information number. The number that can be used all over the country replaces 300 different
phone numbers that are in service. The number 511 functions similar to the emergency number
911. Upon dialing the number that is applicable only to surface transportation one can access local-
area traveler information resources.

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The federal government offers the structure for the system though implementation and decision on
its usage (it is not mandated) would be made locally. The number would be allocated only to public
transportation agencies however a private firm can operate the system for the agency. Though
federal funding is available for establishing the system, state and local governments have to be
cautious, as they have to review several implementation issues. Agency requirements must be met
in states where a regulatory agency is granted jurisdiction over N11 numbers.
The fact that the traveler information encompasses a range of areas such as traffic information and
transit, commuter rail and weather conditions, greater coordination on the part of participating
agencies is required. For instance regional coordination within calling regions is a must. The
Federal Highway Administration (FHWA) is of the view that a single point of contact be put in
place for allowing one agency to take the lead. As for the user charges, decision has to be made
whether it would be a free service or fees could be assessed.
Though implementation of 511 would be locally, the Federal Communications Commission
requires the US Dept of Telecommunications to have a degree of standardization across the nation.
This is expected to result in consistent types of information when users of the number use the
facility in various parts of the country. ITS America, DOT, and organizations of state and local
governments started deliberations on the issue.
The subsequent move would be to interconnect prevailing and upcoming Advanced Traveler
Information Systems (ATIS) to 511. ATIS can offer real-time data to vehicles by means of in-
vehicle technologies and message boards. The system can prove to be a vital component in actively
managing the transportation system. Cincinnati became the first city to use the 511-number. The
service would offer travelers with data on traffic and road conditions, public transportation and
other information.

National Association Working Group (NAWG)


NAWG for ITS comprises thirty national associations of state and local officials including NCSL
whose objective is to follow the developments in the field of ITS and also be aware of concepts,
practices, and applications relating to ITS. The association regularly holds meetings and works
with the US Dept. of Transportation.
Intermodal Surface Transportation Efficiency Act
The Intermodal Surface Transportation Efficiency Act of 1991 allowed financing of over US$600
million for ITS related programs. Later a program called Operation TimeSaver was launched with
an aim to:
• Identify over 70 large cities for installing intelligent transportation system in ten years time.
• Install advanced technology in over 400 communities, rural roads and inter-states with an aim to
bring down the travel time.
The infrastructure project of US Dept. of Transportation comprises:
• Smart Traffic Control Systems
• Freeway Management Systems
• Transit Management Systems

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• Incident Management Programs
• Traveler Information Systems
• Electronic Fare Payment
• Electronic Toll Collection on Roads and Bridges
• Emergency Response Providers and
• Railroad grade crossings that are combined with the overall system.

Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU)
The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU), of 2005 aims to increase highway spending in the US. The act aims to spend
nearly US$244 billion on highways, highway safety and transit through the period 2005-2009.
SAFETEA-LU enables states to get a higher percentage of highway and fuel tax revenue for
improvement of highways. The act also enables states to acquire finances through various new
avenues such as private bonds, and tolling among others. The act also expands the criteria for
obtaining loans through Transportation Infrastructure Finance and Innovation Act (TIFIA), and
State Infrastructure Banks. Additionally the act lowered the minimum project costs for qualifying
for TIFIA to ITS projects to US$15 million, and the minimum project costs to US$50 million,
thereby increasing the scope of the funding.
Transportation Equity Act (TEA-21)
The 1998 Transportation Equity Act for the 21st Century (TEA-21) gave required thrust to the ITS
effort that was launched nationally. TEA-21 offers financing for installation, research and
development of ITS programs. TEA-21 comprises two elements. The first element is intensification
of efforts towards the integration and interoperability of ITS systems in urban and rural areas. That
is to say, the systems would be so fabricated that it would be possible to talk and listen to each
other and gradually with addition of other items they become a part of the larger network. The
second element related to commercial vehicle infrastructure plan for enhancing the safety and
productivity of commercial vehicles and bringing down costs of regulatory requirements.
The US Dept. of Transportation monitors the financial help rendered to states for ITS integration
programs in order to make sure that the compliance is as per the provisions of TEA-21. The
programs offer matching funding for enabling localities in developing partnerships with the private
sector. While institutional and technical difficulties hinder integration efforts yet the benefits
resulting from integration more than compensate. TranStar project in Texas monitors the planning,
design, operations and maintenance of transportation operations and emergency management in the
urban areas. The project combines freeway management using cameras, ramp meters, variable
message signs and a regional computerized traffic signal system. From the TranStar center,
freeway traffic flow could be observed through the video links. Message signs along the road can
be altered from the center depending upon the traffic flow and in so doing offer vehicles latest
information. In case of a freeway difficulty, occupancy requirements in the HOV path can be lifted
for letting vehicles in those paths and free the traffic flow. Contingency response is also possible
from the center and swift management of road tragedies facilitates in decongestion. The integrated
services thus help in avoiding delays and also result in savings.

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Product Innovations & Introductions

2008

TeleNav Launches TeleNav Vehicle Tracker™


TeleNav introduced a new GPS service TeleNav Vehicle Tracker™ under the company’s Mobile
Resource Management (MRM) product line. The product comprising a GPS-enabled modem
integrated with vehicle battery offers an ingenuous fleet monitoring method to companies. The new
TeleNav Vehicle Tracker also records the mileage of vehicles on daily basis.

2007

Iteris Unveils First LDW Data Collection Product


Iteris Inc., a leading provider of traffic management solutions, launched Safety Direct™, the
industry’s first lane departure warning (LDW) data collection device, for the heavy truck segment.
The Iteris Safety Direct™ system collects and scrutinizes real-time LDW information and
transmits to fleet operators by utilizing the fleet communication system of the truck.

Siemens Introduces Video Detection System, EagleVision


Siemens ITS introduced a new video detection system, EagleVision. The system enables traffic
control center to monitor the traffic flow at intersections, bridges and tunnels. The system has been
designed with no requirement of additional hardware, is easy to install and runs on a Java user-
interface, which is independent of Operating Systems. With the new camera, operators can focus
on particular sections of a road without having to adjust the camera manually. The camera can be
made to focus in different angles through a computer. Additionally the system also features color
video output, advanced detection capabilities, and also includes eight detector zones and outputs
for each camera.
Iteris Unveils New ITS Products
Iteris, Inc, a maker of Intelligent Transportation Systems (ITS), unveiled new set of advanced ITS
products in the US market. The new products include Edge2-4 processor, a first of its kind and
advanced rack mounted 4-channel video detection system, and other products such as Input/Output
Module 32 (IOM32), TS2 Interface Module (TS2 IM), and V Rack, which enable easier
installation and improve the functioning of the Edge2-4 processor. The Edge2-4 processor is
manufactured to fit into standard NEMA detector racks and Type 170 input files. The new
processor is a cost effective, and small modular system, which includes four cameras for various
vehicle detection applications including traffic signal control.
Image Sensing Systems Introduces Autoscope® Terra™
Image sensing systems, a promoter of road safety with better traffic flow, and associate company
Econolite Control Products have introduced sophisticated video detection solutions for use in ITS.
The new solution, Autoscope® Terra™ was developed using the DaVinci™ technology of Texas
Instruments (TI). Two solutions, Autoscope Solo Terra and Autoscope RackVision Terra systems
are available to meet the requirements of different users.

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Autoscope Terra products assist in monitoring and controlling traffic by processing video images
and converting them into high quality streaming mpeg-4 digital video. The videos converted are
digitally transmitted over the Internet to base stations to be viewed by traffic personnel. With the
introduction of the system at busy traffic intersections, and tunnels, incidents can be reported faster
with the system alerting the appropriate emergency responding agency. This results in reduced time
response, and improved efficiency for various enforcement agencies.

2006

Delphi Unveils New Portable Navigation System


Delphi Corporation launched its latest portable navigation system, NAV200, which is an effective
combination of various special features, in a single compact device. The contraption comes with
pre-loaded digital maps of the US, Canada, Hawaii, Alaska and Puerto Rico. NAV200 is
accompanied by back-up DVD of map files and a LCD screen, and also gives voice-based
navigational directions to users. When the system is not being used for navigation, it plays the role
of an entertainer by enabling features like music system and movie player. Many latest and
sophisticated technologies have gone into NAV200, for making it a small tool that doesn’t
compromise on aspect of efficiency.

NAVTAQ Unveils New System for Mobile Networks


NAVTEQ unveiled its latest system, NAVTEQ Traffic Mobile™, which provides information
pertaining to average traffic speed, accidents and construction, and covers 67 major segments of
the US. The Traffic Mobile is supplied through mobile phone networks, and the software used in
this system is from Telmap, which ranks amongst leaders providing innovative solutions for mobile
mapping and navigation.

Nestor Traffic Systems Introduces New Video Product


Nestor Traffic Systems launched new product, VASCAR™ (Visual Average Speed Computation
and Recording), which records speeds of vehicles using various latest technologies. This enables
authorities to easily identify drivers who exceed specified speed limits. The fact that recordings of
this particular device are even accepted as evidence in courts, with respect to concerned cases,
speaks volumes about efficiency of VASCAR.

Alpine Electronics Launches New Navigation Device


Alpine Electronics launched a unique portable navigation contraption that would go a long way in
easing traffic related woes. The brand new device - Alpine Blackbird, is equipped to constantly
receive traffic related updates from NAVTEQ Traffic RDS Service, encompassing 42 markets of
US. Based on this information, drivers have the convenience to choose their respective routes and
thereby enable them to avoid congested zones. As the device is a portable one, users have the
convenience of changing it from one car to another, as per their requirements. Blackbird is also
equipped with maps of USA and Canada, in addition to being fitted with a MP3 music system and
a LCD screen. A 90-day free trial offer is the special feature of this product, and after completion
of this duration, drivers can go for full-fledged purchase.

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Iteris Launches New Video Transmission Product for Traffic Surveillance
Iteris, Inc. launched a new video transmission system, under the brand name eAccess™. This
technology connects various cameras fixed in diverse locations to remote users by sending high
quality video. eAccess thereby enables both effective monitoring and controlling of traffic from a
single point thus, eliminating expenses related to fieldwork. Various latest and sophisticated
technologies went into the manufacture of eAccess.

Hertz Launches PlatePass™ Electronic Toll Technology


Hertz Corporation launched PlatePass™ electronic toll payment system in New York, permitting
renters to use high-speed E-Z Pass electronic toll collection lanes, thereby avoiding backups at
regular cash toll roads. The device allows renters to travel through the electronic lanes, and charge
toll amounts to their credit cards, without stopping for toll payment. American Traffic Solutions
Inc., a supplier of traffic management solutions, supports the PlatePass technology.

RouteMatch Introduces ITS Solution for Urban Transportation Providers


RouteMatch Software, Inc. introduced RouteMatch ITS product collection, that includes varied ITS
solutions, specifically developed for the public transportation providers who serve urban markets.
The company’s ITS solutions simplify the complications related to ITS, by offering a fully
integrated solution that is ready for implementation, and is guided by support staff.

Kyocera Wireless to Launch Active Nuclear Source Tool Alarm


Kyocera Wireless Corp. teamed up with International Road Dynamics (IRD), to launch Active
Nuclear Source Tool Alarm, a radiation tampering alarm system developed by the latter. The
system incorporates CDMA wireless communication system, and Kyocera 200 Module, and
safeguards vehicles transporting hazardous nuclear materials.
The alarm system meets the US Nuclear Regulatory Commission (NRC) standards for safe
transportation of hazardous radioactive source materials; and is allowed for deployment with major
CDMA network carriers in North America, and other regional carriers across Canada and the US.

Strategic Corporate Developments

2008

Magellan Partners with Primordial


Magellan formed partnership with Primordial Inc. to provide its customers with off-road routing on
a GPS device, which is capable of identifying natural and artificial obstructions. Primordial is a
global leading provider of off-road navigation through the flagship product, Ground Guidance®.

Iteris Wins Supply Contract for ITS Designs


Iteris Inc. received a contract worth US$0.9 million to deliver Intelligent Transportation Systems
(ITS) design services for I-15 Design-Build project of North Corridor Constructors (NCC). The
project involves expansion of the 5.5-mile long I-15 freeway between Craig Road in Las Vegas and
the US-95. The deal allows Iteris to take part in the project’s ITS improvements, including a

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Communications System, Traffic Monitoring Sensors, Trailblazer Signs, Systems Integration and
Testing, and CCTV Surveillance Cameras.

DRI Bags Order from WestCAT


DRI Corporation, through the subsidiary Digital Recorders Inc. (DR), obtained an order worth
US$0.55 million from the California based Western Contra Costa Transit Authority (WestCAT) for
the supply of intelligent transportation systems. As per the agreement, DR produces and delivers
Digital Recorders® automatic vehicle location system, Talking Bus® automatic voice annunciation
system and Otvia® software to WestCAT.

INRIX Expands Partnership withTomTom Navigator


INRIX® extended its partnership with TomTom Navigator GPS to offer INRIX traffic information,
fuel pricing and incident alert services for TomTom portable navigation devices in the US through
Tom Tom Plus. INTRIX is one of the leading traffic flow information providers in the US, where
as TomTom ranks among the largest providers of navigation solutions worldwide.

2007

Odeco Acquires Addco


Odeco Electronica S.A., a Spanish maker of video screens, acquired the US based traffic control
systems manufacturer Addco Inc. The transaction helps Odeco to explore other business fields in
the US, with a focus on advertising panels.

Nokia to Take Over NAVTEQ


Nokia, the largest manufacturer of mobile devices in the world, agreed to acquire NAVTEQ for an
approximate US$8.1 billion. NAVTEQ is one of the leading providers of digital map information
for mobile navigation devices, government and business solutions, Internet-based mapping
applications, and automotive navigation systems. Post acquisition, NAVTEQ’s map data business
becomes a Nokia Group company. The deal is expected to reinforce Nokia’s location based
services.

Atlantia to Acquire Stake in ETC


Atlantia SpA, through its US subsidiary Autostrade International US Holdings Inc., signed an
agreement to purchase 45% of Electronic Transaction Consultants Corporation (ETC) for US$27
million. The Texas-headquartered ETC is one of the leading providers of free flow electronic toll
collection systems.

Telvent Pockets Caseta


Telvent GIT S.A., through the subsidiary Telvent Traffic North America Inc., acquired Caseta
Technologies Inc., a US based manufacturer and distributor of electronic toll collection systems.
The transaction helps Telvent consolidate position in supplying intelligent transport and electronic
toll collection systems in the US as well as international markets. Telvent GIT S.A. is a Global
RealTime IT Company based in Spain.

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Total Traffic Network Expands Partnership with Inrix
Total Traffic Network, a part of Clear Channel Radio, extended partnership with Inrix Inc. to add
real-time traffic speed data from the latter’s Smart Dust Network. Total Traffic Network offers
real-time traffic information through broadcast media, Internet and portable navigation systems.
The deal enables Total Traffic Network to expand market for real time speed data. Intrix ranks
among the leading US providers of historical, real-time, and anticipated traffic information.
Western Systems to Distribute Iteris' Vantage® Product Line
Iteris Inc. selected Western Systems, a Washington based local distributor of signal and traffic
control systems, as a distributor for the company’s video vehicle detection devices under Vantage®
product line. Iteris is a leading provider of Intelligent Transportation Systems and vision related
technologies.
ICx to Supply Enhanced Transportation Systems for I-15 Corridor in San Diego
ICx Technologies obtained a contract valued at US$1.57 million to expand the Reversible Lane
Control System (RLCS) on the San Diego’s Interstate 15 corridor. Under the terms of the
agreement, ICx Transportation, the Intelligent Transport Systems business of ICx Technologies,
provides improved technologies for the I-15 corridor’s extended Managed Lanes section. I-15
corridor is a four-lane car pool (HOV) facility on the freeway median of San Diego’s I-15.
Federal Signal Takesover PIPS
Federal Signal Corporation, in a move to enhance the company’s market for public safety and
security solutions, acquired a manufacturer of automatic license plate recognition (ALPR) systems,
PIPS Technology for an estimated US$115 million.
RouteMatch Bags US$1.6 Million Contract from Rhode Island Public Transit Authority
RouteMatch Software, Inc (RouteMatch), an Atlanta based provider of technology and services in
the fields of transportation and logistics, bagged US$1.6 million contract from Rhode Island Public
Transit Authority (RIPTA) to provide an array of Intelligent Transportation Systems (ITS)
solutions. The development provides people with high-end traffic management, reduce
maintenance costs of transportation and also enable better service.
RouteMatch’s transportation solution consists of a GIS dependant paratransit scheduling
application, novel interactive voice response (IVR) and automated vehicle location/mobile data
communication (AVL/MDC) technologies. The system enables RIPTA in providing automation,
real-time scheduling and dispatching of vehicles, driver management, billing, reporting and
communication with drivers.
The RITPA human services transportation program, named RIde, provides transportation services
for disabled individuals, senior citizens, people with lesser incomes, and also Medicaid and ADA
transportation services.
Sam Houston Tollway Receives Approval
Sam Houston Toll way received approval for setting up of “Intelligent Transportation Systems”
(ITS). The development witnesses setting up of CCTV (closed circuit television) cameras, fiber-

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optic cable and dynamic message signs worth US$ 20 million, out of which US$2 million is
contributed by the county, while the state department of transportation contributes the remaining
cost. Installation of ITS along stretches of the tollway enables the county to better manage the
increasing flow of traffic in the region. Commuters would be informed about traffic pileups along
the tollway, and would also be advised on alternatives through message signs. Installation of ITS
equipment is scheduled for completion by the end of 2009.

Nestor Traffic Systems Secures Public Safety Contract From Californian Province
Nestor Traffic Systems, Inc, a prominent provider of Advanced Traffic Management Systems,
secured five-year contract from the Californian city of San Juan Capistrano in Orange County. The
contract involves the deployment of Nestor’s CrossGuard® red light traffic management solution
across four approaches, with plans for the addition of four new approaches. Nestor also assists the
city to transition from the existing solution provided by Redflex Traffic Systems, Inc. to the new
system. The project is expected to bring significant positive changes to the safety of pedestrians
and motorists.
IRD Secures Work Zone Safety Contract Worth CAD $ 550,000
International Road Dynamics (IRD) secured work zone safety contract from Scott Bridge Company
and United Contractors Inc worth CAD$ 550,000 in the US. As per the terms of the contract, IRD
supplies, installs and operates Automated Portable Real-Time Workzone Information System on I-
20 and I-520 near Augusta, Georgia. IRD uses ADAPTIR™ technology, licensed from The
Scientex Corporation in this project.
SpeedInfo Installs Sensors on Nebraska Highways
SpeedInfo Inc. installed about 70 Doppler radar sensors to provide information for travelers under
the state’s 511 Traveler Information System. The company signed a contract with the Nebraska
Department of Roads (NDOR) for providing real time traffic data. The installation of the 70
sensors is part of the first phase of the project, along highways, bridges, tunnels and motorways in
Nebraska. The move comes after NDOR plannned to relieve the traffic congestion in the state. The
second phase of the project covers the state’s highways and important routes. The project involves
deployment of the sensors along I-80, I-480, I-680, I-75, I-6 and US Highway 77, and enables
NDOR to better manage traffic.
Iteris Appoints Western Systems as New Distribution Partner
Iteris, Inc, a maker of Intelligent Transportation systems (ITS), appointed Western Systems, a
supplier of traffic control and signal systems, as the company’s distributor for the Vantage line
of video vehicle detection products in the Pacific Northwest region, including Alaska, Idaho,
Oregon, Montana, and Washington in the US. The development enables Iteris to introduce new
products in the region at a faster pace. Iteris also benefits from Western Systems’ goodwill in
the region.
RouteMatch Users receive MSAA Funding
RouteMatch Software Inc users, Kentucky based Paducah Area Transit System and South
Carolina’s Lower Savannah Council of Government, have been selected for funding of Mobility

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Services for All Americans (MSAA) initiative. The two transportation providers were chosen
based on their adaptation of the Intelligent Transportation System (ITS) designed by RouteMatch
Software and for providing advanced coordinated human service transportation systems.
The U.S. Department of Transportation (USDOT) launched the MSAA initiative to recognize and
fund a transportation system that strives for human excellence.

Nestor Secures Traffic Management Contract from the Cities of Hudson and Corrigan
US based Nestor Traffic Systems, Inc, secured a 3-year contract for implementation of Automated
Traffic Management Systems from the Cities of Hudson and Corrigan in Texas. As per the terms of
the contract, Nestor would install, maintain and operate CrossingGuard® automatic red light traffic
management solution at 3 approaches in Hudson, and 2 approaches in Corrigan, Texas.
Additionally, Nestor would supply the PoliScanSpeed™ scanning LiDAR Technology enabled
innovative mobile speed unit for speed control in Hudson.

IRD Receives WIM Contract from Zignego


Canada based International Road Dynamics Inc. (IRD) received a contact to supply, install,
maintain Weigh-In-Motion (WIM) equipment from Wisconsin, US based Zignego Company, Inc.
The total cost of the project is estimated at about Canadian $1.4 million. The Automated Safety
and Weight Enforcement Facility enables Zignego to prescreen commercial trucks at highway
speeds in the main lanes of the highway. Additionally installation of the equipment allows
routing as well as tracking of vehicles safely through the Weigh Station. As part of the contract,
IRD installs the company’s proprietary Single Load Cell WIM Scales, vehicle movement
compliance system, video verification system, and software required to operate the facility.
Installation of the WIM system enables truckers complying with weight restrictions to pass the
facility without having to stop.

Imtech Acquires Peek Traffic


Imtech NV, a technical services provider in the Netherlands and Belgium, acquired Peek Traffic
Holdings Limited, an intelligent mobile traffic solutions provider in the European countries of
Croatia, the Netherlands, Poland and the United Kingdom.

Citilog Equips New York’s Throgs Neck Bridge With Traffic Management System
Citilog installed video-based Traffic Incident Detection, an Advanced Traffic Management System
on New York’s Throgs Neck Bridge. The system monitors the flowing traffic on 6 lanes of the
bridge, and assists in alerting Traffic enforcement center incase of any mishap resulting in traffic
congestion. The 3-mile long bridge runs between the Bronx and Queens witnesses traffic to the
tune of about 105,000 vehicles every day. The move significantly reduces the response time for
concerned authorities to attend to incident victims, saving many lives and ensuring a smooth flow
of traffic.

SpeedInfo Installs new Traffic Flow Solution in Washington D.C.


US based SpeedInfo Inc installed about 50 SpeedInfo Doppler radar based sensors to measure the
traffic speed on the roads in Washington D.C. The main focus is on the Interstate 295 and 395

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where the tests are conducted for emergency signal timing pattern and emergency transportation
communication protocol. SpeedInfo monitors and record the traffic data that can be of significant
use in traffic flow measurement. The company provides the data free to the Department of
Transportation, in exchange for roadside space to install the equipment.

TransCore Secures Contract for Traffic Monitoring System from Californian City
TransCore Inc. secured a contract from the Santa Rosa, California to install a real-time traffic
monitoring system. The move would witness implementation of famous adaptive traffic control
technology, SCATS, along the 2.5-mile length of College Avenue upgrading nine intersections.
The adaptive traffic management system is expected to reduce traffic bottlenecks in the city, which
witnesses uneven traffic flow rate depending on the flow of tourists.

Iteris Secures ITS Contract Worth US$1.25 Million in California


Iteris Inc, a prominent global supplier of Intelligent Transportation System (ITS), secured US$ 1.25
million contract from the City of Westminster, California. The contract involves design and
integration of some existing ITS infrastructure as well as new addition of new equipment. Iteris
would replace about 58 traffic signal controllers, 13 CCTV (closed circuit television) cameras, and
12 new video detection locations, and design of about 8 miles of fiber optic cable. Additionally,
Iteris integrates the filed devices and the Traffic Management Center.

Nestor Secures Automated Red Light Solution Contract From Texas City of Diboll
Nestor Traffic Systems, Inc, secured a 2-year contract from the city of Diboll, Texas to provide
the company’s CrossGuard® red light traffic management solution including the maintenance
service.

NAVTEQ Acquires Traffic.com


NAVTEQ acquired Traffic.com, Inc., a company involved in offering personalized traffic
information for drivers for a consideration of about US$179 million.

Diboll Enters into a 2-year Contract with Nester Traffic


Texas based company, Diboll entered into a 2-year contract with Nestor Traffic Systems, for
implementation of the latter’s Crossing Guard® red light enforcement solution at all major
crossings and intersections of Texas.

TransCore Secures New Contract


TransCore secured a contract for deploying the technologies on a 2.5-mile stretch, encompassing
nine intersections. The technology is termed as SCATS (Sydney Coordinated Adaptive Traffic
System), which is technically enabled to alter signal timings, based on volume of traffic. Globally,
well over 20,000 busy intersections are now managed by SCATS, with corresponding figure for the
US being, about 900 intersections.

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NAVTEQ Enters into a Contract with Uniden America
NAVTEQ entered into a contract with Uniden America Corporation for supply of digital maps that
are used in Uniden’s personal navigation devices (PNDs). NAVTEQ preloads these devices with
maps of Canada and the US, and the contraption is equipped with unique user-friendly features like
voice-based instructions and rapid map processing. In addition, it’s a sleek and compact device that
enables portability. The device is also featured with a technologically sophisticated LCD screen.
Apart from Uniden, NAVTEQ supplies these PNDs to many other institutions and departments, in
both the US and Canada.

2006

Citilog Supplies Smart SunGuide with Intelligent Video Surveillance


Citilog supplied Intelligent Video Surveillance (IVS) to the Traffic Management Center (TMC),
SMART SunGuide in Florida in the US. Citilog’s ITS uses the images and videos captured by the
installed CCTVs on the highways, motorways, bridges and tunnels to give a precise picture and
situation of the traffic at any given point of time. The system, incase of an emergency, alerts the
concerned authorities to provide better incident management, productivity, dispatch, response time
and safety.

Shah Capital Acquires Thales Navigation


An investment group headed by Shah Capital Partners acquired Thales Navigation to form a new
company - Magellan, which has many innovative navigational products to its credit. Tudor Group,
Consolidated Press Holdings, Galleon Group, Eli Broad and AIG SunAmerica, are the other
partners in this transaction, which was valued at $170 million.

NAVTEQ Acquires Map Network


NAVTEQ acquired The Map Network for a cash consideration of about $37.5 million. The Map
Network’s field of activity is almost similar to one of NAVTEQ, and now the latter can fully utilize
capabilities of the former, in reinforcing its own business and quality of products.

NAVTEQ Acquires gedas MapIT


NAVTEQ, a major supplier of digital maps for location-based solutions and vehicle navigation,
acquired gedas MAPIT, Mexico’s leading digital map provider. The coverage of NAVTEQ® digital
map is enhanced through this acquisition, which also provides effective domestic base for future
growth. The acquisition facilitates gedas MapIT to supply geographic product for customers in
Mexico in reply to the customer’s demands for extensive coverage including boundaries, street
names, geometry and demographic data all over Mexico.

INIT Enters into an Agreement with Metropolitan Transportation Authority of New York
INIT entered into an agreement with Metropolitan Transportation Authority of New York for
effective implementation of Intelligent Transportation System (ITS). The new system - Automatic
Vehicle Location and Monitoring (AVLM) provides both wireless communications network, as
well as Global Positioning Satellite System (GPS). The system is equipped with a graphical screen

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that enables drivers to view map of the route that they plan to travel, in addition to providing two-
way messaging facility between driver and command center. These facilities ensure that congested
zones are avoided. AVLM also enables recording of mileage and passenger details, in addition to
providing both audio and visual-based navigational support.

Mark IV and ETC Enter into Partnership Deal


Mark IV Industries and Electronic Transactions Consultants (ETC) entered into a partnership
agreement for installing Open Road Tolling (ORT) at 20 mainline plazas of Illinois Tollway and
offering 85 ORT lanes.

NAVTEQ Secures Contract from Primus Geographics


NAVTEQ received a contract from Primus Geographics for supply of map data. The data of
NAVTEQ will be used to power both open source portfolio Explorer geocoder software and SRC’s
portfolio Guzzler drive time engine. This data successfully addresses limitations imposed by
previous maps.

NAVTEQ Enters into Licensing Agreement with LandSonar


NAVTEQ and LandSonar entered into a licensing agreement, which enables NAVTEQ to gain
rights over LandSonar product - LandSonar Predictive Speed (LPS™), which predicts speed on
road network of the US. LPS provides enhanced benefits with respect to precise route plan and
journey time estimation.

EFKON USA and Sirit Enter into Partnership Deal


EFKON USA and Sirit entered into a partnership agreement with respect to toll technologies. As
per this partnership agreement, the 21-based toll tag technology of Sirit would be utilized by
EFKON for its latest toll products. The 21-based toll tag will be used as a platform for effective
functioning of these technologies. The agreement also conferred selling rights on EFKON, with
respect to some products of Sirit.

SpeedInfo Secures Contract from MTC


SpeedInfo secured a contract from San Francisco Metropolitan Commission (MTC) for supplying
real-time traffic flow data. The sensors of SpeedInfo function round the clock and records speeds
of traffic well over million times a day. This enables concerned departments to respond quickly, in
situations like heavy traffic congestion and accidents. SpeedInfo is a company based in the US, and
ranks among leaders in providing traffic sensor technologies and real-time traffic data networks.

Image Sensing Systems Joins Forces with Wavetronix


Image Sensing Systems (ISS), Inc. joined forces with Wavetronix LLC, to co-brand and distribute
Wavetronix SmartSensor™ as ISS Autoscope® SmartSensor in Europe. As per the deal, ISS Europe
Ltd (ISS Subsidiary), through its widespread distribution network, delivers Autoscope
SmartSensor, and Wavetronix Command™ range of appliances to the European transportation
market. The addition of Autoscope SmartSensor enables ISS Europe Ltd, the integration of
advanced video detection technologies with the Digital Wave Radar technology of Wavetronix.

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HTA Partners with Cendant Car Rental Group
Highway Toll Administration, LLC (HTA) signed a partnership deal with Cendant Car Rental
Group, Inc., a part of Cendant Corporation, to install electronic toll collection systems on
Cendant’s vehicles in E-ZPass region, including bridges, tolls, and tunnels in Virginia, Maine,
Illinois, and the SunPass toll collection device in Florida. The purpose of the deal is to install E-
Zpass/SunPass program in Avis and Budget sites in almost all parts of the nation, where electronic
toll collection devices are used.

Inrix Enters into Agreement with TeleNav


Inrix Inc. entered into an agreement with TeleNav, Inc., to deliver traffic data to the latter for
offering GPS navigation service on the mobile phones. TeleNav is the first US Company to
introduce mobile phone based GPS navigation systems. TeleNav GPS Navigator™ with GPS
navigation service provides automatically updated business locations/maps, Wi-Fi hotspot finder,
speech recognition, moving maps, lowest price fuel finder, and many more. The latest addition to
TeleNav GPS Navigator, TeleNav Traffic™ feature GPS-enabled on-screen and voice navigation
service with quick traffic notification, and single click rerouting functionality. TeleNav Traffic is
primarily offered on select mobile phones, and is developed to monitor traffic regularly, and alert
users about incidents and slowdowns all along their routes.
TeleNav Traffic™ include Inrix’s Smart Dust Network that comprise traffic-related information
gathered from nearly 250 private/public sources, including conventional road sensors, and statistics
from Clear Channel Total Traffic Network. The Traffic Fusion Engine from Inrix uses advanced
statistical methods to combine, aggregate, and improve traffic-related data, and ensures high
accuracy of road speeds, and road coverage.
Telvent Enters into Contract with Transportation Departments
Telvent Farradyne Inc, traffic business of Telvent GIT S.A., entered into a US$12 million traffic
contract with Virginia Department of Transportation (VDoT). Under the terms of the contract,
Telvent provides expertise, services and operations personnel for VDoT’s Northern Virginia based
Smart Traffic Center, for a period of five years.
Besides, the company entered into a traffic contract worth US$4 million with Missouri Department
of Transportation, to offer operational support for the Gateway Guide traffic management system
located in St. Louis, Missouri. As per the deal, Telvent provides operations supervisor, and system
operators for a period of four years. Additionally, the company offers training on advanced
standard operating procedures, incident management techniques, and operational techniques of an
enhanced Traffic Management Center.
TransCore Bags Contract to Implement Traffic Control Technology
TransCore received a contract for the instigation of adaptive traffic control technology to reduce
traffic congestion and backups in the City of Santa Rosa, California. The company is the US-based
reseller of Sydney Coordinated Adaptive Traffic System (SCATS), with real-time operating
features designed to modify signal timing based on the traffic changes. SCATS is one of the most
broadly deployed adaptive traffic control devices in the market, with over 20,000 intersections
globally, and nearly 900 intersections in the US. The system measures traffic by using video

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detection equipment fixed inside the road pavement, and adjusts traffic flows by altering the timing
of signal lights at various junctions. This results in abridged travel times and traffic congestions.

Iteris Bags Five-Year Contract from FHWA


Iteris Inc bagged a five-year highway administration contract from the Federal Highway
Administration (FHWA). As per the contract, Iteris operates as a part of the Booz Allen Hamilton
team, a technology consulting company, wherein Iteris offers key technical aid and support for the
intelligent transportation systems. The technical support offered by Iteris facilitates in reduction of
recurring and non-recurring congestion, improving transportation management, enhancing freight
operations and management as well as improving day-to-day operations.

Intermap Inks Letter of Intent with Tele Atlas


Intermap Technologies Corporation in conjunction with Tele Atlas North America, Inc inked a
letter of Intent for the development of 3-D and 2-D digital road maps. The digital road maps
intended for vehicle navigation segment, is a combination of Intermap’s 3-D NEXTMap data along
with the 2-D road data of Tele Atlas.

RouteMatch Software Bags ITS Technology Solution Contract


RouteMatch Software, Inc., a leading provider of logistics and transportation technologies and
services, bagged an ITS (intelligent transportation systems) technology solution contract. As per
the contract RouteMatch provides its RouteMatch TS™ paratransit software to the City of Corona
situated in California. The RouteMatch TS™ software is a computer aided dispatching and
passenger registration system comprising of highly advanced vehicle mapping and geographic
information system.

ObjectVideo Alliances with CTI’s Video Convergence


ObjectVideo® entered into a partnership with Video Convergence (VC) for enabling the installation
of ObjectVideo’s Object Video OnBoard® (intelligence video surveillance) into VC’s Intelligent
Transportation and Surveillance (ITS) solutions. VC’s partnership with Object Video is in order to
focus primarily on waxing the companies’ product range with the integration of Intelligent
Analysis to companies’ surveillance and interactive video security solutions. ObjectVideo’s
intelligent video surveillance software offers automated, identification, real-time detection, safety
incidents and issues, analysis and tracking of potential threats.

Telvent Signs Deal with Computer Sciences Corporation


Telvent Farradyne, traffic business of Telvent GIT S.A., signed a US$22 million contract with
Computer Sciences Corporation. As per the deal, Telvent Farradyne offers its smart transportation
systems expertise to develop software for Maryland State Highway Administration ITS, and
Computer Sciences Corporation would carry out the systems development, deployment, testing and
integration.
Additionally, Telvent Farradyne offers professional and technical services to Coordinated
Highways Action Response Team (CHART) system, a new transportation management system of
Maryland State Highway Administration. The CHART system offers traveler information,

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including average vehicle speed, incident reports, weather reports, delays, and other variable
details, apart from real-time traffic information.

WWT Bags Order from Arizona Department of Transportation


World Wide Technology, Inc. (WWT), bagged a contract from Arizona Department of
Transportation (ADOT) to provide wireless equipment and services to state government entities,
universities, political subdivisions, and schools in Arizona. The multi-year, statewide contract
forms a part of ADOT’s wireless communications project, to provide ITS and a traffic signal for
homeland security and transportation applications.

Raytheon Receives a Contract from Florida Turnpike


Raytheon Co received a US$229 million contract from Florida Turnpike Enterprise, to deliver
electronic toll collection system. The deal includes technology for open-road tolling, and a central
processing device, and audit system. The Florida Turnpike Enterprise operates toll road systems in
different parts of Florida.

Select Players

ADDCO LLC
ADDCO LLC, a part of Imago Group of Spain, is a leading company engaged in providing
industrial products and traffic management products and solutions. The company is also a leading
provider of portable intelligent transportation systems (ITS) solutions and services to several
intelligent transportation systems, traffic management and work zone safety markets. The
company’s ITS based solutions include Flex Trailer, SmartQueue™ - Queue detection system,
SmartMerge™ - an innovative lane merge system, SmartZone®, SmartFLOW and SmartEye™ - a
portable video surveillance system.
ADDCO’s traffic management products and solutions include portable ITS platforms, dynamic
message signs, traffic management software, portable traffic signs and smart traffic solutions.
Major customers of the company include consulting engineers, contractors, DOT officials, planners
and several other traffic control and barricade companies. Industrial products of the company
include electric remote control, hand controls, latches, joysticks and actuators.

Affiliated Computer Services Inc.


Affiliated Computer Services Inc. (ACS) is a provider of Business Process Outsourcing (BPO),
Information Technology enabled services (ITes) and end-to-end product solutions. The company
offers solutions to commercial and government clients operating in various domains from all over
the world. ACS’ solutions find application in various domains such as education, energy, finance,
government, healthcare, retail, and transportation. ACS employs over 58000 personnel, with
operations in over 100 countries around the world. ACS acquired the transport division of
Switzerland Ascom AG towards the end of 2005, to emerge as one of leading providers of
transportation solutions to governments around the world.
ACS teams up with national, regional, public sector, government sector and commercial units to
offer Intelligent Transportation Solutions (ITS) enabling them to achieve business targets safely

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and efficiently. ACS products ranges from ITS to Traffic Management Systems (TMS) including
Electronic Toll Collection (ETC) and Parking Management System (PMS). The company is one of
the leading providers of ETC systems, accounting for about 90% of all E-ZPass transactions in the
US. Other ETC operations handled by ACS in the US include FasTrak™ in the San Francisco Bay
area, PalmettoPass™ in South Carolina, and SunPass™ in Orlando.
Other Intelligent Transportation Systems solutions offered by ACS include PrePass® System for
truckers, Electronic Payment Systems solutions for parking and transit operators, MVS Express®
for motor vehicle services, and PierPass® fee collection system among others.

ARINC Incorporated
ARINC Inc., a portfolio company of Carlyle Group, is a global leading provider of transportation
communications and systems engineering. The company develops and operates information
processing systems and communications, in addition to offering systems engineering and
integration solutions to a variety of industries. ARNIC’s products and services find application in
airports, aerospace and defense, aviation, government, healthcare, networks, security, and
transportation sectors. ARINC was established in 1929.

Caseta Technologies Inc.


Caseta Technologies Inc., a subsidiary of Telvent Traffic North America Inc., is a privately held
company engaged in providing comprehensive Electronic Toll Collection (ETC) systems and RFID
Technology Solutions. The company’s customer base comprises audit intensive Authorities
including MTA Bridges & Tunnels New York, the world’s largest toll authority. Caseta also offers
Electronic Payment System (EPS), Real-Time Data Collection (RTDC) Applications, and Remote
Operations Management System (ROMS), in addition to Custom Applications & Services. The
company was established in 1995.

Image Sensing Systems Inc.


Image Sensing Systems Inc., established in 1984, is a global leader in systems applying video
imaging expertise in the field of freeway incident detection, advanced traffic management systems,
and traffic data collection. The company’s Autoscope® line of computer enabled detection (CED)
products help in easing traffic congestion and enhance roadway planning. Autoscope® wide area
video vehicle detection solution gathers traffic data as well as speed, roadway occupancy, volume,
headways, ramp queue lengths and vehicle classification. Image Sensing’s Systems are deployed
for maritime, railway and aviation traffic monitoring and security communication operations in
about 60 countries worldwide.

Inrix, Inc.
Inrix Inc. offers predictive traffic services, including real-time traffic speed information for major
highways, side streets, freeways, and arterials in every key metropolitan region in the US. The
company’s Traffic Services are used for logistics, mapping, navigation and other location-based
service (LBS) applications. Inrix Traffic Solutions comply with all global traffic location codes,
and map databases. The company offers Dynamic Predictive Traffic Service, Real-Time Incidents
Traffic Service, Real-Time Flow Traffic Service, and National Average Speeds & National

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Reference Speeds Traffic Services. The company’s clientele and business partners include Tom
Tom, Microsoft, TeleNav, Clear Channel Radio’s Total Traffic Network, deCarta, Tele Atlas, TCS,
and Telmap. In 2008, the company also extended partnership with TomTom Navigator GPS, to
offer INRIX traffic information, fuel pricing and incident alert services for TomTom portable
navigation devices. The company was established in the year 2004.

Iteris Inc.
Iteris Inc., formerly Odetics ITS Inc., offers next-generation software, sensor and information
technologies for improving the efficiency and safety of road transportation. Iteris is also a leading
provider of Intelligent Transportation Systems (ITS), traffic engineering and transportation
planning. The company through the integration of information technology, system integration and
applied sensors provides a spectrum of transportation solutions. Iteris enables the technology to
provide complete up tominute traffic information using ITS including the flowing traffic speed,
road accidents, on going construction work, estimated travel time to reach destination through a
streaming video image on PCs, Cell Phones and PDAs that have Internet access. All the products
developed by Iteris conform to ISO 9001 standard.

Magellan Navigation Inc.


Magellan Navigation Inc. is a pioneer in the survey, consumer, GIS and OEM GPS positioning and
navigation markets. Magellan is an innovator of award-winning products that include Magellan
eXplorist™ outdoor handheld navigation devices, Magellan® RoadMate™ series portable car
navigation systems, the Hertz NeverLost® car navigation system and ProMark™, a single frequency
GPS survey product. Other major products of the company are Magellan Maestro series in the
vehicle navigation market, and Magellan CrossoverGPS series in the GPS product category. The
company also offers GPS related software, maps and accessories.
Thales Navigation was renamed as Magellan in 2006, subsequent to the acquisition of the former
company by a private equity firm, Shah Capital Partners. Other partners involved in this transaction
included Consolidated Press Holdings, Eli Broad, Tudor Group, AIG SunAmerica and Galleon
Group. Prior to the acquisition, Thales Navigation was a leading developer and provider of GPS
based navigation and guidance equipment for both the consumer and the OEM markets.

Nestor Traffic Systems Inc.


Nestor Traffic Systems Inc., a subsidiary of Nestor Inc, offers video-based monitoring solutions
and services for traffic management and safety. The products incorporate Nestor’s patented neural-
network know-how into intelligent, real-time systems for ensuring traffic efficiency and
intersection safety. The company’s TrafficVision® systems is a real-time, video-based traffic
management system, which helps transportation departments in enhancing safety, monitoring
traffic movements, managing congestion, reducing pollution, and responding to emergencies.
CrossingGuard® and Rail CrossingGuard provide video-based intersection and highway/rail
crossing monitoring and computerized enforcement of signal violations. Other major solutions
offered by the company include CollisionAvoidanceTM, an accident prediction and avoidance
solution; CrossingGuard® VIP video intersection profiling; PoliScanSpeed, a LiDAR-based speed
enforcement solution; and ViDARTM, a video-based speed enforcement solution.

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NAVTEQ Corporation
NAVTEQ Corporation, formerly Navigation Technologies, is a provider of real-time digital route
guidance map databases to commuters in North America and Europe. NAVTEQ’s high precision
digital map database comprises of comprehensive information on vehicle routes for over 42
countries worldwide and is extensively used in fleet management systems, in-vehicle navigation
systems, personal navigation solutions, web sites and online services, kiosk-based directions,
advanced traffic and traveler information solutions and Geographic Information Systems (GIS). In
addition to the mainstay markets, NAVTEQ is expanding its base in Malaysia, Singapore, Mexico,
Puerto Rico, the Middle East as well as South Africa. NAVTEQ acquired US based producer of
maps, The Map Network through the end of 2006. NAVTEQ signed a definitive agreement with
global telecommunications major, Nokia, wherein the latter would acquire NAVTEQ for an
estimated US$8.1 billion.

Siemens Transportation Systems Inc.


Siemens Transportation Systems Inc., a business segment of Siemens USA, which is a division of
Germany based Siemens AG, is a global leading provider of transportation systems as well as
technological and engineering know-how to the transportation industry. Transportation Systems
(TS) is a leading turnkey systems and engineering solutions provider for the mass transit rail
industry. Operating as a part of the Siemens group, the company offers complete design,
development and integration of equipment, signaling & communication systems, components and
vehicles for the rail industry.
Siemens GTS, operating under Siemens Energy & Automation, is a leader in the development and
integration of high-level transportation management solutions. The company focuses on offering
intelligent transportation systems integration services and products. The company also provides
software solutions based on open system architecture and industry standards.

SpeedInfo, Inc.
SpeedInfo, Inc, established in 2002, is engaged in the business of developing real time traffic data
networks. These networks facilitate in waxing the precision and coverage of public traffic speed
sensors. The company’s key products include display devices, sensors and servers. The company
through a combination of network and server software technologies created a commercial data
infrastructure that reduces problems or glitches pertaining to reliability, comprehensive coverage
and data latency occurring in the system. SpeedInfo caters its services to several public,
commercial as well as consumer markets.

Telenav, Inc.
Telenav, Inc. is a global player in location-based services (LBS), including asset GPS tracking
(AVL), Mobile Resource Management (MRM), and GPS navigation. Telenav enjoys the fame of
being the first company to introduce mobile phone based GPS navigation systems in North
America. The company’s flagship product TeleNav GPS Navigator™ offers GPS-enabled on-screen
and voice navigation service on smart phones and mobile phones. TeleNav Track™ provides
mobile phone-based tracking services with integrated voice and visual GPS navigation, interactive
dispatching and electronic timesheet reporting. The company was established in the year 1999.

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Telvent Traffic North America Inc.
Telvent Traffic North America Inc. is a subsidiary of Spanish ITS company, Telvent GIT SA. The
company offers varied services associated with public transportation, travel information, advanced
traffic management, electronic toll collection devices, including software development; planning;
system operations and management; control center/field device and communications design; and
system integration and testing. The company acquired Caseta Technologies, Inc. in the first half of
2007, and Farradyne in mid 2006, to emerge as one of the leading players in ITS and the ETC
market.

TransCore Inc.
TransCore Inc., a Roper Industries’ subsidiary, a worldwide leader in wireless RFID
communication technology, is a renowned developer of patented vehicle identification systems
for the intelligent transportation sector. Transcore undertakes turnkey design, development,
integration and contract operation of GPS, GIS and RFID based automation systems for the
transportation, aviation and highway access sectors. Transcore’s expertise in the design of
futuristic transportation access solutions is exemplified by the company being featured among
the top 10 design firms worldwide for ITS. Transcore’s products and services are available in 46
countries worldwide.
Transcore, a leader in transaction-based payment systems and services for mobile payment viz., toll
collection systems, also flaunts expertise in the development and integration of component systems
for advanced traffic management, traveler information, and enterprise-wide transportation
management & asset tracking. Roper Industries acquired the company in 2004.

Transdyn Controls, Inc.

Transdyn Controls, Inc. is a major systems integrator of security and surveillance, control,
information management and communication systems. The company is engaged in designing,
manufacturing and maintenance of information management and mission critical control systems.
Transdyn is also a leader in providing several systems and services for both public as well as
private sectors including security and surveillance sectors and transportation sectors. The
company’s DYNAC™ line of products help in providing integrated software solutions for several
markets including intelligent transportation systems (ITS), advanced traffic management systems
(ATMS), electric power distribution and transit power systems.

Wavetronix LLC

Wavetronix LLC develops advanced technologies for ITS (Intelligent Transportation Systems),
including data management appliances, advanced radar sensors, and power and communication
solutions. The company’s wide array of traffic management solutions supports road safety and
efficiency. Product portfolio includes Wavetronix SmartSensor HD, for collecting traffic data in
high definition and Digital Wave Radar II™ for measuring various factors such as traffic volume,
individual vehicle speed, average speed, lane occupancy, vehicle classification and presence. The
company was founded in 2000.

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XATA Corporation
XATA, established in 1985, is a worldwide leader in providing fleet management solutions and a
leading provider of mobile information systems to the commercial trucking sector. The company
has the distinction of being the first to offer paperless electronic driver logs, exception-based
reporting and dynamically updated fleet standards for precise fleet intelligence. The company’s
products incorporate enterprise software, onboard computing, wireless communications and global
positioning to offer an enterprise-wide logistics management solution for North America’s largest
trucking fleets. XATA’s windows-based OpCenter™ is a leading fleet management system.
Another product is XATANET™, which is a web-based fleet management solution.

B. Market Analytics

TABLE 19: US Recent Past, Current & Future Analysis for Intelligent Transportation
Systems by Product Segment – Advanced Traffic Management Systems (ATMS), Electronic
Toll Collection (ETC) Systems, Public Vehicle Transportation Management Systems
(PVTMS), Commercial Vehicle Operations (CVO) Systems, and Other Markets
Independently Analyzed with Annual Sales in US$ Million for the Years 2000
through 2010
Segment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
ATMS 863.88 907.42 959.60 1,024.56 1,104.58 1,196.70 1,303.80 1,427.53 1,569.00 1,713.66 1,859.49 7.97
ETC 265.44 285.43 312.95 353.54 406.75 483.46 587.55 734.32 908.50 1,102.46 1,302.34 17.24
PVTMS 245.15 266.99 292.51 326.79 369.08 423.45 494.84 578.67 662.87 743.14 821.39 12.85
CVO 141.74 152.30 164.36 180.52 201.24 229.03 263.89 302.81 344.81 388.50 430.54 11.75
Others 205.56 220.18 237.00 257.03 282.01 312.30 349.18 393.74 449.45 519.11 606.22 11.42
Total 1,721.77 1,832.32 1,966.42 2,142.44 2,363.66 2,644.94 2,999.26 3,437.07 3,934.63 4,466.87 5,019.98 11.29

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Data is reported at the Manufacturer’s Level
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
2000
1600

1200
800

400
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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TABLE 20: US Long-term Projections for Intelligent Transportation Systems by Product Segment –
Advanced Traffic Management Systems (ATMS), Electronic Toll Collection (ETC) Systems,
Public Vehicle Transportation Management Systems (PVTMS), Commercial Vehicle Operations
(CVO) Systems, and Other Markets Independently Analyzed with Annual Sales in
US$ Million for the Years 2011 through 2015
Segment 2011 2012 2013 2014 2015 % CAGR
ATMS 2,008.25 2,161.88 2,322.72 2,492.28 2,671.23 7.39
ETC 1,504.85 1,687.84 1,850.55 1,996.00 2,125.94 9.02
PVTMS 898.44 971.75 1,039.77 1,101.22 1,154.74 6.48
CVO 475.10 522.61 573.62 626.05 679.33 9.35
Others 714.19 846.17 991.97 1,139.28 1,266.42 15.40
Total 5,600.83 6,190.25 6,778.63 7,354.83 7,897.66 8.97
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Data is reported at the Manufacturer’s Level
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
3000
2400
1800
1200
600
0
2011 2012 2013 2014 2015

TABLE 21: US 10-Year Perspective for Intelligent Transportation Systems by Product Segment -
Percentage Breakdown of Dollar Sales for Advanced Traffic Management Systems (ATMS),
Electronic Toll Collection (ETC) Systems, Public Vehicle Transportation Management Systems
(PVTMS), Commercial Vehicle Operations (CVO) Systems, and Other Markets for 2003, 2008 & 2012
Segment 2003 2008 2012
ATMS 47.82 39.88 34.92
ETC 16.50 23.09 27.27
PVTMS 15.25 16.85 15.70
CVO 8.43 8.76 8.44
Others 12.00 11.42 13.67
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

2003 2008 2012


12 11.42 13.67
8.43 8.76 8.44
39.88 34.92
47.82
15.25 16.5 23.09 27.27
16.85 15.7

AT MS ET C PVT MS CVO Others

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EUROPE

A. Market Analysis

Europe & Japan in the Forefront of ITS


Much of the activity on ITS front can be traced to Europe and Japan, wherein congestion and safety
issues are comparatively more acute in relation to the USA and Canada. Europe and Japan have
had programs of research, development and demonstration since 1980s. The European program of
Road Transport Informatics (RTI) comprised Prometheus and Drive. The programs are monitored
at the European Union with participation from numerous countries and coordination of a series of
activities.
Prometheus functioning under the guidance of the European artificial intelligence and high
technology initiative EUREKA is a private sector program. The beginning was made in 1986 with
an investment of US$ 770 million. The program’s objective (that was vehicle oriented) was aimed
at technology developments for active driver support, cooperative driving, and traffic management.
The “Drive” project financed by the government and the industry concentrates on road
infrastructure technologies. In Phase 1 around US$ 140 million was spent on over 70 projects that
were of pre-competitive research. An investment of US$ 300 million in Phase II saw 56 projects
getting funding support that were of a field-trial nature.

European ITS Market – The Second Largest


European market for intelligent transportation systems is estimated at US$3 billion for 2008, as
compared to US$2.75 billion in 2007. The market is projected to reach US$3.6 billion by 2010,
registering a CAGR of 10.45% over the period 2000-2010.
ATMS represents the largest segment, accounting for intelligent transportation systems 32.7%
share of the total intelligent transportation systems market, estimated for 2008. CVO is projected to
record a CAGR of 18.5% over the period 2000-2010, to reach US$483.4 million by 2010.

ITS Finds Place in the EU’s €620 Million Trans-European Infrastructure Project
Intelligent transportation systems are making headway in the European infrastructure project
allocations. The European commission announced a €124 million grant for the installation of ITS
systems as a part of the €620 million trans-European infrastructure projects being embarked upon
by the EU.

SCOOT – A Key Traffic Management System


SCOOT, the acronym for ‘Split Cycle Offset Optimization Technique’, is a real-time full-service
centralized traffic management system incorporating computerized routines to gather and analyze
traffic data for easing the traffic flow and undertaking incident control on surface arterial networks.
Jointly developed by the Transport Research Laboratory (TRL) and UK’s traffic system suppliers,
SCOOT emerged as the preferred adaptive control tool for urban traffic management allover the
UK, Australia, Toronto, Bangkok, San Diego and Anaheim. Currently, TRL, Siemens Traffic
Control and Peek Traffic Co-Own the SCOOT.

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SCOOT obtains traffic flow data with the help of loops or detectors embedded in the surface
arterial networks. This data is analyzed along with preset travel schedules and details of road
capacity to obtain insights into the length of the queues, waiting times, and intersections, including
cycle length and phase splits. The traffic measurement and updating of queuing model is
continuous and in a cyclic flow, based on the vertical queue model. Based on the data, the signal
settings are optimized incrementally varying the length of signals in accordance with the traffic
density. SCOOT uses three optimizers for this purpose – the split optimizer, the offset optimizer
and the cycle time optimizer, all of which work together to change the signal timing data at each
phase, junction and each cycle, synchronizing the cycle timing with the traffic flow. Hence,
SCOOT is highly utilitarian on networks featuring optimal flow of traffic and intersections at
shorter distances and is not very practical for busy and congested networks where the flow is
usually at/nearing full capacity and where downstream link congestion impacts the upstream flow.
Problems erupt when there is a queue spillback, and because impacts of downstream congestion are
not virtually considered, signal optimization becomes difficult.

Market Snapshots
• In Europe, congestion is a serious problem in cities, as the planning authorities are not able to
build roads due to limited space availability.
• One of the issues confronting the European Union is the standardization of ITS systems and the
need to establish interoperable systems for ensuring that these systems can function
harmoniously and efficiently in the various states of EU.
• Interoperability enables in system up-gradation in the future with least disruption to the traffic
flow and thereby preventing a player from monopolizing the market.

Ertico
Ertico is a Europe based non-profit group whose mission is to promote and support the
implementation of ITS in Europe. It operates as part of a public-private partnership. Members of
the European intelligent transport solutions and services (ITS) industry, national governments and
the European Commission established it in 1991.

Product Introductions/Innovations

2008

Magellan Expands Roadmate® Series


Magellan, a global leading brand of GPS (Global Positioning Satellite System), expanded the
company’s RoadMate series of vehicle navigation products with the launch of three new
widescreen units. The new RoadMate® 1400 series comprises a 4.3-inch anti-glare touch screen
display and a user-friendly interface with QuickSpell™ and SmartDetour™ technologies that
facilitate rapid input and traffic guide. The RoadMate 1415, which includes NAVTEQ® full
European map, announces direction of the turns and street names. The RoadMate 1425 offers live
traffic updates and route guidance through a permanent traffic subscription.

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2007

Traficon NV Introduces a Stand Alone, Multifaceted VIP-T box


Traficon introduced a stand alone and multifaceted automatic incident detection system, VIP-T
box. The fully functional feature of the system makes it unique with MPEG4 compatibility. The
new system offers the flexibility of a stand-alone system with the benefits of a networked system.
The system is specifically designed for busy roads and facilitates solutions in flow speed, inverse
direction, objects, pedestrians, presence detection, slow moving vehicles, smoke detection and
stopped vehicle detection.

Sirit Introduces Identity MaX in Europe


Sirit Inc introduced a European version of the company’s popular Identity MaX UHF RFID reader
to assist motorists with parking and related services. The system comes with inbuilt ‘Automatic
Vehicle Identification’ (AVI) feature that works excellently for single-lane traffic. The European
version operates in the 865 – 868 MHz band, and can be easily retrofitted to existing infrastructure
owing to its Power over Ethernet capabilities.
Tele Atlas Provides Digital Maps to Egypt and Saudi Arabia
Tele Atlas further expanded its market reach by providing digital maps to Egypt and Saudi Arabia,
and thus increasing the number of countries that use these digital maps to 64. The inclusion of
these two countries was immediately preceded by the company’s decision to provide map-related
coverage to South Africa and, Eastern and Central Europe. The clientele base of Tele Atlas is
widely spread across the globe. Tele Atlas is a company engaged in supplying digital maps that
easily integrate into diverse navigational systems.

2006

Siemens Introduces Traffic Signal Control Equipment, Sitraffic C900


Siemens Industrial Solutions and Services Group (I&S) introduced series of advanced traffic signal
control equipment, C900 family, an upgraded version of C800. The system allows control of upto
48 signal groups. The system comes with energy-saving 40-volt LED signal heads and runs on a
Linux PC with minimum processor speed of 266 Mhz.
Siemens Introduces Traffic Control System, Sitraffic Scala
Siemens Industrial Solutions and Services Group (I&S) introduced a first-of-its-kind traffic control
system, Sitraffic Scala, built on standards based technology platform. The cost-effective system
implements the complete functions of Traffic Management System and enables intelligent traffic
guidance to all the motorists. Sitraffic Scala is designed to withstand data redundancy and
duplication of data. The system has a unique map display unit that is powered by the GIS
(Geographical Information Systems).
Siemens Introduces Modular Tunnel Control Center
Siemens Industrial Solutions and Services Group (I&S) Launches modular tunnel control center,
Sitraffic ITCC (International Tunnel Control Center). The system has been developed with high

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standards and is adaptable to most of the situations irrespective of national regulations. Sitraffic
ITCC is designed to control and optimize traffic automatically and also gives a choice of manual
control. In case of an accident the system is capable of analyzing the traffic and transmitting the
data to the control center and at the same time take necessary precautions to avoid further damage.

INIT Offers Novel ITS Solutions


INIT offered an advanced ITS technology for various transportation companies that are engaged in
rendering public transportation services. These solutions of INIT that are available under the brand
name MOBILE, blends various software and hardware technologies in addressing various issues of
public transportation including fleet management, automated passenger counting and passenger
information, and ticketing in form of smart cards. This system has the ability to be used both as a
stand-alone unit, as well as a one that integrates into another system. In addition, MOBILE
constantly keeps providing relevant information to drivers that enable them to avoid congested
zones. Globally, many leading transportation companies have successfully implemented ITS system.
Citilog Launches Two New ITS Products
Citilog launched two novel products, MediaCity and Media TD, which successfully address two
diverse aspects of urban traffic. MediaTD processes images of traffic flow that are captured by a
camera, through its sophisticated software, and subsequently, relevant data is provided by this
system. The data gives reliable information pertaining to various aspects of traffic including speed,
occupancy and flow, which is highly useful for professionals like consultants, statisticians, traffic
engineers and city planners. The second product, MediaCity, essentially provides information
related to factors like pedestrians at crossings and quantity of vehicles present in a specific zone.
Based on this, drivers can plan their route of travel. Apart from that, MediaCity also plays a vital
role in regulation of traffic, as is evident from its efficient regulation of trams and cars on the busy
streets of Paris. Similar to MediaTD, this product is also equipped with sophisticated image
processing software.
Siemens VDO Launches Adaptive Cruise Control System
Siemens launched a latest adaptive cruise control (ACC) system that successfully tackles the
problems caused on account of poor visibility while driving, which is caused due to fog and rain.
The sophisticated technologies present in this system warn the drivers about the distance at which
the vehicle ahead is present, based on which they can decide about braking or decelerating.
Steria Launches New Traffic Supervision System
Steria launched a new system of traffic supervision at Swiss Canton of Zurich. Steria is a company
based in France, and engaged in providing solutions for management and regulation of rail, air and
road traffic.
Traficon Launches TrafiCam
Traficon launched its latest traffic surveillance camera and detector - TrafiCam, which is equipped
with just a single sensor. TrafiCam can be conveniently installed on any traffic signal, and is
designed to provide an aesthetic look. This is in response to preferences of modern-day consumers,
who, along with performance, are also keen on look of the product.

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New On-Board Units from Q-Free
Q-Free ASA (Q-Free), a leading producer of automatic toll collection systems, launched new on-
board units under the brand name, QBU. The new units are offered in three versions -
communicative, autonomous, and receptive. The communicative QBU includes buttons, and
displays, and offers versatile services. The unit can function as a parking meter within the car. The
autonomous QBU allows the communication between roadside infrastructure and the car, and
enables the users to make payments for road tolls, petrol or parking lot fees. The version is
developed to assist drivers while traveling through congestion charging areas and tolling points.
The receptive QBU offers exceptional services. It enables vehicle users to insert a personalized
smart card to activate discount schemes/bonus or to access various other services.

Strategic Corporate Developments

2008

M.Tech Pockets Dambach


German traffic technology group M.Tech Technologie und Beteiligungs AG (M.Tech AG), a
subsidiary of Swarco Holdings AG, acquired Dambach-Werke GmbH. The transaction strengthens
Swarco’s position in the German traffic market, in addition to complementing the product lines of
Swarco and its subsidiary Signalbau Huber. Dambach-Werke is a leading producer and supplier of
electronic traffic control systems in the country.

NPRA Awards Service and Maintenance Contract to Q-Free


Norwegian Public Roads Administration (NPRA) awarded a contract worth NOK 98 million to Q-
Free ASA to deliver maintenance and service for the AutoPASS infrastructure. Under the four-year
contract, Q-Free would provide corrective and precautionary service as well as maintenance for
over 26 systems.

2007

Addco and Odeco Enters Partnership


Addco Inc., a US based manufacturer and distributor of work zone safety solutions and traffic
control equipment, formed partnership with Odeco Electronica S.A. of Spain. The deal expands
Addco’s product line, besides enhancing growth opportunities. Odeco Electronica, a part of the
global consortium specializing in traffic and LED technology, offers intelligent transportation
systems, fixed dynamic messaging signs and access panels in North America and Europe.

Siemens to Install New Traffic Management System in Lithuania


Siemens Industrial Solutions and Services Group expressed plans to install new Traffic
Management System, Sitraffic, in the city of Vilnius in Lithuania. Siemens is implementing the
project through a consortium with Eismas Ltd., Fima Ltd., and Hnit-Baltic GeoInfoservisas being
the other partners. The project, estimated at €7 million is scheduled for completion in the year
2008, eliminates traffic jams and improve traffic flow in the city. The system combines raw traffic

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data gathered from sources to make it a completely refined, accurate and reliable data that helps
motorists, transportation agencies, fleet operators and traffic control centers to adapt to the existing
traffic or take the alternate route.
The system gathers information through standards based CCTV (Closed Circuit Television) and
after refining, transmits the same through SMS, e-mail, Internet, or traffic display panels. The
system also makes use of TMC (Traffic Message Channel) for broadcasting information through
radio.

Steria to Expand Taxi Management System at London’s Heathrow Airport


Steria, a France based IT services provider, secured a contract from the British Airport Authority
(BAA) to install and maintain taxi management system at London Heathrow Airport’s new
Terminal 5. The project scheduled to open in the first half of the year 2008, enables the airport
authority systematically control and track taxi services. The BAA awarded the project, owing to
satisfactory performance of Steria’s Taxi management system at terminals 1 to 4 at the airport. The
terminal 5-taxi management system is planned and designed specifically to cater to the heavy rush
expected during the 2012 London Olympics.

Siemens Secures Contract for Traffic Control Systems in Switzerland


The Siemens Industrial Solutions and Services Group secured a supply and installation contract for
Traffic Control Systems (TCS) from the Swiss canton of St. Gallen. The contract worth €5.7
million involves installation of computer systems to monitor and gather traffic information at five
tunnels and 96 all-lane display panels on the public freeway. The contract, scheduled to finish in
the first quarter of 2009, would significantly reduce traffic congestion, accidents and ensure a safe
and smooth drive.
Siemens Completes Traffic Control System Project in Turkey
Siemens Industrial Solutions and Services’ (I&S) Intelligent Traffic Systems (ITS) division
completed the installation of traffic control system at Nefise-Akçelik tunnel, the longest tunnel in
Turkey. Siemens completed the project at a cost of about €17.5 million. The project includes
camera monitoring equipment with video detection system, fire protection equipment, lighting,
power distribution system, radio systems, traffic guidance systems, tunnel control center and
ventilation. The system and solution is built to monitor and automatically make any changes in
terms of air quality, and lighting, and also includes firefighting equipment. Commuters can be
informed about the traffic conditions through variable message signboards and 252 loudspeakers in
the tunnel.
Siemens Secures Contract in Prague for Traffic Modernization
Siemens Industrial Solutions and Services Group secured traffic modernization contract in Prague.
The contract entails installation of traffic control centers and integrating them with the central
traffic computer in all the ten zones of the city.
The city of Prague’s technical municipal authority, Technicka Sprava Komunikaci and Siemens
and Eltodo EG’s joint venture, Eltodo Dopravni Systemy S.R.O. would jointly execute the €156
million contract that would be completed over a period of 15 years.

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Siemens Chosen to Deliver Traffic Management Solution to Havering
Siemens secured a contract to deliver traffic management solution to the London Borough of
Havering for reducing congestion, roadblocks, accidents, and ensuring a smooth flow of traffic.
The development entails installation of Siespace System and 16 Variable Message signs that
provide motorists with car park and travel information.

Tele Atlas and MCH GeoPoints Enter into Partnership Agreement


Tele Atlas and MCH GeoPoints entered into an agreement concerning integration of technology.
As per this agreement, data of MCH GeoPoints is integrated into digital maps of Tele Atlas, which
enables various organizations and institutions like utility and insurance companies, to have ready
access to important information pertaining to their respective fields of activity. GeoPoints’ unique
database, places2protect™, which provides vital information related to various relevant institutions,
will be blended into digital maps of Tele Atlas.

2006
Telvent GIT SA Takes Over PB Farradyne
Telvent GIT S.A. of Spain took control over the assets of the US-based ITS company, PB
Farradyne (Farradyne); and operates the combined company under the name Telvent Farradyne.
The move is a part of Telvent’s strategy to expand its transportation and traffic business, globally,
and to gain from widespread growth opportunities. The acquisition brings in a professional team
that serves both public and private clientele, including local/regional transportation agencies, state
transportation departments, and the Federal Highway Administration. Besides, the acquisition
enhances Telvent’s Traffic IT platform, and offer long-term growth potential.
Zeus Technology Enters into Partnership with Itlog
Zeus Technology, an application specific traffic management software provider, entered into a
partnership with Itlog, a supplier of IT management applications. As per the deal, Itlog distributes
Zeus Extensible Traffic Manager (ZETM) to medium to large Brazilian organizations, providing
the latest Application Delivery Controller (ADC). The partnership allows Itlog to gain from Zeus’
flexible software in creating an inclusive solution for traffic management, and application
acceleration, and offer it either as a service or a project.
V-Traffic Enters into Partnership with Masternaut
V-Traffic and Masternaut entered into a partnership agreement for implementation of Intelligent
Transportation System (ITS). The partnership between the companies is aimed at providing
effective solutions to various traffic-related issues. Masternaut will utilize the pertinent information
provided by V-Traffic, for rendering efficient services to its customers. V-Traffic studies data from
about 24,000 vehicles and provides relevant information to Masternaut. The Floating Car Dated
(FCD) Technology of the latter is used for this study.
V-Traffic Collaborates with University Paul Sabatier
V-Traffic and University Paul Sabatier entered into a collaboration agreement. This collaboration
enables analysis of traffic-related issues with a statistical perspective, which assists V-Traffic in
coming out with ITS services and solutions conforming to exemplary standards.

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Q-Free Secures Contract for Deploying Toll System on Tamar Bridge
Q-Free secured a contract for implementing its sophisticated toll system on Tamar Toll Bridge. As
per this contract, valued at about NOK 3 million, Q-Free supplies OBUs (On Board Units) to the
UK’s market, for installation on Tamar toll bridge, Plymouth.

Tele Atlas Signs Licensing Agreement with MapIT


TeleAtlas and MapIT entered into an agreement for jointly providing coverage of digital maps to
seven African countries - South Africa, Namibia, Zimbabwe, Botswana, Lesotho, Swaziland and
Mozambique. Growing popularity of South African region as a destination for tourists increased
the necessity of digital maps, and led TeleAtlas to initiate this agreement.

Tele Atlas Collaborates with WindSpring


Tele Atlas and WindSpring Inc. entered into a collaboration agreement for marketing Data
Miniaturization Technology (DMT) ™ of the latter. This technology will also be integrated into
digital maps of Tele Atlas for further enhancing their standards. For this purpose, there is no
necessity to upgrade existing hardware and storage systems, as is the case with integration of most
of other technologies. DMT converts large map and data files into Micro Data Format (MDF)™,
without affecting the quality and quantity of content. This is highly useful for integrating them into
smaller devices like personal navigation systems and mobile phones.

Intermap Enters into Agreement with Several German Automotive Manufacturers


Intermap Technologies Corporation entered into a development contract with several Germany
based automotive manufacturers wherein, as per the contract, Intermap provides the manufacturers
with the company’s NEXTMap 3-D road data geospatial databases for enhancing the vehicle
engine control in Germany’s intelligent transportation systems segment.

Select Players

Citilog SA (France)
Citilog SA, a French traffic management systems and video image processing solutions
Company, leads the global market in automatic incident detection systems and traffic
surveillance systems. Citilog’s systems find applications in enabling traffic data collection, video
surveillance, automatic incident detection, security, detection of PTZ cameras and intersection
control for road transportation and arterial networks, tunnel management and urban traffic
monitoring.
Established in 1997, Citilog’s operations span throughout Europe and the US. Major customers of
the company include motorway companies, cities, as well as local authorities in France, Australia,
Canada, Switzerland, China and Spain, flaunting a host of successful implementations of Citilog’s
incident detection systems. Citilog is the industry pioneer in developing and deploying the world’s
first advanced video detection system – the VisioPaD that is easy to use and entails no calibration
on the similar lines of ‘plug-and-play’ devices.

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Dambach-Werke GmbH (Germany)
Dambach Werke GmbH, a subsidiary of M-Tech Technologie & Beteiligungs AG, specializes in
traffic management systems and is a producer of traffic safety products and systems such as traffic
signs and a range of electronic traffic control systems. Its subsidiary in the UK (Dambach UK)
offers changeable message signs services all over the UK and Ireland. Dambach-Werke was
acquired by M-Tech AG in 2008.

Imago Group (Spain)


Imago Group, headquartered in Barcelona, Spain, designs, develops, manufactures and markets
large LED displays. Imago is a global partnership network, which operates in four key markets -
Traffic Signs, Sports Marketing, Architecture Video-Structures and Advertising. The company
provides traffic solutions under the global brand Imago Traffic. The company’s customer base
includes leading companies, top sports teams, marketing agencies and Governments across the
world. The company has its presence in more than 40 countries. In 2008, three traffic industry
majors Odeco, Thomas VT and Addco integrated to form Imago Group.
INIT Innovation In Traffic Transportation Systems, AG (Germany)
INIT Innovation In Traffic Systems, AG, a wholly owned subsidiary of INIT GmbH, is a global
provider of electronic fare collection systems and telematics solutions and services for public
transport. The company is also engaged in developing, manufacturing, installing and maintenance
of integrated hardware and software services and solutions for several transportation companies.
INIT’s telematics software and services products include PROservice, MOBILEreports,
MOBILEstatistics, MOBILEartist and MOBILEforms services. Mobile telematics systems
provided by the company include INFOS – Infrared location support system, LISA – traffic signal
priority system, COPILOT – onboard computer systems, PRESSit – mobile data terminal,
MOBILE-TLI – data network controller and PIDmobil – on board passenger information display
system. The company’s electronic payment system products include DATAstation, TOUCHcoin,
TOUCHmobil, TOUCHstation, EVENDportable and EVENDintegral.
M.Tech AG (Germany)
M.Tech AG, a subsidiary of Swarco Holdings AG, ranks among the leading providers of intelligent
traffic systems (ITS) in Germany. The company’s subsidiary Signalbau Huber is a major player in
the intelligent and emission-controlled traffic systems market in Europe. In 2008, M.Tech acquired
Dambach-Werke GmbH, a German company specializes in traffic control systems and the traffic
engineering.
Q-FREE ASA (Norway)
Q-Free ASA (Q-Free) is a leading producer of automatic toll collection systems and is a pioneer in
technological developments related to Road Transport and Traffic Telematics (RTTT). The
company is involved in developing, marketing and operating electronic payment systems including
road pricing systems, access control systems, tracking systems for vehicles and goods, automatic
fare collection systems and operations services for the transportation sector. The company also
produces traffic information systems, parking fee collection and ticketing systems and container
management systems.

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Steria SA
Steria SA is a leading IT services company in Europe with expertise in consulting, systems
integration and managed services. The company also offers its expertise in the areas of public
services, banking and insurance, manufacturing/utilities/transport and telecommunications markets.
The company also enjoys expertise in handling large-scale projects and offers a range of
industrialized solutions in Europe. The company provides services for traffic forecasts and
management, tunnel supervision and toll system or car park management.

Swarco Holdings AG (Germany)


Swarco Holdings AG is a provider of an array of products, services and solutions in traffic
management and materials. The company is active in three business divisions – Traffic Materials,
Traffic Management, and Surface Treatment. The Traffic Management division comprises twelve
companies including Mizar Automazione S.p.A., Signelit ZRt., Swarco Danmark AS, Swarco Elsig
s.r.o., Swarco Finland OY, Swarco Futurit Verkehrssignalsysteme GesmbH, Swarco ITS, Swarco
Norge AS, Swarco Sverige AB, Swarco Technology APS, Swarco Traffic Management, Inc., and
Swarco V.S.M. GmbH. China based Swarco Intelligent Traffic Management System Equipment
Co., Ltd. (SITS) supplies advanced intelligent traffic management systems and products, as well as
market interurban traffic management systems. Swarco Futurit is one of the leading suppliers of
variable message signs. Swarco operates more than 60 companies located in Austria, China,
Germany, Italy, Norway, Romania, Russia, Sweden, and the United States. The company was
established in 1969 as a manufacturer of glass beads in Austria.

Telvent GIT S.A. (Spain)


The Global RealTime IT Company Telvent GIT S.A. offers advanced solutions for Transport,
Traffic, Energy, and Environment industries. The company offers technical services in the areas of
real-time control, mission-critical and information management. Additionally the company also
handles Telecommunications and IT infrastructure for a huge client base globally. The company’s
traffic management systems include RedEye (red-light detection system); Odyssey (Intelligent
traffic control, highway and city access management system); SmartTOLL (Intelligent Toll
Management and Control System); Itaca (Intelligent system for urban traffic control); MoviSmart
(Integrated systems for traffic and transportation); and Sicotie (Tunnel management and control
system). The company offers its services in North America, the Asia-Pacific region, Europe, Latin
America, Africa, and the Middle East. In 2008, The OHL Brasil construction company awarded a
contract worth more than €8 million to Telvent for the supply, implementation and start-up of the
latter’s SmartToll system on three of the Brazilian federal highways.

Traficon N.V. (Belgium)


Traficon N.V. designs, develops, builds and installs automated traffic and incident detection and
intersection control & monitoring equipment that often form the enabling platforms for intelligent
transportation systems. Traficon’s video image processing devices for traffic analysis include
traffic cameras, detector & communication boards, PC Software and Rack systems. Traficon video
detection systems are used in several traffic applications such as ramp metering, travel time
calculation, dynamic speed indication, queue tail monitoring, congestion monitoring, tunnel access

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control, ventilation control, rerouting, and dynamic queue indication during road works. The
company offers products for tunnel, road and urban applications. Leveraging on the long-standing
experience of over 20 years, Traficon’s custom-made detectors enhance the on-road safety.

Zeus Technology Ltd (UK)


Zeus Technology is involved in developing application traffic management software that enhances
network/web-enabled applications. The company offers web infrastructure solutions to more than
800 clients, including China Telecom, NASA, Federal Railroads Administration, STA Travel,
VNU, BT, Hotel.de, PLAY.COM, The Institute of Financial Services, Strategic Command, and
Virgin Holiday. Zeus also enjoys partnerships with world-renowned companies, including IBM,
Egenera, Sun Microsystems, VMware, AMD, HP, Intel and Qualcomm. The company was
established in 1995.

B. Market Analytics

TABLE 22: European Recent Past, Current & Future Analysis for Intelligent Transportation
Systems by Product Segment – Advanced Traffic Management Systems (ATMS), Electronic
Toll Collection (ETC) Systems, Public Vehicle Transportation Management Systems
(PVTMS), Commercial Vehicle Operations (CVO) Systems, and Other Markets
Independently Analyzed with Annual Sales in US$ Million for the Years 2000 through 2010
Segment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
ATMS 727.33 741.88 757.83 781.17 809.37 845.31 886.31 941.08 987.49 1,033.56 1,045.92 3.70
ETC 261.62 325.16 387.30 404.00 641.38 652.86 662.08 692.80 719.04 766.28 817.70 12.07
PVTMS 142.46 163.70 190.99 225.12 268.25 318.52 385.31 456.32 525.95 589.85 644.94 16.30
CVO 88.43 101.59 119.79 143.03 172.44 206.84 244.53 292.31 347.21 410.54 483.37 18.51
Others 113.25 129.76 151.77 179.65 215.24 255.96 308.41 368.89 442.08 523.78 609.47 18.33
Total 1,333.09 1,462.09 1,607.68 1,732.97 2,106.68 2,279.49 2,486.64 2,751.40 3,021.77 3,324.01 3,601.40 10.45

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 0.67 Euro, 0.50 British Pound and 24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level
Current Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
1150

920

690
460

230

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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TABLE 23: European Long-term Projections for Intelligent Transportation Systems by
Product Segment – Advanced Traffic Management Systems (ATMS), Electronic Toll
Collection (ETC) Systems, Public Vehicle Transportation Management Systems (PVTMS),
Commercial Vehicle Operations (CVO) Systems, and Other Markets Independently
Analyzed with Annual Sales in US$ Million for the Years 2011 through 2015
Segment 2011 2012 2013 2014 2015 % CAGR
ATMS 1,092.51 1,129.38 1,166.36 1,202.82 1,241.86 3.26
ETC 873.71 937.93 1,014.00 1,090.15 1,159.16 7.32
PVTMS 700.73 756.79 812.87 870.26 927.35 7.26
CVO 552.54 616.47 670.23 717.88 759.88 8.29
Others 692.05 769.97 842.27 914.12 979.39 9.07
Total 3,911.54 4,210.54 4,505.73 4,795.23 5,067.64 6.69
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 0.67 Euro, 0.50 British Pound and 24.43 Russian Rubles.
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level
Data is standardized to the currency values as on February 01, 2008.
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy,
Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and The United Kingdom
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
1300

1120

940
760

580

400
2011 2012 2013 2014 2015

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TABLE 24: European 10-Year Perspective for Intelligent Transportation Systems by
Product Segment – Percentage Breakdown of Dollar Sales for Advanced Traffic
Management Systems (ATMS), Electronic Toll Collection (ETC) Systems, Public Vehicle
Transportation Management Systems (PVTMS), Commercial Vehicle Operations (CVO)
Systems, and Other Markets for 2003, 2008 & 2012
Segment 2003 2008 2012
ATMS 45.08 32.67 26.82
ETC 23.31 23.80 22.28
PVTMS 12.99 17.41 17.97
CVO 8.25 11.49 14.64
Others 10.37 14.63 18.29
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Europe include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, Ireland, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain,
Sweden, Switzerland, Turkey, and The United Kingdom
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

2003 2008 2012


10.37 14.63 18.29
8.25
11.49 32.67 26.82
45.08
12.99 14.64

17.41
23.31 17.97 22.28
23.8
AT MS ET C PVT MS CVO Others

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JAPAN

A. Market Analysis
ITS activity in Japan started in 1970s and represents one of the most sophisticated in the world in
terms of having a full fledged operational system for vehicles/drivers across the nation. The Road
Automobile Communications System (RACS) and the Advanced Mobile Traffic Information and
Communications System (AMTICS) programs, which began in 1980s, were at the behest of
different ministries. These two programs related to traffic management and traveler information
systems i.e., navigation and traffic information dissemination. RACS was directed towards
expressway traffic and AMTICS was meant for dealing with arterial street systems. In order to
have infrastructure, public money was used for supporting the ITS applications developed in their
R&D program.
In the 1990s RACS and AMTICS were predecessors to Vehicle Information and Communication
System (VICS), which tried addressing complete system integration, with real-time traffic
management and route guidance as the main objectives. Japan is expected to be at the forefront in
installing traffic and traveler information services in order to tackle traffic related problems. It is
expected to intensify its efforts towards expressway management comprising dynamic speed limits,
access control, automatic incident detection and variable message signs. A digital map is employed
as a basis for a number of route guidance systems marketed by private firms.
Japan – Third Largest Market
Japanese market for intelligent transportation systems is estimated at US$1.7 billion for 2008, as
compared to US$1.5 billion in 2007. The market is projected to reach US$2.1 billion by 2010,
registering a CAGR of 12.6% over the period 2000-2010.
ATMS represents the largest segment, accounting for intelligent transportation systems 46.8%
share of the total intelligent transportation systems market, estimated for 2008. ETC is projected to
record a CAGR of 17.3% over the period 2000-2010, to reach US$455.4 million by 2010.
Steps Towards Deployment of ITS
With an aim to decongest roads and compete in the world market, companies in Japan such as
Toyota Motor, Nissan Motor, and Honda are taking aggressive steps in developing intelligent
transportation systems. In 1998, Matsushita Communication Industrial and Pioneer Corp each had
a market share of about 22.0% in car navigation systems. Together with navigation systems,
companies in Japan provide information services that offer latest evaluations of traffic conditions
as well as information on the location of restaurants, gas stations, parking lots and others.
The information service for car navigation users of Toyota Motors and Nissan Motors is called as
Monet and Compass Link. Honda’s web-based Internavi map service provides the service to home
users and drivers, wherein the information can be downloaded from a computer to a flash memory
card for usage in the in-car navigation system. But these services are not able to meet the stated
objectives, as they are costly. The information required can also be obtained from a guidebook. A
few drivers are apprehensive due to the fact that these gadgets distract them while driving. The
country imposed a ban on usage of cell phones while at the wheel. Notwithstanding this, car
navigation systems’ is increasingly being used in vehicles.

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Strategic Developments

2007

Nissan to Test New ITS Technology


Nissan Motors Co. Ltd (Nissan), announced plans to test a new Intelligent Transportation System
(ITS) for traffic management, which enables vehicle-to-infrastructure communication, designed
keeping in view the rising number of road accidents at intersections and easing the traffic
congestion. The test is expected to be conducted till March 2009.
Nissan would install an advanced traffic signal infrastructure at the Nissan Technical Centre in
Kanagawa Prefecture, Japan and collect data from employee cars to practically test its efficiency
and limitations.
The test would be carried out at select stretches of the road within the Nissan Technical Centre
where the company employees frequently drive. The ITS architecture includes standard traffic
lights as well as roadside optical beacons linked to an advanced traffic light system. Data from the
vehicles and the traffic lights would be computed by the advanced traffic light system. The test
does not entail any modifications to in-vehicle systems but the company has equipped cars of
participating employees with Vehicle Information and Communications System units for obtaining
additional data.

New Electronic Toll Collection System from Japanese Inventors


A group of inventors from Japan developed a new ETC (electronic toll collection) device for toll
road. The new device includes a vehicle sensor to detect an incoming ETC/non-ETC vehicle, and
an antenna that transmits radio signals. The incoming ETC vehicle is detected by noticing the radio
response to transmitted radio signal. If the radio response is not received for a transmitted radio
signal, then the vehicle is considered as a non-ETC vehicle.

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B. Market Analytics

TABLE 25: Japanese Recent Past, Current & Future Analysis for Intelligent Transportation
Systems by Product Segment – Advanced Traffic Management Systems (ATMS), Electronic
Toll Collection (ETC) Systems, Public Vehicle Transportation Management Systems
(PVTMS), Commercial Vehicle Operations (CVO) Systems, and Other Markets
Independently Analyzed with Annual Sales in US$ Million for the Years 2000 through 2010
Segment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
ATMS 436.32 460.06 486.56 516.78 555.02 601.31 656.39 718.81 791.19 869.28 949.78 8.09
ETC -- 108.12 128.48 153.32 191.88 244.19 290.88 336.14 379.20 419.21 455.43 17.33#
PVTMS 90.79 99.65 110.24 123.38 139.25 159.75 186.41 219.09 256.75 297.44 339.85 14.11
CVO 61.35 66.00 71.70 78.60 86.68 96.73 109.33 125.88 147.76 176.07 206.90 12.93
Others 54.43 58.58 63.45 69.43 76.54 84.62 93.93 104.67 116.98 131.17 147.53 10.49
Total 642.89 792.41 860.43 941.51 1,049.37 1,186.60 1,336.94 1,504.59 1,691.88 1,893.17 2,099.49 12.56

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 106.40 Japanese Yen
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level
Current Data is standardized to the currency values as on February 01, 2008.
# Denotes CAGR for the period 2001-2010
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
1000
800
600
400
200
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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TABLE 26: Japanese Long-term Projections for Intelligent Transportation Systems by Product
Segment – Advanced Traffic Management Systems (ATMS), Electronic Toll Collection (ETC)
Systems, Public Vehicle Transportation Management Systems (PVTMS), Commercial Vehicle
Operations (CVO) Systems, and Other Markets Independently Analyzed with Annual Sales
in US$ Million for the Years 2011 through 2015
Segment 2011 2012 2013 2014 2015 % CAGR
ATMS 1,030.61 1,109.35 1,183.23 1,252.80 1,316.94 6.32
ETC 490.09 522.34 552.95 582.64 611.42 5.69
PVTMS 382.60 423.77 461.66 495.78 523.25 8.14
CVO 238.31 267.57 292.72 314.50 332.17 8.66
Others 166.34 187.66 210.76 234.91 259.65 11.78
Total 2,307.95 2,510.69 2,701.32 2,880.63 3,043.43 7.16
2011-2015: GIA Projections
Error tolerance for data in this table is more than 10% (+/-)
Exchange rates used for standardizing data in this table are 1 US $ = 106.40 Japanese Yen
Data is not adjusted for inflation. It is reported in nominal terms.
Data is reported at the Manufacturer’s Level
Data is standardized to the currency values as on February 01, 2008.
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
1500
1200
900
600
300
0
2011 2012 2013 2014 2015

TABLE 27: Japanese 10-Year Perspective for Intelligent Transportation Systems by Product Segment –
Percentage Breakdown of Dollar Sales for Advanced Traffic Management Systems (ATMS), Electronic
Toll Collection (ETC) Systems, Public Vehicle Transportation Management Systems (PVTMS),
Commercial Vehicle Operations (CVO) Systems, and Other Markets for 2003, 2008 & 2012
Segment 2003 2008 2012
ATMS 54.90 46.77 44.19
ETC 16.28 22.41 20.80
PVTMS 13.10 15.18 16.88
CVO 8.35 8.73 10.66
Others 7.37 6.91 7.47
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

2003 2008 2012


7.37 6.91 7.47
8.35 8.73 10.66
13.1
15.18 44.19
46.77
54.9
16.28 22.41 16.88
20.8

AT MS ET C PVT MS CVO Others

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REST OF WORLD

(CANADA, ASIA-PACIFIC, LATIN AMERICA AND THE MIDDLE EAST)

A. Market Analysis
Market for intelligent transportation systems in rest of world is estimated at US$1.15 billion for
2008, as compared to US$969.1 million in 2007. The market is projected to reach US$1.7 billion
by 2010, registering a CAGR of 14.65% over the period 2000-2010.
ATMS represents the largest segment, accounting for intelligent transportation systems 49% share
of the total intelligent transportation systems market, estimated for 2008. ETC is projected to
record a CAGR of 16.7% over the period 2000-2010, to reach US$424.1 million by 2010.

Select Markets: A Review

Canada

Awakening Governmental Support to ITS Projects


In Canada, ITS program can be traced to the early 1980s and the development efforts represented
fairly modest. In the absence of a national program in the past, much of the activity was accounted
for by individual agencies. The preliminary objective was on applications that improve public
transport operations, commercial vehicle efficiency, and traffic congestion. However, since 1999,
the Canadian government initiated funding support to the extent of US$7.5 million in support of
ITS programs and research through ‘En route to Intelligent Mobility’.

Asia-Pacific
Asia-Pacific represents a developing market for intelligent transportation systems. Developmental
efforts to deploy intelligent transportation systems are underway in China, Taiwan, Singapore,
Malaysia and other markets.

Australia – A Well Developed ITS Market


Australia is a well developed market for ITS in the Asian continent. Australian ITS market
comprises several sectors, which include electronic payment and tolling, public transport
operations, commercial vehicle operations, traffic management systems, incident management and
response, vehicle control and safety systems, transport management, traveler information systems,
transport security and transport system integration hardware and software development.
There are nearly 500 companies engaged in developing futuristic transportation system
components and many ITS projects worldwide have been modeled on the highly successful
SCATS (Sydney Coordinated Adaptive Traffic Control System) and CityLink ITS architectures of
Australia. Ongoing modernization of railroad infrastructure and investments in intermodal
transport are likely to peg high growth rates for the Australian ITS sector. The ‘e-transport’
program of the Australian Transport Council integrates public, private and institutional programs
on ITS in Australia. Universities/Research institutes, automobile & motoring transport and

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technology companies, communication carriers and the state & federal governments partake in this
program. The country is also receiving huge ITS research funding from international technology
majors such as Motorola, Alcatel, Webraska and Bosch. Also, the Victorian government is actively
endeavoring to institute a National Intelligent Transport Systems Center of Excellence for
furthering the initiative. As a result, the roadside assistance, fleet management, logistics, navigation
guidance, automobiles and freight applications are set to witness revolutionary improvements in
on-road travel performances.

ITS Australia
Intelligent Transport Systems Australia focuses on enabling the development and deployment of
modern technologies for usage over various modes of transport. Setup in 1992, the organization
comprises people with expertise in technology and transportation fields drawn from industry,
government, consumer and academic areas. The objective of ITS Australia is to involve itself in
national transportation planning in order to make sure that ITS deployment is in the interests of all
the stakeholders.

SCATS
SCATS - the Sydney Coordinated Adaptive Traffic System is an unmanned, fully computerized
and vertical queue based advanced traffic management system attempting to minimize traffic
congestions and travel delays by efficiently regulating the traffic flow through signal time/Phase
optimization. SCATS was developed by New South Wales Department of Main Roads. Though
developed in Australia, the system’s growing popularity world over rendered it as a global system,
ready-to-use anywhere in the world, further commended by exports to over 50 countries. Tyco
Integrated Systems is the leading distributor of SCATS worldwide. SCATS is successfully
implemented in various cities of Australia, Mexico, USA, China, Indonesia, New Zealand, Ireland,
Malaysia, The Philippines and Singapore.
SCATS deploy embedded inductive loop detectors and obtains traffic data in real time. Based on
the information received, the data is concurred with the most probable travel time schedules and
the queue lengths to arrive at the precise time and number of the vehicles approaching a junction
and further computes the optimal signal timing and accordingly matches the real-time signal
changeover to minimize delays and congestions. The adaptive control enabled SCATS to emerge
as one of the world’s most efficient urban traffic management and control system linking multiple
traffic signal controllers.

India – A Potential Market


ITS penetration in India is negligible with a few instances of ETC installations. However the
National Highways Authority of India (NHAI), the agency responsible for the National Highways
plans to adopt electronic toll collection (ETC) systems on major highways throughout the country.
The NHAI’s National Highways Development Programme (NHDP) plans to expand about 10,000
kilometers of highway network through public-private participation.
The NHAI is spending substantial amounts on developing its highway networks to international
standards. The total spend on road infrastructure in India over the period 2005-2012 is estimated at

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about US$40.0 billion. Of this nearly US$30.0 billion is expected to come from public private
participation projects in the form of BOT (Build-Operate-Transfer). As such the market offers huge
opportunities for the implementation of advanced tolling systems such as ETC. The National
Highway Network, which constitutes about 2% of the total road network in the country, carries
nearly 40% of the traffic. Moreover absence of alternative routes ensures that there is no diversion
of traffic away from tolled roads. The NHAI is in the process of finalizing a national interoperable
standard for ETC deployment across the highway network in the region.

Latin America

Market Analysis

Brazil: Largest Transportation Network


In Latin America, Brazil represents the largest economy. Transportation network is the largest in
South American region and offers business prospects to companies involved in the development of
ITS products and services. The public sector is playing a role in the improvement of the
transportation network by means of privatization, concessions of licenses to the private sector,
reviewing regulatory institutional frameworks for the transportation sectors, and investing in new
projects. Private sector is complementing the efforts by providing training to the workforce in latest
technologies and in investing in total quality and logistics programs.
ITS systems help in improving the management of vehicles and traffic. They improve logistics
planning and vehicle management by way of cargo tracing, vehicle location, vehicle routing and
scheduling, and incident response. The Ministry of Transportation (MOT) is overseeing the
deployment of ITS in Brazil for enabling the Highway Patrol Group for managing and controlling
cargo and private vehicles efficiently.

Market Snapshots
• Raytheon of US is a major vendor of ITS to Brazil.
• Both the state and federal government provide funds for the development of roads.
• In Brazil top priority is accorded to electronic toll collection by allocating more funds, which is
one of the principal applications of ITS.
• Tag-based electronic systems that are deployed in Brazil utilize Amtech’s read only backscatter
tool in the 915 MHz frequency band.
• Related 915 MHz backscatter systems are in use in other Latin American countries such as
Chile and Argentina and also across Mexico, the US and Canada. This is expected to harmonize
interoperable activities across North and South American geographies. Many of these systems
that have been deployed as well as Amtech systems in Brazil make use of the American
Trucking Association protocol.
• Title 21 read/write protocol employing backscatter know-how in the 915 MHz is consistent with
hardware and systems that are in use in Brazil.
• Ministry of Transportation (MOT) is the nodal agency for establishing ITS systems in Brazil.

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Product Introduction

2006
IPICO and Dyna Group Unveil Passive RFID Electronic Toll Collection System
IPICO and Dyna Group, Argentinean partner of IPICO, unveiled the passive Radio Frequency
Identification (RFID) system, designed on the IP-X™ technology of IPICO, for electronic toll
collection in South America. Passive and active RFID systems are used in open lane tolling,
facilitating reduction in traffic congestion, restricting excessive speeding, and combating crime.

Strategic Corporate Developments

2008
Telvent to Install Traffic Control System in Xinxiang
Telvent GIT S.A. announced plans to install an urban traffic control system in the city of Xinxiang
in China. The project worth more than €4 million is part of an agreement signed by the company
with Bureau of Public Safety of Xinxiang in 2004. Under the terms of the agreement, Telvent
would integrate the city’s electronic police system, the geographical information system (GIS), the
integrated assistance system, and the traffic signal control system during project execution.
The OHL Brasil Awards Contract to Telvent
The OHL Brasil construction company selected Telvent GIT S.A. for the supply, implementation
and start-up of the latter’s SmartToll system on three of the Brazilian federal highways. The
contract includes installation of 19 toll booths, three control centers, and 348 tollways, in addition
to Telvent’s SmartToll management software. The project worth more than €8 million is likely to
be completed within a year.
2007
TransCore Chosen by Halifax-Dartmouth Bridge Commission to Upgrade Toll System
Transcore Inc. secured a contract from the Halifax-Dartmouth Bridge Commission to upgrade the
existing 24-lane Toll Collection System and toll plazas on the two bridges operated by the
commission. As per the terms of the contract, TransCore would replace all the lane controllers;
install new automatic vehicle identification (AVI) systems in all the lanes, and video detection
systems in select lanes. The company would also build a new network that would connect all the
lanes, plazas, host, and workstations, and would also install host servers and applications, and new
plaza. The company would also install new touch-screen terminals, and receipt printers in attended
lanes. The upgradation is scheduled for completion by mid 2008.
Siemens Secures Key Contract from Sharjah
Siemens secured key contract from the Middle Eastern emirate of Sharjah for the supply,
installation and maintenance of Traffic management systems and solutions. The main focus is on
equipping the city with Siemens’ Comet, PC SCOOT, and ST800 Traffic controllers. The
development is part of the strategy to contain the growing number of accidents along with the
growing movement of vehicles on the city’s roads.

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IRD Buys 50% Stake in Xuzhou-PAT Control Technologies
International Road Dynamics Inc. (IRD) purchased 50% stake in Xuzhou-PAT Control
Technologies Limited (XCPT) of China for CDN$4.5 million. Xuzhou Construction Machinery
Group (XCMG), one of the largest manufacturers of construction machinery in China, holds the
remaining 50%. XCPT is a designer, manufacturer and service provider of high technology
Intelligent Transportation Systems (ITS) to the Chinese roadway infrastructure market.

Telvent Wins Supply Contract for Road Safety Systems


Telvent GIT S.A. received a contract worth €5 million from the Chinese City of Bayannur Police
Department to provide road safety and traffic control systems to the latter. As per the agreement,
Telvent installs a computerized control center, which connects a variety of other systems installed
by Telvent, such as traffic flow supervision on the main roads, traffic monitoring and control
through cameras as well as traffic regularization and optimization at traffic lights.

Siemens Consortium Secures Largest UTC Project in China


A consortium led by Siemens Limited China Industrial Solutions and Services (SLC I&S) secured
a contract to install the largest Urban Traffic Control (UTC) system in the city of Wuhan in China.
The total estimated cost of installing the system is about €7.9 million. The project has been
awarded by the Wuhan Urban Construction Utilization on behalf of the Wuhan Traffic Police. As
per the terms of the contract, the consortium installs CCTV cameras, traffic detection systems, and
traffic lights at about 420 junctions in Wuhan. The project also involves the deployment of
advanced communication systems linking the main control center with 2 sub-centers in Wuhan.
Apart from SLC I&S; other members of the consortium include Siemens AG, Siemens
International Trading, Ltd. Shanghai (SITL), and Wuhan E-Fly Technology Co., Ltd. The project is
scheduled for completion in early 2009.

Siemens Secures Traffic Management System Contract in Bangkok


Siemens Industrial Solutions & Services Group (I&S) secured an installation, supply and
maintenance contract for Toll Collection, Traffic Control and Communication Systems in Bangkok
from Thailand’s Expressway & Rapid Transit Authority. The project worth €6.3 million is
scheduled for completion by the year 2008, and would reduce traffic congestion and enhance
traffic flow. As part of the project, the company would supply, install and maintain CCTV video
camera system, emergency telephone system, fiber optic communications network, traffic
computer and variable message signs on the expressway.

ItraMAS Launches National Traffic Control Center


ItraMAS Corporation Sdn Bhd launched National Traffic Control Centre (NTCC) that combines all
privatized Malaysian highway networks, and is responsible for traffic control and surveillance
functions on these roads. The control center has been established as part of the Malaysian Highway
Authority (MHA)/ Lembaga Lebuhraya Malaysia (LLM)’s initiative to provide real-time traffic
information to commuters through various means such as variable message boards, SMS, MMS,
and the internet.

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Transdyn Secures Contract from the City of Melbourne
Transdyn secured a contract from the Transurban’s CityLink Melbourne Limited (CML) to install
and maintain the CityLInk road network’s traffic and plant operations. The contract includes the
design and building of Central computer system, DYNAC™, to manage the 22-kilometre CityLink
automated tollway in Melbourne. The Enterprise Server Software suite, DYNAC™, assists in
monitoring City Link’s access control, electrical distribution, electronic message signs, emergency
telephones, environmental systems, fire detection, lighting, motorist advisory radios, vehicle
detectors, ventilation, video cameras, weigh-in-motion and counting stations.

2006

Extreme CCTV Acquires Forward Vision CCTV


Extreme CCTV Inc., acquired Forward Vision CCTV Ltd for a consideration of C$10 Million. The
development enables Extreme CCTV to offer a wide portfolio of products with enhanced
performance and functionality for the critical surveillance projects across the globe.

INIT Secures CAD$35 Million Contract


INIT Innovation In Transportation Systems, Inc., a subsidiary of INIT Innovation in Traffic
Systems AG, North America, bagged a contract worth CAD$35 million from TransLink, the
transportation authority in Vancouver. As per the contract, INIT provides TransLink with several
intelligent transportation and electronic management systems including the state of the art GPS,
digital private mobile voice and data radio systems and Windows XP based on board computers.

Image Sensing Systems Supplies ITS Related Equipment


Image Sensing Systems, Inc., through its subsidiary, Flow Traffic Ltd., supplied ITS related
equipment for installation of 192 Autoscope Rack Vision Video Detection Systems at Seoul Traffic
Management Center, South Korea. The system effectively records both speed and volume of
traffic. The system is useful to the road users in calculating the journey times and traffic related
information. Earlier, the company installed about 235 Autoscope RackVision systems to the
Korean Highway Corporation and this new supply brings the total to 427 Autoscope Systems. This
new installation further reinforces the company’s presence in the South Korean market.

TeleAtlas Enters into an Agreement with Beijing Changdi Youhao


Tele Atlas entered into a distribution agreement with Beijing Changdi Youhao Mapping
Technologies Co., Ltd, for providing comprehensive map coverage to 337 cities of China. This
bestows a leadership position to TeleAtlas in the region, with respect to zones covered by digital
maps.

Tele Atlas and PT Navindo Enter into a Joint Venture Agreement


Tele Atlas and PT Navindo Technologies entered into a joint venture agreement, resulting in
formation of another entity, PT Tele Atlas Indonesia. This agreement is essentially targeted at
providing a highly precise digital map database in Indonesia.

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ItraMas Alliances with AdvancedInformation Technology
ItraMas, a leading provider of intelligent transportation systems in Malaysia, entered into a joint
venture with AdvancedInformation Technology Plc to provide several light emitting diodes and
intelligent transportation systems based products, services and solutions in Thailand.

Select Players

Aecon Group Inc (Canada)


Aecon Group Inc, (Aecon) formerly Canadian Highways International Corp (CHIC) is globally
known for its services in toll infrastructure development. Aecon’s operations are streamlined into
four segments, namely- Buildings, Concessions, Infrastructure and Industrial. The Buildings
segment is involved in construction of institutional, commercial and residential buildings, whereas
the Infrastructure segment engages in development of private and public infrastructure facilities
such as toll highways, roads, airports, transit systems, tunnels and dams among others. Installation
of natural gas distribution systems, traffic signals, electric and telecommunication networks and
highway lightings are also undertaken by the company’s Infrastructure segment.
The company provides know-how in the field of project finance, design, construction and
execution of infrastructure plans through its Concessions segment. The Industrial segment is
engaged in developing fossil fuel, alternative fuel and cogeneration power plants, manufacturing of
heat recovery generator systems, fabrication and assembly of small diameter specialty pipes, and
in-plant construction in nuclear power plants.
Aecon is based in Toronto, Canada and was established in 1957. The company’s operates in the
US, Canada, Israel, India and Ecuador.

Delcan Corporation (Canada)


Delcan Corporation is a consulting and engineering organization engaged in developing and
implementing intelligent water systems, information technology projects and intelligent
transportation systems. The company provides services for project design, software development,
evaluation and procurement of software and hardware, testing, integration, documentation,
training, maintenance, and troubleshooting. Delcan’s Transportation Systems division is
acknowledged for its expertise in intelligent transportation systems both by the government and the
industry. The Transportation Systems division provides integrated solutions for transportation,
ranging from project design to implementation and maintenance. Delcan provides NETworks®
Integrated Transportation Management System, a suite of integration software, offers streaming
video, traffic data, construction schedules and train and bus arrival information.
Extreme CCTV Inc (Canada)
Extreme CCTV Inc is involved in designing, developing and manufacturing precision engineered
surveillance solutions and advanced infrared illuminators for transportation, critical infrastructure,
Homeland Security, defense, and national heritage sites. Major products offered by the company
include Infrared Illuminators, IP Infrared Imaging, All-Environment (entry-level) Cameras,
Explosion-Protected CCTV, High-Impact Domes, Integrated Day/Night (IDN) Cameras, Pan-Tilt-
Zoom (PTZ) Cameras, and REG License Plate Capture Cameras and Software.

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With the acquisition of PTZ camera provider, Forward Vision CCTV Limited and Forward Vision
Systems Limited in 2006, Extreme CCTV expanded its product portfolio to emerge as one of the
major providers of visual detection systems for ITS.

International Road Dynamics Inc (Canada)


International Road Dynamics (IRD) is a global leader in the design and deployment of tailored
solutions in the ITS industry. IRD systems employ advanced vehicle-detection and weigh-in-
motion technology. The company’s multi-system solutions comprise:
• Automated toll systems
• Customer service and support
• Traffic data collection systems
• Traffic safety and advisory systems
• Driver and fleet management systems
• Automated truck weigh stations/commercial vehicle operations
The range of products offered by the company also include Dynamic Lane Merge System, the
Variable Speed Limit System (Speed Ranger™) and Travel Messenger ™, which is a real time
information system that informs a driver of prevailing traffic conditions. IRD also provides a range
of ITS systems for compiling data, improving roadway safety and analyzing traffic movement.
Other offerings comprise WIM freeway scales, traffic counters and classifiers, vehicle weighers,
sensors and accessories, concrete maturity monitors, traffic control safety products, and fleet
management software.
The company maintains its presence in the US, Canada, Pakistan, Indonesia, India, Brazil, Saudi
Arabia, Korea, Malaysia, and other Latin American countries.

MARK IV IVHS (Canada)


MARK IV IVHS, a business segment of MARK IV Industries Corp., develops dedicated Short-
Range Communication (DSRC) equipment that finds application in ITS field such as electronic toll
collection and commercial vehicle operations (e.g. automated weigh station bypass). Highway, toll,
turnpike, tunnel and bridge authorities also utilize the devices for enabling the functioning of
intelligent transportation systems. The company, operating across 17 countries worldwide, was the
first to apply DSRC technology to electronic weigh station bypass/CVO programs. Mark IV IVHS
is the largest provider of radio frequency based transponder devices for ETC systems to the
Northeastern United States. E-Zpass™ system uses transponders of Mark IV and by far represents
the biggest and successful ITS execution programs in the world. Other end use segments of Mark
IV’s transponders are intelligent vehicle highway systems, vehicle mapping systems, railroad and
mass transit information systems, video displays for transportation and fixings and Information
Display Products.
Mark IV IVHS also played a crucial role in Canada’s Highway 407, which is the world’s first non-
stop all electronic toll-road. Mark IV IVHS is designing T3, a tag that integrates three DSRC
protocols in one transponder for providing commercial vehicles the facility for interoperability on
electronic toll roads across North America. Besides, the company also unveiled a prototype smart

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card transponder system called Smart Fusion for facilitating the transition from electronic-
commerce to mobile-commerce. In 2008, an affiliate of Sun Capital Partners Inc. acquired Mark IV
Industries. As a result, MARK IV IVHS became a portfolio company of Sun Capital Partners.

Sirit Inc. (Canada)


Sirit Inc. is one of the leading providers of RFID (Radio Frequency Identification) enabling
technology in the world. The company provides host of technology solutions in low, high, and ultra
high frequencies that enable the company’s customers to provide fast and cost-effective RFID
solutions for varied applications such as Automatic Vehicle Identification, Inventory Control &
Management, Asset Tracking, Supply Chain & Logistics, Cashless Payment/ Electronic Tolling,
Access Control, Near Field Communications, and Product Authentication. Major solutions and
products offered by Sirit include Fixed Reader Solutions, and Embedded RFID Reader Solutions.
The company’s Fixed Reader Solutions include Traffic Management Products, Parking & Access
Control Products, Toll Management Products, and UHF Logistics Readers, while the Embedded
RFID Reader Solutions include high and ultra high frequency reader modules, near field
communication solutions, and Plug-N-Play readers. Sirit is also one of the four companies to be
contracted to develop first generation prototypes of 5.9 GHz DSRC technologies by the Federal
Highways Administration and the US Department of Defense.
In Automatic Vehicle Identification (AVI) applications, Sirit is one of the leading providers of
Traffic Probe solutions, Electronic Toll and Traffic Management (ETTM) solutions, and Toll
Integration solutions. Traffic Probe solutions offered by the company enable real time monitoring
of traffic patterns for managing traffic and designing safety solutions. Sirit’s ETTM solutions
include electronic toll collection systems, and the company is the global leading provider of
technologies conforming to the California Department of Transportation’s Title 21 open standard.
Sirit also offers Microsoft® open standards based modular, flexible, scalable, and auditable
electronic tolling systems. Sirit’s Parking and Access Control solutions find application in parking
lots, gated communities, and other controlled areas, and offers convenience, security, and control to
the users. Key products offered by Sirit include IDentity MaX and IDentity FleX readers, and
IDentity ZiP vehicle tag for AVI systems, and IDentity Title 21 for highway toll collection systems
among others.

Tacel Ltd. (Canada)


Tacel Ltd. is a Canada based leading provider of traffic control equipment and services. The
product suite of the company include loop detectors, controllers, emergency preemption, traffic
signal heads, LED signals, loop sealants, speed signs, mounting hardware and the ACTRA-Central
advanced traffic management systems solutions. Other products of the company include Marc NX
closed loop traffic management software system, SCOOT – Adaptive traffic system, i2 traffic
management system, 2070 advanced transportation controller and intersection management
software. The company was incorporated in 1979.

ItraMAS Corporation Sdn Bhd (Malaysia)


ItraMAS Corporation Sdn Bhd (ItraMAS) is a technology driven intelligent traffic management
and road safety solutions provider engaged in the design, development and commercialization of

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multimedia based intelligent transportation systems, LED products and traffic signaling &
management systems. ItraMAS also delivers Toll Collection System (TCS), Area Traffic Control
(ATC), Advanced Traffic Management System (ATMS)/Advanced Traveller Information System
(ATIS) and other related ITS modules and sub-systems. The company embarks on strategic
technology alliances and extensive in-house development efforts for producing and commissioning
high-performance intelligent transportation systems. The company was incorporated in 1997.

B. Market Analytics

TABLE 28: Rest of World Recent Past, Current & Future Analysis for Intelligent
Transportation Systems by Product Segment – Advanced Traffic Management Systems
(ATMS), Electronic Toll Collection (ETC) Systems, Public Vehicle Transportation
Management Systems (PVTMS), Commercial Vehicle Operations (CVO) Systems,
and Other Markets Independently Analyzed with Annual Sales in US$ Million
for the Years 2000 through 2010
Segment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % CAGR
ATMS 229.14 247.59 271.26 300.42 334.52 373.79 423.17 485.88 565.81 668.84 792.78 13.22
ETC 90.26 98.62 109.66 122.80 138.13 155.89 181.88 217.64 265.80 331.69 424.13 16.73
PVTMS 51.48 55.96 61.72 68.51 76.64 86.59 100.67 119.72 146.44 184.25 238.07 16.55
CVO 36.51 39.16 42.46 46.28 50.77 56.02 64.80 77.84 96.05 120.70 153.78 15.46
Others 34.76 37.04 40.07 43.72 47.86 52.46 58.85 68.05 81.37 100.58 125.85 13.73
Total 442.15 478.37 525.17 581.73 647.92 724.75 829.37 969.13 1,155.47 1,406.06 1,734.61 14.65

2007 & 2008: GIA Estimates 2009 & 2010: GIA Projections
Error tolerance for data in this table is 15% (+/-)
Data is reported at the Manufacturer’s Level
This data is NOT independently adjusted or weight-averaged for each country's exchange rate fluctuations in this period. It is derived from primary
and secondary data feeds. Error tolerances (ETOL) from such fluctuations can be higher than the normal 5% (+/-).
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
850
680

510
340

170
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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TABLE 29: Rest of World Long-term Projections for Intelligent Transportation Systems by
Product Segment – Advanced Traffic Management Systems (ATMS), Electronic Toll
Collection (ETC) Systems, Public Vehicle Transportation Management Systems (PVTMS),
Commercial Vehicle Operations (CVO) Systems, and Other Markets Independently
Analyzed with Annual Sales in US$ Million for the Years 2011 through 2015
Segment 2011 2012 2013 2014 2015 % CAGR
ATMS 936.59 1,097.12 1,263.33 1,416.32 1,550.45 13.43
ETC 533.64 653.39 777.27 894.87 994.92 16.85
PVTMS 300.83 367.73 428.00 479.83 519.85 14.65
CVO 190.75 229.15 267.12 301.07 328.32 14.54
Others 155.44 186.39 216.70 243.85 266.16 14.39
Total 2,117.25 2,533.78 2,952.42 3,335.94 3,659.70 14.66
2011-2015: GIA Projections
Error tolerance for data in this table is more than 15% (+/-)
Data is reported at the Manufacturer’s Level
This data is NOT independently adjusted or weight-averaged for each country's exchange rate fluctuations in this period. It is derived from primary
and secondary data feeds. Error tolerances (ETOL) from such fluctuations can be higher than the normal 5% (+/-).
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong Kong, India, Indonesia, Korea,
Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru
and Venezuela) and The Middle East (Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

AT MS ET C PVT MS CVO
1650
1320

990
660

330
0
2011 2012 2013 2014 2015

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TABLE 30: Rest of World 10-Year Perspective for Intelligent Transportation Systems by
Product Segment – Percentage Breakdown of Dollar Sales for Advanced Traffic
Management Systems (ATMS), Electronic Toll Collection (ETC) Systems, Public Vehicle
Transportation Management Systems (PVTMS), Commercial Vehicle Operations
(CVO) Systems, and Other Markets for 2003, 2008 & 2012
Segment 2003 2008 2012
ATMS 51.63 48.98 43.30
ETC 21.11 23.00 25.79
PVTMS 11.78 12.67 14.51
CVO 7.96 8.31 9.04
Others 7.52 7.04 7.36
Total 100.00 100.00 100.00
Data is reported at the Manufacturer’s Level
Countries analyzed under Rest of World include Canada, and countries of Asia-Pacific (Australia, China, Hong
Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand),
Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela) and The Middle East
(Iran, Iraq, Israel, Kuwait, Saudi Arabia, Syria and The UAE.)
Other Intelligent Transportation Systems include Advanced Vehicle Information Systems among others

2003 2008 2012


7.36
7.52 7.04 9.04
7.96 8.31

11.78 14.51
12.67 43.3
51.63 48.98

21.11 23 25.79
AT MS ET C PVT MS CVO Others

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INTELLIGENT TRANSPORTATION SYSTEMS - COMPETITION

A. PRIMARY PLAYERS

ADDCO, INC.
240 Arlington Avenue E, St. Paul, Minnesota 55117, USA
Phone: 651.488.8600, Fax: 651.558.3600
SOURCES: www.addco.com and other secondary online sources

BUSINESS PROFILE
Addco Inc. (Addco), a premier provider of traffic management solutions, designs, engineers,
manufactures and deploys traffic management equipment and software. The company is also a
leading provider of portable intelligent transportation systems (ITS) solutions and services to several
intelligent transportation systems, traffic management and work zone safety markets. The company is
the first distributor of air-cooled Duetz diesel engines. The company’s product and service portfolio
includes dynamic message signs, portable ITS platforms, portable traffic signs, traffic management
software, smart traffic solutions, the sandbagger, Addco financial services and industrial products.
The company’s ITS based solutions include Flex Trailer, SmartQueue™ - Queue detection system,
SmartMerge™ - an innovative lane merge system, SmartZone®, SmartFLOW and SmartEye™ - a
portable video surveillance system. Addco’s products find applications in two distinct markets such
as industrial products and traffic management. The company’s products also find usage in diverse
industries such as agriculture, construction, aviation/aerospace, military, off-road, automotive,
recreational, marine and mining. Brick is the company’s registered trademark.
Addco operates two divisions such as Traffic Management and Industrial Controls. The company’s
Traffic Management division designs and implements Work Zone ITS solutions that increase
safety and mobility. The company’s Industrial Controls division manufactures and sells Electric
Remote Control (ERC) systems, actuators and Flex-Tite rubber latches. Major customers of the
company include consulting engineers, contractors, DOT officials, planners and several other
traffic control and barricade companies. Industrial products of the company include electric remote
control, hand controls, latches, joysticks and actuators.

STRATEGIC CORPORATE DEVELOPMENT


Year 2007 In Review…
Partnership
Addco and Odeco Enters Partnership
Addco formed partnership with Odeco Electronica S.A. of Spain. The deal expands Addco’s
product line, besides enhancing growth opportunities. Odeco Electronica, a part of the global
consortium specializing in traffic and LED technology, offers intelligent transportation systems,
fixed dynamic messaging signs and access panels in North America and Europe.

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Product Launch

Addco Launches The Sandbagger…


Addco launched the new Sandbagger that offers rental houses and contractors a safe way to
improve productivity and profitability. The company distributed the complete line of
Sandbagger® products that includes the 2- and 4-chute gravity models and a 4-chute motorized
version. The motorized 4-chute is equipped with an auger that helps keep wet sand flowing. The
company’s Sandbagger® could fill more than 2.5 times as many sandbags an hour than
shoveling by hand. The use of Sandbagger eliminates the bending and straining of shoveling
sand into bags.

PRODUCT PORTFOLIO

Dynamic Message Signs


The Brick; Portable changeable message signs (PCMS) such as Full Matrix, All LED Solar, LED-
DOT Hybrid, Arrowboard, Arrow Dynamic Sign, Speed Display Trailer, and Vehicle Mount; and
Permanently installed BRICK® signs such as Roadside, Overhead, Variable Speed Limit, Brick
Trak and Driver Feedback.

Portable ITS Platforms


SmartZone and Flex Trailer

Software
VTOC: Virtual Transportation and Operations Center for Work Zone ITS; Brickbuilder: Software
to help determine the right size sign for the project; and BaseStation: Software to create messages
and operate dynamic message signs

Smart Traffic Solutions


SmartFLOW, SmartZone, SmartMerge, SmartQueue, and SmartEye

Industrial
Hand Controls; Actuators; Electric Remote Control; Joysticks; and Latches

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AFFILIATED COMPUTER SERVICES, INC.
2828 N Haskell, Building 1, Dallas, Texas 75204, USA
Phone: 214-841-6111
SOURCES: www.acs-inc.com and other secondary online sources
2007 Sales: US$ 4,252.7 million (Nine Months Ended, March)
2006 Sales: US$ 5,353.7 million
2005 Sales: US$ 4,351.2 million
(Fiscal Year Ends in June)

BUSINESS PROFILE
Affiliated Computer Services Inc., (ACS) is a provider of Business Process Outsourcing (BPO),
Information Technology enabled services (ITes) and end-to-end product solutions. The company
offers solutions to commercial and government clients operating in various domains from all over
the world. The company’s Business Process Outsourcing (BPO) services include claims
processing, finance and accounting, loan processing, human resource and document processing.
ACS’ outsourcing services include mainframe, midrange, desktop, network, and web-hosting
solutions. The company also provides commercial systems integration services such as application
development and implementation, applications outsourcing, technical support and training, as well
as network design and installation services.
ACS’ services are provided to a variety of clients including healthcare providers, retailers, wholesale
distributors, manufacturers, utilities, financial institutions, and insurance and transportation
companies. ACS teams up with national, regional, public sector, government sector and commercial
units to offer Intelligent Transportation Solutions (ITS) enabling them to achieve business targets
safely and efficiently. ACS products ranges from ITS to Traffic Management Systems (TMS)
including Electronic Toll Collection (ETC) and Parking Management System (PMS). The company
is one of the leading providers of ETC systems, accounting for about 90% of all E-ZPass transactions
in the US. Other ETC operations handled by ACS in the US include FasTrak™ in the San Francisco
Bay area, PalmettoPass™ in South Carolina, and SunPass™ in Orlando. The company operates in
the areas of Business Process Outsourcing (BPO), Information Technology Outsourcing (IT),
Systems & Integration and e-Solutions. ACS operates in over 100 countries around the world. Key
competitors of the company include Accenture, Computer Sciences Corp., and EDS.
ACS was established in 1988.

BUSINESS OPERATIONS

Commercial
ACS provides clients with business process outsourcing, information technology services, systems
integration services and consulting services. The company’s commercial business process
outsourcing practice is focused on five major categories namely Administration, Human Resources,
Finance and Accounting, Customer Care, and Payment Services. ACS provides healthcare claims
processing and related consulting, mailroom services and total records management services to its

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clients. The company offers benefit claims processing, benefit and other human resources consulting
services, employee services call centers, defined benefit, defined contribution and health and welfare
benefits administration, employee relocation, training administration and learning services, payroll
services, vendor administration, and employee assistance programs.
ACS’ human resources consulting business provides actuarial services and human resource
advisory services in the area of employee benefit and compensation plan design and strategy,
employee communication, and human resource management. The company provide
revenue/invoice accounting, disbursement processing, expense reporting, procurement, payroll,
cash management, fixed asset accounting, tax processing, general ledger and other services
associated with finance and accounting that are process and technology sensitive. ACS offers
dispatch and activation services, call center services and technical support and also provides loan
origination and servicing and clearinghouse services.
ACS’ systems integration services include application development and implementation,
applications outsourcing, technical support and training, as well as network design and installation
services. The company’s systems integration services include the development of web-based
applications and web-enablement of information technology assets, allowing clients to conduct
business with their customers and business partners through the Internet. ACS provides systems
integration services to clients who are deploying client/server architectures, advanced networks and
outsourcing legacy applications maintenance.
Government
ACS is a leading provider of business process outsourcing, information technology services and
system integration services to government agencies. ACS design, develop, implement and operate
large-scale healthcare programs such as Medicaid, child and pharmacy benefit management
programs, and the information technology solutions that support those programs. The company
provides information technology services to state and local governments throughout the US.
The services provided by the company help government agencies reduce operating costs, increase
revenue streams and increase the quality of services to citizens.
ACS’ information technology services include full data center management, application integration
and maintenance, network management and security, seat management, helpdesk services, and
disaster recovery services. The company is a major provider of child support payment processing
services, including high volume remittance processing and disbursements, as well as associated
employer outreach and customer service activities. The company also provides electronic benefits
transfer, which is the issuance of food stamps and cash benefits through magnetic stripe cards with
redemption through point of sale devices and automated teller machines.

SALES DATA
Nine Months Sales Comparison: 2007 Vs. 2006 (Nine Months Ended, March) (In US$ million)

Year Sales % Change


2007 4,252.7 7.04
2006 3,973.0 -

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Nine Months Sales Comparison by Business Segment (2007 Vs. 2006) – Commercial
and Government (Nine Months Ended, March) (In US$ million)

Segment 2007 2006 % Change


Commercial 2,558.0 2,341.1 9.26
Government 1,694.7 1,631.9 3.85
Total 4,252.7 3,973.0 7.04

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 5,353.7 23.04
2005 4,351.2 -

Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Commercial


and Government (In US$ million)

Segment 2006 2005 % Change


Commercial 3,167.6 2175.1 45.63
Government 2,186.1 2176.1 0.46
Total 5,353.7 4,351.2 23.04

Annual Sales Comparison by Service (2006 Vs. 2005) - Business Process Outsourcing,
Information Technology Services and Systems Integration Services (In US$ million)

Service 2006 2005 % Change


Business Process Outsourcing 3,996.6 3238.0 23.43
Information Technology Services 971.8 858.6 13.18
Systems Integration Services 385.3 254.6 51.34
Total 5,353.7 4351.2 23.04

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Acquisition

ACS Announces the Acquisition of CDR Associates, LLC…


ACS announced the acquisition of CDR Associates LLC, which provides recovery and technology
services to healthcare payers, providers, and government-based programs, specializing in credit balance,
renal dialysis, and long term care audit services. The acquisition strengthens ACS in Healthcare

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Industry. The acquisition broadens ACS' service mix in the healthcare payer and provider markets by
leveraging CDR's proven auditing services and innovative Credit Balance Analysis System software.
ACS Completes the Acquisition of Albion, Inc…
ACS is enhancing its capabilities in the Health and Human Services (HHS) sector with the
completed acquisition of certain assets of Albion, Inc., a company specializing in integrated
eligibility software solutions. The acquisition enables ACS to address key HHS challenges facing
State and Local government clients, including expensive legacy systems; a need for cost
effectiveness; and a client-centered approach to service delivery.

Agreement
ACS Expands IT Services Agreement With Symetra Financial…
ACS announced the expansion of multi-million dollar contract with Symetra Financial, a leading
life insurance and financial services company. The expanded agreement would add desk-side
support services to ACS' existing five-year contract, which commenced in 2004. As per the
agreement ACS would provide desk-side support services for Symetra's headquarters facility in
Bellevue, Washington.
ACS provides complete information technology (IT) infrastructure services for Symetra's affiliated
companies, as well as cross-functional and business process outsourcing (BPO) solutions. The
services include data center services, distributed computing, data network services, voice
communications, service desk, mail, and image processing services.

Contracts
ACS to Provide Contactless Ticketing System…
ACS received two contracts from infrastructure developer Energy International to provide a
contactless ticketing system for the public buses and waterbuses of Dubai, United Arab Emirates.
The Public Transport Agency and the Marine Agency of the Dubai Roads and Transport Authority
(RTA) would equip their public buses and the piers for waterbuses with the ACS ARCOS(TM)
fare collection system to simplify travel on public transportation in Dubai.
The new contactless system would enable RTA Dubai authorities to share information such as
passenger flows across the RTA agencies. The system is designed to handle multiple operators and
be able to expand to cover larger areas if necessary.

ACS Gains Technology Services Contract with City of Santa Clara…


ACS gained a one-year extension of its contract to provide the City of Santa Clara, Calif., with
information technology (IT) outsourcing services. The contract provides project management; help
desk, desktop, network, application, operation, and systems services.

ACS Signs Contract with Government of Malta…


ACS signed a seven-year, US$ 21 million contract with the Government of Malta to improve the
delivery of healthcare to patients and improve the accuracy of the healthcare information. ACS

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would provide the hardware, software, and expertise needed to maintain laboratory information
systems, radiology information systems, picture archiving, and communications systems.
ACS would also provide products and services to aid in reaching more precise diagnoses of patient
conditions. In addition, the agreement supplies physicians, nurses, and other healthcare
professionals with the latest in healthcare technology, meeting and exceeding standards existing
elsewhere in the world.

ACS Receives Contract to Provide Finance and Accounting Solutions…


ACS received a seven-year contract to provide finance and accounting (F&A) services for Georgia-
Pacific LLC, one of the world's leading manufacturers and marketers of tissue, packaging, paper,
pulp, and building products. Financial details were not disclosed. As per the contract ACS would
deliver a range of F&A solutions, including accounts payable services, cash applications, travel
expense management, payroll tax, and accounting services.

ACS Bags Benefits Outsourcing Contract with Ameren Corp…


ACS bagged benefits outsourcing contract providing defined benefit and health and welfare
administration for Ameren Corporation, one of the nation's largest investor-owned electric and gas
utilities. Under the terms of the five-year agreement, ACS would administer Ameren's pension and
health plans for 24,000 participating employees and retirees.

ACS and State of Montana Expand Longstanding Medicaid Contract…


ACS announced a contract amendment with the Montana Department of Public Health and Human
Services (DPHHS) to provide managed care enrollment broker services for the state's Medicaid
Management Information System (MMIS) contract. The company presently carries out full fiscal
agent functions for the Medicaid program, Mental Health Services Plan, Children's Health
Insurance Plan (CHIP), and Indian Health Services programs.
ACS services include system development and maintenance, claims processing, call center support,
prescription benefits management, fraud and abuse prevention, provider resources, decision
support, and Medicaid program and policy support.

ACS Gains Contract to provide a Contactless Public Transit Ticketing System…


ACS gained US$ 8.6 million contract to provide a contactless public transit ticketing system in
Nancy, France. Three district councils in Nancy namely the Greater Nancy Authority, the Pompey
Basin District Council, and the Suburban Transport Organisation joined together to adopt a system
to serve each of their public transit networks. As part of the contract, ACS would replace the
current magnetic equipment with combined magnetic and contactless ticketing equipment.

ACS Receives Five-Year Contract for Texas Health and Human Services EBT Call Center…
ACS received a five-year contract to provide call center services to electronic benefit transfer (EBT)
recipients in the state of Texas. Over 1 million food stamp and TANF (Temporary Assistance for Needy
Families) clients in the State would receive assistance through the Texas-based call center.

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ACS Bags Contract with State of Colorado…
ACS bagged a three-year, US$ 67 million contract re-bid award with the Colorado Department of
Health Care Policy and Financing to continue operating the State's Medicaid Management
Information System (MMIS). The services include systems development and maintenance,
pharmacy benefits management, decision support services, fraud and abuse detection and recovery,
claims processing, call center and program policy support, and third-party recovery.

ACS Gains IT Outsourcing Contract with DCP Midstream…


ACS gained five year $51 million an information technology (IT) outsourcing contract with DCP
Midstream, one of the nation's largest natural gas gatherers and processors, and natural gas liquids
producers in the midstream segment. Under the terms of the contract, ACS would deliver a broad
range of IT services and support to DCP Midstream. The company offers specific services
including technical help desk, end-user desktop support, network management, centralized
computing support, document management, messaging support, IT security, and application
services for some packaged applications.

ACS Signs Renewed and Expanded BPO Contract with Horizon Blue Cross Blue Shield…
ACS signed a renewed and expanded business process outsourcing (BPO) contract with Horizon
Blue Cross Blue Shield of New Jersey, the State's largest health insurer. Under the renewed
contract, annual claims service volumes provided by ACS are intended to increase 80%.
Horizon Blue Cross Blue Shield is New Jersey's largest health insurer, providing coverage to more
than 3.3 million people.

ACS Wins Renewed Defined Contribution Outsourcing Contract…


ACS received a US$ 4.7 million three-year renewed defined contribution outsourcing contract with
the Public Employee Retirement System of Idaho (PERSI) a multi-billion dollar retirement plan
designed to provide secure, long-term pension benefits for employees who choose careers in public
service. ACS provides participant recordkeeping, communications, and compliance services for
PERSI members of their supplemental 401(k) plan.

ACS Renews Retirement Plan Outsourcing Contract with Allied Waste…


ACS awarded a five-year renewal of retirement plan outsourcing contract with Allied Waste
Industries, Inc., a leading provider of collection, recycling, and disposal services to residential,
commercial, and industrial customers in the US. ACS offers services such as record keeping,
administration, and benefit calculations, actuarial services, and call center support for Allied
Waste's 26,000 retirement plan participants.

ACS Bags Contract to Provide Contactless Ticketing System…


ACS bagged a contract by Alstom, a global leader in rail infrastructure, to deliver the ticketing
system for Jerusalem's first tramway system. ACS would execute a central fare collection and
magnetic and contactless ticketing system and maintain the field equipment as part of its 15-year
contract. The project includes installing card customization machines, portable inspection units,

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ticket vending machines, and combined validation machines on board the Citadis trams
manufactured by Alstom.

ACS Signs Contract with GlaxoSmithKline…


ACS gained a US$ 171 million contract with GlaxoSmithKline (GSK) to provide human resource
business process outsourcing (HR BPO) services. As per the ten-year agreement, ACS would
consolidate for GSK a number of services, which are currently outsourced to a variety of providers
or being delivered within GSK. The service includes payroll processing and benefits administration
for GSK in the US, as well as employee and manager self-service portals and integrated online
tools for several HR processes across US and UK businesses.

ACS Gains Contract to Provide Contactless Ticketing System…


ACS gained a US$ 14 million three-year contract by Marseilles, France, public transport operator
Marseilles Provence Metropole (MPM) to deliver a multi-operator and multi-modal contactless
ticketing system. The ticketing system would provide various transportation modes specific to the
area, including metro, trolley, bus, and tram lines, as well as car parking, bicycle rental stations,
and ferry service covering the greater Marseilles area.

ACS Receives IT Outsourcing Contract With Safety-Kleen…


ACS received US$ 3.3 million three-year information technology (IT) outsourcing contract with
Safety-Kleen, a leading provider of responsible oil recycling, cleaning technologies, and
environmental services. As per the contract, ACS would maintain and support Safety- Kleen's SAP
R/3 environment, an enterprise resource planning (ERP) system. The company would also provide
integrated services that include system and application management, monitoring, and help desk.

ACS Signs Contract With State of Pennsylvania…


ACS signed a five-year, US$ 8.7 million contract with the Pennsylvania Department of Public
Welfare (DPW) to provide a three-component Medical Management Review System (MMRS) to
manage its care management, prior authorization, and case management functions. The ACS
SmartPA Tool provides the Commonwealth with the innovative platform to launch the first-of-a-
kind MMRS solution. ACS is partnering with CaseNET to deliver best-in-class case management
solutions to DPW.

ACS Renews HRO Contract With American Financial Group…


ACS received a three-year renewal of benefit plan administration outsourcing contract with
American Financial Group, Inc. (AFG), a leading provider of property and casualty insurance,
annuities, and supplemental health insurance. ACS provides services such as record keeping for
401(k) qualified and non-qualified plans, call center support, website transaction processing, and
transmittal and payment report preparation.
The renewal of the services emphasizes ACS' position as a leading provider of benefits
administration part of its comprehensive suite of human resources out sourcing (HRO)
services.

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Business Expansion…
ACS Expands Global Capabilities with Construction of New Facility in Jamaica…
ACS announced the expansion of global capabilities with the construction of a new office and call
center facility in Montego Bay, Jamaica. The new facilities would provide new positions such as
call center agents, finance and accounting specialists, human resources benefits processors, and
data processors.

Product Launches
ACS Introduces Innovative Software…
ACS introduced innovative software AgileCourt(TM) to serve justice systems solution. The software
offers industry-leading flexibility and innovation to court case management with a business rules-based
software system that helps manage and automate rules set by regulation and policy.

ACS and MasterCard Worldwide Introduce Contactless Payments…


ACS announced that its airport parking applications in North America would begin accepting
MasterCard PayPass contactless payments. MasterCard PayPass is a fast, cashless payment option
that enables ACS customers to pay for parking simply by tapping the PayPass-enabled MasterCard
card or device on a PayPass reader. ACS is the leader in large airport parking systems, with more
than 20 current installations at the nation's busiest airports. The company offers a wide range of
transportation solutions, including public transit agency, toll collection agency and car park
operator solutions that rationalize and automate revenue collection.
MasterCard Worldwide advances global commerce by providing a critical economic link among
financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor
and advisor, MasterCard develops and markets payment solutions, processes over 16 billion
transactions each year, and provides industry-leading analysis and consulting services to financial
institution customers and merchants.
Year 2006 in Review…
Acquisition
ACS Signs an Agreement to Acquire Intellinex LLC…
ACS signed an agreement to acquire Intellinex LLC, an Ernst and Young LLP enterprise and
leader in integrated learning solutions. The acquisition enables ACS to expand its already extensive
menu of human resource outsourcing (HRO) BPO capabilities and provide scalable, reliable, and
secure learning technology platform; custom content development and content management
capabilities to HRO market.

Partnership
ACS and dbMotion Enter into a Strategic Partnership…
ACS and dbMotion Inc., a provider of Web-based data-sharing technology that helps facilitate
regional health information organizations and health information exchanges, partnered to deliver a

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medical information sharing solution for the global healthcare market. The partnership enables
healthcare organizations worldwide to quickly and cost-effectively meet specific service and
technology requirements for medical information sharing networks.

Contracts

ACS Wins Healthcare Solutions Contract…


ACS won healthcare solutions contract from Presbyterian Healthcare Services, Albuquerque-based
not-for-profit organization provides healthcare services throughout New Mexico. Under the terms
of the contract, ACS would implement its proprietary MIDAS+ DataVision technology across the
entire Presbyterian Healthcare Services system.
MIDAS+ provides a set of analytic tools and services that enable robust data analysis across more
than 3,500 metrics and is designed to be used by chief medical officers and other clinical and
administrative professionals.

ACS Receives a Contract from OhioHealth…


ACS received a healthcare solutions contract from OhioHealth, a not-for-profit organization providing
healthcare services in 46 Ohio regions. Under the terms of the three-year contract, ACS would
implement its proprietary MIDAS+ DataVision technology across the entire OhioHealth system.
MIDAS+ DataVision provides a set of analytic tools and services that enable robust data analysis
across more than 3,500 metrics and is designed to be used by chief medical officers and other
clinical and administrative professionals.

ACS Bags a Contract from Mississippi Medicaid…


ACS bagged a contract from Mississippi Medicaid. As per the contract ACS would perform fiscal
agent operations and program administration including significant system development,
implementation and management for Medicaid Management Information System (MMIS),
eligibility determination, and pharmacy benefits management point-of-sale systems.

ACS Signs a Contract with NJ Transit…


ACS signed a major contract with NJ transit, New Jersey's public transportation corporation. The
contract includes upgradation of New Jersey's existing fare collection system, purchase and
delivery of new equipment, and a customer enhancement program of NJ Transit's ticket vending
machine fleet.

ACS Receives a Contract from PepsiAmericas…


ACS received a renewal contract from PepsiAmericas. As per the renewal contract ACS would
continue to provide advanced document scanning, indexing, and storage services supporting
PepsiAmericas' large volume of Proof of Delivery (POD) receipts and other pertinent
documentation. In addition ACS would also continue to handle daily receipt of thousands of
images, inventory management, document preparation, scanning and indexing, data collection, and
interim file management.

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ACS Receives a Contract from New Hampshire Department of Health and Human Services…
ACS received a contract from New Hampshire Department of Health and Human Services,
Division of Child Support Services (DCSS) to provide child support payment services for the
State. As per the contract, ACS would provide support payment processing and handling
employer electronic payments systems, as well as full-scale banking through subcontractor
Citizens Bank, child support disbursements through paper check, and electronically through
direct deposit or a debit card, non-sufficient funds check handling, coupon printing, through
electronic payments.

ACS Receives a Contract from MeadWestvaco…


ACS received an information technology (IT) outsourcing contract from MeadWestvaco Corp., a
leading provider of packaging solutions. Under terms of the contract, ACS would centralize and
consolidate MeadWestvaco's IT infrastructure and provide a customized, highly effective,
adaptable technology platform designed specifically for the company's global business
requirements. In addition ACS would provide a broad range of ongoing services delivered from
multiple sites, including data network management, mainframe and midrange hosting and
operations, help desk, information security administration, disaster recovery, and PeopleSoft legacy
application maintenance and support.

ACS Signs BPO Contract With Johns Hopkins HealthCare…


ACS signed a business processing outsourcing (BPO) contract with Hopkins HealthCare to provide
call center services for Johns Hopkins HealthCare. Under the terms of the contract, ACS would
operate a call center handling a subset of Medicaid calls on behalf of Johns Hopkins HealthCare
(JHHC). ACS would be responsible for the general management and operations of the dedicated
JHHC call center based in Indianapolis, Indiana.

Agreements

ACS Enters into an Agreement with ON Semiconductor…


ACS entered into an agreement with ON Semiconductor, a leading global supplier of power
management solutions, to provide a range of health care consulting services. Under terms of the
agreement, ACS through its Buck Consultants, would provide an array of consulting services for
the medical, prescription drug, dental, vision, employee assistance, and life insurance programs for
ON Semiconductor.

ACS Signs Licensing Agreement with Minnesota Department of Human Services…


ACS signed a licensing agreement with Minnesota Department of Human Services to license
its proprietary Drug Rebate Analysis and Management System (DRAMS). Under the
licensing agreement, the State of Minnesota would utilize DRAMS to help and administer the
drug rebate programs for its Medicaid and other State health care programs. DRAMS reduce
time-consuming manual invoice analysis and dispute resolution by providing streamlined
functions.

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SERVICE ANALYSIS

Business Process Outsourcing (BPO)


ACS provides non-strategic business processes and makes organizations better able to respond to
new and existing business opportunities. Among the benefits of a BPO strategy is the ability of the
organization to focus on its core competencies—initiatives that bring in revenue and facilitate
profitable growth. The company’s BPO service offerings include Administration, Finance and
Accounting, Human Resources, Payment Services, Sales, Marketing, and Customer Care and
Supply Chain Management.

Information Technology Outsourcing (IT)


ACS provides IT services and solutions for small and large systems, networks, and enterprises.
Information Technology (IT) outsourcing allows clients to operate core business. ACS’ IT
solutions cover clients’ computing needs, from full mainframe information processing centers, to
desktops. ACS operates several large mainframe and midrange data centers, manage numerous
networks, and administer desktops across the globe.
ACS provides technology services, including Consulting, Data Center Operations, Data Security
Services, Desktop & Seat Management, Hardware/Software Procurement, Help Desk, Imaging,
Information Assurance, Mainframes, Midranges, Client/Server, Network Management, Scanning,
Storage Solutions, Training,

Systems & Integration


ACS expanding Systems & Integration service line supports a growing number of clients with a
full range of information technology professionals, from programmers to full development
teams, addressing applications and systems design, development, and maintenance support
needs.
The company’s systems and integration services areas includes Applications Support, Consulting,
Systems Design & Development, Systems Integration and Training.

E-Solutions
ACS’ e-solutions solve the complexities associated with many aspects of e-business and e-
government.
The company’s e-solutions line includes Cyber Security, EBT, e-Document Solutions, e-
Enablement, e-Government, Internet, Intranet, and Extranet Services, Portals and Web Hosting

SUBSIDIARIES
ACS Healthcare Solutions
MidasPlus, Inc.
ACS State Healthcare
LiveBridge Corporation

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ARINC, INC.
2551 Riva Road, Annapolis, Maryland 21401-7435, USA
Phone: 410-266-4000, Fax: 410-266-2020

SOURCES: www.Arinc.com and other secondary online sources

2006 Sales: US$ 918.84 million


2005 Sales: US$ 890.68 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Arinc Inc., (Arinc) a portfolio company of Carlyle Group, is a global leading provider of
transportation communications and systems engineering. The company provides air traffic
management systems, aircraft testing equipment, baggage systems, intrusion detection devices,
satellite testing equipment, and specialized radios and communication networks as well as
engineering and network design services. Arnic’s products and services find application in airports,
aerospace and defense, aviation, government, healthcare, networks, security, and transportation
sectors. The company operates more than 100 facilities to provide over 200 value-added solutions
and services in 140 countries across the world. The company is ISO 9001-2001 certified. The
company’s major competitors include L-3 Communications, Lockheed Martin, and Raytheon.
In 2007, Carlyle Group entered into a definitive agreement to acquire Arinc.
Arinc was established in 1929.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 918.84 3.16
2005 890.68 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreements

Arinc Signs an Agreement with SkyPort…


Arinc signed a marketing agreement with SkyPort Global Communications (SkyPort) of Houston,
Texas. As per the agreement, Arinc would distribute SkyPort’s broadband satellite service to
customers of Arinc’s award-winning AWINSTM interoperability solution.

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SkyPort is a leading provider of carrier-class satellite communication services to government
agencies, defense programs, and energy customers.

Arinc Signs an Agreement with Abanco…


Arinc signed a marketing and reseller agreement with Abanco LLC (Abanco), a major provider of
mobile data and payment processing technology. The two companies plan to introduce an airborne
data and payment system to make credit card payments at 30,000 feet as easy and secure as on the
ground. As per the agreement, Arinc would license Abanco’s market-leading MDT In-FlightTM
productivity application. The two companies would leverage Abanco’s proven technology with
Arinc’s data communications expertise, and plan to market a range of streamlined payment and
inventory control solutions.

Arinc Signs an Agreement with WestJet…


Arinc Managed Services LLC (AMS), a division of Arinc, signed a new $2.3 million service-level
agreement with WestJet Airlines (WestJet), Canada’s leading low-cost carrier. Under the new
agreement, WestJet would receive on-site technical support from AMS personnel assigned to its
hub operations at Calgary, Vancouver, Toronto, and Montreal, as well as a more uniform level of
radio service at 24 airport locations.
AMS is a leading provider of operations, maintenance, and staffing services for the airports
industry.

Contracts

Arinc Receives a Contract to Provide High-Speed SATCOM Service…


Arinc received a three-year contract to provide high-speed satellite data and voice connectivity for
Sweden’s New Coast Guard Aircraft. Arinc’s GLOBALinkSM / Satellite service using Inmarsat
Swift64 connectivity would enable broadband transmission of data, photographs, and voice back to
the ground while the planes are in flight. Arinc’s specially designed communications system would
compress all outgoing messages and data for fast, cost-effective transmission.
The Swedish Coast Guard is a Swedish civilian government agency that co-ordinates the civilian
need for maritime surveillance and information.

Arinc Renews a Contract with Aer Lingus…


Arinc renewed a three-year flight communications contract with Dublin-based Aer Lingus,
Europe’s leading low-cost carrier. As per the contract, Arinc would continue to provide the Irish
flag carrier with efficient GLOBALinkSM VHF ACARS® data link service and GLOBALink
SATCOM satellite communications.

Arinc Bags a Contract from the U.S. Federal Aviation Administration…


Arinc bagged a 3-year contract from the U.S. Federal Aviation Administration (FAA) to continue
to provide the FAA with the VHF Extended Range Network (VERN), which supports Air Traffic

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Control communications in the Gulf of Mexico. The VERN network includes two air / ground
stations located on Mexico’s Yucatan peninsula and one at Key West, Florida. In combination with
the FAA’s own coastal radio facilities, VERN coverage enables the Houston Air Route Traffic
Control Center (ARTCC) to communicate with aircraft.

Arinc Signs a Contract with Lynx…


Arinc signed a contract with Lynx for GLOBALinkSM VHF data link service and OpCenterTM
hosted messaging service. OpCenter provides web-based message management for airline
dispatchers, with store-and forward ability to streamline ground and air crew communications.
Through the contract, Lynx would also utilize Arinc’s air / ground domestic service for voice, and
Arinc’s digital ATIS (D-ATIS) for destination airport information.

Arinc Bags Contract to Support NCR-IADS…


Arinc Engineering Services LLC, a division of Arinc, bagged $59.4 million contract to continue
supporting the National Capital Region’s Integrated Air Defense System (NCR-IADS). As per the
contract, Arinc would provide mission-critical network infrastructure sustainment support to North
American Air Defense Headquarters, Continental NORAD region.

Arinc Bags a Contract from NASA…


Arinc bagged a wide-area network contract to support an important NASA safety initiative for
commercial aviation, the NASA Ames Distributed National FOQA and ASAP (DNFA / DNAA)
Archive Program. NASA plans to provide a secure collection for research and discovery of
systemic safety-related problems that span multiple airlines, fleets, and regions. Arinc would
implement its wide-area AviNetTM IP network connectivity to support the program mission of
evaluating automated flight recorder data and exceptional-event reports from participating U.S.
airlines.

Arinc Signs a Contract with Pentastar Aviation…


Arinc signed a contract with Pentastar Aviation of Waterford, Michigan, to install the SKYLinkSM
broadband communications system on Dassault Falcon 2000 business aircraft. SKYLink is
developed a new, slimmed-down avionics package that is designed to fit a range of mid-size and
larger business jets. Pentastar Aviation, a leading provider of corporate aircraft services, is
SKYLink’s newest US channel partner. SKYLink’s new slim avionics package is designed to fit
radome dimensions of the Dassault Falcon 50 series, 900 series, and 2000 series, as well as the
Bombardier BD100, challenger series, and global series.

Arinc Receives Contract from Airlines of the Narita Terminal 1 North Club…
Arinc received a significant contract from airlines of the Narita Terminal 1 North Club to install
common-use self-service (CUSS) kiosks for international passengers at Japan’s Narita International
Airport. Through the contract, Arinc would install its enhanced SelfServ™ CUSS kiosk
technology, featuring Java™ functionality. Arinc’s SelfServ technology is offered to print thermal
receipts, read passports, support 2D barcode reading, and accommodate future applications such as
biometrics and identity card recognition.

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Arinc and Thales BagsContract for IT Systems Integration…
Arinc and Thales bagged $75 million contract for providing IT, security, and telecommunication
systems at the New Doha International Airport (NDIA). Arinc would equip the airport with a
comprehensive suite of advanced passenger processing systems and related technologies including
Arinc iMUSE™ common use terminal equipment (CUTE) at more than 100 check-in counters and
departure gates. Arinc would also build the information exchange backbone for data flowing across
the new airport’s applications, systems, users, and facilities. Thales would implement the safety
and security system, the Local Area Network (LAN) and the Network Management.

Arinc Signs a Contract with TAAG Angola Airlines…


Arinc signed a 5-year contract with TAAG Angola Airlines, the fast-growing national airline of
Angola, to provide advanced GLOBALinkSM VHF, GLOBALink satellite, and high frequency
data link (HFDL) services. TAAG also signed for Arinc’s Graphic / Text Weather Service (GTWS)
and the exclusive Arinc OpCenterSM message management solution, which enhances standard
data link communications. Arinc OpCenter messaging service enables TAAG’s dispatchers to
send, receive, and manage data link messages efficiently, while translating data link code into
readable text for enhanced communications.

Arinc Bags a Contract to Design a Control System for the Long Island Rail Road’s Port
Washington Branch…
Arinc bagged a contract to design and deliver a supervisory control system for the Long Island
Rail Road’s Port Washington Branch. Arinc would implement the supervisory control system
using its Advanced Information Management (AIM®) software platform. AIM® provides an
open control architecture with a comprehensive set of field-proven train control and train
tracking applications. The advanced AIM solutions include virtually off-the-shelf functionality
for integrated train control, supervisory control and data acquisition (SCADA), and security
functions.

Arinc Receives a Contract from Air Transat of Canada…


Arinc received a new 3-year contract from Air Transat of Canada for a portfolio of Arinc data link
communication services, including GLOBALinkSM VHF and GLOBALink SATCOM. Under the
new contract, Arinc would also enhance Air Transat’s third-party aircraft situational display (ASD)
and flight following applications. Arinc would add one-click messaging capability to the carrier’s
Flight Explorer™ situational display and MFS2FWZ™ flight planning services.

Arinc Signs a Contract to Continue ATC Support…


Arinc Engineering Services LLC (AES), a division of Arinc, signed $22.6 million contract to
continue ATC support. Through the contract, AES would extend its support of engineering design,
technical, and computer support services for Spawar’s command and control (C2) engineering
division, code 66. Arinc’s continuing services would support unplanned projects including
emergent Global War On Terror, Operation Enduring Freedom, and others. Arinc would also
support development of a much larger facility, the BC3 Battle Control Center CENTAF.

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Arinc Renews a Contract with Korean Air…
Arinc renewed a major contract with Seoul-based Korean Air, Asia’s leading airline and the
world’s largest international cargo carrier, for flight operational communications. Korean Air uses
several Arinc data link and voice services including GLOBALink / VHF, GLOBALink / HF,
GLOBALink / Satellite (Satcom), and voice communication services.
Arinc Renews a Contract with Baltimore / Washington International Airport…
Arinc Managed Services LLC (AMS), a division of Arinc, renewed a contract with Baltimore /
Washington International Airport (BWI) to support and maintain the common use passenger processing
system and flight information displays for the International Terminal at BWI. BWI expanded AMS’
scope of work to include maintaining the Airport Operational Database (AODB) and GateFlow.
Arinc Signs a Contract with Edmo…
Arinc signed a contract with Edmo Distributors Inc., (Edmo) of Spokane, Washington to handle the
wholesale distribution of its Arinc eFlyBook™ document viewer to the general aviation market.
The eFlyBook viewer is smaller, lighter, and less costly than laptop computers and tablet PCs that
is offered for pilots to store and read electronic documents. Edmo is the world’s largest distributor
of aircraft electronics, with a network of 9,000 active resellers.
Orders
Arinc Receives an Order to Support Air Force Transportable ATC Systems…
Arinc Engineering Services LLC, a division of Arinc, received $485,000 order to provide
continued engineering, training, and maintenance support in Southwest Asia (SWA) for the Air
Force’s TRAPCON (transportable radar approach control) systems used for Air Traffic Control.
Arinc also received $1.3 million order to develop the large transportable Battle Control Center
CENTAF (BC3). The ARINC-supported TRAPCON system is an advanced, self-powered Air
Traffic Control system that includes workstations, electronics, radar connectivity, and
communications equipment to provide a rapid deployment of Air Traffic Control capability.

Arinc Receives an Order to Support the U.S. Navy’s Visual Information Display System…
Arinc Engineering Services LLC, a division of Arinc, received $400,000 million order to support
software development and testing for Build 3 of the U.S. Navy’s Visual Information Display
System (VIDS). Arinc received an order through Command Control Systems and Services (C2S2)
operations in Charleston, South Carolina. VIDS is a key DoD element of the FAA’s National
Airspace System (NAS) modernization program. VIDS collects, consolidates, and displays critical
weather, airport, and air traffic control information from the legacy data and display systems found
at air traffic control towers around the world.

New Facilities
Arinc Opens New Aircraft Modification and Operations Center…
Arinc Engineering Services LLC, a division of Arinc, opened a sophisticated new 81,000-square-
foot Aircraft Modification and Operations Center (AMOC) at Oklahoma City’s Will Rogers World

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Airport. The AMOC would accommodate four C-130 aircraft inside the hangar and eight more on
the ramp. Arinc serves two fast-expanding markets, for modernization of military aircraft and
upgrading of commercial and general aviation airframes.

Arinc Opens New Facility to Support Security and Surface Transportation Projects…
Arinc opened a new Pittsburgh facility to support security and surface transportation projects
nationwide. The new facility would organize resources from offices throughout Arinc to
coordinate security operations efforts and provide support to Arinc’s transportation and
security customers including government and private projects. The facility would also provide
expanded system integration services and support services. Arinc’s integrated control and
communications system solutions are designed to improve the efficiency, safety, and security
of operations.

Arinc Establishes New Remote Passenger Services Group in the US…


Arinc established a new Remote Passenger Services Group to manage and market its Internet-
enabled remote passenger check-in technologies in the US. Arinc’s remote check-in systems use
the Internet to provide convenient and popular check-ins at locations such as hotel lobbies,
convention centers, cruise ships, and other off-airport locations.

Product / Service Launches


Arinc Introduces New Wireless Data Communications Module…
Arinc introduced a wireless data communications module for airlines’ on-board applications. The
Arinc Mobile Communications Gateway (MCG) is mainly designed to support airlines’ on-board
sales and credit card transactions. The Arinc MCG provides wireless connectivity and a recharging
power source for in-flight electronic devices, and allows airline crews to download sales data
wirelessly after a flight.

Arinc Introduces New Slimmer SKYLinkSM Antenna…


Arinc introduced a new slimmer Ku-band antenna design for its SKYLinkSM satellite broadband
service, the first satellite broadband communications service for business jets. The new antenna
unit fits radomes in Dassault airframes and Bombardier Global and Challenger airframes.
SKYLink provides business leaders ultra-high speed networking capability, for in-flight Internet
and private network access speeds comparable to fast terrestrial connections.

Service Line Expansion


Arinc Expands its Portfolio of Flight Services…
Arinc Direct, a business unit of Arinc, along with SecureTRANSIT, expanded its portfolio of flight
services with the introduction of APIS (advance passenger information system) reporting and
verification services for business aviation. Arinc Direct would integrate the APIScontrol and
APISadvisor applications of SecureTRANSIT into its standard flight services portfolio. Arinc
Direct APIS service would automate manual tasks associated with collecting and manipulating
passenger and crew data and filing APIS reports.

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Service Development
Arinc Develops New GateFusionSM Service…
Arinc Managed Services, a business unit of Arinc, developed an airport-specific IT service module,
GateFusionSM. The new service is designed to actively monitor the business processes involved in
maintaining airport systems. The module is a key component of the AMS Service Desk, a full-
service resource for the maintenance and support for all airport IT systems.
Year 2006 in Review…
Partnership
Arinc Signs a Partnership Agreement with NTG…
Arinc signed a partnership agreement with Network Telex Group (NTG), a leading global provider
of secure messaging solutions, for fax / telex service. NTG’s fax and telex and other connectivity
solutions would provide enhanced choices and convenience for Arinc’s AviNet Type B messaging
customers. Arinc Type B messaging includes convenient AviNet Fax / Telex capabilities. Fax and
Telex messages are sent and received on the user’s e-mail client, and the AviNet Mail interface
automatically formats Type B Messages for easy delivery through NTG.

Agreements
Arinc Enters into an Agreement with Cairo Airport Company…
Arinc Managed Services LLC (AMS), a subsidiary of Arinc, entered into an agreement with Cairo
Airport Company and the Egyptian Holding Company for Airports and Air Navigation, to provide
technology support at Egypt’s Cairo International Airport Terminal 3. Arinc plans to open a Cairo
office to support the airport and other enterprise technology customers in the region.

Arinc Signs an Agreement with Dassault Falcon Jet…


Arinc DirectSM, a business unit of Arinc, signed an agreement with Dassault Falcon Jet to provide
SKYLinkSM high-speed satellite broadband solution as the factory broadband communications option
for the new Falcon 7X ultra-long-range corporate aircraft. SKYLink provides high-speed connectivity
from the ramp to cruising altitude, enabling a whole a range of vital business applications. SKYLink is
ideal for the fractional jet market and the many customers of Dassault Falcon.

Arinc Enters into an Agreement with iRex Technologies BV…


Arinc entered into an agreement with iRex Technologies BV (iRex) to market electronic paper based
eReader system, the iRex Iliad ER 0100, to the aviation market. Under the marketing agreement, Arinc
would become an exclusive distributor for iRex’s electronic paper based eReader system in the aviation
market. The standard configuration iLiad eReader stores more than 100MB of data and graphics in
internal memory and could accommodate the use of SD, CF and USB memory cards and devices.

Arinc Signs an Agreement with Air Charter Scotland…


Arinc Direct, a business unit of Arinc, signed an agreement with Air Charter Scotland (ACS), a
leading provider of executive jet charter, for the flight planning and support services. The web-

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based Arinc Direct service offers a powerful ability to optimize ACS’ flight route planning within
the European Eurocontrol environment.

Arinc Signs an Agreement with Midcoast Aviation…


Arinc signed a SKYLinkSM distribution agreement with Midcoast Aviation, a leading independent
aircraft maintenance, modification, and completion provider. Under the terms of the agreement,
Midcoast would market and install the Arinc SKYLink ultra-high speed broadband
communications solution for business aircraft.

Arinc Enters into an Agreement with MITEM®…


Arinc entered into a marketing agreement with the MITEM Corp., a leading provider of legacy
integration software and healthcare clinical applications, to provide comprehensive software and
service solutions, allowing healthcare enterprises to integrate disparate legacy systems and
automate their business processes. Under the terms of the agreement, Arinc and MITEM would
provide best-of-breed solutions for healthcare customers by combining Arinc’s strength as a master
systems integrator with the powerful integration tools and applications of MITEM.

Contracts

Arinc Bags a Contract from MWAA…


Arinc Managed Services LLC (AMS), a business unit of Arinc, bagged a two-year contract from the
Metropolitan Washington Airport Authority (MWAA) to provide maintenance and repairs for the
Parking Revenue Control (PRCS) System at Dulles International Airport. The PRCS automates
operations and management of multiple parking facilities at Washington Dulles International Airport.

Arinc Signs a Contract with Cathay Pacific Airways…


Arinc signed a contract with Cathay Pacific Airways of Hong Kong to provide an Iridium-based
voice telephone solution for the carrier’s expanding cargo fleet. Cathay Pacific is the first
commercial airline customer for Arinc’s Iridium service. As per the contract, Arinc would install
its cost-effective Iridium satellite voice telephone solution on seven Cathay Pacific Boeing 747-200
series aircraft. The Iridium constellation of 66 low-earth-orbiting, cross-linked satellites is the
largest commercial satellite constellation in the world.

Arinc Receives a Contract to Provide Passenger Systems for San Francisco International Airport…
Arinc received a contract to provide the world’s first successful common-use passenger systems for
San Francisco International Airport. Under a new 3-year contract, Arinc would refresh the airport’s
common-use check-in and boarding gate systems, which serve 27 airlines at the International
Terminal. Arinc would also install its latest upgraded iMUSE™ technology for enhanced operations.

Arinc Bags a Contract from Edmonton International Airport…


Arinc bagged a major contract from Edmonton International Airport (EIA), western Canada’s
busiest hub, to provide new common-use passenger systems and maintenance support services.

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Arinc would install its industry-leading iMUSE™ check-in and boarding solution, Baglink™
baggage reconciliation system, and SelfServ™ kiosk technology. SelfServ technology would allow
participating airlines to share 30 airport-owned passenger kiosks, and Arinc’s LocalCheck™
system would allow airlines without host computers to participate in the new common-use check-
in, kiosk, and baggage systems.

Arinc Receives a Contract for Providing Engineering and Technical Support Services…
Arinc Engineering Services LLC (AES), a division of Arinc, received $8,693,085 million contract
for providing engineering and technical support services to the Navy’s SPAWAR Space and Naval
Warfare Systems Center, Charleston, South Carolina. Arinc Engineering Services provides turnkey
systems engineering, design, technical, and computer support services for SPAWAR. Other
support services include operational subject matter expertise for electronic equipment, systems, and
subsystems for the Naval Air Traffic Control Air Navigation Aids and Landing Systems (NAALS)
and Meteorology and Oceanographic (METOC) Systems.

Arinc Renews a Contract with American Airlines…


Arinc renewed its flight communications contract with American Airlines, the world’s largest
airline. Under the terms of contract, Arinc would continue to provide industry-leading flight
communications services including its worldwide GLOBALink / VHF data link service, Air /
Ground Domestic voice service in North America. Arinc would also provide value added services
including D-ATIS, which provides convenient automated delivery of destination weather and
terminal conditions. The combination of Arinc’s VHF data link and HF data link services provides
a robust global air-ground communications solution for carriers.

Arinc Bags a Contract from Philippine Airlines…


Arinc bagged a contract from Philippine Airlines, Asia’s first airline and the world’s most
respected carrier, to provide its GLOBALinkSM / VHF data link services. As per the contract,
Arinc would provide service to extend Philippine Airlines’ flight communications capability and
enhance passenger services. Philippine Airlines would utilize GLOBALink / VHF on portions of
its route network, which spans 31 international and 20 domestic destinations.

Arinc Renews a Contract with Cathay Pacific Airways…


Arinc renewed its GLOBALinkSM flight data link contract with Cathay Pacific Airways. Cathay
Pacific Airways would continue to utilize Arinc’s GLOBALink / VHF, GLOBALink / HF,
GLOBALink / Satellite, and Graphic / Text Weather services (G / TWS). Arinc’s GLOBALink
services provide the airline with global coverage for ACARS® flight data communications through
VHF, HF and Satellite.
Cathay Pacific Airways is an international airline that operates 98 aircraft on scheduled cargo and
passenger service to more than 90 destinations around the world.

Arinc Bags a Contract to Provide Technical, Engineering and Logistics Support…


Arinc Engineering Services LLC (AES), a division of Arinc, bagged a 5-year, $10 million contract to
provide technical, engineering and logistics support for the U.S. Navy’s AN / AQS-20A Towed Sonar

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program. The AN / AQS-20A Towed Sonar is a newly developed, technically advanced system to
detect, localize, and classify many types of mines including bottom, close-tethered, and volume types.

Arinc Receives Contract from Atlantic Southeast Airlines…


Arinc received a contract from Atlantic Southeast Airlines (ASA), a wholly owned subsidiary of
SkyWest Inc., to provide a complete range of integrated air / ground communications services. Arinc
would provide ASA with digital data link service over the nationwide Arinc GLOBALink / VHFSM
network using efficient VDLM2 digital protocol. Arinc’s web-based OpCenterSM hosted messaging
service would manage ASA’s delivery, processing and retrieval of air / ground and ground / ground
operational messages. Arinc would also integrate a number of paperless data applications for ASA,
including extensive ground maintenance data collection and weight-and-balance applications.

Arinc Renews a Contract from SkyWest Airlines…


Arinc renewed a multi-year contract from SkyWest Airlines for data link services. SkyWest would
continue to utilize Arinc’s GLOBALinkSM / VHF service enhanced with high-capacity VDL
Mode 2 protocol. SkyWest would also receive on-site support from Arinc in deploying several new
productivity-enhancing applications.

Arinc Renews a Contract with ExpressJet Airlines…


Arinc renewed its GLOBALinkSM data link communications contract with ExpressJet Airlines, a
leading regional carrier. Under the new contract, Arinc would provide ExpressJet’s 274-plane fleet
with its industry-leading GLOBALink / VHF data link service.

Arinc Signs a Contract with Sun Country Airlines…


Arinc signed an extension contract with Sun Country Airlines to provide industry-leading data link
service. Under the terms of the agreement Arinc would provide Sun Country Airlines with its
industry-leading data link service, GLOBALinkSM VHF, including VDL Mode 2 service for Sun
Country’s VDL-equipped airframes.

Arinc Receives a Contract from US Army …


Arinc Engineering Services LLC (AES), a division of Arinc, and Impeva Labs Inc., jointly
received contract from US Army to develop and demonstrate prototypes that integrate current and
state-of-the-art wireless communications and Automatic Identification Technology (AIT) to help
track DOD assets worldwide.

Arinc Bags a Contract from Hong Kong Express Airways Limited…


Arinc received a contract from Hong Kong’s first executive airline, Hong Kong Express Airways
Limited (HKE) to provide VHF data link service. As per the contract Arinc would provide HKE
with Arinc’s GLOBALinkSM / VHF service on its new fleet of Embraer 170 aircraft.

Arinc Bags a Contract from Continental Airlines…


Arinc bagged a 7-year renewal contract from Continental Airlines, the world’s most respected
carrier, to provide air / ground data link services. Under the renewal contract, ARINIC would

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provide Continental Airlines with Arinc’s data link services including GLOBALink / VHF,
GLOBALink / HFDL, and GLOBALink / Satellite

Business Expansion

Arinc Extends its SKYLinkSM Broadband Internet Service…


Arinc DirectSM, a business unit of Arinc, extended its SKYLinkSM broadband Internet service for
business jets to the skies above more than 20 countries in Europe. SKYLink provides high speed
in-flight Internet, Intranet, Voice over IP (VoIP), Fax over IP (FoIP) and Virtual Private Network
(VPN) services.

Product / Service Launches

Arinc Introduces Electronic Flight Bag Solution…


Arinc along with Jeppesen introduced Electronic Flight Bag (EFB) solution. The new integrated
document viewer (DocViewer) is offered as a part of Jeppesen’s overall suite of EFB applications.
The integrated Jeppesen / Arinc EFB solution includes a common look and feel across all
applications, with seamless support for electronic charts and documents, and optional integrated
VHF ACARS® communications.

Arinc Introduces Data Link Service for Gulfstream PlaneViewTM Cockpits…


Arinc DirectSM, a business unit of Arinc, introduced data link service for Gulfstream 550,
450, and 350 aircraft equipped with Gulfstream’s all-digital PlaneViewTM cockpit.
Gulfstream’s PlaneView cockpit features Honeywell Primus Epic® avionics, is designed to
permit the introduction of new features and functions. Arinc Direct service for PlaneView
cockpits includes a full suite of capabilities such as flight plan uplinks, graphical weather
displays, and maintenance and operational messages, as well as industry-standard datalink
messaging.

Arinc Introduces New AviNet® Exchange Messaging Service…


Arinc introduced AviNet® eXchange, a new business-class messaging service. AviNet eXchange
provides a bridge between legacy industry messaging mechanisms and efficient IP business
applications. Through the launch of new service, Arinc would enable the air transport industry to
take full advantage of modern technologies for business-to-business communications. AviNet
eXchange allows XML-formatted messages to send securely between partners using Web Services.
AviNet eXchange also allows XML messaging through commonly used middleware connections
such as WebSphere MQ.

Proposed Service Launch


Arinc to Introduce Inmarsat Swift Satellite Communications Services…
Arinc DirectSM, a business unit of Arinc, plans to introduce Inmarsat Swift satellite
communications services for operators of corporate jet aircrafts. The company provides swift

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satellite communications services including Swift64, Swift128, and Swift256 services. Arinc
Direct is also involved in installing additional hardware and software, including xPandTM
technology, at ground earth stations around the globe to improve throughput on the Swift channels.

PRODUCT / SERVICE PORTFOLIO


3-D Electromagnetic Visualization; Access Control System; Advanced Information Management
(AIM®) System; Aeromedical Pallet System; Air / Ground Domestic Radio Service; Air / Ground
International Radio Service; Aircraft Condition Analysis and Management System (ACAMS);
Aircraft Integration and Testing; Aircraft Services for Business Aviation; AirDB™—Airport
Database; Airline Operations Center Network (AOCnet); Airport Remote Radio Access System
(ARRAS); Airport Systems Integration Services; AirVUE™—Information Display System for
Airports; Amphibious Warfare Support; Arinc Automated Invoicing and Statistics System; Arinc
DirectSM—Business Aviation Services; Arinc infosite; Arinc Managed Services (AMS); Arinc
MessengerSM Service; Arinc SelfServ™—Airport Kiosks for Common Use; Arinc Wireless
Interoperability Network Solution (AWINS™); Automatic Test Systems; AviNet® Global
Network Keeps Everyone Connected; AviNet® DSL Service; AviNet® FTP Service; AviNet®
Mail; AviNet® Web Mail; AviNet® Wireless Dispatch; Baggage Systems; and Centralized
Automatic Dependent Surveillance (CADS)
Centralized Flight Management Computer Waypoint Reporting System (CFRS); Closed-Circuit
Television (CCTV) Systems; CNS / ATM Gateway; Communications-Based Train Control;
Communications Coverage Analysis; Computer-Aided Dispatching / Automatic Vehicle Location
(CAD / AVL); Dedicated Short-Range Communications (DSRC); DeicingManagerSM; Digital
Signature; Digital Automatic Terminal Information Service (D-ATIS); Diminishing Manufacturing
Sources and Material Shortages (DMSMS); Dishonored Check Information Exchange Service
(DCIES); Diving and Life-Support Systems; DoD Training Services; eFlightDeck™; Enhanced
Logbook Automation System (ELAS) / Web-Based Aircraft Systems Analysis (WebASA);
Electromagnetic Modeling and Simulation; Electromagnetic Modeling and Simulation; FiberNet;
Financial Management, Cost Estimating Analysis, and Cost Risk Reduction; Flight Operations;
Flight Support Services for Business Aviation; Flight Training Devices; ForeWarn™; GateFlow®;
Geographical Information Systems (GIS); Geographical Map Overlay Modeling; GeoMap—
Position Reporting; Global Maintenance Services; GLOBALinkSM Services; GPS Engineering;
and Graphic / Text Weather Service
Human Factors Engineering Services; i2WIRES™—Intelligent, Interactive Wiring Diagrams for
Today’s Technicians; Identity Management Service (IdMS); iMUSE™; iMUSE Express™;
InfoHUB™—Enterprise Integrator; Information Engineering Services; Interoperability
Engineering Services; Intrusion Detection System; Littoral Warfare Support; Maintenance Training
Devices; Materials and Process Engineering; Meteorological Data Collection and Reporting
System; Mine Warfare Support; Multi-User System Environment (MUSE®); MUSE LinkTM;
Network Operation Centers; Oceanic Clearance Delivery; OpCenter; Opti-FiTM Wireless;
Passenger Information Systems; PilotMate®; PortSource™; Positive Train Control; Program
Management / Acquisition Support; Public Safety Systems and Wireless Data Networking; Raptor
Reliability and Cost Analysis Software; Rational Technology for Full Life Cycle Systems and
Software Development; and Reduced Vertical Separation Minimum (RVSM) Services

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Reliability, Availability, and Maintainability Engineering; Reliability, Maintainability, and
Supportability Engineering; Reverse Engineering; RF Systems Engineering; ROBE Sky Network;
Satellite Direct Plus™; Satellite Navigation & Air Traffic Control and Landing Systems
(SATNAV & ATCALS); Satellite Test Programs; Security; SEI CMMI Services; Arinc
SelfServ™—Airport Kiosks for Common Use; SKYLinkSM by Arinc DirectSM; Software
Engineering; Space Weather Technology; Supervisory Control and Data Acquisition (SCADA)
Systems; System Security Certification and Accreditation; Systems Engineering, Integration, and
Installation; TICKETSSM; Traffic Alert and Collision Avoidance System (TCAS) Transition
Program; UATP Card System; VHF Digital Link Mode 2 (VDLM2); Visual Threat Recognition
and Avoidance Trainer (VTRAT); Web Aircraft Situation Display (WebASDSM); Wireless
Communications Services; and Wireless Networks for Air Passenger Operations

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
CITILOG SA
64, Rue Du Dessous Des Berges, 75013 Paris, France
Phone: +33 1 53 94 53 95, Fax: +33 1 53 94 53 99

SOURCES: www.citilog.com and other secondary online sources

BUSINESS PROFILE
Citilog SA (Citilog), a French traffic management systems and video image processing solutions
Company, leads the global market in automatic incident detection systems and traffic surveillance
systems. The company develops, designs, manufactures and distributes video incident detection
systems for transportation safety, security and mobility. The company’s product portfolio includes
detectors for adaptive intersection control, video based traffic data collection system, video
surveillance and pan-tilt-zoom cameras. Citilog’s systems find applications in enabling traffic data
collection, video surveillance, automatic incident detection, security, detection of PTZ cameras and
intersection control for road transportation and arterial networks, tunnel management and urban
traffic monitoring.
Citilog’s operations span throughout Europe and the US. Major customers of the company include
motorway companies, cities, as well as local authorities in France, Australia, Canada, Switzerland,
China and Spain, flaunting a host of successful implementations of Citilog’s incident detection
systems. Citilog is the industry pioneer in developing and deploying the world’s first advanced
video detection system – the VisioPaD that is easy to use and entails no calibration on the similar
lines of ‘plug-and-play’ devices.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 In Review…

Product Launch

Citilog Offers Video-Based Traffic Incident Detection System…


Citilog with its video-based Traffic Incident Detection system secures the Throgs Neck Bridge in
New York. The company’s system analyses vehicle movement and automatically warns the traffic
operators of any vehicle stopped on the bridge.

Other Development

Citilog Equips New York’s Throgs Neck Bridge With Traffic Management System…
Citilog installed video-based Traffic Incident Detection, an Advanced Traffic Management System
on New York’s Throgs Neck Bridge. The system monitors the flowing traffic on 6 lanes of the bridge,
and assists in alerting Traffic enforcement center incase of any mishap resulting in traffic congestion.
The 3-mile long bridge runs between the Bronx and Queens witnesses traffic to the tune of about
105,000 vehicles every day. The move significantly reduces the response time for concerned authorities
to attend to incident victims, saving many lives and ensuring a smooth flow of traffic.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Year 2006 In Review…

New Establishment

Citilog Opens Asia Pacific regional Office in Hong Kong…


Citilog opened its Asia Pacific regional office in Hong Kong. The company with the new regional
office in Hong Kong enhances its presence in the fast growing markets in Asia Pacific. Citilog is a
fast growing company, which acts globally, with headquarters in Paris (France), an office in
Philadelphia (USA) and a worldwide presence through partners and distributors.

Product Launches

Citilog Introduces Automatic Incident Detection System…


Citilog enhances the security at International Bridge with its automatic incident detection system.
The company’s detection system monitors the bridge’s CCTV cameras and automatically alerts
traffic operators of incidents occurring on the bridge such as stopped vehicles or pedestrian
intrusion. The state-of-the-art security system improves the ability to monitor the bridge.

Citilog Offers Video-based Incident Detection System…


Citilog, through its Video-based Incident Detection system secures Baltimore Harbor and Fort Mc
Henry tunnel. The company’s detection system would monitor nearly 100 CCTV cameras inside
the tunnels. The Automatic Incident Detection system would automatically alert traffic operators of
any incident occurred in the tunnel.

Citilog Offers Intelligent Video Surveillance to Smart SunGuide Traffic Management Center…
Citilog offered its Intelligent Video Surveillance to Smart SunGuide Traffic Management Center in
Florida, USA. The company’s intelligent video surveillance solution is fully integrated into the
incident management software of Smart. SunGuide and alarms are automatically displayed on
operators’ workstations. The company’s solution is installed by Fortran Traffic Systems, a long-
term partner of Citilog in Canada and the United States.
The SMART SunGuide Traffic Management Center is the communication hub for traffic
information along I-95 and I- 595 in Broward County, Florida, USA.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
IMAGE SENSING SYSTEMS, INC.
500 Spruce Tree Center, 1600 University Avenue West, St. Paul, Minnesota 55104-3825, USA
Phone: 651-603-7700, Fax: 651-603-7795
SOURCES: www.imagesensing.com and other secondary online sources
2007 Sales: US$ 5,684 thousands (H1)
2006 Sales: US$ 13,116 thousands
2005 Sales: US$ 11,002 thousands
(Fiscal Year Ends in December)

BUSINESS PROFILE
Image Sensing Systems Inc., (ISS) is a global leader in systems applying video imaging expertise in
the field of freeway incident detection, advanced traffic management systems, and traffic data
collection. The company’s Autoscope® line of computer enabled detection (CED) products help in
easing traffic congestion and enhance roadway planning. Autoscope® wide area video vehicle
detection solution gathers traffic data as well as speed, roadway occupancy, volume, headways, ramp
queue lengths and vehicle classification. ISS’ Systems are deployed for maritime, railway and
aviation traffic monitoring and security communication operations in about 60 countries worldwide.
ISS developed new Autoscope products such as Autoscope Solo® Pro, Autoscope Solo® Pro NC,
Autoscope 2020™, Autoscope RackVision™, Autoscope RackVision™ System 4, Autoscope
RackVision™ System 16 and Autoscope Atlas™ Junction Detection System (JDS). The company
supplies Autoscope systems for over 50,000 cameras. The company markets Autoscope products in
Asia Pacific and Europe through its subsidiaries namely Flow Traffic Ltd., and Image Sensing Systems
Europe Ltd. The company partners with Econolite Control Products Inc., and Wireless Technology
Inc., to offer a wide range of high-performance video detection technology solutions. The company’s
top competitors are Iteris, Nestor and Quixote.
The company was established in 1984.

SALES DATA
Half Yearly Sales Comparison: 2007 Vs. 2006 (In US$ thousands)

Year Sales % Change


2007 5,684 (5.19)
2006 5,995 -

Annual Sales Comparison: 2006 Vs. 2005 (In US$ thousands)

Year Sales % Change


2006 13,116 19.21
2005 11,002 -

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
STRATEGIC CORPORATE DEVELOPMENTS
Year 2007 in Review…
Product/Service Launch
ISS Introduces Autoscope® Terra™…
ISS and associate company Econolite Control Products introduced sophisticated video detection
solutions for use in ITS. The new solution, Autoscope® Terra™ was developed using the
DaVinci™ technology of Texas Instruments (TI). Two solutions, Autoscope Solo Terra and
Autoscope RackVision Terra systems are available to meet the requirements of different users.
Autoscope Terra products assist in monitoring and controlling traffic by processing video images
and converting them into high quality streaming mpeg-4 digital video. The videos converted are
digitally transmitted over the Internet to base stations to be viewed by traffic personnel. With the
introduction of the system at busy traffic intersections, and tunnels, incidents could be reported
faster with the system alerting the appropriate emergency responding agency. Hence, results in
reduced time response, and improved efficiency for various enforcement agencies.

Year 2006 in Review…

Agreement

ISS Signs an Agreement with Wavetronix…


ISS signed an agreement with Wavetronix LLC (Wavetronix) to co-brand and distribute the
Wavetronix SmartSensorTM in Europe as ISS Autoscope® SmartSensor. As per the agreement,
ISS Europe Ltd., (ISS Europe) a subsidiary of ISS, would offer Autoscope SmartSensor and the
Wavetronix CommandTM line of data collection and management appliances to the European
transportation market through its pre-established distribution network. The addition of Autoscope
SmartSensor would also enable ISS Europe to complement its wide-area advance video detection
technologies with the multi-lane vehicle detection capabilities of Wavetronix’ Digital Wave Radar
technology.
Wavetronix is a global leader in Digital Wave RadarTM traffic sensors.

Other Development

ISS Supplies ITS Related Equipment…


ISS, through its subsidiary, Flow Traffic Ltd., supplied ITS related equipment for installation of
192 Autoscope Rack Vision Video Detection Systems at Seoul Traffic Management Center, South
Korea. The system effectively records both speed and volume of traffic. The system is useful to the
road users in calculating the journey times and traffic related information. Earlier, the company
installed about 235 Autoscope RackVision systems to the Korean Highway Corporation and this
new supply brings the total to 427 Autoscope Systems. The new installation further reinforces the
company’s presence in the South Korean market.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
SUBSIDIARIES
Flow Traffic Ltd. (Hong Kong)
Flow Traffic Ltd. (China)
Image Sensing Systems Europe Ltd. (Poland)

IMAGE SENSING SYSTEMS, INC.’S SUBSIDIARY

FLOW TRAFFIC LTD.


Suite 01, 18th Floor, Queen's Place, 74 Queen's Road, Central Hong Kong
Phone: [852] 2827.1123, Fax: [852] 2827.0056

SOURCES: Company related secondary online sources

BUSINESS PROFILE
Flow Traffic Ltd, (Flow Traffic) a subsidiary of Image Sensing Systems Inc., specializes in intelligent transportation
systems. The company is a distributor and system integrator of advanced traffic management products and systems
manufactured by international specialists. The company’s product line includes Image processors, Incident detection
systems, Loops, Speed detection systems, Vehicle occupancy counts, Vehicle presence detection systems, Incident
detection systems, Traffic flow monitoring systems, Traveller information systems, and Tunnel monitoring systems.
The company is also an exclusive distributor of Autoscope video image detection technology and the Flow Traffic loop
detection system in the Asia Pacific region. The company’s operations span China, Korea, New Zealand, Australia and
Malaysia.
Image Sensing Systems Inc., specializes in image processing, hardware and software engineering, and communications
to develop video vehicle detection systems for traffic management and control applications. Image Sensing Systems
Inc., acquired Flow Traffic in 1999.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
INIT - INNOVATION IN TRANSPORTATION SYSTEMS AG
Kaeppelestrasse 6, 76131 Karlsruhe, Germany
Phone: +49.721.6100.0, Fax: +49.721.6100.399
SOURCES: www.init-ka.de and other secondary online sources
2006 Sales: € 36,258 thousands
2005 Sales: € 33,406 thousands
(Fiscal Year Ends in December)

BUSINESS PROFILE
INIT - Innovation In Transportation Systems AG (INIT) is a market leader in the telematics sector.
The company is a leading supplier of Intelligent Transportation Systems (ITS) and fare collection
systems. The company develops, produces, installs and maintains integrated hardware and software
solutions for all key tasks required within transport companies. The company operates in the areas of
telematic software and services division as well as mobile telematic and electronic payment systems.
INIT offers various systems such as Mobile-CAD/AVL, Mobile-EFM, Mobile-APC, Mobile-Stop info,
Mobile-DMS, Mobile-PARA net, and Mobile-Plan. The company provides telematic software and
services such as Mobile statistics, Mobile forms, Mobile reports, Mobile artist, and PRO services.
INIT’s mobile telematics and fare collections include Copilot, Touchit, Pressit, Mobile-TLI, LISA,
PIDmobil, INFOS, Evend integral, Evend portable, Touch Mobil, Touch coin, Touch station, Data
station, Copilot power, Copilot soft key, Copilot integral, Copilot PC with driver interfaces TouchIT or
Pressit, and Copilot smart with same driver interfaces. The company provides various communication
solutions such as Mobile-DRI, Mobile-MRI, WLAN, Speed card, PID station, and PID integral.
The company was established in 1983.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In € thousands)

Year Sales %Change


2006 36,258 8.54
2005 33,406 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Germany,


North America and Rest of the World (In € thousands)

Region 2006 2005 %Change


Germany 12,749 10,471 21.76
North America 12,127 10,505 15.44
Rest of the World 11,382 12,430 (8.43)
Total 36,258 33,406 8.54

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
STRATEGIC CORPORATE DEVELOPMENTS
Year (2007) in Review…
Contract
INIT Enters into Contract with The Regional Municipality of York…
INIT entered into a contact with the Regional Municipality of York, Ontario, Canada, to install
integrated telematics system on 270 additional buses. Under the contact, the Regional Municipality
of York would be able to rely on hardware and software from INIT.

Year 2006 in Review…


Agreement
INIT Enters into an Agreement with Metropolitan Transportation Authority of New York…
INIT entered into an agreement with Metropolitan Transportation Authority of New York for
effective implementation of Intelligent Transportation System (ITS). The new system - Automatic
Vehicle Location and Monitoring (AVLM) provides both wireless communications network, as
well as Global Positioning Satellite System (GPS). The system is equipped with a graphical screen
that enables drivers to view map of the route, in addition to providing two-way messaging facility
between driver and command center. AVLM also enables recording of mileage and passenger
details, in addition to providing both audio and visual-based navigational support.

Contracts
INIT Enters into Contract with Kinkisharyo International
INIT entered into a contract with Japanese group Kinkisharyo International to provide on-board
computers, information systems, mobile data terminals, vehicle location systems, and
communication technology. The Japanese group intended to equip 115 light rail vehicles with
hardware and software from INIT.

INIT Enters into Contract with TransLink…


INIT entered into a contract with TransLink. INIT Inc., the North American subsidiary of init
innovation in traffic systems AG was chosen to supply the Intelligent Transportation System (ITS).
The Coast Mountain Bus Company (CMBC) would operate the Bus Communication System
(BCS). INIT specializes in ITS and electronic management systems would equip 1,296 vehicles
with the COPILOTpc and INIT’s latest generation of Windows XP embedded based on-board
computers. INIT’s system would support TransLink in the mission.

Product Launch
INIT Offers Novel ITS Solutions…
INIT offered an advanced ITS technology for various transportation companies that are engaged in
rendering public transportation services. The solutions of INIT that are available under the brand
name MOBILE, blends various software and hardware technologies in addressing various issues of

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
public transportation including fleet management, automated passenger counting and passenger
information, and ticketing in form of smart cards. In addition, MOBILE constantly keeps providing
relevant information to drivers that enable them to avoid congested zones.

Year 2006 in Review

Agreement

INIT Enters into an Agreement with Metropolitan Transportation Authority of New York…
INIT entered into an agreement with Metropolitan Transportation Authority of New York for
effective implementation of Intelligent Transportation System (ITS). The new system - Automatic
Vehicle Location and Monitoring (AVLM) provides both wireless communications network, as
well as Global Positioning Satellite System (GPS). The system is equipped with a graphical screen
that enables drivers to view map of the route that they plan to travel, in addition to providing two-
way messaging facility between driver and command center. These facilities ensure that congested
zones are avoided. AVLM also enables recording of mileage and passenger details, in addition to
providing both audio and visual-based navigational support.

Contract

INIT Secures CAD$35 Million Contract…


INIT Innovation In Transportation Systems, Inc., a subsidiary of INIT bagged a contract worth
CAD$35 million from TransLink, the transportation authority in Vancouver. As per the contract,
INIT would provide TransLink with several intelligent transportation and electronic management
systems including the state of the art GPS, digital private mobile voice and data radio systems and
Windows XP based on board computers.

SUBSIDIARY
INIT Innovations in Transportation, Inc.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
INIT - INNOVATION IN TRANSPORTATION SYSTEMS AG’S
SUBSIDIARY

INIT INNOVATIONS IN TRANSPORTATION, INC.


1420 Kristina Way, Suite 101, Chesapeake, Virginia 23320, USA
Phone: +1.757.413.9100, Fax: +1.757.413.5019

SOURCES: www.initusa.com and other secondary online sources

BUSINESS PROFILE
INIT Innovations In Transportation Inc., (INIT) a subsidiary of INIT AG, is a global provider of electronic fare
collection systems and telematics solutions and services for public transport. The company is also engaged in
developing, manufacturing, installing and maintenance of integrated hardware and software services and solutions for
several transportation companies. INIT’s telematics software and services products include PROservice,
MOBILEreports, MOBILEstatistics, MOBILEartist and MOBILEforms services. Mobile telematics systems provided
by the company include INFOS – Infrared location support system, LISA – traffic signal priority system, COPILOT –
onboard computer systems, PRESSit – mobile data terminal, MOBILE-TLI – data network controller and PIDmobil –
on board passenger information display system. The company’s electronic payment system products include
DATAstation, TOUCHcoin, TOUCHmobil, TOUCHstation, EVENDportable and EVENDintegral.
In 2006, INIT Innovation In Transportation Systems Inc. bagged a contract worth CAD$35 million from TransLink,
the transportation authority in Vancouver. As per the contract, INIT would provide TransLink with several intelligent
transportation and electronic management systems including the state of the art GPS, digital private mobile voice and
data radio systems and Windows XP based on board computers.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
ITRAMAS CORPORATION
No.1, Jalan PJU 8/5A, 47820 Petaling Jaya, Selangor Darul Ehsan, Malaysia
Phone: (6) 03-77270979, Fax: (6) 03-77274979

SOURCES: www.itramas.com and other secondary online sources

BUSINESS PROFILE
ItraMAS Corp., (ItraMAS) is a technology driven intelligent traffic management and road safety
solutions provider engaged in the design, development and commercialization of multimedia based
intelligent transportation systems, LED products and traffic signaling & management systems. The
company specializes in the management and execution of large scale Traffic Control &
Surveillance System (TCSS), Toll Collection System (TCS), Area Traffic Control (ATC),
Advanced Traffic Management System (ATMS) / Advanced Traveller Information System (ATIS)
and other related ITS modules and sub-systems. The company also develops and integrates
Intelligent Transportation Systems for the land transportation sector. The company offers an
extensive range of systems such as Vehicle Detection System, CCTV Control System, Intelligent
Video Wall Display System, Variable Message Signs Control System, Incident Management
System, Response Plan System, Integrated Alarm Management, Security Management, and Area
Traffic Control System. ItraMAS also provides technologically advanced LED based products in
the traffic, media, architectural lighting and automotive sectors.
ItraMAS also provides services such as Traffic Signalling & Information, Intelligent Illumination
Control, Electronic Media, and Automotive Lighting. The company also manages large turnkey
ITS contracts, involving installation, testing and commissioning of input equipment such as CCTV,
Fiber Optic and Wireless Communication Systems, Traffic Counters, Aids, Control Centers and
output equipment including Variable Message Sign. The company supplies its products in the US,
Europe, the Middle East, India and Australia. The company operates its Research and Development
center in Penang, and offices in Khobar, Bangkok, Beijing, and Shangai. The company also
operates its technology center in Petaling Jaya, Malaysia. The company was established in 1999.

STRATEGIC CORPORATE DEVELOPMENTS


Year 2007 in Review…
New Facility
ItraMAS Launches National Traffic Control Center
ItraMAS launched National Traffic Control Centre (NTCC) that combines all privatized Malaysian
highway networks, and is responsible for traffic control and surveillance functions on these roads.
The control center is established as part of the Malaysian Highway Authority (MHA)/ Lembaga
Lebuhraya Malaysia (LLM)’s initiative to provide real-time traffic information to commuters
through various means such as variable message boards, SMS, MMS, and the internet. The project
involves installation of next generation software based LED lighting solution, ColorRay™ system
for efficient and comfortable operation of vehicles. The control center was setup at a cost of RM
24.5 million by ItraMAS. The new traffic control and management network is based on systems

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
based architecture, to enable easy integration of additional control centers, as well as easy
expansion in the future. The project is divided into three phases and is scheduled for completion by
the end of the year 2007.

Year 2006 In Review…


Joint Venture
ItraMAS Enters into a Joint Venture with AdvancedInformation Technology
ItraMAS entered into a joint venture with AdvancedInformation Technology Plc to provide several
light emitting diodes and intelligent transportation systems based products, services and solutions
in Thailand. The solutions facilitate in enhancing drivers safety as well as improving traffic.

Partnership

ItraMAS Enters into Partnership with Thai partner…


ItraMAS entered into partnership with Thai partner Advanced Information Technology PLC (AIT).
Under the Partnership, both the companies would provide products, services and global solutions
such as ITS and light emitting diode (LED)-based traffic products to enhance traffic flows, drivers
safety and trips.

Product Launch
ItraMAS Launches a New ColorDirector™ Scenario Series…
ItraMAS launched a new line of controllers ColorDirector™ Scenario series, which manages
lighting effects for the ColorRay™ system. The company’s new Scenario series enables users to
instantly form any desired ambiance using its pre-set lighting effects with manually adjustable
color, brightness and speed control.

PRODUCT ANALYSIS
Electronic Display And Lighting
Traffic Signaling System
ItraMAS provides LED based traffic signals that consume low power. The company also
undertakes turnkey solutions for traffic junctions.

Electronic Display
ItraMAS offers electronic display systems that are useful in various applications such as ITS
(WMS), car park management, road safety, public information dissemination and electronic media.

Automotive and General Lighting


ItraMAS provides LED technology lighting and architectural lighting system for general purpose
and automotives. The company also proposed designs for various lighting systems such as Side

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Turn Signal Light, Center High Mounted Stop Light, Rear Passenger Light and Boot Light. The
company also offers a wide range of services ranging from system integration, application
development, IT infrastructure architecture and on-site project management and IT Consultations.

Traffic Control and Surveillance System


ItraMAS’ Traffic Control and Surveillance System developed to integrate with a wide range of
applications in a centralized control system. The company’s itac™ is able to integrate major ITS
applications, regardless of its manufacturer or protocol.

Traffic Signaling and Information


ItraMAS’ TransLED™ suite of traffic signaling and safety products are manufactured utilizing
"best of breed" LED technology. The product is designed using innovative optic application and
excellent thermal management, TransLED™ Traffic Signals offers maximum light output while
significantly reducing energy consumption

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
MAGELLAN NAVIGATION, INC.
960 Overland Court, San Dimas, California 91773, USA
Phone: 909-394-5000, Fax: 909-394-7050
SOURCES: corp.magellangps.com and other secondary online sources

BUSINESS PROFILE
Magellan Navigation Inc., (Magellan Navigation) formerly Thales Navigation, is a pioneer in the
survey, consumer, GIS and OEM GPS positioning and navigation markets. The company is a
premier provider of reliable, easy-to-use consumer navigation solutions. Magellan Navigation is an
innovator of award-winning products that include Magellan eXplorist™ outdoor handheld
navigation devices, Magellan® RoadMate™ series portable car navigation systems, the Hertz
NeverLost® car navigation system and ProMark™, a single frequency GPS survey product. Other
major products of the company are Magellan Maestro series in the vehicle navigation market, and
Magellan CrossoverGPS series in the GPS product category. The company’s consumer models
include hand-held units for hikers, add-on car units for address navigation, and marine units for
boaters. The company also offers GPS related software, maps and accessories.
Magellan Navigation also provides OEM solutions for industries such as consumer electronics,
avionics, vehicle tracking and navigation, agriculture, marine and security applications. The
company delivers sophisticated GPS satellite navigation and positioning solutions and products
to a broad spectrum of rapidly expanding commercial, consumer, industrial, scientific and
government markets worldwide. The company offers Vehicle navigation solutions and intelligent
transportation technologies; Consumer GPS solutions; and Surveying, mapping and Geographic
Information Systems (GIS). The company also offers a broad range of maps and other
accessories, as well as a wide variety of products and solutions for both the consumer and
professional customers. Magellan Navigation provides accurate, reliable and easy-to-use GPS
solutions, and OEM solutions to its customers. The company’s products find applications in
various sectors such as consumer electronics, avionics, vehicle tracking and navigation,
agriculture, marine and security.
Magellan Navigation markets survey and GIS solutions worldwide under its Magellan Professional
brand, and supplies its products through 20,000 retail outlets and 100 international distributors
globally. The company’s customers include Hertz Corporation, AAA, Brandmotion, the United
States and Canadian Coast Guards, Universal Avionics, U.S. Defense Mapping Agency, Modular
Mining, the Geographical Survey Institute of Japan, and retailers such as Target, Wal-Mart, Best
Buy, Sears, Comp USA and Office Depot. The company operates a technology research and
development center in Moscow, Russia. The company maintains U.S sales offices in California,
Oklahoma, Virginia and Georgia as well as International sales offices in the UK, Germany, China,
Moscow, The Netherlands, France and Chile. The company’s major competitors are Garmin,
Navico, and Trimble Navigation.
In 2006, Thales Navigation was renamed as Magellan Navigation, subsequent to the acquisition of
the former company by a private equity firm, Shah Capital Partners. Other partners involved in this
transaction included Consolidated Press Holdings, Eli Broad, Tudor Group, AIG SunAmerica and
Galleon Group.

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STRATEGIC CORPORATE DEVELOPMENTS

Year 2008 (1st Half) in Review…

Partnership

Magellan Navigation Partners with Primordial


Magellan Navigation formed partnership with Primordial Inc. to provide its customers with off-
road routing on a GPS device, which is capable of identifying natural and artificial obstructions.
Primordial is a global leading provider of off-road navigation through the flagship product, Ground
Guidance®.

Product Launch

Magellan Navigation Expands Roadmate® Series


Magellan Navigation expanded the company’s RoadMate series of vehicle navigation products
with the launch of three new widescreen units. The new RoadMate® 1400 series comprises a 4.3-
inch anti-glare touch screen display and a user-friendly interface with QuickSpell™ and
SmartDetour™ technologies that facilitate rapid input and traffic guide. The RoadMate 1415,
which includes NAVTEQ® full European map, announces direction of the turns and street names.
The RoadMate 1425 offers live traffic updates and route guidance through a permanent traffic
subscription.

Year 2007 in Review…

Alliance

Magellan Navigation Enters into an Alliance with National Geographic…


Magellan Navigation entered into an alliance with National Geographic, to make National
Geographic’s full-color topography maps fully compatible with handheld GPS receivers for the
first time. Magellan Navigation would become the first GPS manufacturer to provide full, onscreen
compatibility, usage and display of National Geographic’s maps. Magellan Navigation’s new
Triton series of handheld GPS devices are developed to work seamlessly with both Magellan
Navigation’s own and National Geographic’s proprietary topographic maps.
The partnership between Magellan Navigation and National Geographic would enable hikers and
backpackers, fishermen and hunters, campers, and other outdoor enthusiasts to include a richer
experience with National Geographic’s software, when used with Magellan Triton units.

Product Launches

Magellan Navigation Unveils New VantagePoint™ Software…


Magellan Navigation unveiled new VantagePoint™ software, a powerful new desktop application
that would enable users to customize the content on their Magellan GPS devices. VantagePoint is

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designed to work seamlessly with Magellan Navigation’s new Triton series of outdoor portable
handheld GPS receivers, as well as other handheld and auto navigation devices. VantagePoint
would also provide users with the ability to easily download maps, waypoints, geocaches, tracks,
photo and audio recordings of journeys; organize files; and synchronize them between their
desktop and Triton handheld GPS.

Magellan Navigation Introduces New Triton™ Handheld Series…


Magellan Navigation introduced new Triton series of portable handheld GPS receivers that provide
outdoor enthusiasts with the most advanced design and navigation experience available. The Triton
series of six new units, is the first line of rugged, handheld navigation devices designed with a new
user interface flow and screen graphics making Triton easier to use and more accessible to a greater
population of outdoor enthusiasts. Triton series is the first outdoor handheld to provide users access
to downloadable National Geographic topographic maps. The new series includes Triton 2000,
Triton 1500, Triton 500, Triton 400, Triton 300, and Triton 200.

Magellan Navigation Launches New DG14 RTK™ GPS Board…


Magellan Navigation launched new DG14 RTK™ GPS Board, a cost-effective, sub-meter GNSS (GPS
+ SBAS) + Beacon receiver. With the launch of new DG14 RTK™ GPS Board, customers in high-
precision applications would get high-end precision in a low-cost GNSS unit. DG14 RTK is developed
to meet the needs of demanding high-precision applications for machine control, agriculture, aviation,
military, unmanned aerial vehicles (UAVs), robotics, marine survey and navigation.

Magellan Navigation Unveils New BLADE™ GNSS Signal Processing…


Magellan Navigation unveiled new BLADE™ technology, a proprietary GNSS processing solution
that makes possible centimeter-level accuracy for real-time and post-processing surveys and mapping
operations. BLADE (Base Line Accurate Determination Engine) uniquely combines ranging and
carrier phase data from two satellite systems, GPS and SBAS, for superior satellite coverage and
signal reliability to enable rapid, centimeter-level solutions. BLADE is the first GNSS processing
system that uses SBAS ranging and carrier phase measurements in the RTK data processing.

Magellan Navigation Launches New ProMark3 RTK…


Magellan Navigation launched new ProMark3 RTK, designed to provide surveyors with centimeter
accuracy in a real-time solution. ProMark3 RTK includes new real time capabilities in addition to
its existing complete post-processing and mapping features.

Magellan Navigation Unveils SnowRanger™ Software…


Magellan Navigation unveiled new SnowRanger™ software from Mountain Dynamics for
compatible Magellan eXplorist handheld GPS receivers and the Magellan CrossoverGPS.
SnowRanger would enhance outdoor navigation for customers exploring the nation’s top winter
destinations by delivering digital recreational maps for more than 53 ski resorts across the nation with
detailed information about resort facilities, including chairlifts, trails, lodges, roads, parking, and
ticketing. The software would also track data such as vertical feet skied, maximum speed, number of
runs made, and more when used with a Magellan GPS receiver and the Mountain Dynamics website.

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Magellan Navigation Introduces New NavCreator…
Magellan Navigation introduced new NavCreator as part of the Magellan Solutions Development
Kit (MSDK) family. NavCreator is a vehicle navigation platform that would allow ODM and OEM
partners to develop customized graphical user interfaces (GUI). NavCreator mainly focuses in
providing Original Design Manufacturers (ODMs) and Original Equipment Manufacturers (OEMs)
with the key building blocks for developing navigation applications for PDAs, mobile phones,
personal navigation devices, or in-vehicle navigation systems.

Magellan Navigation Launches CrossoverGPS™ Navigation Device…


Magellan Navigation launched new CrossoverGPS™ navigation device and companion software.
The new CrossoverGPS is a rugged, water-resistant system specifically developed to provide turn-
by-turn driving directions, as well as navigation for outdoor activities. The navigation device is
preloaded with topography maps and street maps, in addition to an optional mapping software,
which helps users to store marine charts, and data related to fishing-hot-spots and lakes.

PRODUCT/SERVICE PORTFOLIO
GPS Units
Vehicle Navigation Products
Magellan RoadMate Series; Magellan Maestro Series

CrossoverGPS Products
Magellan CrossoverGPS Series

Handheld Navigation Products


eXplorist Series, and Value Packs

Maps & Software


Secure Digital (SD) Cards, Regional Map Downloads, Full CD-ROM Products,

Accessories
Mounting brackets, stylish carrying cases; Secure Digital expansion memory cards; cradles;
connection cables; Magellan RoadMate; Magellan RoadMate AAA Edition RS 2.0; Magellan
CrossoverGPS; Meridian Gold; Meridian Marine; SporTrak Color; SporTrak Map; SporTrak Pro
Marine; Magellan Maestro Series; PlusMagellan RoadMate; eXplorist; Meridian Color; Meridian
GPS; Meridian Platinum, SporTrak; SporTrak Pro; and SporTrak Topo

Solutions
Marine & Sensors
3011 GPS Compass; Aquarius; Aquarius²; A12 Sensor; ADU5; ZXW-Sensor; Aquarius®; Sagitta;
AC12 Sensor; DG14 Sensor

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GNSS Boards
AC12 Board; C12 Board; GG24-E2 Board; ZXW-Eurocard; A12 Board; DG14 Board; and
SkyNav GG12 Board

Land Survey
ProMark3; Z-Xtreme; Z-Max.Net, iCGRS System, professional GPS solutions; Global Positioning
System (GPS); GPS Reference StationsSurveyors; Surveying systems

Mobile Mapping
MobileMapper CE; MobileMapper Office; Software Development Kit; GPSDifferential Module;
Software Development Kit; MobileMapper Pro; and MobileMapper Beacon

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
MAGELLAN NAVIGATION, INC.’S SUBSIDIARY

MAGELLAN GPS
Z.A.C. de la Fleuriaye, B.P. 60433, 44474 Carquefou Cedex, France
Phone: +33 2 28 09 38 00, Fax: +33 2 28 09 39 39

SOURCES: www.magellangps.com and other secondary online sources

BUSINESS PROFILE
Magellan GPS, a subsidiary of Magellan (formerly Thales Navigation), is a leader in the consumer, survey, GIS and
OEM GPS navigation and positioning markets. The company manufactures Magellan® RoadMate™ series portable
car navigation systems, Magellan eXplorist™ outdoor handheld navigation devices, Hertz NeverLost® car navigation
system and ProMark™, the best-selling single frequency GPS survey product.
In 2006, an investment group headed by Shah Capital Partners acquired Thales Navigation to form a new company –
Magellan.

PRODUCT/SERVICE PORTFOLIO

GPS Units
Magellan Maestro Series, and Magellan RoadMate Series, Magellan CrossoverGPS Series, eXplorist Series, and Value
Packs

Magellan Web Viewer


MapSend DirectRoute 2.0, MapSend DirectRoute 2.0 – Europe, MapSend WorldWide Basemap, MapSend Topo 3D
Germany, MapSend BlueNav Local Charts

Magellan Traffic Service

Traffic Integrated Products


Magellan Maestro 4050 + TrafficKit – Europe, Magellan Maestro 4050 + TrafficKit - North America, Magellan
RoadMate 3050T North America, Magellan RoadMate 6000T North America

Accessories for Traffic Enabled Products


TrafficKit North America - Magellan Maestro 4040/4050, TrafficKit North America - Magellan RoadMate
2200T/CrossoverGPS, TrafficKit North America - Magellan RoadMate 3000T, TrafficKit North America - Magellan
RoadMate 700/760, TrafficKit North America - Magellan RoadMate 800

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MARK IV INDUSTRIES, INC.
501 John James Audubon Parkway, Amherst, New York 14226, USA
Phone: 716-689-4972, Fax: 716-689-6098
2007 Sales: US$ 1.2 billion
(Fiscal Year Ends in February)

BUSINESS PROFILE
Mark IV Industries Inc., (Mark IV) is a leader in the manufacture of engineered systems and
components for the transportation management, automotive, and industrial machinery markets.
Mark IV, operating in about 16 countries, provides its value added products and services based on
advanced radio frequency, power transmission, air admission and cooling, and information display
technologies. Operations of the company are categorized under Industrial/Distribution
(Transportation Technologies, Power Train, Aftermarket, Heavy Duty) and Automotive OEM
(Power Transmission, Air Admission & Cooling, Platform) business segments.
Power train division of Mark IV manufactures gasoline and diesel engines for various industrial,
marine and agricultural applications. The company also offers information display systems (for
aircrafts, railcars and buses) and traffic management equipment comprising of electronic toll-
collection systems. Mark IV operates about 27 manufacturing facilities, 5 technical centers and 27
distribution/sales facilities across the world. Major competitors of the company include Dana,
Delphi, and Gates Corporation.
In 2006, Mark IV and Electronic Transactions Consultants (ETC) entered into a partnership
agreement for installing Open Road Tolling (ORT) at 20 mainline plazas of Illinois Tollway and
offering 85 ORT lanes. As per the deal, system integration would be taken care of by ETC, with
Mark IV concentrating on supply of readers and transponders. Both companies are marketing the
partnership venture under brand name HOT Solution.

BUSINESS OPERATIONS

Industrial/Distribution Segment
In the Industrial/Distribution segment, Mark IV is a leading supplier of intelligent vehicle highway
systems (IVHS), small multi-purpose diesel engines, aftermarket automotive components,
information display system technologies, and power transmission products for off-road and heavy-
duty vehicles. The segment’s operations are structured around four business units namely,
Transportation Technologies, Power Train, Aftermarket, and Heavy Duty.

Transportation Technologies
Transportation Technologies business unit is involved in the design, production and marketing of
engineered systems and components by using advanced electronics and radio frequency (RF)
technologies for various applications. Mark IV is a leader in the supply of RF-based transponders,
antennas and readers for intelligent vehicle highway systems (IVHS Products) and electronic toll

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collection systems; integrated on-board vehicle location, information and monitoring systems for
mass transit and railroads; high resolution video displays for fixed installations and transportation;
and innovative aircraft, bus and rail lighting systems (Information Display Products).

Power Train
Being the world’s largest independent manufacturer of small diesel engines, Mark IV markets a
complete line of gasoline and liquid or air-cooled small diesel (up to 75hp (55kW)) engines under
the Ruggerini and Lombardini brands to the agricultural, industrial, marine and construction
markets. The company also manufactures a small diesel engine, provided with a continuously
variable transmission (CVT) to reduce emission and performance costs.

Aftermarket
Mark IV is a leading supplier of aftermarket products in the retail segment and the second
largest supplier in the traditional segment of the US aftermarket. The company’s Aftermarket
business unit supplies a wide range of hoses, tensioners, belts, and accessories to the
warehouse distributors and retail auto part chains under the Dayco brand and other private
labels.

Heavy-Duty
Mark IV is a leading supplier of accessory drive systems to the heavy-duty market in Europe and
North America. The company’s Heavy Duty business unit manufactures a wide range of power
transmission systems used in Class 8 trucks and other off road and heavy duty vehicles for
transferring power from the engine to accessory drive systems by using tensioners, rubber belts,
pulleys, dampers and idlers.

Automotive OEM Segment


Mark IV is a leading Tier 1 supplier to the original equipment manufacturers (OEMs) in Asia,
North America, South America, Europe, and the Pacific Regions. The company’s Automotive
OEM segment is a designer, manufacturer and marketer of high quality engine (Air
Admission, Cooling, and Power Transmission) and Platform (fuel and fluid handling)
systems. Products offered by the segment are supplied to the recognized SUVs, trucks and
cars across the world.

Power Transmission
The Power Transmission products supplied include power transmission systems for accessory and
camshaft drives, timing and poly-rib belts, automatic tensioning devices, and pulleys, idlers,
bracket and dampers.

Air Admission and Cooling


The company’s Air Admission and Cooling products comprise of air intake manifolds, engine
cooling systems, brake fluid, surge and power steering tanks and water pumps.

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SALES DATA

Percentage Breakdown of Annual Sales (Value) by Business Segment (2007) -


Transportation Technologies, Aftermarket, Heavy-Duty, Power Transmission,
and Air Admission and Cooling

Segment 2007
Transportation Technologies 16
Aftermarket 25
Heavy-Duty 10
Industrial/Distribution 51
Power Transmission 27
Air Admission and Cooling 22
Automotive OEM 49
Total 100

Percentage Breakdown of Annual Sales (Value) by Geographic Region (2007) –


North America, Europe and Rest of the World

Region 2007
North America 39
Europe 55
Rest of the World 6
Total 100

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MARK IV INDUSTRIES, INC.’S SUBSIDIARY

MARK IV IVHS
6030 Ambler Drive, Mississauga, Ontario L4W 2P1, Canada
Phone: (905) 624-3020, Fax: (905) 238-3141

SOURCES: http://www.ivhs.com and other secondary online sources

BUSINESS PROFILE
Mark IV IVHS, a subsidiary of MARK IV Transportation Technologies Group, develops dedicated Short-Range
Communication (DSRC) equipment that finds application in ITS field such as electronic toll collection and commercial
vehicle operations. Mark IV IVHS is the largest provider of radio frequency based transponder devices for ETC
systems to the Northeastern United States. Highway, toll, tunnel, turnpike, and bridge authorities make extensive usage
of DSRC devices in the intelligent transportation systems (electronic toll collection and automated weigh station
bypass). Key offerings of the company include Toll transponders (Interior Flat Pack Transponder (FPT), Exterior Flat
Pack Transponder (Exterior FPT), Roof Mounted Transponder (RMT), License Plate Transponder (LPT)), Readers
(Standard Reader, Basic Reader, Fusion® Reader, mGate Reader), Lane kits (Overhead Lane Kit, VRC Lane Kit) and
other accessories (Handheld Reader, Tag verifier, Portable Reader and Spare Parts). The company’s products find
applications in Electronic Toll Collection (ETC), Traffic Management, Open Road Tolling, Border Crossing,
Commercial Vehicle Operations, Vehicle Emissions Inspection, and other Specialty Areas.
MARK IV IVHS, in association with Electronic Transaction Consultants Corporation, offers HOT Solution™, a
unique solution for automating High Occupancy Toll (HOT) lanes. The advanced solution is fast gaining popularity in
the transportation sector for managing the chaos of urban traffic. Mark IV IVHS supplied over 25 million toll
transponders for landmark intelligent transportation system deployments such as Canada’s Highway 407 ETR, the
world’s first, all-electronic toll road; border crossing projects; and the E-ZPass SM system of the Interagency Group of
22 toll authorities. E-Zpass™ system uses transponders of Mark IV and by far represents the biggest and successful
ITS execution programs in the world. The company, operating across 17 countries worldwide, was the first to apply
DSRC technology to electronic weigh station bypass/CVO programs.
Major customers of the company include Interagency Group (IAG), Burlington County Bridge Commission, Delaware
Department of Transportation, Delaware River and Bay Authority, E-ZpassSM, E-ZPassSM Map and Facilities
Listing, Highway 407 ETR, Illinois State Toll Highway Authority, I-Pass Kentucky Transportation Cabinet
(Advantage CVO Program), Maryland DOT, Massachusetts Turnpike - Fast Lane, New Jersey Turnpike Authority,
New York Bridge Authority, Transcom, Virginia DOT, Smart Tag, West Virginia Turnpike and E-ZpassSM.
MARK IV Transportation Technologies (MTT) is the global leader in manufacturing electronic display components
for outdoor applications. The company’s product offering include display components consisting of dot matrices in
various configurations, status indicators, alphanumeric character modules, and seven-segment digits. MTT’s
products find applications in highway traffic control, scoreboards, financial applications, parking information
displays, passenger information and display systems, patron toll displays, and industrial and commercial message
centers.

PRODUCT ANALYSIS

Transponders

Interior Flat Pack Transponder (FPT)


Interior Flat Pack Transponder (FPT) is a popular model of toll transponder designed for lane-based and open road toll
(ORT) collection. FPT, which transmits information in 250 bit packets, is ideal for mounting in the interior of trucks
and cars. The product, which is compatible with the IAG protocol using active Type II read/write technology, finds
usage in mobile commerce, traffic management and ETC applications.

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Exterior Flat Pack Transponder (Exterior FPT)
Exterior Flat Pack Transponder (Exterior FPT) contains a conformal coating to protect against exposure to the
elements. Exterior FPT, bodily akin to the Interior FPT, is designed for lane-based and open road toll collection. The
product is suitable to mount on motorcycles, trucks and buses. Transmissions of information in 256 bit packets, and
compatible with the IAG protocol using active Type II read/write technology are some of the key features of Exterior
FP. In addition to Mobile Commerce application, Exterior FPT finds usage in traffic management and ETC
applications.

Roof Mounted Transponder (RMT)


Roof Mounted Transponder (RMT) is a transponder specifically designed for mobile commerce, traffic management
and ETC applications. The product is ideal for use on buses and heavy trucks.

License Plate Transponder (LPT)


License Plate Transponder (LPT) is a robust exterior unit designed for lane-based and open road tool collection. LPT,
which transmits data in 256 bit packets at a rate of 500 kbps, is compatible with IAG using active Type II read/write
technology. The product is suitable for mounting on the exterior of trucks and cards. In addition to traffic management
application, the product finds usage in mobile commerce and ETC applications.

Fusion® and Fusion® CVO Transponder


Fusion® Transponder is an IAG or TDMA protocol supported transponder for lane-based or ORT collection and other
weigh station electronic screening applications. The product, ideal for mounting on the interior of trucks and cars,
provide ‘V6’ TDMA and IAG active Type II read/write protocol support. The product, which transmits data in either
256 or 512 bit packets at 500 kbps rates, is widely utilized for open road, highway speed transactions.
Fusion® CVO Transponder is a transponder configured with a signal flashing sequence. The product is ideal for usage
on all North American e-screening, weight station bypass, and CVISN programs, encompassing NORPASS and
PrePass Plustm. Fusion CVO transponders, recommended by the CVO Interoperability Committee of ITS America,
are also used in CVISN programs in Maryland and New York. The product applications include mobile commerce,
traffic management, and ETC applications.

Ubiquity® Transponder
Ubiquity® Transponder is an innovative transponder designed with a buzzer and three LEDS for commercial vehicle
operators. The product, based on backscatter technologies, is compatible with PrePass, NORPASS, Green Light and
other CVISN weigh station screening systems; Interagency Group (IAG) E-ZPassSM; The "Sandwich Spec" protocol;
and Title-21 toll systems throughout Colorado and California. The product, ideal for mobile commerce, traffic
management, and ETC applications, also contains a data port for connection to the vehicle data bus (OBD II, J1708
Bus) and on-board devices.

READERS

Standard Reader
Standard Reader is an all-purpose multi-lane reader that supports up to 8 lane-based antennas. The product, ideal for
traffic monitoring, is non-redundant. The product, which supports legacy users, enables user to monitor traffic
applications using a non-redundant Badger reader with traffic management firmware. The product is suitable for traffic
management, CVO, and ETC applications.
Basic Reader
Basic Reader is a standard reader that supports up to 8 lane-based antennas. The product, which is ideal automated toll
collection, features power supplies, redundant CPUs and serial interfaces. The product, available to support legacy
installations, is ideal for totally new installations. Basic Reader is suitable for use in CVO, traffic management, and
ETC applications.

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Fusion® Reader
Fusion® Reader is an exceptionally scaleable system that reads both TDMA and IAG transponders. The product
enables operators and system integrators to reduce the procurement and deployment costs for multiple single-protocol
readers, in addition to providing enhanced performance by removing data transmission anomalies coupled with
multiple close-proximity readers. In addition to supporting transponders with low battery warning subsystems and
encrypted public ID codes, the product supports up to four land-based IAG antennas and two TDMA antennas. The
product is ideal for mobile commerce, CVO, traffic management, and ETC applications.

mGate Reader
mGate Reader is an economical reader for mobile commerce, traffic management, and ETC applications. The product allows
low-speed applications utilizing ‘V6’ TDMA protocol or IAG. The product, which decreases labor expenditures and combine
to the bottom line, is ideal for use in Fee-based parking facilities, company yard access, and fast-food transactions.

Badger Reader
Badger Reader is a standard reader for electronic toll collection deployments. The product supports up to 4 high-speed
express lane-based antennas or 8 lane-based antennas. The tightly engineered synchronization product, which is ideal
for ORT and other highway speed applications, enables operators and system integrators to install several Badger
readers in close proximity. The product, which captures rapid transactions within high-volume functions, is
recommended for applications at toll sites in New Jersey, Virginia, Illinois, and Delaware. The product applications
include CVO, mobile commerce, and ETC applications.

LANE KITS

Overhead Lane Kit


Overhead Lane Kit is the real process of observing electronic toll collection lines. The kit comprises of an adaptor cable, an
FCC type approved RF module, and an antenna meant for installing directly over a line. The kit, ideal for use in highway
traffic monitoring, toll plaza applications, and ORT sites, also offers different antenna styles for various RF situations. The
Lane kit is specially designed for every transponder-enabled Intelligent Transportation system application.

VRC Lane Kit


VRC Lane Kit comprises a RF module and a wide area antenna. The product is ideal for use in CVO screening, wide area or
ORT collection applications. MARK IV VRC antennas are also used for side-fire antenna mounting for specific applications.

ACCESSORIES

Handheld Reader
Handheld Reader is a tool that validates transponders at extremely close range when a button on the reader is pushed.
The tool is ideal for use by agency staff to verify the IAG protocol transponders operation. The tool shows a green light
and corresponding sound, if the transponder is running generally. If the transponder is performing inappropriately, the
tool signals a red light. The tool is ideal for connecting to MARK IV software and a specific PALM Pilot device to
take the transponder information.

Tag Verifier
Tag verifier is a tag especially created for CSC (customer service center) environments. The product is organized for
constant unattended activities. The tag, similar to a bar code reader, enables CSC patrons and staff to verify a
transponder functions.

Portable Reader
Portable Reader is a reader that contains an integrated LCD readout and keypad. The reader, weighing below 22
pounds, facilitates administration of a tag easy in field and office locations. Once recharged, the reader could run for up
to 8 hours. The reader’s two antenna choices enable administrators to read tags in the field or on a desktop.

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Agency Tag Programmer
Agency Tag Programmer is specially created for transponder distribution center applications, in addition to batch
operations. Operated under the control of Windows PC, the physical unit contains CPU and test chambers. The
product, containing a DLL interface for back-office integration, enables administrators to read and encode
transponders. Under password-protected security, the device operates variable data fields such as toll class codes.

Field Cabinets
Field cabinets are general-purposed, robust unit with integrated locking mechanisms for employing economical CVO
and toll readers safely. Field cabinets, which conform to NEMA 4X standard, are specially devised to house 19” rack
mounted equipment.

RF Cables
RF cables are available in different RF cable models, including adaptor cables, feedline cables and many more.
Adaptor cables are used to attach the RF module SMA connector to an N-Type connector at the antenna feedline.

Spare Parts
Spare parts include circuit boards, upgrade kits, power supplies, and other items.

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NAVTEQ CORPORATION
222 Merchandise Marst, Suite 900, Chicago, Illinois 60654, USA
Phone: +1 312 894 7000, Fax: +1 312 894 7050
SOURCES: http://www.navteq.com and other secondary online sources
2006 Sales: US$ 581.6 million
2005 Sales: US$ 496.5 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
NAVTEQ Corp., (NAVTEQ) formerly Navigation Technologies, is a provider of real-time digital
route guidance map databases to commuters in North America and Europe. The company provides digital
map information for automotive navigation systems, mobile navigation devices, Internet-based mapping
applications, and government and business solutions. The company’s product line includes NAVTECH®
Data Advantage, Server-Based, and Media-Based Data Delivery. The company’s products and services
provide maps, driving directions, turn-by-turn route guidance, fleet management and tracking and
geographic information systems. The company’s products find applications in navigation, mapping and
geographic-related applications. The company’s products are used in various platforms-self-contained
hardware and software systems, which are installed in vehicles, personal computing devices, including
personal digital assistants and cell phones, server-based systems, including internet and wireless services,
and paper media. NAVTEQ’s high precision digital map database comprises of comprehensive
information on vehicle routes for over 42 countries worldwide and is extensively used in fleet
management systems, in-vehicle navigation systems, personal navigation solutions, web sites and online
services, kiosk-based directions, advanced traffic and traveler information solutions and Geographic
Information Systems (GIS). The database features such information as street names, turn restrictions, and
the locations of hospitals, gas stations, and tourist destinations. NAVTEQ’s database information includes
150 road attributes per road segment and more than 45 point of interest categories that specify various
hotels, airports, banks, shopping centers and restaurants. The company owns and maintains production
facilities in Fargo, North Dakota, USA, and support centers in Seoul (South Korea), Mexico City
(Mexico), and Yokohama (Japan). The company operates in Europe, the Middle East, and North
America. The company’s key competitors include Intergraph, Pitney Bowes MapInfo and Tele Atlas.
In 2007, NAVTEQ announced that Picture Map International (PMI) would operate under the
NAVTEQ name.
NAVTEQ was established in 1985.

SALES DATA
Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 581.6 17.14
2005 496.5 -

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Quarterly Sales Comparison: 2006 Vs. 2005
(In US$ million)

Quarter 2006 2005 % Change


Q4 180.7 146.0 23.77
Q3 142.6 123.0 15.93
Q2 136.0 122.8 10.75
Q1 122.3 104.7 16.81
Total 581.6 496.5 17.14

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – EMEA,


Americas and Asia Pacific (In US$ million)

Region 2006 2005 % Change


EMEA 360.1 316.2 13.88
Americas 216.1 172.8 25.06
Asia Pacific 5.4 7.5 (28.0)
Total 581.6 496.5 17.14

STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 in Review…

Acquisition

NAVTEQ Acquires Traffic.com…


NAVTEQ acquired Traffic.com, Inc., a company involved in offering personalized traffic
information for drivers for a consideration of about US$177 million and common stock of
Traffic.com, which is subject to elections by certain option holders and stockholders of acquired
company.

Partnership

NAVTEQ Teams Up with deCarta…


NAVTEQ teamed up with deCarta, a location-based services (LBS) leader. As per the
agreement, deCarta would provide developers on the NAVTEQ Network for Developers™ site
with access to a comprehensive environment for rapid application development, tools, and
support needed to build the next generation of location-based applications. The NAVTEQ
Network for Developers site offers registered members easy access to a diverse assortment of
valuable data and tools.

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Agreement
NAVTEQ Enters into an Agreement with Associated Press…
Traffic.com, a part of NAVTEQ entered into a multi-year advertising representation agreement
with the broadcast division of The Associated Press (AP), the world’s largest newsgathering
organization. The agreement provides Traffic.com with AP ten second advertising inventory for
radio and television stations across the U.S. The AP Advertising Network features ten second
commercial messages available through Traffic.com. The addition of the AP radio station
inventory extends Traffic.com radio advertisers’ reach to 750 radio stations across the U.S. in 103
Designated Market Areas (DMAs) covering 94 percent of the U.S. population.
With the valuable addition of the AP Network, Traffic.com extends its ability to provide
advertisers with a unique, multi-platform location-based advertising offering.

NAVTEQ and Maptel Networks Signs an Agreement…


NAVTEQ and Maptel Networks (Maptel), a Telefónica subsidiary signed an agreement for the
Spanish Map Data Market. The agreement enables Maptel to consolidate its range of high-added-
value mapping products. The agreement also includes the joint marketing and development of
high-quality mapping solutions and services for the Spanish market.
Maptel is a leader in digital maps, online localization services and geographic information
solutions.

NAVTEQ Reaches an Agreement with VOLKSWAGEN Group…


NAVTEQ reached a new agreement with the VOLKSWAGEN Group to supply digital maps for
vehicles with a factory-fitted navigation system with map display for Tiguan, Touareg, Golf, Golf
plus, Jetta, Eos, Passat, and Caddy models.

Contract
NAVTEQ Enters into a Contract with Uniden America Corporation…
NAVTEQ entered into a contract with Uniden America Corporation for supply of digital maps.
The digital maps are used in Uniden’s personal navigation devices (PNDs). NAVTEQ will preload
these devices with maps of Canada and the US, and the contraption is equipped with unique user-
friendly features like voice-based instructions and rapid map processing. In addition, it’s a sleek
and compact device that enables portability. The device is also featured with a technologically
sophisticated LCD screen. Apart from Uniden, NAVTEQ will supply these PNDs to many other
institutions and departments, in both the US and Canada.

Product Launches
NAVTEQ Releases First Turkey Map…
NAVTEQ released its digital map coverage in Turkey. The Navteq® map of Turkey covers a
population of more than 13 million and includes over 1,000 administrative places such as cities.
NAVTEQ map of Turkey contains connector roads throughout the country, connecting the
country’s largest cities to each other and linking Turkey to Bulgaria and Greece.

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NAVTEQ Launches St. Louis 511 Traveler Information System…
Traffic.com, a part of NAVTEQ launched St. Louis 511 Traveler Information Service, a fully
automated, interactive real-time traffic phone system powered by Traffic.com. The new service
helps to improve roadway safety, shorten drive times, save gas money, and reduce the need for
Department of Transportation or taxpayer funding for 511 services. The St. Louis 511 Traveler
Information Service enables area travelers to simply dial 511 on their mobile phones for
immediate, real-time traffic information for major roadways around the metropolitan area.

NAVTEQ Unveils NAVTEQ Traffic Patterns™ Database…


NAVTEQ unveiled the NAVTEQ Traffic Patterns™, a database of typical traffic speeds on over
170,000 miles of primary and secondary roads across major US cities, including interconnecting
highways. NAVTEQ Traffic Patterns enables product developers and service providers a reliable,
easy-to-use data set for a variety of smart-routing applications. The new product provides useful,
accurate and typically attainable speeds for primary and secondary roads (function classes one
through three) in major cities across the U.S.

Product Line Expansion

NAVTEQ Expands Entry Maps…


NAVTEQ expanded the product line of Entry Maps by developing a global portfolio of digital
maps. The Entry maps enable the growing range of worldwide solutions supporting global
Geographic Information System (GIS), fleet, and location applications for wireless and Internet
uses. Entry Maps contains all the major highways and major cities for a given country.

Navteq Launches JAMCAST® Video Online…


Traffic.com, a part of Navteq launched JamCast® real-time traffic video at www.traffic.com for 30
metropolitan areas across the U.S. The JAMCAST® Video online consumer services provides
commuters with generated traffic news with fully automated audio and video of live traffic
conditions for roadways in and around the most congested traffic cities in the nation. JamCast
solutions are continuous, automatic, digitally managed services for the delivery of real-time traffic
news across Web, television, radio and wireless platforms. JamCast features patented Jam Factor®
roadway traffic measurements that enables, commuters to easily understand the relative congestion
level with a number on a scale from 1 to 10.

Year 2006 in Review…

Acquisitions

NAVTEQ Acquires Map Network…


NAVTEQ acquired The Map Network for a cash consideration of about $37.5 million. The
Map Network’s field of activity is almost similar to one of NAVTEQ, and now the latter
could fully utilize capabilities of the former, in reinforcing its own business and quality of
products.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
NAVTEQ Acquires gedas MapIT…
NAVTEQ acquired gedas MAPIT, Mexico’s leading digital map provider. The coverage of
NAVTEQ® digital map is enhanced through the acquisition, which also provides effective
domestic base for future growth. The acquisition facilitates gedas MapIT to supply geographic
product for customers in Mexico in reply to the customer’s demands for extensive coverage
including boundaries, street names, geometry and demographic data all over Mexico.
gedas MapIT is a business division of gedas Mexico, division of gedas AG, and a major IT services
provider. This acquisition enabled NAVTEQ to acquire strong customer base in the geospatial,
Online Monitoring/Fleet, LBS, online mapping areas, telecommunications. NAVTEQ also intends
to acquire a manufacturing unit and other technical facilities and business development groups in
Mexico and Leon cities.

Collaboration
NAVTEQ Enters into Collaboration with Autodesk…
NAVTEQ and Autodesk Inc., the world's leading software and services company for
manufacturing, media and entertainment, and wireless data services fields, entered into a strategic
co-marketing agreement to co-market geospatial solutions. The collaboration agreement enables
Autodesk geospatial and civil engineering customers to access Navteq® map data through
Autodesk’s geospatial solutions. In addition, NAVTEQ would provide MapGuide Open, a Web
mapping contest for developers designed to encourage the creation of new and innovative
geospatial solutions using the new MapGuide Open Source platform to Autodesk’s customers.

Agreements
NAVTEQ Enters into Licensing Agreement with LandSonar…
NAVTEQ and LandSonar entered into a licensing agreement, which enables NAVTEQ to gain
rights over LandSonar product - LandSonar Predictive Speed (LPS™), which predicts speed on
road network of the US. LPS provides enhanced benefits with respect to precise route plan and
journey time estimation. LandSonar is a US based company and is a leader in supply of predictive
traffic products, used for enhancing accuracy of navigational systems and other logistics.
NAVTEQ Enters into an Agreement with Verizon Wireless…
NAVTEQ entered into an agreement with Verizon Wireless to provide map data for Verizon
Wireless' Location Based Services (LBS) for consumers. Under the terms of the agreement,
NAVTEQ would VZ Navigator(TM), a tool for customers, providing access to a wide array of
LBS options, including mapping, audible turn-by-turn navigation and the ability to find over 14
million points of interest.
VZ Navigator is perfect for road warriors. The VZ Navigator provides current location or an
address in the US, locate places such as gas stations, restaurants, banks and other points-of-interest
relative to their location, plus hear turn-by-turn navigation with audible voice directions to an
address in the US.
Verizon Wireless is the nation's premier provider of wireless products and services

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NAVTEQ and Advance Fiber Optics Enter into an Agreement…
NAVTEQ entered into an agreement with Advance Fiber Optics, leader in network management
solutions for communications and entertainment services industries. As per the agreement,
NAVTEQ would deliver quarterly updates of its map database to Advance Fiber Optics, for
integration and deployment with its network management solutions.

NAVTEQ Enters into an Agreement with Fine Digital USA…


NAVTEQ entered into an agreement with Fine Digital USA, a leading navigation solution
provider, to integrate NAVTEQ’s map data into Fine Digital USA’s new portable navigation
(PND) product, FineDrive 400. The FineDrive 400 is a portable GPS navigation system that
provides destinations with 2D/3D map views of the 48 contiguous United States and Canada. The
integrated navigation system Drive 400 would provide detailed street level map data and millions
of points of interest (POI’s), such as gas stations, hotels and restaurants

NAVTEQ Enters into an Agreement with Korem Inc…


NAVTEQ entered into an agreement with Korem Inc., a leader in the development and integration
of web-mapping solutions and geographic information systems. Under the terms of the agreement,
Navteq would provide Korem with quarterly map updates for integration and deployment with
Korem’s geospatial and location intelligence solutions for its extensive customer base in Canada
and the US.

NAVTEQ and Fodor’s Enter into an Agreement…


NAVTEQ and Fodor’s Travel, provider of global travel guides, entered into an agreement to make
Fodor’s travel guide information available to NAVTEQ customers licensing NAVTEQ digital map
data for countries in North America, Europe and Asia. Fodor’s content would enable users of
NAVTEQ digital map data to incorporate into their applications information about dining, lodging,
and nightlife, the arts, shopping and tourist attractions.

NAVTEQ Enters into an Agreement with Mapcom Systems…


NAVTEQ entered into an agreement with Mapcom Systems to integrate Navteq® Map Data into
M4® Solutions. As per the agreement, Navteq would integrate Mapcom Systems’ industry leading
Geographical Operations System (GOS) software with M4 Solutions. Mapcom Systems is a leader
in GOS solutions for the telecommunications industry, providing software and data conversion as
well as integration and workflow analysis services.

Contract
NAVTEQ Secures Contract from Primus Geographics…
NAVTEQ received a contract from Primus Geographics for supply of map data. The data of
NAVTEQ will be used to power both open source portfolio Explorer geocoder software and SRC’s
portfolio Guzzler drive time engine. This data successfully addresses limitations imposed by
previous maps. Prime Geographics could use the sophisticated data for taking decisions related to
locations of new branch offices, retail outlets and also various assets.

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Product Launch

NAVTAQ Unveils New System for Mobile Networks…


NAVTEQ unveiled its latest system, NAVTEQ Traffic Mobile™, which provides information
pertaining to average traffic speed, accidents and construction, and covers 67 major segments of
the US. The Traffic Mobile is supplied through mobile phone networks, and the software used in
this system is from Telmap, which ranks amongst leaders providing innovative solutions for mobile
mapping and navigation.

SUBSIDIARIES
Geoinformation NAVTEQ - Tecnologias de Navegacao, Unipessoal, Lda.
NAVTEQ North America, LLC
NAVTEQ International, LLC
NAVTEQ Kabushiki Kaisha
NAVTEQ Canada Inc.
NAVTEQ B.V.
NAVTEQ Austria GmbH
NAVTEQ N.V./S.A.
NAVTEQ Srl
Navigation Technologies S.L.
Navigation Technologies Sweden AB
NAVTEQ Switzerland GmbH
Navigation Technologies CIS LLC
NT Data CIS LLC
NAVTEQ SRO
NAVTEQ Europe B.V.
NAVTEQ Solutions Malaysia SDN. BHD.
NAVTEQ Solutions, S. De R.L. de C.V.
Picture Map International Co., Ltd.
NAV2 Co., Ltd.

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NAVTEQ CORPORATION’S SUBSIDIARY

TRAFFIC.COM, INC.
851 Duportail Road, Wayne, Pennsylvania 19087, USA
Phone: (610) 725-9700, Fax: 610-725-0530

SOURCES: www.traffic.com and other secondary online sources

2006 Sales: US$ 38.30 million (Nine Months Ended, September)


2005 Sales: US$ 43.30 million
2004 Sales: US$ 42.40 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Traffic.Com Inc., (TI) a subsidiary of Navteq, is a leading provider of personalized traffic information for drivers coast
to coast. The company offers consumers real-time customized traffic reports in 83 US markets. TI’s personalized
consumer reports include predictive traffic trends, vehicle speeds, congestion levels, travel times, and delay times. The
company delivers the information through web, wireless device, radio, television, and in-vehicle navigation systems.
TI also offers various services including TrafficOne, TrafficSync, TrafficPro City XML, TrafficMagnet, TrafficPro
RSS. The company provides its products and services to Broadcast Media, Government, In-vehicle Navigation,
Consumer, Advertising, and Web Content markets. TI’s business partners include AOL, Comcast, Garmin
International Inc., Microsoft, NAVTEQ, The Weather Channel®, and XM Satellite Radio.
In 2006, TI launched TrafficPro TrafficML Service, the industry’s first comprehensive traffic solution that combines
historical, and real-time data from a full complement of data sources to provide broad, accurate and quantified, current
and forecasted drive time coverage. The service is an advanced XML data feed that leverages the TI’s Traffic
Information Management System (TIMS) for data processing and multi-platform services dissemination.

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Q-FREE ASA
Thoning Owesens gt.35c, 7044 Leangen, Norway
Phone: +47 73826500

SOURCES: www.q-free.com and other secondary online sources


2007 Sales: NOK 199.8 million (H1)
2006 Sales: NOK 386.9 million
2005 Sales: NOK 509.2 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Q-Free ASA (Q-Free) is a leading producer of automatic toll collection systems and is a pioneer in
technological developments related to Road Transport and Traffic Telematics (RTTT). Q-Free
designs, develops, markets and supports hardware and software that ensure reliable handling of
payment and information transactions within the Road User Charging and Automatic Fee
Collection markets. Q-Free provides turnkey solutions for electronic and manual toll collection,
electronic ticketing and information systems for public transport and access control and logistic
systems. The company operates two major divisions such as Q-Free Access and Q-Free Ticketing.
Q-Free also offers a series of single products that makes complete systems for tolling, traffic
information, parking, ticketing, access control, railway, container management, and logistics
systems for production. Q-Free’s customers include transport system operator with business
models that depend on the successful processing of huge amounts of micro transactions. The
company operates in Portugal, Greece, Brazil, Australia, Malaysia and China.
Q-Free was established in 1984 as Micro Design AS, and adopted the present name in 1998.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006


(In NOK million)

Year Sales %Change


2007 199.8 (6.81)
2006 214.4 -

Annual Sales Comparison: 2006 Vs. 2005 (In NOK million)

Year Sales %Change


2006 386.9 (24.02)
2005 509.2 -

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Europe, Asia Pacific
and North America (In NOK million)

Region 2006 2005 %Change


Europe 303.1 386.3 (21.54)
Asia Pacific 63.9 69.6 (8.19)
Latin America 19.9 53.3 (62.66)
Total 386.9 509.2 (24.02)

Percentage Breakdown of Annual Sales (Value) by Geographic Region


(2006 Vs. 2005) – Europe, Asia Pacific and North America

Region 2006 2005


Europe 78 76
Asia Pacific 17 14
Latin America 5 10
Total 100 100

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Contracts
Q-Free Receives Order for On Board Units…
Q-Free received an order for On Board Units (OBU) from Via Verde, the largest operator of toll roads
in Portugal. The order value is approximately NOK 12.5 million and would be supplied in 2007.
Via Verde is a part of the Brisa Group.

Q-Free Receives Contract…


Q-Free received a contract to develop and implement a national system in its home country of
Norway. The contract includes full replacement of the central systems for electronic toll collection
in Norway (AutoPASS), which would be gathered in one national system.
Year 2006 in Review
Contracts
Q-Free Bags a Contract for Developing National System
Q-Free secured a contract for developing a national system in Norway, with respect to collection of
charges from road users. The implementation of the system would ease the stress experienced by
road users, apart from enhancing competency of road toll system.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Q-Free Secures Contract for Deploying Toll System On Tamar Bridge…
Q-Free secured a contract for implementing its sophisticated toll system on Tamar Toll Bridge. As
per the contract, Q-Free would supply OBUs (On Board Units) to the UK’s market, for installation
on Tamar toll bridge, Plymouth.

Product Launch
Q-Free Launches New On-Board Units…
Q-Free launched new on-board units under the brand name, QBU. The new units are offered in
three versions -communicative, autonomous, and receptive. The communicative QBU includes
buttons, and displays, and offers versatile services. The unit would function as a parking metre
within the car. The autonomous QBU allows the communication between roadside infrastructure
and the car, and enables the users to make payments for road tolls, petrol or parking lot fees. The
version is developed to assist drivers while traveling through congestion charging areas and tolling
points. The receptive QBU offers exceptional services.

PRODUCT PORTFOLIO
Systems
Toll Collection Systems
Electronic Toll Collection (ETC) ETC systems; Manual Toll Collection (MTC) MTC systems; and
Multilane ETC Systems.

Ticketing
Automatic Fare Collection Q-Free Systems; and Real Time Passenger Information Q-Free
Systems.

Access and Logistic


Q-Free Container Tracking system; Fuel Filling Access System; Textile Integration System;
Parking System and Personnel Access System.

Train Tracking System


Tunnel Access System; Vehicle Access System; Vehicle Dispatch System; and Conference
Information and Management System.

Toll Collection Products


On Board Units; Readers; and Manual Toll products.

Public Transport and Ticketing Products

Access and Logistic


On Board Units; Readers; Software and Network components

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Q-FREE ASA’S SUBSIDIARIES

Q-FREE TICKETING AS
Postboks 3974 Leangen, NO-7443 Trondheim, Norway
Phone: +47 73 82 65 00, Fax: +47 73 82 65 01

SOURCES: www.q-free.com and other secondary online sources

BUSINESS PROFILE
Q-Free Ticketing AS (Q-Free Ticketing), a division of Q-Free ASA is a supplier of electronic toll collection systems
for road user charging (RUC) market. The company offers multi lane free flow systems, single lane electronic toll
collection systems, On Board Units (OBU), in-vehicle units, and management software to process the transactions. The
company focuses on intelligent transport system sector. The company provides a wide range of communications,
transaction technology and products to safeguard transport operators. The company operates in road user charging and
automatic fare collection market.
Q-Free Ticketing also offers toll plaza computer, roadside equipment, double laser detection system, multilane
controller, and others. The company’s products and technologies are used in environmental management programs.
The company’s products are marketed in Portugal, Greece, Brazil, Australia, Malaysia and China. The company
supplies automatic fare collection equipment to public transport operators in Norway to 1,800 public buses. The
company’s key customer includes transport system operator. Q-Free Ticketing is accredited with ISO 9001:2000
certification.

Q-FREE TOLLING AS
Postboks 3974 Leangen, NO-7443 Trondheim, Norway
Phone: +47 73 82 65 00, Fax: +47 73 82 65 01

SOURCES: www.qfree.com and other secondary online sources

BUSINESS PROFILE
Q-Free Tolling AS (Q-Free Tolling), a part of Q-Free ASA, supplies electronic toll collection systems for road user
charging (RUC) market. The company provides all the major modules for handling charging in a multilane
environment. The company offers multilane radio communication module, multilane automatic vehicle detection and
classification modules, and others. Q-Free Tolling offers multi lane free flow systems, single lane electronic toll
collection systems, On Board Units (OBU), in-vehicle units, and management software to process the transactions.
The company’s radio communication system is a standardized interface for Ethernet connection (10-base) and
RS422/RS232. The radio communication system handles communication with the trans-ponder, single piece
Read/Write transponders, IC-card transponders, LDR communication and MDR communication. The company’s
vehicle detection and classification system is used to detect and classify the vehicle based on the received vehicle scans
from the laser. The company’s key customer includes transport system operator.

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SIEMENS TRANSPORTATION SYSTEMS, INC.
7464 French Road, Sacramento, California 95828, USA
Phone: (916) 681-3000, Fax: 916) 681-3006

SOURCES: www.sts.siemens.com and other secondary online sources

BUSINESS PROFILE
Siemens Transportation Systems Inc., (STS), a subsidiary of Siemens AG, is a global leading
provider of transportation systems as well as technological and engineering know-how to the
transportation industry. The company is also a leading turnkey systems and engineering solutions
provider for the mass transit rail industry. The company offers complete design, development and
integration of equipment, signaling & communication systems, components and vehicles for the
rail industry. The company’s other offerings include Sicas S7 system, Operation Control Centers,
Centralized Traffic Control, Power Network Management, Communications Control Systems and
Security Control Systems. The company’s products and services are used in mass transit and
mainline rail applications including signaling and operation control systems, rail electrification and
rolling stock.
STS provides services for each developmental stage including finance solutions for startup, new
lines needing training and consulting services, established facilities facing spare parts, overhaul,
refurbishment and rail maintenance needs. The company offers overhaul and retrofit solutions for
transit agencies to modernize rail vehicles for better safety, reliability and comfort. STS provides
spares and service for the Siemens AC propulsion systems installed on EMD locomotives in North
America. The company provides maintenance, spare parts, training, documentation, consulting,
telecommunications and financing services.
In 2006, STS bagged a contract from Tri-County Metropolitan Transportation District (TriMet) to
build 21 light rail vehicles and expand TriMet’s total line of Siemens rail vehicles to 126.
Siemens AG is the world’s largest supplier of vital wayside controller products with 8 electronic
interlocking product lines in service in over 26 countries.

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SIRIT, INC.
372 Bay Street, Suite 1100, Toronto, Ontario M5H 2W9, Canada
Phone: 416.367.1897, Fax: 416.367.1435

SOURCES: www.sirit.com and other secondary online sources

2007 Sales: Can$ 13,500 thousands (H1)


2006 Sales: Can$ 21,715 thousands
2005 Sales: Can$ 16,419 thousands
(Fiscal Year Ends in December)

BUSINESS PROFILE
Sirit Inc., (Sirit) is one of the leading providers of RFID (Radio Frequency Identification) enabling
technology in the world. The company designs, manufactures, and sells radio frequency
identification (RFID) systems, used in electronic toll identification, traffic management, product
identification, cashless payment systems, supply chain management applications, and access
control. Major products of the company include Embedded RFID Readers, Automatic Vehicle
Identification (AVI) systems, Fixed Readers and various other products. Sirit is a leading supplier
of RFID reader products to numerous supply chain management and blue chip companies such as
LXE Inc., PSC Inc., Psion Teklogix, Zebra Technologies and Hand Held Products, Inc.
Sirit is also one of the four companies to be contracted to develop first generation prototypes of 5.9
GHz DSRC technologies by the Federal Highways Administration and the US Department of
Defense. Major solutions and products offered by Sirit include Fixed Reader Solutions, and
Embedded RFID Reader Solutions. The company’s Fixed Reader Solutions include Traffic
Management Products, Parking & Access Control Products, Toll Management Products, and UHF
Logistics Readers, while the Embedded RFID Reader Solutions include high and ultra high
frequency reader modules, near field communication solutions, and Plug-N-Play readers. RFID
solutions for varied applications such as Automatic Vehicle Identification, Inventory Control &
Management, Asset Tracking, Supply Chain & Logistics, Cashless Payment/ Electronic Tolling,
Access Control, Near Field Communications, and Product Authentication.
Sirit’s Traffic Management solution is an easy-to-implement cost effective solution for monitoring
commute time or traffic patterns. In Automatic Vehicle Identification (AVI) applications, Sirit is
one of the leading providers of Traffic Probe solutions, Electronic Toll and Traffic Management
(ETTM) solutions, and Toll Integration solutions. Traffic Probe solutions offered by the company
enable real time monitoring of traffic patterns for managing traffic and designing safety solutions.
Sirit’s ETTM solutions include electronic toll collection systems, and the company is the global
leading provider of technologies conforming to the California Department of Transportation’s Title
21 open standard. The company’s AVI systems are designed to provide parking operators with a
fast, cost effective, and highly reliable access control system. Sirit’s Parking and Access Control
solutions find application in parking lots, gated communities, and other controlled areas, and offers
convenience, security, and control to the users.

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The IDentity Flex system of Sirit is specifically developed to increase vehicle throughput using the
latest in sophisticated wireless technology that is both secure and reliable. Sirit’s OEM line of
Radio Frequency Identification (RFID) readers enable identifying consumable products fitted with
an RFID label. The company is accredited with ISO 9001:2000 certification. Major competitors of
the company include Advanced ID, HID and IBSS.
The company was established in 1993.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In Can$ thousands)

Year Sales % Change


2007 13,500 23.63
2006 10,920 -

Annual Sales Comparison: 2006 Vs. 2005 (In Can$ thousands)

Year Sales % Change


2006 21,715 32.26
2005 16,419 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In Can$ thousands)

Quarter 2006 2005 % Change


Q4 5,709 4,254 34.20
Q3 5,086 3,107 63.69
Q2 5,536 4,632 19.52
Q1 5,384 4,426 21.64
Total 21,715 16,419 32.26

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Canada, United States,
South America, UK & Europe, Asia & Middle East (In Can$ thousands)

Region 2006 2005 % Change


Canada 430 348 23.56
United States 18,061 14,281 26.47
South America 129 5 2480.00
UK & Europe 2,633 1,708 54.16
Asia & Middle East 462 77 500.00
Total 21,715 16,419 32.26

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STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 in Review

Agreement

Sirit Signs an Agreement with Component Distributors, Inc…


Sirit signed an extended distributor agreement with Component Distributors Inc., (CDI) a high-tech
electronics distributor based in Denver, Colorado. As per the terms of the agreement, Sirit would
enhace CDI with its low frequency (LF), high frequency (HF) and ultra high frequency (UHF)
INfinity RFID reader capabilities for distributing its full line of INfinity RFID reader modules
throughout the United States, Canada and Mexico.

Partnership

Sirit Enters into Partnership with NXP Software…


Sirit entered into a global reseller and integration partnership with NXP Software. Following the
partnership, Sirit announced the immediate availability of the Java-based Sirit Mobile NFC
Platform (“Sirit MNP”) middleware solution for mobile phone original equipment manufacturers
(OEMs). Sirit would develop and support innovative NFC architectures and designs by utilizing
NXP Software’s offerings. The partnership also enables Sirit to assist OEMs in shortening the
design cycles in the development of NFC enabled mobile phones.

Contracts

Sirit Receives a Contract from the METRO Group…


Sirit received a contract from the METRO Group for installing its INfinity 510 UHF RFID reader
in METRO’s 2007 rollout program at 99 Real hypermarket locations across Germany. Following
the terms of the contract, INfinity 510 UHF RFID reader would be installed in each of the ninety-
nine locations to track incoming products by using Gen 2 tag technology. METRO Group is the
fourth-largest trading and retailing group across the world.

Sirit Secures a Contract from the Transportation Corridor Agencies…


Sirit secured a three year contract from the Transportation Corridor Agencies (“TCA”) in Southern
California. Under the terms of the agreement, Sirit would supply its Title 21-based RFID
transponders to TCA.

Sirit Signs a Contract with BenQ Corporation…


Sirit signed a Near Field Communications (NFC) contract with BenQ Corporation (“BenQ”),
one of the world’s largest consumer electronics original equipment manufacturers (OEM).
Following the terms of the contract, Sirit would supply BenQ with its embedded NFC software
and technology engineering services for BenQ’s forthcoming NFC mobile smartphones and
handsets.

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Sirit Bags an Order from the Bay Area Toll Authority (“BATA”)…
Sirit bagged an order from the Bay Area Toll Authority (“BATA”) in California. As per the deal,
Sirit would continue to deliver its Title 21-based toll transponders and assist BATA to meet the
growing demands of toll users customer base in the Bay Area.

Sirit Secures an Order from the Orange County Transportation Authority…


Sirit secured an order from the Orange County Transportation Authority (“OCTA”) in Southern
California. Under the trems of the contract, Sirit would deliver its UHF RFID transponder
technology products and software services to OCTA for the next 3 years.

Sirit Receives a Contract from Kyocera Technology Research Corp…


Sirit received a contract from Kyocera Technology Research Corp. (KTRC), an advanced-
technology research arm of Kyocera. As per the terms of the contract, Sirit would supply its Mobile
NFC Platform (“Sirit MNP”) software and related NFC engineering services, which are designed to
assist OEMs in shortening the development cycles and time to market for NFC-enabled mobile
handsets.
NFC technology is a short range wireless connectivity method, co-invented by NXP (a top 10
semiconductor company), and poised to become a standard feature on mobile phones. Sirit’s MNP
is a package of Java-based embedded software stacks and specifications (JSRs) (powered by NXP
Software’s J-Ware NFC SW).

Product Launches

Sirit Introduces Identity MaX in Europe


Sirit introduced a European version of the company’s popular Identity MaX UHF RFID reader to
assist motorists with parking and related services. The system comes with inbuilt ‘Automatic
Vehicle Identification’ (AVI) feature that works excellently for single-lane traffic. The European
version operates in the 865 – 868 MHz band, and can be easily retrofitted to existing infrastructure
owing to its Power over Ethernet capabilities.

Year 2006 In Review…

Acquisitions

Sirit Acquires SAMSys’ Assets…


Sirit acquired the assets of SAMSys Technologies Inc. (SAMSys). Following the acquisition of
SAMSys’ asset, Sirit plans to bring new product platforms to market as well as intends to
strengthen its presence in the global RFID market.

Sirit Purchases TradeWind Technologies LLC…


Sirit purchased Tennessee-based TradeWind Technologies to expand RFID market. The
acquisition of TradeWind would provide the company with an immediate access to a product line

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of flexible “plug and play” RFID readers. The readers are ideally suited to a number of closed loop
applications including contactless/cashless payments, asset management, retail and high value
product authentication, and inventory management.
TradeWind Technologies LLC is a developer and manufacturer of RFID readers and
technology.

Partnerships

Sirit and EFKON USA Enter into Partnership…


Sirit and EFKON USA entered into a partnership agreement with respect to toll technologies. As
per the partnership agreement, the 21-based toll tag technology of Sirit would be utilized by
EFKON for its latest toll products. The 21-based toll tag would be used as a platform for effective
functioning of these technologies. The agreement also conferred selling rights on EFKON, with
respect to some products of Sirit.

Sirit Teams Up with Microsoft…


Sirit entered into partnership with Microsoft to move into the next phase of RFID (radio frequency
identification) and NFC (Near Field Communication) fields. As per the deal, Microsoft BizTalk
RFID would offer automatic support for Sirit’s readers, thereby enabling quick and easy “out of the
box” integration and operation across multiple RFID and NFC applications. Microsoft BizTalk
RFID support Sirit’s wide range of RFID and NFC readers in connecting their devices to critical
business processes and applications, delivering increased efficiencies.

Sirit Partners with VendingTechnology Inc., and Scopra Inc…


Sirit partnered with VendingTechnology Inc., (VTI) and Scopra Inc., (Scopra) to deliver
customized UHF RFID item level tracking solution for the pharmaceutical industry. The solution is
used by ASD Healthcare (ASD), a division of AmerisourceBergen Corporation to monitor and
track consigned inventory, namely pharmaceuticals within hospitals. The three companies also
develop transaction-based RFID dispensing cabinet with programmable and inventory responsive
video content and power control to address retail, advertising, inventory-driven-sales and specialty
lines.
VTI is a developer of advanced item level transaction and dispensing solutions while Scopra is a
developer of enterprise scale commercial software.

Contract

Sirit Signs a Contract with an Automotive Company…


Sirit signed a contract with a major automotive company to provide its IDentity MaX portfolio of
readers and customized software suite to identify, track and secure vehicles. Under the contract,
Sirit would supply a comprehensive closed loop solution that comprises more than 500 gate,
desktop and mobile RFID IDentity MaX readers for automatic vehicle identification (AVI) as well
as customized Microsoft-based system software solutions.

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Product Launches
Sirit Unveils Plug-n-Play RFID Reader Products…
Sirit unveiled the Sirit Plug-n-Play product line – an innovative and cost-effective family of Secure
Digital (SDIO) and USB based multi-protocol ‘plug and play’ products supporting a wide range of
RFID applications. Sirit’s Plug-n-Play RFID products are designed to be easily installed into a
broad range of devices without the need for complex engineering support or technical know-how.

Sirit Introduces its INfinity Micro…


Sirit launched INfinity line of embedded RFID modules, the INfinity Micro derived from the
architecture of the Plug-n-Play high frequency (HF) modules. INfinity Micro is designed to address
the increasing trend of mass market devices towards smaller and thinner form-factors. INfinity
Micro is ideally suited for a wide array of secure transaction applications such as cashless
payments, access control and identity or product verification.

Sirit Releases New HF RFID Reader Module…


Sirit released INfinity 196, a high frequency (HF - 13.56 MHz) reader module designed to address
a wide array of HF applications including cashless payments, secure transactions, access control,
identify or product verification, and item level tracking in supply chain applications. The INfinity
196 multi-protocol embedded RFID reader is designed in a compact yet powerful form factor
allowing for easy integration into handheld portable data terminals, mobile computers, cashless
payment and fixed terminals and other OEM devices.

Sirit Introduces IDentity MaX…


Sirit introduced its next-generation, IDentity MaX, UHF RFID reader for use in parking and
vehicle access control deployments at the International Parking Institute's ("IPI"). The IDentity
MaX is designed to address market demand for a system, which combines the advanced features
from INfinity series of RFID readers and the performance characteristics from existing IDentity
ZiP, and FleX systems.

Sirit Introduces INfinity 510…


Sirit introduced its next-generation, INfinity 510, UHF RFID reader for use in a variety of
applications including global supply chain deployments. The INfinity 510 is developed from the
ground-up as a Gen 2 compliant multi-protocol reader. The INfinity 510 is designed to maximize
tag read rates and range, simplify device management and support dense reader environments.

PRODUCT PORTFOLIO
Products
Embedded RFID Readers

Reader Modules
INfinity 210 UHF RFID reader module; INfinity 9311 RFID UHF Reader Module; INfinity 167
HF Reader Module; and INfinity 168 HF Reader Module

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Plug-N-Play Readers
SDIO-RFID Premium; SDIO-Developers Kit; USB-RFID Premium; and USB-Developers Kit

NFC Solutions
Module NFC software platform and JSR257

Fixed Reader Solutions

UHF Logistics Readers


Sirit INfinity 510

Parking and Access Control Products


IDentity MaX reader; IDentity ZiP system; IDentity FleX Series; IDentity FleX Transponder;
IDentity FleX Antenna; and IDentity FleX Reader

Toll Management Products


IDentity Title 21 Series; IDentity Title 21 Reader Controller Card; and IDentity Title 21
Transponder

Traffic Management Products


Traffic Probe

Application Areas

Automatic Vehicle Identification


Sirit provides a line of automatic vehicle identification (AVI) products that provide customers with
improved convenience, control and security in parking, gated communities and other applications.
AVI allows toll agencies, parking operators, gated communities, fleet operators, and airports to
identify a vehicle for revenue collection or simple and secure access control. The company also
offers RFID technology solutions for medical applications, people tracking, manufacturing, retail,
warehouses, livestock, and other timing applications.

Product Authentication
Sirit offers an OEM line of radio frequency identification (RFID) readers that provide a cost
effective means to implement RFID technology into existing product.

Asset Tracking Solutions


Sirit offers RFID technology solutions for asset tracking applications. Asset tracking involves
tracing of physical assets such as office furniture and fixtures, laboratory equipment, and expensive
plant machinery and equipment as well as returnable items such as videos and library books.

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SPEEDINFO, INC.
100 Park Center Plaza, Suite 590, San Jose, California 95113, USA
Phone: 408-446-7660, Fax: 408-289-9171
SOURCES: www.speedinfo.com and other secondary online sources

BUSINESS PROFILE
SpeedInfo Inc., (SpeedInfo) is engaged in the business of developing real time traffic data
networks. The company specializes in providing the cost efficient and highly accurate solution for
measuring traffic flow in the country. SpeedInfo develops, enhances and distributes real-time traffic flow
data to traffic information aggregators, Internet traffic information sites and others to provide an accurate-
to-the-minute review of traffic congestion with a focus on flow and incident detection, and its effect on
travel times. The company’s key products include display devices, sensors and servers. SpeedInfo’s
display devices include satellite radio, HD radio, after-market navigation systems, and cellular systems
that are offered to support streaming traffic applications. SpeedInfo’s sensors are used to improve
information for traffic engineering, relieving traffic congestion and empowering drivers with real-time
information in many of America’s largest metropolitan areas. The, company, through a combination of
network and server software technologies developed a commercial data infrastructure that reduces
problems or glitches pertaining to reliability, comprehensive coverage and data latency occurring in the
system. SpeedInfo caters its services to several public, commercial as well as consumer markets.
SpeedInfo’s real-time traffic flow data service include three elements such as the company’s
patent-pending, innovative solar-powered radar sensors, wireless communications by using the
AT&T Wireless® network and data customization and dissemination through the company’s
proprietary hardware and software. The company’s data service is the DVSS-100 Doppler radar
Speed Sensor, a patent-pending system, which measures the speed of vehicles on both sides of the
highway from a single device. The DVSS-100 sensor is fully self-contained and roadside-mounted,
and traffic measurement sensor. SpeedInfo's speed sensors measures traffic flow at programmable
rates. The company’s traffic data service is the company’s proprietary server and software
technology that customizes and disseminates traffic data to SpeedInfo’s partners. The company’s
customers include mass media organizations that provide traffic information, which the radio and
television networks broadcast to consumers, traffic aggregation companies, and mobile application
developers, such as content providers for automotive navigation systems.
In 2006, SpeedInfo in partnership with PBS&J deployed 40 lightweight, solar-powered DVSS-100
radar sensors to measure traffic speeds on approximately 250 miles of North Carolina highways.
SpeedInfo was established in 2002.

STRATEGIC CORPORATE DEVELOPMENTS


Year 2007 in Review…
Contract
SpeedInfo Signs a Contract with the Nebraska Department of Roads…
SpeedInfo signed a contract with the Nebraska Department of Roads (NDOR) for providing real
time traffic data. SpeedInfo installed about 70 Doppler radar sensors to provide information for

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travelers under the state’s 511 Traveler Information System. The installation of the 70 sensors is
part of the first phase of the project, along highways, bridges, tunnels and motorways in Nebraska.
The move comes as NDOR plans to relieve the traffic congestion in the state. The second phase of
the project covers the state’s highways and important routes. The project involves deployment of
the sensors along I-80, I-480, I-680, I-75, I-6 and US Highway 77, and would enable NDOR to
better manage traffic.

Other Developments

SpeedInfo Installs Sensors on Nebraska Highways


SpeedInfo installed about 70 Doppler radar sensors to provide information for travelers under the
state’s 511 Traveler Information System. The company signed a contract with the Nebraska
Department of Roads (NDOR) for providing real time traffic data. The installation of the 70
sensors is part of the first phase of the project, along highways, bridges, tunnels and motorways in
Nebraska. The move comes after NDOR plannned to relieve the traffic congestion in the state. The
second phase of the project covers the state’s highways and important routes. The project involves
deployment of the sensors along I-80, I-480, I-680, I-75, I-6 and US Highway 77, and enables
NDOR to better manage traffic.

SpeedInfo Installs new Traffic Flow Solution in Washington D.C.


SpeedInfo installed about 50 SpeedInfo Doppler radar based sensors to measure the traffic speed
on the roads in Washington D.C. The main focus would be on the Interstate 295 and 395 where the
tests are conducted for emergency signal timing pattern and emergency transportation
communication protocol. SpeedInfo would monitor and record the traffic data that can be of
significant use in traffic flow measurement. The company would provide the data free to the
Department of Transportation, in exchange for roadside space to install the equipment. The
company plans to sell the information to service providers such as those informing commuters
about traffic situations.

Year 2006 in Review…

Contract

SpeedInfo Secures Contract from MTC…


SpeedInfo secured a contract from San Francisco Metropolitan Commission (MTC) for supplying
real-time traffic flow data. The sensors of SpeedInfo function round the clock and records speeds
of traffic well over million times a day. This enables concerned departments to respond quickly, in
situations like heavy traffic congestion and accidents.

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TACEL LTD.
179 Bartley Drive. Unit B, Toronto, Ontario M4A 1E8, Canada
Phone: 877-750-4646, Fax: 416-750-4649

SOURCES: www.tacel.ca and other secondary online sources

BUSINESS PROFILE
Tacel Ltd., (Tacel) is a Canada based leading provider of traffic control equipment and services.
The product suite of the company include loop detectors, controllers, emergency preemption,
traffic signal heads, LED signals, loop sealants, speed signs, mounting hardware and the ACTRA-
Central advanced traffic management systems solutions. Other products of the company include
Marc NX closed loop traffic management software system, SCOOT – Adaptive traffic system, i2
traffic management system, 2070 advanced transportation controller and intersection management
software.
Tacel was established in 1979.

PRODUCT PORTFOLIO

Traffic Management Systems


ACTRA-Central ATMS (Windows 2000 and XP), MARC NX-Closed Loop (Windows 2000 and
XP), SCOOT-Adaptive Traffic System, Pocket ACTRA-Data Transfer PDA I2TMS, Intersection
Management Software

Traffic Signal Heads


Signal Specifications, Aluminum Vehicle Traffic Signal, SIG Polycarbonate Vehicle Traffic
Signals, SA Polycarbonate Vehicle Traffic Signals, Aluminum Pedestrian Signal Polycarbonate
Pedestrian Signal, Signal accessories

Detection Systems
Traficon Video Detection Systems, VIP/I – Incident Detection and Traffic Flow, VIP/3D.x -
Presence monitor, VIP/D - Data Monitor, VIP/T – Traffic Monitoring, Automatic Incident
Detection & Traffic Data Collection, Traficam – Loop Emulation Detectors, Siemens ITS Infrared
and Infrared/Ultrasonic Above Ground Detectors, PIR 1– Series, PIR 3– Series, PIR 6 – Series,
PIR 7 – Series, PIR US – Series, Detector Accessories, Eberle Design Inc. In-ground Loop
Detectors, Polara Engineering Pushbuttons, Navigator Accessible Pedestrian Signal (APS), Bull
Dog Pressure Activated.

Traffic Controller Accessories


Conflict/Voltage Signal Monitors, Loadswitches, Flashers, ECcom Software, NEMA TS-2 Cabinet
Auxiliary Devices, ITS Cabinet Auxiliary Devices

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TRAFICON NV
Meensesteenweg 449/2, B-8501 Bissegem, Belgium
Phone: +32 (0) 56 37 22 00, Fax: +32 (0) 56 37 21 96

SOURCES: www.traficon.com and other secondary online sources

BUSINESS PROFILE
Traficon NV (Traficon) designs, develops, builds and installs automated traffic and incident
detection and intersection control & monitoring equipment that often form the enabling platforms
for intelligent transportation systems. Traficon’s video image processing devices for traffic analysis
include traffic cameras, detector & communication boards, PC Software and Rack systems. The
company’s other product application areas include ramp metering, travel time calculation, dynamic
speed indication, queue tail monitoring, congestion monitoring, tunnel access control, ventilation
control, rerouting, VMS-control, dynamic queue indication during road works, and dynamic lane
opening or closing. Traficon video detection systems are used in several traffic applications such as
ramp metering, travel time calculation, dynamic speed indication, queue tail monitoring,
congestion monitoring, tunnel access control, ventilation control, rerouting, and dynamic queue
indication during road works. The company offers products for tunnel, road and urban applications.
The company installed over 20,000 detectors in more than 130 tunnels worldwide and more than
300km of tunnels are equipped with a Traficon system worldwide. The company is accredited with
ISO-9001: 2000 certification.
Traficon was established in 1992.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 in Review…

Product Launch

Traficon Introduces a Stand Alone, Multifaceted VIP-T box


Traficon introduced a stand alone and multifaceted automatic incident detection system, VIP-T
box. The fully functional feature of the system makes it unique with MPEG4 compatibility. The
new system offers the flexibility of a stand-alone system with the benefits of a networked system.
The system is specifically designed for busy roads and facilitates solutions in flow speed, inverse
direction, objects, pedestrians, presence detection, slow moving vehicles, smoke detection and
stopped vehicle detection.

Year 2006 in Review…


Product Launches
Traficon Introduces a Stand Alone, Multifaceted VIP-T box…
Traficon introduced a stand alone and multifaceted automatic incident detection system, VIP-T
box. The fully functional feature of the system makes it unique with MPEG4 compatibility. The

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
new system offers the flexibility of a stand-alone system with the benefits of a networked system.
The system is specifically designed for busy roads and facilitates solutions in flow speed, inverse
direction, objects, pedestrians, presence detection, slow moving vehicles, smoke detection and
stopped vehicle detection.

Traficon Launches TrafiCam


Traficon launched its latest traffic surveillance camera and detector - TrafiCam, which is equipped
with just a single sensor. TrafiCam could be conveniently installed on any traffic signal, and is
designed to provide an aesthetic look. The launch is in response to preferences of modern-day
consumers, who, along with performance, are also keen on look of the product.

Traficon Launches Second Generation TrafiCam…


Traficon launched second generation TrafiCam. The product is a small, light and discreet unit from
durable material that would fit perfectly, and discreetly on any traffic light.

PRODUCT ANALYSIS

Detector board
The key factor in a Traficon detection system is the VIP (Video Image Processor), a standard
detector board on which several types of detection software runs. VIP analyzes the video images to
generate traffic data and alarms.

Communication board
VIP detector boards in typical installations are grouped into rack systems. In each rack, a board
handles compression of images and transmission of data, alarms or images.

PC Software
Traficon PC software monitors the video detection systems, handling TCP/IP communication and
database storage of data, alarms and images. The company’s product range includes viplink,
viewcom PC software, watts, watts+, and TMS: T-Port / T-Control.

Rack System
Rack systems are used for grouping VIP detector boards together with a communication board
while providing the necessary power supply and interfacing connections. The company’s rack
systems are available in the 1/2 19" and 19" sizes.

TrafiCam
TrafiCam® is a concept of a CMOS sensor camera and detector in one compact box. The
company’s product range includes TrafiCam® sensor - 1st Generation, and TrafiCam® sensor -
Second Generation.

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TRANSCORE, INC.
8158 Adams Drive, Hummelstown, Pennsylvania 17036-8624, USA
Phone: 717-561-2400, Fax: 717-564-8439
SOURCES: www.transcore.com and other secondary online sources

BUSINESS PROFILE
TransCore Inc., (TransCore) a subsidiary of Roper Industries, is a worldwide leader in wireless
RFID communication technology. TransCore is also a leader in the area of intelligent
transportation systems (ITS) and provides web-based logistics and traffic management systems and
services around the world. The company designs, manufactures, and distributes RFID tags, readers,
and antennas specifically for use in high performance, high-speed transportation applications. The
company also offers asset tracking for RFID and satellite-based communications, trucking and
dispatch software, shipper, dock and carrier management, and regulatory compliance reporting.
TransCore is also the largest global developer of transportation-based RFID technology. The
company installs management systems in more than 60 airports in 39 countries worldwide. The
company’s products and services are used in more than 46 countries around the globe.
TransCore’s broad range of RFID products include GlobalWave® an innovative, satellite-based
system that monitors, manages, and tracks remote and mobile asset, used in the transportation
industry. The company also offers a freight-matching service and radio frequency identification
(RFID) systems for asset tracking in truck and rail fleets. The company installs more than 21
million tags and 42,000 readers in various applications such as electronic toll collection, traffic
management, rail, truck, container, barge and intermodal tracking and monitoring, homeland
security border control, airport ground transportation, parking, and secure vehicle access control.
Transcore’s products and services are available in 46 countries worldwide. The company operates a
research a development center including Amtech® Technology Center, Satellite Communications
Technology Center, and Testing Facilities.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 in Review

Contracts

TransCore Secures a Contract from Halifax-Dartmouth Bridge Commission to Upgrade Toll


System…
Transcore secured a contract from the Halifax-Dartmouth Bridge Commission to upgrade the
existing 24-lane Toll Collection System and toll plazas on the two bridges operated by the
commission. As per the terms of the contract, TransCore would replace all the lane controllers;
install new automatic vehicle identification (AVI) systems in all the lanes, and video detection
systems in select lanes. The company would also build a new network that would connect all the
lanes, plazas, host, and workstations, and would also install host servers and applications, and new
plaza. The company would also install new touch-screen terminals, and receipt printers in attended
lanes.

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TransCore Secures Contract for Traffic Monitoring System from Californian City
TransCore secured a contract from the Santa Rosa, California to install a real-time traffic
monitoring system. The move would witness implementation of famous adaptive traffic control
technology, SCATS, along the 2.5-mile length of College Avenue upgrading nine intersections.
The adaptive traffic management system is expected to reduce traffic bottlenecks in the city, which
witnesses uneven traffic flow rate depending on the flow of tourists.

TransCore Receives a Contract from Traffic.com…


TransCore received a contract from Traffic.com, a Navteq company, for the installation of
additional roadside traffic sensors expanding Traffic.com’s services in nine cities across the
country: Atlanta, Cincinnati, Columbus, Indianapolis, Las Vegas, Sacramento, Salt Lake City, San
Jose, and Raleigh. As per the terms of the contract, TransCore would install digital roadside traffic
sensors along expressways in and around the metropolitan areas as well as provide maintenance of
existing infrastructure in various cities across the USA.

TransCore Secures New Contract…


TransCore secured a new contract for deploying the technologies on a 2.5-mile stretch,
encompassing nine intersections. The technology is termed as SCATS (Sydney Coordinated
Adaptive Traffic System), which is technically enabled to alter signal timings, based on volume of
traffic. Globally, over 20,000 busy intersections are managed by SCATS, with corresponding
figure for the US being about 900 intersections.

Agreement

TransCore Signs an Agreement with Telenor Satellite Services…


TransCore signed a five-year international distribution agreement with Telenor Satellite Services, a
subsidiary of Telenor ASA of Norway, to distribute its GlobalWave® asset tracking products
throughout Europe. The agreement would increase the market of GlobalWave product line and
provide Telenor with the access to an additional satellite communications service.

Year 2006 in Review…

Acquisition

TransCore Acquires IntelliTrans


TransCore acquired IntelliTrans. The acquisition would combine IntelliTrans' in-transit visibility,
maintenance, repair, yard, and inventory management service offerings with TransCore's RFID and
satellite communications products. The combination would provide seamless integration for rail,
truck, container, barge, and intermodal applications. Following the acquisition, TransCore would
also merge its Atlanta-based CarrierPoint organization, which provides Web-based transportation
management systems, into the IntelliTrans reporting structure.
IntelliTrans is a pre-eminent track and trace software platform for the rail and intermodal industry.

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Partnership
TransCore Partners with PaperWise…
TransCore partnered with PaperWise to add Imaging Service to Trucking Products. Under the
terms of the deal, PaperWise would integrate document imaging within TransCore's Keypoint(R)
transportation management software (TMS) and other TMS packages. TransCore Imaging is a
document management system that converts paper documents into digital formats, creating
electronic documents stored and accessed through computers, bringing paperwork into a
manageable and user-friendly filing system. PaperWise is a provider of document imaging and
workflow solutions.

Contracts
TransCore Receives a Contract from Washington State Department of Transportation…
TransCore received a five-year contract from Washington State Department of Transportation for
providing solutions related to toll technologies. The company’s toll technology would be deployed
on the Tacoma Narrows Bridge. The contract assigns full responsibility to TransCore, with respect
to various aspects related to toll bridge, that include customer service, violations processing, in-
lane manual, money room counting, system administration, maintenance and auditing. The toll
technology enables users to make payments in any mode of their choice.

Agreement
TransCore and SiriCOMM, Inc. Enters into an Agreement…
TransCore and SiriCOMM Inc., entered into an agreement. As per the terms of the agreement,
TransCore would market SiriCOMM’s InTouch service through the various mediums such as their
DAT load board network located in truck stops nationwide.

Product/Service Launch
TransCore Launches 3sixty, Merges Six Logistics Services…
TransCore launched the new 3sixty product suite, merging six separate logistics capabilities into a
single platform for third-party logistics providers, shippers, and carriers. The new product suite
includes 3sixty Operations Management, 3sixty Freight Match, 3sixty Fleet Management, 3sixty
Rail-Intermodal, 3sixty Compliance Services and, 3sixty Financial Services.

PRODUCT ANALYSIS

RFID Tags
The company supplies hard case tags for various transportation applications ranging from
automatic road tolling, intelligent transportation systems (ITS) for automatic vehicle identification
(AVI) and positive train positioning for railroads, and for parking and security access control
applications. The company offers Intellitag®, the first inexpensive, flexible windshield sticker tag
for use in high-speed, high performance transportation applications.

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RFID Readers
The company offers two general classes of readers such as single protocol and multi-protocol. The
company’s Encompass™ Multi-Protocol Readers is used to identify all TransCore readers with
multi-protocol capabilities. The company’s readers include Encompass 6, Electronic Toll
Collection (ETC), Rail, Fixed Mount, Read/Write, External Antennas, and Seven Protocols.

Antennas
Toll and Airport Antennas, Rail Antennas, and General Use Antennas

Software Products
The company develops standard software products as ATMS Software – TransSuite®, Toll
Solutions Software – Forté®, and others

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
TRANSDYN CONTROLS, INC.
5669 Gibraltar Drive, Pleasanton, California 94588, USA
Phone: (925) 225-1600, Fax: (925) 225-1610

SOURCES: www.transdyn.com and other secondary online sources

BUSINESS PROFILE
Transdyn Controls Inc. (Transdyn), a wholly owned subsidiary of Powell Industries, is a major
systems integrator of security and surveillance, control, information management and
communication systems. The company is engaged in designing, manufacturing and maintenance of
information management and mission critical control systems. Transdyn is also a leader in
providing several systems and services for both public as well as private sectors including security
and surveillance sectors and transportation sectors. The company designs build and maintain
mission-critical control and information management systems. The company’s product portfolio
includes Dynac™; Dynac™ ES; Dynac™ OS 64; 3 Dynac™ Forum; Dynac™ Suites; Dynac
ATMS™; Dynac™ Scada; Dynac™ C3I; Dynac™ DSM; and Dynac™CCTV. The company’s
DYNAC™ line of products help in providing integrated software solutions for several markets
including intelligent transportation systems (ITS), advanced traffic management systems (ATMS),
electric power distribution and transit power systems. Transdyn offers a wide range of systems for
government agencies and private industry in the transportation, environmental, energy, and
industrial markets throughout the world.
Transdyn’s services include planning, design, systems integration, design-build contracting, project
management, software development, installation, commissioning, energy and industrial solution,
training, operations and maintenance, and long-term support. Transdyn also provides a complete
range of O&M services including software support, system administration (accounts, backups,
archives), equipment repair or replacement, documentation updates, corrective and preventative
maintenance and others. Key projects undertaken by the company include transportation projects,
environmental projects, security and surveillance projects, energy projects, and industrial projects.
The company operates in Virginia, Georgia, New Jersey, Florida and New York.
Powell Industries design, manufacture and package systems and equipment for the control,
distribution and management of electrical energy and other dynamic processes.
Transdyn was established in 1975 and acquired by Powell Industries in 1993.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 in Review…

Transdyn Receives Contract from Transurban's CityLink Melbourne Limited (CML)…


Transdyn secured a contract from the Transurban’s CityLink Melbourne Limited (CML) to install
and maintain the CityLInk road network’s traffic and plant operations. The contract would include
the design and building of Central computer system, DYNAC™, to manage the 22-kilometre
CityLink automated tollway in Melbourne. The Enterprise Server Software suite, DYNAC™,

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would assist in monitoring City Link’s access control, electrical distribution, electronic message
signs, emergency telephones, environmental systems, fire detection, lighting, motorist advisory
radios, vehicle detectors, ventilation, video cameras, weigh-in-motion and counting stations.
Transurban is a leading international toll road developer and investor with major assets in Australia, an
asset in the US (Pocahontas Parkway), and emerging interests in other US states and the UK.

Year 2006 in Review…

Contracts

Transdyn Bags a Contract from Port Authority of New York and New Jersey…
Transdyn bagged a contract to provide a new communication system for the George Washington
Bridge. The new high-availability OC-12 SONET/SDH ring would support critical
communications for equipment and systems associated with the monitoring, control, automation
and management of bridge operations.

Transdyn Receives a Contract to Provide Video-Based IDS for Baltimore Harbor…


Transdyn bagged a contract from The Maryland Transportation Authority to provide a video-based
Incident Detection System (IDS) for the Baltimore and Ft. McHenry Tunnels. The IDS would
enable the Authority to continuously monitor and record traffic, pedestrians and incidents
throughout the facilities and generate detailed reports.

Product Launch

Transdyn Launches New Dynac OS 64…


Transdyn launched the new open server Dynac OS 64 that is available on Intel’s new 64-bit
Itanium processor. The company’s Dynac Open Server 64 is a high-performance, SCADA,
intelligent transportation, and facility management software solution that manage mission-critical
operations and processes. The Itanium architecture provides the building blocks for Integrity
servers – HP’s high-end flagship server families.

PRODUCT/SERVICE ANALYSIS
DYNAC™
DYNAC™ is a highly integrated software suite used for advanced transportation management,
process automation, supervisory control and data acquisition, information management, and data
display for mission-critical control system.

DYNAC™ ES
DYNAC™ Enterprise Server (ES) combines mission-critical reliability and security with the latest
software technology to provide a powerful, web-centric software solution for 24/7 control system
applications. DYNAC™ ES is available in two suites such as DYNAC ATMS™ (Advanced
Traffic Management System) and DYNAC™ SCADA.

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DYNAC™ OS 64
Running on 64-bit servers, DYNAC™ OS 64 supports large volumes of data throughput and alarm
handling without degrading overall system performance. DYNAC™ OS 64 provides a secure,
high-performance operating environment and allows control personnel to efficiently and securely
monitor and control their vital facilities. The software is available in two suites including
DYNAC™ ATMS (Advanced traffic Management System) and DYNAC™ SCADA (Supervisory
Control and Data Acquisition).

Systems Integration
Transdyn offers a full spectrum of design, development, installation, and support services. The
company’s system integration services include System planning, Design, Program management,
Construction management, Engineering, Software development, Configuration and programming,
Installation, Testing and commissioning and O&M support.

Engineering
Transdyn provides engineering services to help its clients use the latest and best available
technology and practices to manage their critical processes and facilities. The company offers
Feasibility, engineering, and site assessments, Software design and development, Equipment
specification and selection, Electrical design, LAN and WAN communication system design, ITS
engineering, SCADA and others.

Operations & Maintenance


Transdyn provides a complete range of O&M services including Software support, Corrective and
preventative maintenance, System administration (accounts, backups, archives), Calibration and
tuning, Diagnostics, Cleaning, Equipment repair or replacement, Training and user assessments,
Documentation updates, Configuration and Operations staffing.

Roadways
Transdyn offers a full complement of intelligent transportation system services including design,
development, integration, construction and maintenance. The company provides many
transportation agencies with systems and services to manage their freeways, arterial networks and
rural highways.

Transit
The company provides turnkey services to combine various subsystems into a homogenous, fully
integrated, high-availability, secure control and information management system.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
XATA CORPORATION
151 E. Cliff Road, Suite 10, Burnsville, Minnesota 55337, USA
Phone: 952-707-5600, Fax: 952-894-2463

SOURCES: www.xata.com and other secondary online sources


2007 Sales: US$ 23.9 million (Nine Months Ended, June)
2006 Sales: US$ 30.6 million
2005 Sales: US$ 19.30 million
(Fiscal Year Ends in September)

BUSINESS PROFILE
XATA Corp., (XATA) is a worldwide leader in providing fleet management solutions and a
leading provider of mobile information systems to the commercial trucking sector. The company’s
innovative technologies and value-added services enable customers to optimize the utilization of
assets and enhance the productivity of fleet operations across the entire supply chain, resulting in
decreased costs, improved customer service and overall business productivity. The company’s
major product line includes Xatanet (Service Packages, Bronze Package, Silver Package, Gold
Package, Platinum Package, Onboard Hardware and Communications), OpCenter, XataServ,
ProServ and Compare Products. The company’s products incorporate enterprise software, onboard
computing, wireless communications and global positioning to offer an enterprise-wide logistics
management solution for North America’s largest trucking fleets.
XATA’s products also include Learned Standards, Exception-based wireless reporting, wireless
yard communications, Electronic trip plans, Paperless DOT Logs, and Xatanet. XATA’s windows-
based OpCenter™ is a leading fleet management system. Another product is XATANET™, which
is a web-based fleet management solution. The company markets its OpCenter product, which
monitors vehicle performance, automatically logs crucial trip data, and enables two-way
messaging, primarily to companies operating large fleets of 30 or more trucks. As the fleet
optimization and operations expert, the company also markets its Xatanet, a hosted, web-based
system, to smaller fleet owners. XATA’s onboard management system reduces fuel costs, increases
operational efficiencies, improves safety and enhances customer service.
XATA’s products seamlessly combine enterprise software, onboard computing, real-time
communications and global positioning systems (GPS) to provide an enterprise logistics management
solution for private fleet operators. The company’s systems are installed in over 45,000 commercial
trucks at over 1,000 customer locations in North America. The company, with 1,925 distribution
centers, services over 60,000 trucks. The company’s customers include the US Postal Service and CVS.
XATA forms partnership with the nation’s largest private fleet and leasing companies, including BP
Amoco, Coca Cola, and Penske, to find and develop technologies that provide the greatest amount of
information about their fleets and transform that data into actionable intelligence.
In addition to Allegiance Healthcare Corporation, Baxter Healthcare Corporation, Bi-Lo, LLC, The
BOC Group plc, Core-Mark International, CVS Pharmacy, Eby-Brown Company, Foster Farms

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Dairy, Hannaford Trucking Co., The Kroger Co., McLane Company, Publix Super Markets, Inc.,
Penske Corporation, Perlman Rocque, Ryder System Inc., Safeway, Inc., Supervalu, Inc., Toys “R”
Us, Inc., Unisource Worldwide, Inc., United Natural Foods, Inc., the United States Postal Service,
Whirlpool Corporation and xpedx (a division of International Paper Company), the company’s
customers include Inergy Services, PVS Chemicals, Holbrook Lumber, Dean Foods, and Valley
Proteins.
The major competitors of the company include @Road, Trimble Navigation, and QUALCOMM.
Trident Capital owns about 30% of the company. John Deere Special Technologies, a subsidiary of
farm equipment maker Deere & Company, owns about 25% of the company.
The company was established in 1985.

SALES DATA

Nine Months Sales Comparison: 2007 Vs. 2006 (Nine Months Ended, June)
(In US$ million)

Year Sales % Change


2007 23.92 7.31
2006 22.29 -

Annual Sales Comparison: 2004-2006 (In US$ million)

Year Sales % Change


2006 30.63 58.70
2005 19.30 1.95
2004 18.93 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review


Agreement
XATA Signs New Building Lease to Handle Growth…
XATA signed a lease on a state-of-the-art building to become the corporate headquarters for
XATA in Eden Prairie, Minnesota. The new building would allow XATA to meet the demands of
its growing business by providing room for XATA's more than 100 Minnesota employees.
With the new building, the company continues to establish XATA as an industry leader in fleet
management solutions as well as maintain the high-level of service. The 26,500 square foot
building would provide sufficient space for existing employees and meet the demands of XATA's
high growth needs. The standalone building is located on 965 Prairie Center Drive in Eden Prairie.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Year 2006 in Review

Product Launch

XATA Releases XATANET 3.2


XATA announced the release of XATANET 3.2, the latest version of its on-demand fleet
management system that offers a new automated dashboard for key performance metrics and point-
and-click scheduled reporting for information distribution. XATANET 3.2 represents a significant
change in the way fleet management thinks about information delivery and analysis. XATANET
3.2 is designed to deliver real-time information to fleet operations in an automatic and interactive
fashion using a new interface and tools that help to quickly identify and resolve exception
conditions, measure fleet performance, monitor fleet operations and perform more detailed drill-
down analysis when required. Through a new interactive dashboard and scheduled reporting
features, XATANET 3.2 transforms and delivers real-time performance information throughout the
enterprise in an intelligent, interactive, exception-based format.

PRODUCT/SERVICE ANALYSIS

Xatanet
XATANET is a turnkey fleet management solution that integrates onboard computers, driver
displays and cost-effective communications with powerful Web-based applications. The product
provides asset tracking with real-time visibility of drivers, vehicles and deliveries.

OpCenter
OpCenter is a comprehensive, enterprise fleet management solution that integrates powerful
software applications with onboard computing, driver messaging, GPS and wireless
communications. The proven technologies monitor ongoing operations, measure fleet performance
and provide immediate access to information at all levels across the company.

Customer Support
XATA operates comprehensive customer and technical support programs that integrate people,
processes, and expertise to ensure the successful operation of any XATA solution. The company
holds expertise in managing very large scale rollouts and implementations.

Professional services
The company’s professional services include Managed services, Business process re-engineering,
Regulatory compliance audits, Training, Reporting, Custom software development, and Third party
software integration.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
B. NICHE & OTHER PLAYERS

3M TRAFFIC SAFETY SYSTEMS


3M Center, Building 0225-05-S-08, St. Paul, Minnesota 55144-1000, USA
Phone: 1-800-553-1380

SOURCES: www.3m.com/tcm and other secondary online sources

BUSINESS PROFILE
3M Traffic Safety Systems (3M Traffic) is the global leader in the transportation safety and
management industry. The company develops a wide range of products and systems for the
transportation safety, traffic management, vehicle registration and commercial transportation
markets. Key product offerings include retro-reflective sheeting and components for signs; work
zone devices; license plates and validation systems; and vehicle emblems and high-visibility
markings. The company’s product list also includes reflective pavement markings including tape,
liquid, and raised markers; digital license plate production systems; intelligent transportation
systems; incident/priority control systems; and vehicle detection technologies.
3M Traffic also provides value-added services such as roadway maintenance services, installed
pavement markings, and traffic sign installations and upgrade programs. 3M Traffic’s products are
directly sold to government agencies and also to the suppliers of traffic-related products, systems
and services to government. The company’s reflective products such as reflective bicycle tires,
reflective fabric and yarns, and sheeting and films for decorative and commercial applications are
sold through other 3M channels.
3M Traffic’s sales representatives are located throughout the country and provide after sales
services to the customers. The company’s customer service representatives are organized into
regional teams offering complete product information/ordering service. The company’s technical
service representatives assist customers in using products in the most effective way and also assist
in employee training and consultation.

PRODUCT PORTFOLIO

Permanent Signing
3M™ Diamond Grade™ Reflective Products; 3M™ High Intensity Grade Reflective Products;
3M™ Engineer Grade Reflective Products; 3M™ Commercial Grade Reflective Sheeting Series
670; 3M™ Matched Components System™ Products; 3M™ Non-Reflective Films

Pavement Marking
3M™ Stamark™ Durable Pavement Marking Tapes; 3M™ Stamark™ Liquid Pavement Markings;
3M™ Stamark™ Temporary Pavement Markings; 3M™ Raised Pavement Markers; 3M™
Pavement Marking Surface Preparation and Adhesives

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Vehicle & Conspicuity Markings
3M™ Conspicuity Safety Markings; 3M™ Reflective Vehicle Markings

Intelligent Transportation Systems


3M™ Opticom™ Priority Control Systems; 3M™ Traffic Sensing System II; and 3M™ Detector
Loop Sealant; 3M™ Driver Feedback Signs

Vehicle Registration Systems


3M™ Electronic Vehicle Registration System; 3M™ License Plate Systems; and 3M™
Registration Renewal Systems

Work Zone
3M™ Diamond Grade™ Reflective Products; 3M™ High Intensity Grade Reflective Products;
3M™ Engineer Grade Reflective Products; 3M™ Roll-up Sign Sheeting; and 3M™ Temporary
Pavement Markings

Other Products
3M™ Opticom™ Priority Control System Passes Tough Independent Test; and 3M™ Scotchlite™
Preclear Reflective License Plate Sheeting Series 4770

ACS SOLUTIONS SCHWEIZ AG


Frankenstrasse 70, 3018 Bern, Switzerland
Phone: 031 999 61 11, Fax: 031 999 61 21

SOURCES: Company related secondary online sources

BUSINESS PROFILE
ACS Solutions Schweiz AG is a provider of electrical engineering solutions. The company was
established in 2005.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
ADVANCED COMMUNICATIONS AND INFORMATION SYSTEMS
ACIS House, Knaves Beech Business Centre, Loud water, Bucks, HP10 9QR, UK
Phone: 01628 524900, Fax: 01628 523222

SOURCES: www.acis.uk.com and other secondary online sources

BUSINESS PROFILE
Advanced Communications And Information Systems (ACIS), a part of Carlyle Group, is a leading
supplier of Real Time Passenger Information (RTPI) and Bus Operator fleet management. The
company is also a largest provider of traffic signal priority systems for the public transport and
traffic control sectors, using both general packet radio service (GPRS) and private mobile radio
(PMR) technologies in the UK. ACIS designs, develops, supplies and maintains RTPI systems to
public transport operators, local governing authorities, vehicle manufacturers and passengers. The
company offers a range of packages of IT solutions, systems design and configuration, high-end
engineering assembly and installation, project management and delivery and personalized customer
services. ACIS’ BusNet product range offers diversity, choice, efficiency and reliable information
solutions.
ACIS also focuses on new technologies such as Web, WAP, SMS and voice messaging. ACIS
WAP site provides real time public transport information over wireless access protocol (WAP).
WAP provides the added benefit of making real time information accessible by anyone, at any
time, in any location, where there is coverage. ACIS live WAP site brings convenient pre-journey
real time information to the passenger, and makes the most of the information provided by the
BusNet system. ACIS also developed a short message service (SMS) site, which is designed for the
provision of real time public transport information through SMS. The company uses GPS (Global
Positioning System) to monitor the movements of buses. ACIS maintains an international presence
and deployed BusNet systems in The Netherlands, Scandinavia and the Middle East.
In 2006, The Carlyle Group announced the acquisition of ACIS from Inflexion Private Equity.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
ADVANCED INFORMATION TECHNOLOGY PLC
37/2 Suthisarnvinijchai Road, Samsaennok, Huay Kwang, Bangkok 10320, Thailand
Phone: +66 (0) 2275 9400, Fax: +66 (0) 2275 9100, +66 (0) 2275 9200

SOURCES: WWW.AIT.CO.TH and other secondary online sources

2006 Sales: Baht 2,278.46 million


2005 Sales: Baht 1,362.78 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Advanced Information Technology PLC, (AIT) is one of the major providers of information and
communication technology (ICT) solutions in Thailand. The company is primarily involved in
information and communications technology business, providing the designing and installation of
information and communications network as well as the sales of electronic equipment. AIT
provides services such as maintenance service, system network development service, and
outsourcing of information technology system service.
AIT’s partners include the Cisco System, the AMP, the 3COM, the Hewlett Packard, the SUN
Micro Systems and others. The company’s major clientele include TOT Public Company Limited,
CAT Telecom Public Company Limited, Sermsuk Public Company, Toyota Motor Thailand
Company Limited, Nokia Thailand Company Limited, Home Product Center Public Company
Limited, Krung Thai Bank Public Company Limited, NEC Corporation (Thailand) Limited,
Electricity Generating Authority of Thailand and Port Auhority of Thailand. The company’s top
competitors include Svoa, CDG, MFEC, Datacraft, IBM, NetOne, TCS (company in CDG Group),
NCR, Loxbit and DataPro, UCOM, Jasmin International Plc., Samart Corporation Plc., and IRCP.
AIT was established in 1992.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In Baht million)

Year Sales % Change


2006 2,278.46 67.19
2005 1,362.78 -

SERVICE ANALYSIS

System Integration
AIT provides service of lump sum turnkey of information and communication technology network
system, which includes hardware computer system, system software, application software,
information network system, and communication network system. The company also provides

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
consulting, recommendation, designing, constructing, installing, testing and training services to its
customers. AIT offers its services to all types of business ranging from small company to as large
as nation-sized company.

Maintenance Service
Maintenance services of computer system is provided to general customers, including hardware,
system software, application software, information network, communication network. The services
are generally offered to public, mostly however, to continuing customers after the warranty
term ended. Normally, maintenance contract shall be valid from 1-3 years.

Application Service
The company provides the service of design and installation, system software development,
application software improvement as well as the installation of ready-made application software to
meet the requirements of its customers, suitable for organization and enterprise.

Outsourcing Service
AIT provides rental service on high quality information communication device including an
offering in annual maintenance service, which gives an opportunity for a customer whose budget is
limited in investment in information technology and communication network system.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
AECON GROUP, INC.
20 Carlson Court, Suite 800, Toronto, Ontario M9W 7K6, Canada
Phone: 416-293-7004, Fax: 416-293-0271
SOURCES: www.aecon.com and other secondary online sources
2007 Sales: Can$ 580 million (H1)
2006 Sales: Can$ 1,113 million
2005 Sales: Can$ 1,120 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Aecon Group Inc., (Aecon) is one of largest construction and infrastructure development
companies. The company specializes in providing complete range of services including design and
construction, financing, operating, procurement and project management. Aecon is involved in
road and heavy civil construction, commercial construction, engineering, materials fabrication, and
cable installation. The company’s main services include conventional lighting, duct bank work,
electrical maintenance service, FTMS (freeway traffic management systems), high mast lighting,
pedestrian crosswalk signals, street lights, temporary traffic signals, traffic signals, and
underground conduit and wiring. The company also builds and operates toll roads. The company’s
industrial operations ranges from fabricating specialty pipe to manufacturing steam generators.
Aecon’s subsidiary Aecon Construction and Materials Ltd. specializes in large civil projects such
as the construction of roads, highways, bridges, and airport facilities all across Canada.
Aecon, through its AGI Traffic Technology group specializes in the installation and maintenance
of traffic signals, highway illumination and traffic management systems. The company also
supports the telecommunication industry with telecommunication installation services for both
telecom providers and private enterprise networks. Aecon provides specialized fabrication of
process piping and custom steel solutions to the nuclear, automotive, power, natural gas,
petrochemical and other industries throughout North America. Aecon build hundreds of factories,
roads, sewers, theatres, bookstores, power plants, paint shops, arts centres, factories, offices, hotels
and gas distribution networks including Canada’s most famous infrastructure landmarks ranging
from the CN Tower and the St. Lawrence Seaway, to the Calgary Olympic Oval and the Halifax
Shipyards. The company’s top competitors include AMEC, Bovis Lend Lease, and PCL.
Aecon was established in 2001 following the merger of two Canada's largest construction groups,
Armbro Enterprises and BFC Construction. Aecon is 48%-owned by Canadian Turner
Construction (a subsidiary of German construction giant HOCHTIEF).

BUSINESS OPERATIONS

Aecon Buildings
Aecon Buildings Group is one of the leading North American general contractors in the buildings
construction sector. The group provides construction management, design build, general

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contracting, leed/green construction and interior fit-up, renovation, retrofit and program services.
Aecon Buildings group provides a broad range of custom-tailored project services. The group also
provides program services for clients with multiple locations, which include tenant improvements,
additions and renovations.
Aecon Buildings group provides services for sectors such as Commercial Office Building and
Corporate Headquarters, Institutional and Educational Facilities, Major Retrofits and Renovations,
Retail, Multi-Unit Residential, Industrial Buildings, High Technology, Health Care, Entertainment
and Hospitality, and Government & Aviation Buildings. The group’s customers ranges from the
Marriott to the Montreal Airport, from ATI Technologies to Ford, from the Brampton Performing
Arts Centre to the IWK Health Centre. The group operates a network of strategic business units
located throughout Canada and in the Pacific Northwest USA.

Civil & Utilities


Aecon Civil and Utilities Group comprises several business units namely Aecon Construction and
Materials Ltd., Miwel Construction Limited, AME (Aecon Materials Engineering Corporation), Aecon
Constructors (A Division of Aecon Construction Group Inc.), Aecon Utilities (A Division of Aecon
Construction Group Inc.), AGI Traffic Technology Inc., Aecon Utility Engineering, QX Technical
Services, and QX Locates. The group specializes in providing Civil Construction, Construction
Materials, and Utility Construction services. Aecon Construction and Materials Ltd., specializes in
large civil projects such as the construction of roads, highways, bridges, airport facilities, all across
Canada.
Aecon Materials Engineering Corp., is an industry leader in the design of highway pavement
structures, while Aecon Constructors is capable of managing very large projects from beginning to
end. Aecon Constructors is a leading Canadian construction contractor with capabilities that span
the range of heavy civil construction from dams, tunnels, marine facilities, and transit systems to
power projects. Aecon Utilities Group (A Division of Aecon Construction Group Inc.) specializes
in utility infrastructure services including distribution and mainline gas projects, hydro distribution
networks, telecommunication network infrastructure projects, water mains and sewers. Aecon
Utility Engineering provides design, maintenance, project management, construction management,
and material management services.

Concessions
Aecon’s Concessions group primarily focuses on the management, maintenance and enhancement
of equity investments held by Aecon in infrastructure concessions.

Constructors
Aecon Constructors is a leading North American heavy civil construction contractor. Aecon
Constructors’ capabilities span the range of heavy civil construction from highways and toll routes
to dams and tunnels, airports, marine facilities, transit systems and hydroelectric power projects.
Aecon Constructors provides services to a diverse array of public and private sector clients
including All levels of Government, Power Authorities, Port Authorities, Transportation
Authorities, Private Power Corporations, Railway Companies, and Mining Companies in more than
30 countries.

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Groupe Aecon Lte
Groupe Aecon Ltée provides construction services in Quebec with offices in Montreal,
Boucherville, and Quebec City. Groupe Aecon Ltée provides practical solutions for the execution
of construction projects.

Industrial
Aecon Industrial offers a single source solution for multi-trade industrial construction and
fabrication projects. Aecon Industrial provides services for every size of projects and for virtually
every industry ranging from moving a single industrial robot, to building an entire cogeneration
plant on a turnkey basis. Aecon Industrial’s provides platform construction and assembly as well as
the installation and maintenance of specialized industrial systems and equipment.

IST (Innovative Steam Technologies)


Innovative Steam Technologies (IST) manufactures once-through steam generators (OTSGs) to
recover the heat from the gas turbine exhaust stream..

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006


(In Can$ million)

Year Sales % Change


2007 580 26.36
2006 459 -

Half Yearly Sales Comparison by Quarter: 2007 Vs. 2006


(In Can$ million)

Quarter 2007 2006 % Change


Q2 338 258 31.01
Q1 242 201 20.40
Total 580 459 26.36

Annual Sales Comparison: 2006 Vs. 2005


(In Can$ million)

Year Sales % Change


2006 1,113 (0.62)
2005 1,120 -

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Quarterly Sales Comparison: 2006 Vs. 2005
(In Can$ million)

Quarter 2006 2005 % Change


Q4 338 323 4.64
Q3 316 341 (7.33)
Q2 258 283 (8.83)
Q1 201 173 16.18
Total 1,113 1,120 (0.62)

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Canada,


United States, Ecuador, Israel, India, and others (In Can$ million)

Region 2006 2005 % Change


Canada 1,007 1,037 (2.89)
United States 52 45 15.56
Ecuador 22 - -
Israel, India, and others 32 38 (15.79)
Total 1,113 1,120 (0.62)

Annual Sales Comparison by Segment (2006 Vs. 2005) – Infrastructure, Buildings,


Industrial, and Concessions (In Can$ million)

Segment 2006 2005 % Change


Infrastructure 484 432 12.04
Buildings 323 395 (18.23)
Industrial 290 273 6.23
Concessions 36 25 44.00
Corporate and Others (20) (5) 300.00
Total 1,113 1,120 (0.62)

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Acquisition
Aecon Acquires The Karson Group…
Aecon acquired The Karson Group, one of the largest aggregate, asphalt and civil construction
companies in Eastern Ontario. The addition of The Karson Group's aggregates operation would

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nearly triple Aecon's total aggregate reserves, and make Aecon as one of five largest aggregate
producers and one of the three largest asphalt producers in Ontario.
The Karson Group is an integrated construction and materials company operates through Karson
Construction, Karson Asphalt Paving Inc. and Spratt Aggregates (Karson Aggregates). Karson
Group is the third largest company of its kind in the Ottawa / Eastern O7ntario market.

Agreement
Aecon Signs a Cooperation Agreement with Macchi…
Aecon’s wholly owned subsidiary, Innovative Steam Technologies (IST), signed a cooperation
agreement with Macchi, a division of Sofinter SpA. Under the agreement, Macchi and IST would
join hands to sell and execute industrial and heat recovery boiler projects in North America, Europe
and the Middle East, with IST supporting Macchi's sales activities in the North American market
and Macchi supporting IST's sales activities in Europe and the Middle East.
Macchi is a leader in the engineering and supply of fired industrial boilers for the Oil/Gas and
Petrochemical sectors, with a strong presence in both the European and Middle Eastern markets.

Contracts
Aecon Receives a Contract to Build TEDCO’s Corus Entertainment Office Building…
Aecon’s Buildings Division received a contract from the Toronto Economic Development
Corporation (TEDCO) for building TEDCO’s Corus Entertainment office building and broadcast
centre located on Toronto’s waterfront. The contract involves the construction of an approximately
500,000 square foot office building, including 70,000 square-feet of underground garage parking.

Aecon Wins a Contract for Redevelopment of the Rouge Valley Health System…
Aecon, through its Buildings Division won a contract from the Rouge Valley Health System and
Infrastructure Ontario for expansion and redevelopment of the hospital. The hospital’s expansion
and redevelopment plan includes an upgraded and expanded emergency department; expanded
laboratory, mental health and ambulatory care facilities; a new Complex Continuing Care Unit with
capacity for 30 beds; and the development of diagnostic imaging and cardiac diagnostic areas.
Work on the project would include the redevelopment of 140,000 square-feet of the Ajax/Pickering
site with 75,000 square-feet slated for new construction and 65,000 square-feet of renovations.
Under the contract, Aecon would also perform extensive site development including expanded
parking lots, new sidewalks, curbs, and landscaping.

Aecon Bags a Contract for QEW Widening and Bridge Reconstruction…


Aecon bagged a contract from the Ontario Ministry of Transportation (MTO) for work on the
Queen Elizabeth Way (QEW) in Oakville between Burloak Drive and Third Line. The contract
includes the construction of a fourth lane in both the eastbound and westbound directions between
Burloak Drive and Third Line to serve as High Occupancy Vehicle lanes (HOV). As part of the
contract, Aecon would also be rehabilitating the existing QEW bridge at Bronte Road and building
a new bridge under the QEW as part of a widening and realignment of Bronte Road.

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Aecon Receives a Contract from Bell Canada…
Aecon, through its Buildings Division received a construction management contract from Bell
Canada for the construction of a new five-story corporate office building at its existing Creekbank
campus in Mississauga.

Aecon Secures a Contract from Hawaii Electric and Light Company…


Aecon’s wholly owned subsidiary, Innovative Steam Technologies (IST) secured a contract from
Hawaii Electric and Light Company. Under the terms of the contract, IST would supply two OTSG
units designed to recover waste exhaust heat from two 25MW gas turbines and use the heat to
create steam for a steam turbine.

Aecon Bags a Contract for Oilsands Project in Alberta…


Aecon’s Industrial Western Canada division bagged a large module contract for an oilsands project
in Alberta. Under the contract, Aecon Industrial would perform module work on Shell Canada's
Scotford Upgrader Expansion 1 project, located north of Edmonton. In addition, Aecon's activities
includes the fabrication of specialty pipe and the assembly of over 200 pipe rack and process
modules for the Upgrader.

Aecon Receives a Contract to Widen 407 ETR…


Aecon, through its Construction and Materials division received a contract to widen the median of
Highway 407 northwest of Toronto between Highway 427 and Highway 401. The project
would add two inside lanes along the 27 km stretch from Highway 427 in the east to Highway
401 in the west, expanding the central section of the highway and improving traffic flow during
peak hours.

Year 2006 in Review…


Agreement
Aecon Enters into a Joint Development Agreement with TEi-Struthers Wells…
Aecon’s wholly owned subsidiary, Innovative Steam Technologies (IST) entered into a joint
development agreement with TEi-Struthers Wells, a subsidiary of Thermal Engineering
International. Under the joint development agreement, TEi-Struthers Wells and IST would jointly
design, manufacture and install Enhanced Oil Recovery steam generators for key oil producing
markets such as Alberta, California, and Texas.

Contracts
Aecon Bags a Contract From Ministry of Transportation…
Aecon, through its Construction and Materials division bagged a contract from the Ministry of
Transportation to construct the realignment of a portion of Highway 69 at Sudbury, in a 50/50 joint
venture with Leo Alarie and Sons Ltd. The contract includes constructing Highway 69 on a new
alignment to the west of the existing highway along a 6.5 km stretch north of Highway 637 near
Sudbury. The project includes advanced grading and four-lane expansion of the highway, as well
as the construction of three new bridges and a culvert.

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Aecon Receives a Contract to Design and Build Orléans Arts Centre…
Aecon’s Buildings Division received a contract from Forum Leasehold Partners Inc., to design and
build Orléans Arts Centre. The project includes the construction of the 86,000 square foot Orléans
Art Centre, which would feature a 500-seat performing arts theatre, a smaller 100-seat studio
theatre, an art gallery, as well as studio space for the visual arts.

Aecon Bags a Contract for Bridge Construction on QEW…


Aecon bagged a contract for work on the Queen Elizabeth Way (QEW) at 16 Mile Creek from the
Ontario Ministry of Transportation. The project includes the construction of a new four lane westbound
bridge at 16 Mile Creek. Construction on the bridge would include steel reinforced caissons drilled into
shale rock, steel reinforced concrete caps, four main piers and two abutments. The contract includes
installation of a 750-metre concrete watermain, and 7,500 cubic metres of concrete.

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ALPINE ELECTRONICS OF AMERICA INC.
19145 Gramercy Place, Torrance, California 90501, USA
Phone: (310) 326-8000, Fax: 310-212-0884

SOURCES: www.alpine-usa.com and other secondary online sources

BUSINESS PROFILE
Alpine Electronics of America Inc. (Alpine Electronics), a subsidiary of Japanese electronics
manufacturer Alps Electric Co. Ltd., is a leading manufacturer, and supplier of high performance
mobile electronics. The company is a leader in satellite-linked navigation systems. Alpine
Electronics is the only manufacturer with a focus on mobile multimedia, integrated system
approach incorporating digital entertainment and security and navigation products for the mobile
entertainment. Major product line includes Head Units & AV Head Units, Mobile Multimedia
systems, navigation systems, CD and DVD players, monitors, Amplifiers, Speakers, Subwoofers,
Rear Seat Entertainment products, and Alpine F 1Status products. The company’s satellite-linked
navigation system products include retractable in-dash color monitors with high-resolution screens
and satellite-linked telematics systems.
Alpine Electronics is an automotive specialist for premium sound systems and vehicle navigation
for aftermarket and OEM factory installations. The company's car navigation systems include CD-
ROM and DVD-ROM platforms that are based on GUI (graphic user interface) for Drivers human
interface. Alpine Electronics operates Research and Development facilities across Asia, Europe
and the US.
Alps Electric Co. Ltd., is the premier manufacturer of electronic components for computer,
communications and car electronic equipment across the world.
Alpine Electronics was established in 1978.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Product Launches

Alpine Electronics Launches the PDX series of Digital Amplifiers…


Alpine Electronics expanded its PDX series of digital amplifiers with the launch of two new PDX-
1.600 600-watt mono digital block and PDX-4.100 100-watt, 4-channel full-switching digital
models. The PDX family of full-range digital amplifiers combines a small, uniform design with
superb fidelity and maximized output power and efficiency for better-than-analog sound
reproduction. The PDX amplifiers offer flawless sound clarity and superior speaker control.

Alpine Electronics Rolls Out Blackbird™ and IVA-W205…


Alpine Electronics rolled out the second-generation Blackbird™ (PMD-B200) portable navigation
device and IVA-W205 in-dash AV head unit. The Blackbird and IVA-W205 pairing provides the

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ease of use of a fixed navigation system, the car-to-car flexibility of a portable navigation device,
and a clean, clutter-less dash without any cables for a premium driving experience.

Alpine Electronics Launches Bluetooth Connectivity Solutions…


Alpine Electronics launched the Bluetooth connectivity solutions for audio, video and navigation
units. The Bluetooth technology enables users to listen music from audio service providers such as
Motorola streaming audio services on Bluetooth-enabled phones or devices with Advanced Audio
Distribution Profile (A2DP) streaming audio support.

Alpine Electronics Introduces iDA-X001…


Alpine Electronics introduced iDA-X001. The iDA-X001 is the first aftermarket head unit
designed for a fully integrated iPod experience in the car with built-in audio source, an AM/FM
tuner, and no CD/DVD slot. The head unit includes a color 320 x 240 pixel TFT screen that
displays artist, album and track information, and even album art from the iPod. The iDA-X001
includes sound-tuning features such as bass and treble with center frequency and Q adjustability,
and three pairs of RCAs for system expandability. The iDA-X001 supports both a USB iPod and
another iPod connected via the Full Speed cable at the same time for maximum access to
consumers’ music libraries.

Alpine Electronics Unveils IMPRINT™…


Alpine Electronics unveiled IMPRINT™, a new hardware and software product. IMPRINT is the
first automotive sound system that automatically corrects the sound systems output for the
acoustical problems inside the vehicle using sophisticated DSP and FIR filter technology.
Alpine Electronics Releases RUE-M1RF…
Alpine Electronics released a new marine remote control kit, RUE-M1RF for head units. The
remote is designed to work outdoors and compatible with any head unit that includes the steering
wheel remote-control ready feature. The RUE-M1RF kit comes with one remote and an RF
receiver that plugs into the steering wheel remote control jack.
Year 2006 in Review…
Product Launches
Alpine Electronics Launches New Navigation Device…
Alpine Electronics launched a unique portable navigation contraption that would go a long way in
easing traffic related woes. The brand new device - Alpine Blackbird, is equipped to constantly receive
traffic related updates from NAVTEQ Traffic RDS Service, encompassing 42 markets of US..

Alpine Electronics Launches New Double-Din Audio/Video Head Unit…


Alpine Electronics launched its double-DIN IVA-W200 AV Plus head unit. The IVA-W200 is
a DVD/CD/MP3/WMA AV head unit with a vibrant 6.5-inch PulseTouch™ touch-screen
monitor, which reduces the need for protruding knobs and buttons and leaves a clean, finished
appearance throughout the vehicle’s dash. The IVA-W200 would control and play many new
digital entertainment services and portable consumer electronics, including XM™ or

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SIRIUS™ satellite radio, HD Radio™, iPod®, and Microsoft USB-based MP3 players. The
IVA-W200’s 24-bit DAC produces high-end sound detail and superior resolution from CDs
and DVDs.

Alpine Electronics Unveils Blackbird New Portable Navigation System…


Alpine Electronics unveiled Blackbird (PMD-B100), a new portable navigation device (PND) with
unique system docking capability and built-in traffic receiver. The company’s Blackbird would
offer solutions for the in-vehicle navigation needs. Blackbird's mapping, driving instructions and
traffic alerts are viewed on the in-dash AV head unit, and controls and functions are managed from
the larger touch-screen in-dash monitor or with an optional remote control.

Alpine Electronics Launches New Powered LAT Subwoofer Systems…


Alpine Electronics launched the industry's first subwoofer systems based on Linear Array
Transducer (LAT) technology, such as PLV-7 subwoofer system for larger vehicles, and PLT-5 for
smaller vehicles. The PLV-7 is built-in 500-watt RMS digital switching mono amplifier and
features six 7-inch cones, which produce the same output as two 12-inch subs, and the PLT-5 is
built-in 250-watt RMS digital switching mono amplifier and six 5-inch cones. The PLV-7 and
PLT-5 Powered LAT Subwoofer Systems are the first car audio products with LAT subwoofer
technology.

Alpine Electronics Unveils New Adapter…


Alpine Electronics unveiled its new KCA-620M adapter. The adapter handles subscription and
downloads music purchased from PlaysForSure online stores or ripped from consumer's personal
CD collections.

Alpine Electronics Introduces New V-Power Amplifiers…


Alpine Electronics introduced five new V-Power amplifiers. The new units would offer increased
dollar per watt performance and power the consumers' music with more clarity. The V-Power
amplifiers are ideal for upgrading factory equipment.

Alpine Electronics Debuts Honda Ridgeline…


Alpine Electronics debuted Honda Ridgeline event vehicle with a complete 5.1 multi-channel
sound system. The Ridgeline is designed to showcase a full Dolby Digital/DTS 5.1- channel
system in a compact installation, keeping the truck's interior fully functional. The system is based
around the DVA-9861 DVD/CD/MP3/WMA receiver. The head unit and the SBS-05DC 1-DIN
center-channel speaker are installed in a molded enclosure in the dash.

Alpine Electronics Launches Full Speed Connection for iPod…


Alpine Electronics launched the new Full Speed Connection for iPod that works via a simple cable
(KCE-422i) that directly links an iPod to one of the company’s seven 2006 source units, without a
bulky hideaway box. The enhanced features of the products include features include faster data
transmission for quick and easy file navigation, as well as full-tag artist, album, song and play list
information displayed directly on the head unit.

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Alpine Electronics Debuts Show Car…
Alpine Electronics debuted the show car, Chevy HHR. The HHR features a full audio, video and
navigation (AV+N) system and a 2,260-watt sound system powered by four amplifiers. The IVA-
W200 2-DIN DVD/CD/AM/FM head unit is the core of the system.

Product Upgradation

Alpine Electronics Unveils New Type-S Coaxial Speakers…


Alpine Electronics launched its new Type-S coaxial speakers with updated design features. The
company’s new Type-S speakers would produce high-quality sound with swivel mount design. The
new Type-S speakers offers clear, crisp sound and great performance. The Type-S subwoofers
include spider plateau venting and high-strength custom steel frame with leg airflow passage.

PRODUCT PORTFOLIO

Factory Integration Technology Products


OEM Audio Processors, VPA-B222, AV Control System, and VPA-B211A, AV Control Systems

Navigation Systems
Advanced DVD Navigation Systems, and Portable Navigation Systems

Amplifiers
PDX Amplifiers, V12 Amplifiers, and V-Power Amplifiers

Speakers
Marine Speakers, Type-R Speakers, Type-S Speakers, and Type-X Speakers

Sub Woofers
Pre-Loaded Subwoofer Boxes, Type-X Subwoofers, Type-S Subwoofers, Type-R Subwoofers,
Powered LAT Subwoofer Systems, and Type-E Subwoofers

Multi-Channel Solutions
Digital Theater Amplifier, Multimedia Manager, Theater Amplifier, and 1DIN Center Channel
Speaker

Rear Seat Entertainment Package


DVD Rear Seat Entertainment Package, 6.5" Touch Screen Monitor, Dual Source Wireless
Headphones, 6.5" Wide Screen Monitor, Video Switcher/Expansion Modules, Single Source
Wireless Headphone, and Dual Source Wireless Headphones with Transmitter

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Mobile Multimedia
Intelligent Transportation Systems (ITS), digital versatile disc (DVD) players, Dolby Digital
systems, satellite digital audio radio, mobile data linking and communication

Head Units
DVA-9861 (DVD/CD/MP3/WMA Receiver), DVA-9860 (DVD/CD/MP3/WMA Receiver), CDA-
9857 (CD/MP3/WMA Receiver), CDA-9820XM (Built-In XM Tuner/CD Receiver), CDA-9856
(CD/MP3/WMA Receiver), CDE-9852 (CD/MP3/WMA Receiver), CDE-9846 (CD/MP3
Receiver), DVA-9965 (DVD/CD/MP3/WMA Tuner), CDE-9842 (CD Receiver)

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ARIEL GROUP
7 Shapiro St., New Industrial Park, P.O.B 4551, Rishon Le-Zion 75144, Israel
Phone: +972-3-9630801, Fax: +972-3-9614675
SOURCES: www.ariel-group.com and other secondary online sources

BUSINESS PROFILE
Ariel Group specializes in the design, manufacture, supply, installation and maintenance of intelligent
traffic control systems. The company’s product line comprises a wide variety of products including power
distribution systems, electrical and electro-mechanical components, electronic boards and controllers,
intelligent traffic control systems and traffic components, parking systems, optical character recognition
(OCR) systems, and others. Ariel Group’s products are marketed and installed in over 40 countries across
5 continents. The company operates three divisions including Information and Communications,
Electrical and Electronics, and Commercial. The company’s products are supplied to a wide range of
customers such as the Israel Electric Corporation, Siemens, IDF, GE Power Controls, Motorola, and
others. The company manufactures its products in compliance with ISO 9002 certification.

BUSINESS OPERATIONS
Arco Electrical Industries Ltd.
Arco Electrical Industries Ltd., specializes in the production of electrical products. The company’s
production facilities include Plastics Injection Molding and Pressing, Light and Heavy Metal
Processing, Electrical Wire Assembly, Electrostatic Painting and Coating, and Electromechanical
Final Assembly. The company offers Traffic Signal Heads and Controllers, Traffic Bollards, Double-
Insulated Reinforced Polyester Cabinets and Bases, Polycarbonate Boxes, Glass Reinforced
Fiberglass Busbar Systems, 3-Pole HRC Fuse Switches, Fuse Strips and Bases and others.

Artron Electrical & Technical Supplies Ltd.


Artron Electrical & Technical Supplies Ltd., provides marketing and technical support services
throughout Israel for the Ariel Group’s diverse product range. The company specializes in
marketing electrical equipment for switchboards, distribution boards, lighting and industrial
electrical components.

Hi Tech Solutions Ltd.


Hi-Tech Solutions Ltd., is a System & Software development company that is engaged in various
computer-engineering activities. The company develops optical character recognition (OCR)
solutions by implementing Artron Group's unique image processing software and hardware in a
wide range of security and transportation applications.

PRODUCT PORTFOLIO
Traffic Control Systems
Bollards, Container Code recognition systems, Illuminated Traffic Bollards, Loop Detectors,
Traffic Signal Controllers, Traffic Signal Heads (100 mm), Traffic Signal Heads (200 and 300
mm), Video Vehicle Detection Systems

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Parking Systems
Access Control Parking Systems, Computerized Parking Systems, License plate recognitions
systems

Power Distribution & Enclosures


Arcoduct Busbar System, Fuse Bases and Switches, N-Type DO Fuse Bases, Polycarbonate
Switchgear Enclosures, Polyester Bases

Wireless Networking
Infra-red Wireless Network Systems

GE Power Controls
Control and Automation, Enclosures, Industrial Products, MCB's, RCD's, MCCB's, ACB's and
Modular Devices, Residential Products

Others
Jean Mueller - Fuses and Switch Disconnectors, Mennekes - Plugs and Receptacles, Pemsa -
Flexible Tubing, Softpro - Signplus Signature Recognition Systems

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ASCOM HOLDING LIMITED
Belpstrasse 37, 3000 Berne 14, Switzerland
Phone: +41 31 999 11 11, Fax: +41 31 999 23 00

SOURCES: www.ascom.ch and other secondary online sources


2006 Sales: CHF 564.9 million
2005 Sales: CHF 553.3 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Ascom Holding Ltd., (Ascom) is a global provider of telecommunications systems, integrated
voice and data communications, wireless and corded security solutions and networked revenue
collection systems. The company supplies revenue collection, toll collection and parking systems
to the transportation sectors. Ascom operates through two divisions namely, Wireless Solutions,
and Security Solutions. Ascom provides network solutions for the data/voice convergence markets
and high quality on-site communications solutions for the wireless networking sectors. The
company offers security, communication, automation and control systems for infrastructure
operators, public security institutions and the army. Products and services of the company find
applications in the areas of Finance and Insurance, Government and Public Safety, Defense,
Healthcare, Public Transport and Traffic, and Tourist /Entertainment Trade. The company also
provides security solutions for personal and site protection to police, fire brigade, ambulance and
other government services.
Ascom also provides mission-critical communication solutions all over the world. The company
supplies printed circuit boards, printed board assembly, and electronic devices and systems. In
addition, Ascom offers Integrated military telco system, Tactical VHF radio system, Hand-held
radio, and Interactive diagnostic systems for the defense department. The company also operates
subsidiaries and branch offices in more than 23 countries around the world.

DIVISIONAL ANALYSIS
Ascom Security Solutions
Ascom Security Solutions is a market leader in providing security, communication, automation and
control systems for infrastructure operators, public security institutions and the army in
Switzerland with its branches located in Austria. The Security Solutions’ division is also involved
in planning, implementing, and maintaining authorities and security organizations. The division
also offers alarm and mobilization systems, mobile communications solutions for the protection of
personnel and premises, and state-of-the-art detection and identification solutions.

Ascom Wireless Solutions


Ascom Wireless Solutions is a leading provider of wireless on-site communication technology and
solutions. The division markets its solutions directly in Austria, Belgium, Denmark, Finland,
France, Germany, the Netherlands, Norway, Sweden, Switzerland, the UK and the US.

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SALES DATA
Annual Sales Comparison: 2006 Vs. 2005 (In CHF million)

Year Sales % Change


2006 564.9 2.10
2005 553.3 -

Percentage Breakdown of Annual Sales (Value) by Business Segment (2006) - Wireless


Solutions, Security Solutions, Special Products and Corporate

Segment 2006

Wireless Solutions 50
Security Solutions 35
Special Products 11
Corporate 4
Total 100

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Order
Ascom Division Receives an Order from Mitrapoint…
Ascom’s Security Solutions division received an order for the delivery of a Transport Management
System (TMS) to the Russian company Mitrapoint. The company’s Transport Management System
(TMS) offers benefits to private individuals in the event of theft. The order would expand Ascom’s
business in Russia.
Year 2006 in Review…
Divestiture
Ascom Divests its German Network Integration Business…
Ascom divested its German Business Communication activity (part of the former Network
Integration Division) to Quam-Equity GmbH. The divestiture is a part of the company’s strategy to
focus on its core Wireless Solutions and Security Solutions businesses.

Contracts
Ascom Bags a Contract from Telmex…
Ascom bagged a contract from Telmex to supply more than 17,000 payphones and offer
maintenance services. Following the terms of the agreement, Multimedia & Pay System (MPS)

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business unit of Ascom would supply 17,000 units of the latest generation of the smart card
eXANTO payphones to Telmex. eXANTO is the new series of Ascom payphones that features
advanced services such as SMS or email.

Ascom Wins a Contract from The Canton of Zurich Traffic and Engineering Office…
Ascom won a contract from the Canton of Zurich Traffic and Engineering Office to install a radio
communication system for tunnels on the N4/N20 Zurich west ringroad. The contract represents
Ascom’s strategy in expanding its tunnel radio communications business in the traffic security
market.

PRODUCT/SERVICE PORTFOLIO

Customized SWIT solutions


Computer Telephony Solutions, Trouble ticket / Work order Systems,
Change Management, Routing Management, Fraud Management / Billing validation / SS7
Monitoring systems, and Mobile Applications / Workforce Management

Healthcare Communication
Patient telephones, Nursecall, and Information & Voice-Network management

Traffic Security system


Traffic & information management, Tunnel and in-house communications,
Video-based traffic analysis, and Traffic management systems

Voice Communication Solution


Telephony Management Systems, PBX Meridian, Unified Messaging, IP Telephony/Converged
Networks, and Computer Telephony Integration, and Voice/Data services

Wireless Communications
Cordless telephony and Wireless LAN / Hotspots

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AT&T, INC.
175 E. Houston, San Antonio, Texas 78205-2233, USA
Phone: 210-821-4105, Fax: 210-351-2071

SOURCES: www.att.com and other secondary online sources


2007 Sales: US$ 28,969 million (Q1)
2006 Sales: US$ 63,055 million
2005 Sales: US$ 43,764 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
AT&T Inc., (AT&T) formerly SBC Communications, is a global leading provider of broadband
DSL and long distance and local voice services in the US. The company is a global leader in
providing traditional and IP-based communications services including Virtual Private Network
(VPN), Voice over IP (VoIP), DSL broadband, and wireless services to businesses. AT&T is a
world leader in transport and termination of wholesale traffic and first in directory publishing
worldwide, providing 110 million directories in 13 states as well as online. AT&T’s major services
include access and local services, contact management services, data / managed data services,
hosting, integrated offers, IP and IP-VPN services, long distance voice, network integration and
consulting, security and business continuity, voice and data CPE, voice over IP, and enterprise
mobility services. The company provides services under AT&T brand across the world. AT&T
expands video entertainment offerings to include next-generation television services such as AT&T
U-verseSM TV.
AT&T also provides local and long distance voice, and directory publishing and advertising
services. Cingular Wireless, the company’s wireless joint venture with BellSouth, is a leading US
wireless carrier with more than 54 million subscribers. Cingular Wireless delivers the widest
international coverage of any US based wireless carrier, providing the ability to make calls using
an internationally enabled phone on six continents and 170 countries, with wireless data roaming in
70 countries for laptops, hand-held devices and other data services. The company provides remote
access solutions through a presence in 39,000 points in more than 149 countries.
AT&T operates through wire line and directory segments. The wire line segment provides both
retail and wholesale landline telecommunications services including switched access, local and
long-distance voice, data and messaging services, managed networking to business customers and
satellite television services. The company’s directory segment includes all directory operations
including Yellow and White Pages advertising and electronic publishing. AT&T also operates
through wholesale group that provides reliable and secure network services for wireless operators,
cable operators, wireline carriers, systems integrators, ISPs, and content providers. The company’s
major competitors include Qwest, Sprint Nextel, and Verizon.
AT&T was established in 2005 as a result of merger between AT&T Corp., and SBC
Communications, Inc.

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SALES DATA

First Quarter Sales Comparison: 2007 Vs. 2006


(In US$ million)

Year Sales % Change


2007 28,969 83.86
2006 15,756 -

First Quarter Sales Comparison by Business Segment (2007 Vs. 2006) – Wireline,
Wireless, Advertising and Publishing, and Others (In US$ million)

Segment 2007 2006 % Change


Wireline 17,986 14,421 24.72
Wireless 9,997 8,988 11.23
Advertising and Publishing 1,443 923 56.34
Others 544 473 15.01
Eliminations (1,001) (9,049) (88.94)
Total 28,969 15,756 83.86

Annual Sales Comparison: 2006 Vs. 2005


(In US$ million)

Year Sales % Change


2006 63,055 44.08
2005 43,764 -

Quarterly Sales Comparison: 2006 Vs. 2005


(In US$ million)

Quarter 2006 2005 % Change


Q4 15,891 12,909 23.10
Q3 15,638 10,304 51.77
Q2 15,770 10,317 52.85
Q1 15,756 10,234 53.96
Total 63,055 43,764 44.08

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Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Wireline,
Wireless, Directory, and Others (In US$ million)

Segment 2006 2005 % Change


Wireline 58,476 39,505 48.02
Wireless 37,506 34,433 8.92
Directory 3,702 3,714 (0.32)
Others 954 745 28.05
Eliminations (37,583) (34,633) 8.52
Total 63,055 43,764 44.08

Percentage Breakdown of Annual Sales (Value) by Customers (2006) – Wireline,


Business, Wholesale, Consumer, Directory/Other

Customer 2006
Wireless 34
Business 26
Wholesale 12
Consumer 23
Directory / Other 5
Total 100

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreements
AT&T Signs an Agreement with LCG…
AT&T signed a three-year multimillion-dollar networking agreement with Learning Care Group
Inc., (LCG) a leading provider of childcare and preschool educational services. As per the
agreement, AT&T would expand its current wide area network (WAN) services to integrate 700
additional sites into LCG’s network. The 700 new sites would include 650 locations for its
subsidiaries, La Petite Academy and Montessori Unlimited, and another 50 locations for another
subsidiary, Children’s Courtyard. The expanded network would serve a total of 1,200 sites across
the US.

AT&T Enters into an Agreement with Atlas…


AT&T entered into an extension agreement with Atlas, a provider of digital media technologies for
agencies, advertisers and publishers. As per the agreement, AT&T would provide an enterprise

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hosting solution for the next two years and would enable Atlas to house its entire suite of hosted
application services in three fully redundant, highly available AT&T Internet Data Centers (IDC).
Atlas would utilize AT&T’s enterprise hosting, managed services, security services and back-end
connectivity to the IDC to allow full visibility and end-to-end management in the delivery of its
services and software.

AT&T Signs an Agreement with the Cloud…


AT&T signed an agreement with the Cloud, the largest European public Wi-Fi provider, to expand
Wi-Fi facilities with more than 9,000 new Wi-Fi locations in the UK, Germany and Nordics.
Through the expansion, AT&T would accelerate the delivery of global IP services and solutions to
business and multinational companies in key markets worldwide.

AT&T and Alorica Sign an Agreement for Network Upgrades…


AT&T and Alorica Inc., (Alorica) signed a three-year $9 million agreement for network upgrades
and new services. Alorica would upgrade its local area network and hardware architectures to
support a state-of-the-art contact center. AT&T’s new network services would improve the
efficiencies of Alorica’s call-routing capabilities across its global contact centers.

AT&T Signs an Agreement with CSK Auto…


AT&T signed a new three-year agreement with CSK Auto Corp., (CSK Auto). Under the terms of
the agreement, AT&T would provide voice and data services, including a Multiprotocol Label
Switching (MPLS)-enabled Virtual Private Network (VPN) for CSK Auto’s field and store
locations. AT&T would upgrade and integrate CSK Auto’s network. AT&T would also provide
CSK Auto with voice and data services and audio and videoconferencing services.

AT&T Signs an Agreement with IKANO…


AT&T signed a 30-month multiservices agreement (MSA) with IKANO Communications Inc.,
(IKANO) a leading provider of private-label, wholesale, and retail Internet services. The MSA
includes a new DSL commercial agreement for AT&T DSL Internet Service, which enables
IKANO to provide broadband access to its end users, as well as the AT&T Wholesale Roaming
Service, which provides dial-up Internet access and Internet Protocol (IP) backbone connectivity.
AT&T would work with IKANO to enhance its Layer 2 backbone for concentration of the DSL
services through AT&T’s Advanced Broadband Service.

Contracts

AT&T Signs a Contract with Pioneer Investments…


AT&T signed a three-year contract with Pioneer Investments, a global investment management
firm, to provide a portfolio of advanced voice services. As per the contract, Pioneer would utilize
AT&T’s domestic private line services as well as domestic and international toll-free service
capabilities. The services provide enhanced security and efficiency by monitoring call volumes and
reducing long distance call expenses when Pioneer communicates with offices and clients around
the world.

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AT&T Signs a Contract to Provide Network Services…
AT&T signed a new contract to provide network services to 66 Federal Credit Union, a cooperative
financial institution in Bartlesville. Under the terms of the three-year contract, AT&T would
operate as the primary network and data services provider to 66 Federal Credit Union and would
integrate its Multiprotocol Label Switching (MPLS)-based Virtual Private Network (VPN) for an
enhanced communications network between offices.

AT&T Enters into a Contract with Bert Ogden…


AT&T entered into a contract with Bert Ogden, a leading auto dealership group in the Rio Grande
Valley of Texas, to provide network and voice services. Under the terms of the contract, AT&T
would upgrade Bert Ogden’s frame relay services to Multiprotocol Label Switching (MPLS)-based
Virtual Private Network (VPN) services. AT&T would also provide Managed Internet Service
(MIS), as well as local and long distance voice services.

AT&T Enters into a Contract with Perkins Eastman…


AT&T entered into a new contract with Perkins Eastman, a leading international architecture and
interior design firm, to provide advanced network services. Under the terms of the three-year
contract, AT&T would operate as Perkins Eastman’s primary network and data services provider
and would utilize Internet Protocol (IP) Virtual Private Network (VPN) services to connect Perkins
Eastman’s 10 locations across the globe.

AT&T Bags a Contract from the U.S. Army…


AT&T Government Solutions, a business unit of AT&T, bagged $9.8 million contract from the
U.S. Army to develop a customer premise data network at Fort Bliss, Texas. As per the contract,
AT&T would provide a comprehensive portfolio of services, which include design, engineering,
furnishing, installation, securing and testing outside plant cable and data-networking equipment for
the Fort Bliss data network.

AT&T Signs a Contract with MCU…


AT&T signed a new networking services contract with Members Choice Credit Union (MCU),
which serves employee groups, associations and community areas around the Houston
metropolitan area. Under the three-year contract, AT&T would upgrade MCU’s existing point-to-
point circuits to AT&T Virtual Private Network (VPN) services. The VPN services would connect
MCU’s six locations as well as its backup site in central Texas. The VPN services would also
enhance data security.

AT&T Bags a Contract from PGDS…


AT&T bagged a five-year $1.6 million contract from PGDS, an information technology (IT)
services subsidiary of Jackson National Life Insurance Company (Jackson). Under the contract,
AT&T would provide international private line voice and data services. AT&T would provide
networking solution to strengthen PGDS’ in-house technology capabilities. The high-speed private
line connection would enable PGDS to consolidate Jackson’s mainframe and midrange computing
systems and applications at one data center location in Lansing.

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AT&T Bags a Contract from the U.S. General Services Administration…
AT&T Government Solutions, a business unit of AT&T, bagged an Alliant a contract from the
U.S. General Services Administration (GSA). Under the terms of the contract, AT&T would
provide next-generation, integrated information technology (IT) solutions and services for the
defense and civilian federal agencies to maximize the full IT potential. AT&T would also support
the telecom and integrated IT solutions requirements of defense and civilian agencies across all
four GSA flagship full and open contract vehicles.

AT&T Receives Contract from Jenny Craig…


AT&T received a new two-year $3 million contract from Jenny Craig Inc., (Jenny Craig) to
provide local and long distance voice services for more than 600 Jenny Craig locations, including
sites in Canada and Puerto Rico. AT&T’s voice networking services would help to streamline
Jenny Craig’s business with a more cost-effective solution.

AT&T Signs a Contract with ACI…


AT&T signed a three-year contract with Arch Coal Inc., (ACI) a largest and most efficient coal
producer, for network and voice services. Under the terms of the contract, AT&T would provide
Multiprotocol Label Switching (MPLS)-based Virtual Private Network (VPN) services and voice
services over the AT&T Business Network platform. AT&T’s VPN is designed to provide the
secure, reliable transport of customer data and applications.

AT&T Enters into a Contract with Winn-Dixie…


AT&T entered into a three-year contract with Winn-Dixie Stores Inc., (Winn-Dixie). As per the
contract, Winn-Dixie would leverage AT&T’s network services to operate stores more efficiently
and profitably. The AT&T VPN service would support the advance of in-store applications, which
require a higher level of network connectivity and scalability.

AT&T Bags a Contract from Towne Air Freight…


AT&T bagged a new three-year contract from Towne Air Freight, a national air and truck freight
carrier, to provide integrated solutions. As per the contract, AT&T would provide bundled voice,
data and wireless network solutions. Towne Air Freight would streamline and integrate its voice
and data services through utilizing AT&T Business Network (ABN) service.

AT&T Signs a Contract with Hisco…


AT&T signed a new contract with Hisco Inc., (Hisco) to provide network services. Under the terms
of the three-year contract, AT&T would operate as the primary network and data services provider
to Hisco. AT&T’s Internet Protocol (IP)-enabled platform would provide Hisco with expanded
bandwidth and a reliable, private network.

AT&T Signs a Contract with J.R. Simplot…


AT&T signed a three-year $3.45 million contract with J.R. Simplot, a leading food and
agribusiness corporation. As per the contract, AT&T would provide OneNet® voice services,

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Internet Protocol-enabled Frame Relay (IPeFR) and ATM network services. AT&T would also
employ the MPLS backbone across its network to enhance bandwidth efficiencies for J. R.
Simplot’s manufacturing and production sites.

AT&T Enters into New Networking Services Contract with STI…


AT&T entered into a new networking services contract with Sunbelt Transformer Inc., (STI) a
Temple-based manufacturer of power transformers with five nationwide locations. Under the terms
of the three-year contract, AT&T would operate as Sunbelt Transformer’s primary provider of
AT&T Managed Internet Service (MIS), Multiprotocol Label Switching (MPLS) Virtual Private
Network (VPN), Advanced 800 Area Code Routing and AT&T Business Network (ABN) Services.
With AT&T VPN, Sunbelt Transformer would streamline the management of valuable network
resources with reliability, scalability and security. Sunbelt Transformer also uses AT&T Advanced
800 Area Code Routing services to ensure responsive and reliable customer service.
AT&T Signs a Contract with John Muir Health…
AT&T signed a new optical networking services contract with John Muir Health, a health care provider
with two medical centers. Under the terms of the five-year contract, AT&T would operate as the
primary networking provider of AT&T OPT-E-MAN® services to connect John Muir Health’s remote
locations to the main data center in Walnut Creek. AT&T OPT-E-MAN service is a fully managed,
switched Ethernet network service that would provide secure and economical communications between
John Muir Health’s main campus and the remote facility. OPT-E-MAN service is also scalable and
flexible in bandwidth from 10 Mbps to 1 Gbps, which is ideal for the critical health care applications.

AT&T Bags a Contract from The Picture People…


AT&T bagged a three-year $2.7 million contract from The Picture People to provide high-
bandwidth networking services. As per the contract, AT&T would provide Managed Internet
Services (MIS), as well as engineering and consulting services. The AT&T MIS solution offers
high speed dedicated access, world-class reliability and optimal performance, scalability and
security. The solution would significantly increase network bandwidth at The Picture People’s
studio locations and would also enable The Picture People’s transformation from an analog
environment to digital.

AT&T Bags a Contract from the U.S. Defense Information Systems Agency…
AT&T Government Solutions, a business unit of AT&T, bagged a six-month $11.5 million
contract from the U.S. Defense Information Systems Agency (DISA) to manage a global
videoconferencing system for the Department of Defense. Under the terms of the contract, AT&T
would provide network management services for the DVS-G. AT&T would also provide such
networking services as configuration and installation and inventory management services for DVS-
G equipment. AT&T would support DISA and U.S. military commanders around the world with
managed global videoconferencing solution.

AT&T Signs a Contract with Pacific Southwest Financial…


AT&T signed a new managed Voice over Internet Protocol (VoIP) services contract to deliver
AT&T IP Flexible Reach to Pacific Southwest Financial®, a regional financial institution based in

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Southern California. Under the terms of the three-year contract, AT&T would provide AT&T IP
Flexible Reach solution to Pacific Southwest Financial’s three locations throughout Southern
California and Arizona. AT&T IP Flexible Reach service is a Session Initiated Protocol (SIP)
trunking solution that features unlimited local and on-net calling and competitive long distance
plans.

AT&T Renews a Contract with Metso…


AT&T renewed a global networking contract with Metso. Under the terms of the contract, AT&T
would provide Wi-Fi access as an extension to the Remote Access Service and global networking
solution that links Metso’s approximately 120 sites in 23 countries. AT&T’s Virtual Private
Network (VPN) solution supports Metso’s locations in Europe, North and South America, Africa
and Asia Pacific and enables Metso to develop, deploy and easily relocate mission-critical, real-
time applications on its corporate network. The network supports a broad array of applications
including e-mail, financial reporting, Web conferencing and several Enterprise Resource Planning
(ERP) systems.

AT&T Enters into a Contract with BI-LO…


AT&T entered into a three-year $2 million contract with BI-LO for broadband network services.
The contract would provide BI-LO both backup services and DSL capabilities for BI-LO’s 227
stores across the Southeast. AT&T would also provide Integration Solutions and broadband
aggregation solutions for BI-LO’s cable and DSL providers.

AT&T Signs a Contract with CCS for New Network Services…


AT&T signed a new contract with Critical Care Systems International Inc., (CCS) a provider of
specialty infusion services, to provide network services. Under the terms of the three-year contract,
AT&T would operate as a provider of network and data services including Internet Protocol (IP)-
enabled Virtual Private Network (VPN) services. AT&T IP-enabled VPN would provide necessary
security features and services for CCS to share confidential customer records and critical treatment
information across the network.

AT&T Bags a Contract from Cope Plastics…


AT&T bagged a new network services contract from Cope Plastics Inc., (Cope Plastics) a
manufacturer and distributor of plastics. Under the terms of the three-year contract, AT&T would
provide network and data services to Cope Plastics. AT&T would also provide Multiprotocol Label
Switching (MPLS)-enabled Virtual Private Network (VPN) for an improved communications
platform.

AT&T Signs New Contracts with HCC…


AT&T signed new contracts with Haights Cross Communications Inc., (HCC), a leading publisher
of educational and library products, to provide voice and data network services. As per the
contract, AT&T would provide AT&T Business Network (ABN) integrated services to HCC.
AT&T would also provide Managed Internet Service (MIS), a dedicated Internet connection that
supports constant real-time access to the Internet across the network.

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AT&T Signs a Contract with ACI…
AT&T signed a new networking services contract with 360 Architecture Inc., (ACI). Under the
terms of the three-year contract, AT&T would provide data services including Multiprotocol Label
Switching (MPLS) Virtual Private Network (VPN) and AT&T Integration services. AT&T VPN
would provide MPLS-based security, any-to-any connectivity, traffic prioritization, Web-based
reporting and flexible billing options.

New Facilities

AT&T Opens New Retail Store in Lima…


AT&T opened a new AT&T-branded retail store in Lima at 2421 Elida Road. The retail store
provides a complete range of wireless products and services. The company provides Apple iPhone,
Mobile Music, Laptop Mobility, E-Mail, and other product and service offerings. The store would
also offers wireless phones and PDAs including the ultra sleek BlackBerry® 8800 or the Samsung
BlackJack, smartphones, GPS and Bluetooth® accessories.

AT&T Opens Two New Cell Sites to Expand Wireless Coverage in Naples…
AT&T opened two new cell sites in Collier County, Florida. The company’s first new cell site on
34th Avenue in Naples would expand coverage in Collier County south of the intersection of
Interstate 75 and DeSoto Boulevard. The company’s second cell site, on Borghese Lane in Naples,
would increase coverage at the Hammock Bay Golf and Country Club and would also provide
connecting coverage along Route 951 south from Naples to Marco Island.

AT&T Opens New Store in Brighton…


AT&T opened a new store location at 9424 Village Place Boulevard in Brighton to expand its
presence in Michigan. The new retail location would offer a complete range of wireless and
wireline products and services including the most advanced handsets, technology and accessories.
The retail store offers AT&T Entertainment and Mobile Music services. The company also offers
music phones that allow customers to sideload the music from Yahoo!®, Napster® or iTunes.

Product / Service Launches

AT&T Introduces New AT&T Real Yellow Pages Directory…


AT&T introduced new AT&T Real Yellow Pages directory. About 450,000 copies of the book
would serve residences, businesses and government offices in central Orange County. AT&T Real
Yellow Pages is a mini version that contains ads and money-saving coupons that are found in the
traditional directory.

AT&T Introduces U-verse Solution…


AT&T launched U-verseSM in parts of local communities, including the city of Sacramento,
Sacramento County, Carmichael, Fair Oaks, Folsom, Gold River, Lincoln, Modesto, Rancho
Cordova, Rocklin and Stockton. AT&T U-verse uses AT&T’s new fiber-rich network to offer

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cutting-edge television and high-speed Internet services. AT&T U-verse offers customers a
combination of next-generation digital television including access to more than 26 High Definition
(HD) channels and high speed Internet access.

AT&T Introduces New WiMAX-Based Broadband Internet Service…


AT&T Alascom, a subsidiary of AT&T, introduced a new WiMAX-based broadband Internet
service for Juneau residents. The company launched service to expand the reach of broadband
Internet services in communities throughout Alaska. AT&T provides Alascom High Speed Internet
service packages, with downstream and upstream Internet access speeds of up to 1 Mbps. The new
service utilizes WiMAX wireless technology, which enables delivery of broadband services to
homes and small businesses with speeds.

AT&T Launches New Music Download Service with eMusic…


AT&T launched an over-the-air music download service with eMusic, the world’s largest retailer
of independent music. The eMusic over-the-air (OTA) service would provide the company’s
customers the ability to preview and purchase music through the wireless devices. The new service
is offered as a part of the AT&T Mobile Music platform, which provides customers with more
music choices than any other wireless carrier.

AT&T Introduces New My Internet Protect Service…


AT&T introduced new My Internet Protect, a security knowledge mining, alerting, and notification
service for identified threats that enter a customer’s network. The new service provides enterprise
businesses with the ability to analyze and benchmark Internet traffic on the own network.

AT&T Introduces High Definition Homezone Service…


AT&T introduced new High Definition Homezone Service. AT&T Homezone service integrates
AT&T DISH Network and features of AT&T Yahoo! High Speed Internet. The service allows
customers to enjoy satellite TV programming, net-based on-demand content, and music and photos
via the TV screens and stereos. The service also features digital videorecording technology and
remote access to the system through Web-enabled PCs or WAP-2.0 compatible wireless phones.

AT&T Launches Groundbreaking Wireless Video Share Service…


AT&T launched AT&T Video Share, the first-ever service in the US, which allows users to share
live video over the wireless devices while participating in a voice call. Video Share allows users to
communicates special or everyday experiences and also enables a range of innovative, timesaving
business applications. Video Share would utilize to deliver a range of new Internet Protocol (IP)-
based services and applications and would increasingly enable AT&T customers to seamlessly
access services and content over both wireless and wireline network connections.

Service Line Expansions


AT&T Expands Managed Firewall Portfolio…
AT&T expanded its Managed Firewall portfolio with the release of Cisco ASA® Option. The new
managed security service is developed for small and midsized businesses. The AT&T Premises —

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Based Cisco ASA® Firewall Option combines its firewall software solutions with scalable, end-to-
end management, monitoring, and maintenance solution to better protect the Internet infrastructure.
The service is offered through the AT&T BusinessDirect® Web portal, which provides a single
point to manage the customer’s perimeter.

AT&T Expands New OPT-E-MAN® Service to Include New Transport Speeds…


AT&T expanded its switched Optical Ethernet Metropolitan Area Network (OPT-E-MAN®)
service to include 150 Mbps and 600 Mbps Committed Information Rate (CIR) for its wholesale
customers. The company would provide the new service in California, Kansas, Oklahoma,
Arkansas, Texas, Missouri, Wisconsin, Illinois, Indiana, Michigan, Ohio and Connecticut. OPT-E-
MAN service is a broadband data transport service that uses switched optical Ethernet to transport
data traffic within a metropolitan service area (MSA) or to access wholesale customers’ wide area
network (WAN) applications.

Year 2006 in Review…

Partnership

AT&T Partners with Technology Industry Leaders…


AT&T and its subsidiary, Sterling Commerce partnered with Intel, BEA Systems and Symbol
Technologies to design and deploy radio frequency identification (RFID) device services and
networks for business customers. The major focus of the initiative is to provide business customers
with a best-of-breed managed RFID service and standardization of RFID technology by
accelerating the mass adoption of RFID through the evolution to universal sensor networks (USN).

Collaboration

AT&T Signs a Collaboration Agreement with Lightstream…


AT&T signed a collaboration agreement with Lightstream, a telecommunications solutions
provider, to provide an IP (Internet Protocol)-enabled network serving more than 200 Flying J Inc.,
(Flying J) locations. Flying J is a leading distributor of diesel fuel and a largest truck-stop operator.
As per the agreement, AT&T would connect Flying J’s headquarters site and its 178 travel plazas,
convenience stores, restaurants and truck service centers and Lightstream would design and
engineer a network solution with the reliability and scalability.

Agreements

AT&T Enters into an Agreement (BPA) with USAID…


AT&T entered into a blanket purchase agreement (BPA) with the US Agency for International
Development (USAID) to provide Information Management Enterprise-wide program (PRIME
3.2). Under the terms of the contract, AT&T Government Solutions, a division of AT&T Corp.,
would provide IT operations and maintenance support services, communications operations and
support services, customer support services, and systems integration support services.

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AT&T and MobiTV Enter into an Agreement…
AT&T and MobiTV Inc., (MobiTV) entered into an agreement to deliver mobile television content
across AT&T's nationwide Wi-Fi network. The services would enable AT&T customers to view
live television while connected to one of AT&T's Wi-Fi hot spots.
MobiTV is a global leading provider of television and digital radio services for cellular, Wi-Fi and
broadband enabled devices.

AT&T Signs an Agreement with Starz Entertainment Group…


AT&T signed an agreement with Starz Entertainment Group LLC (SEG), a wholly owned
subsidiary of Liberty Media Corp., to provide SEG’s Vongo Internet movie-delivery service to
AT&T High Speed Internet customers. Starz Entertainment Group is the exclusive subscription
provider of first-run, classic and favorite films from leading Hollywood studios.

Contracts
AT&T Bags a Contract from Irvine Unified School District…
AT&T bagged a new optical networking contract from Irvine Unified School District (USD), a
public school district consisting of 22 elementary schools, five middle schools and five high
schools serving Irvine, Calif. As per the contract, AT&T companies would implement an Optical
Ethernet Metropolitan Area Network (OPT-E-MAN®) to support bandwidth intensive
applications, such as videostreaming and distance learning, at all 32 locations throughout the
district. The OPT-E-MAN service would provide the schools with a single, reliable network, as
well as a converged solution for streamlined communications district wide.

AT&T Bags a Contract from Kaman Corporation…


AT&T bagged a three-year contract to provide network-based e-mail security and message
management for Kaman Corporation. As per the contract, AT&T would provide Secure E-Mail
Gateway service that ensures the integrity of e-mail messages entering Kaman's network by
providing a frontline defense that safely builds a bridge between the Internet and Kaman's
corporate network. The service incorporates spam filtering, content management, virus blocking, e-
mail policy enforcement, message archiving and disaster recovery for both inbound and outbound
messages, all of which are delivered through a global network of redundant data centers.

AT&T Signs a Contract with Ysleta Independent School District…


AT&T signed a new contract to provide data networking services to the Ysleta Independent School
District (ISD), the second-largest public school district serving El Paso, Texas. As per the contract,
AT&T would provide a Customized Switched Metro Ethernet (CSME) solution that would connect
a total of 62 locations, including seven high schools, 11 middle schools, 36 elementary schools,
five special campuses and two pre-kindergarten schools.

AT&T Receives a Contract from First Western Bank…


AT&T received a three-year networking services contract from Arkansas-based First Western Bank.
As per the contract, AT&T would deploy Multiprotocol Label Switching (MPLS) Private Network

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Transport (PNT) to 12 First Western Bank locations, providing a scalable, dependable network
solution that ensures rapid, consistent access to business-critical data over AT&T's MPLS enabled IP
backbone. The contract solutions would provide expanded bandwidth to support simultaneous
transport of video and voice data across First Western Bank's wide area network (WAN).

AT&T Bags a Contract from Tenneco…


AT&T bagged a global networking contract over three years from Tenneco Inc., (Tenneco). Under
the terms of the contract, AT&T would deploy an Internet Protocol Virtual Private Network (IP
VPN), integrating 113 Tenneco locations across Latin America, North America, Europe and Asia-
Pacific with a full range of voice, data and business continuity services.
Tenneco is the world’s largest designer, manufacturer and marketer of emission control and ride
control products and systems for the automotive original equipment market and the aftermarket.

AT&T Signs a Contract to Provide an IP Networking Solution…


AT&T signed a new five-year contract to provide an IP networking solution to Dallas County,
Texas. Under the terms of the contract, AT&T would provide Dallas County with a converged IP
network, which would improve efficiency and management of the county's voice and data traffic.
The solution, which includes an optical switched Ethernet service (OPT-E-MAN®), allows the
county to prioritize voice and data traffic using optical transport to provide streamlined
communications across locations.

AT&T Signs a Contract with Marshall, Dennehey, Warner, Coleman and Goggin…
AT&T signed a contract with Marshall, Dennehey, Warner, Coleman and Goggin (MDWC&G), to
provide upgraded network services. As per the contract, AT&T would implement a Multiprotocol
Label Switching (MPLS) private network linking the firm's 17 offices. The MPLS network acts as
a backbone technology, delivering a private IP-based network, prioritizing network traffic and
enabling easier use of various communications services, such as videoconferencing and audio
conferencing.
MDWC&G is a private law corporation with headquarters in Philadelphia and regional offices in
New Jersey, Pennsylvania, Delaware, Ohio and Florida.

AT&T Signs a Contract with DuPont…


AT&T signed a contract with DuPont to provide a strategic global network for DuPont to
flawlessly connect more than 60,000 employees located in 70 countries across the world. As per
the contract, AT&T would converge DuPont’s voice and data on a single MPLS-based network,
connecting all of its corporate locations under a common IP-based architecture to allow global
reach without sacrificing security.

AT&T Receives a Contract from Skanska…


AT&T received a networking two-year contract from Skanska USA Building Inc., (Skanska) a
national leader in the commercial construction industry, to implement an Internet Protocol-based
(IP-based) network for Skanska. Under the terms of the contract, AT&T would design and deploy

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an IP network that standardizes voice services and features across 25 Skanska sites nationwide.
The Internet Protocol-based network would enable Skanska’s employees to access for the increased
mobility between locations as well as advanced video-conferencing capabilities.

AT&T Receives a Contract from US Department of the Army…


AT&T Government Solutions received a contract from the US Department of the Army to support
the US Army Strength Management System Redesign program. As per the contract, AT&T would
provide operations and maintenance services for the Active Army Strength Forecaster (A2SF)
system, a Web-based system. The system consists of three highly integrated manpower-forecasting
subsystems Enlisted Grade, Individuals Account, and Enlisted Specialty. In addition AT&T would
provide services including systems enhancements and repairs, analysis support and run support.

AT&T Signs a Contract with First Data International…


AT&T signed a two-year networking contract with First Data International to provide a new
MPLS-based virtual private network (VPN) in Southeast Asia. The new network would provide
First Data International’s staff with an integrated, converged VPN solution for voice and data in
Sydney and Singapore offices.
First Data International provides a range of electronic payment processing services, including
Electronic Funds Transfer (EFT) switching, device driving, credit card, and merchant account
processing services.

AT&T Bags a Contract from Nevada’s State Department …


AT&T bagged a two-year contract from Nevada’s State Department of Information Technology to
provide new voice and data services. As per the agreement, AT&T would provide an Integrated
Services Digital Network Primary Rate Interface (ISDN PRI), Centrex and voice and data
hardware. The contract enables Nevada’s State Department of Information Technology to
coordinate and manage the deployment of services to all Executive Branch agencies through a
single integrated network.

AT&T Receives a Contract from Tekni-Plex…


AT&T received a contract from Tekni-Plex Inc., (Tekni-Plex) to provide local and long distance
voice solutions. As per the contract, AT&T would provide voice solutions that enables Tekni-Plex
to maintain seamless and reliable communication and that would improve overall coordination in
creating and delivering our products.
Tekni-Plex is a global manufacturer of packaging, packaging products, and tubing products
primarily for the food, health care, and consumer industries.

AT&T Signs a Contract with the Metropolitan Educational Council of Ohio…


AT&T signed a contract with the Metropolitan Educational Council (MEC), a consortium of school
districts, libraries and related agencies in the greater central Ohio area. As per the contract, AT&T
would provide a Customized Switched Metro Ethernet (CSME) service that would connect 160

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schools and related agencies to a single network for increased security and reliability. The new
network would provide expanded bandwidth to support additional educational applications, such as
video distance learning

AT&T Receives a Contract from Genesis Financial Solutions…


AT&T received a contract from Genesis Financial Solutions (Genesis), diversified financial
services company to provide integrated network and voice services. Under the terms of the
contract, AT&T would deliver AT&T Business Network (ABN) integrated services, and a
multiprotocol label switching (MPLS) network solution, customized for disaster recovery and data
security.

AT&T Signs a Contract with John I Haas Inc…


AT&T signed a contract with John I Haas Inc., to provide enterprise hosting and network services.
Under the terms of the contract, AT&T would deploy data hosting and a Multiprotocol Label
Switching (MPLS) private network. The MPLS network would serves as a backbone technology,
delivering a private IP-based network and enabling easier use of various communications services,
such as videoconferencing and audio conferencing.

AT&T Receives a Contract from Saint Clare’s Health System…


AT&T received a contract from Saint Clare’s Health System to provide voice networking services
for Saint Clare's four hospitals in northwestern New Jersey and six other facilities in Morris and
Sussex counties. The contract enables Saint Clare's Health System to reduce the cost of telephone
services for both the organization and its patients.

AT&T Signs a Contract with Volex Group Plc…


AT&T signed a three-year networking services contract with the Volex Group Plc, a leading
producer of electrical and electronic-cabling assemblies. Under the terms of the contract, AT&T
would deploy an Internet Protocol Virtual Private Network (IP VPN) integrating 21 corporate
locations in the Americas, Europe and Asia Pacific. The VPN would provide secure high-speed
data, voice and Internet access services.

AT&T Receives a Contract from Equity Residential…


AT&T received a contract from Equity Residential, the largest publicly traded owner of apartment
complexes in the US, to integrate and simplify local, long distance and toll-free services for Equity
Residential. As per the contract, AT&T would provide Equity Residential with an integrated
networking solution that would help the company standardize its information technology for
advanced communications capabilities.

AT&T Signs a Contract with Rehabilitation Institute of Chicago…


AT&T signed a contract with Rehabilitation Institute of Chicago (RIC) to provide optical and data-
networking services. Under the terms of the contract, AT&T would expand RIC’s bandwidth by
implementing a fully managed switched-optical Ethernet service to 14 RIC locations throughout

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Chicago. The expanded bandwidth and redundancy would enable RIC to securely transmit Voice
over Internet Protocol (VoIP) applications and data traffic among the organization's locations,
improving productivity and overall patient care.

Business Expansion

AT&T Expands Network Integration Services…


AT&T expanded the Network Integration Services for business customers in Canada, Latin
America, Europe, the Middle East, Africa, Asia Pacific and Japan. The services are designed to
help organizations to overcome the hurdles to transform the legacy networks and IT environments
to the next generation of secure network technologies.

Service Launch

AT&T Launches Online Gaming Services…


AT&T launched Enterprise Hosting Services focused on online gaming through its partners and
specialists devoted specifically to its online gaming customers, including Sony Online
Entertainment LLC (SOE) and its massively multiplayer online gaming titles including EverQuest
®II, EverQuest®, and PlanetSide®. AT&T through its globally deployed Internet Data Centers
(IDCs) would provide infrastructure to facilitate online gaming companies to deliver game content
efficiently through AT&T’s Global IP Backbone, the world’s most powerful and advanced IP
backbone network.

PRODUCT/SERVICE ANALYSIS

Services for Residential Customers


AT&T provides residential customers with competitively priced, industry leading service bundles,
as well as streamlined access to technology innovations. The company’s major services include
domestic and international calling services, call management services, broadband services, high
speed Internet and dial up services, local and long distance services, home networking network
satellite television and Voice over Internet Protocol (VoIP). AT&T through Cingular Wireless,
provides a wide spectrum of local and national wireless voice and data services. AT&T is the
world’s largest directory publisher, and delivers 110 million directories per annum and publishes
more than 700 different directories in 13 US States.

Services for Small Businesses


AT&T is a leader in providing communications solutions to small businesses. The company
provides DSL, Wi-Fi service, wireless data, e-mail and application solutions, IP and data services,
premises-based VPN and network-based VPN services, wide spectrum of hosting solutions and
supporting services for small, medium and enterprise businesses. AT&T’s services also include
powerful, flexible and comprehensive Web services, Web site acceleration, caching, content
distribution, streaming, enterprise messaging and uninterrupted access to critical data and
applications. AT&T provides a complete range of conferencing solutions for businesses including

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audio conferencing, video conferencing, and web conferencing services. The company’s voice
services include local services, long distance, and wireless services.

Wholesale Solutions
AT&T’s wholesale organization is a leader in transport and termination of wholesale traffic
worldwide. AT&T wholesale group provides solutions for systems integrators, wireless providers,
cable operators and Internet service providers (ISPs) who require complete, end-to-end solutions
on a global, regional and local basis. AT&T wholesale group helps businesses to extend the
footprint, strengthen the network infrastructure, expand internal business operations and
complement the existing offers with new value-added application services. The company’s major
solutions include VoIP (Voice over Internet Protocol), MPLS VPN (Multiprotocol Label Switching
Virtual Private Network), high-speed data, Ethernet access, contact center offers and more to
maximize network efficiency.

Global, National, Mid-Size, Regional Business and Government Solutions


AT&T provides business customers with access to one of the world's most advanced IP networks
and a single source for sophisticated national and global communications systems: local, global,
national, and wireless and customized and managed with specifications. AT&T serves virtually all
Fortune 1000 companies and all S&P 500 companies. AT&T offers a comprehensive set of IP-
based Virtual Private Network solutions using IP connectivity to create secure, cost-effective
business networks. Solution options include premises-based VPN and fully managed, hosted
network-based VPN solutions.

Others
AT&T provides Wireless Voice Services, Wireless Data, Wireless LAN/WAN services, Network-
Based and Access Security services. AT&T specializes in the areas of Network design,
transformation and convergence, Network security and security-policy development, Application
development, Network and systems-operations management, Advanced infrastructure, Business
continuity planning. Enterprise perating systems, Wireless planning and deployment and Data
center design and management. AT&T also offers an unsurpassed portfolio of wireless voice and
data solutions for consumers and businesses.

SUBSIDIARIES
AT&T Mobility LLC
BellSouth Corporation
AT&T Mobility LLC
L. M. Berry and Company
Stevens Graphics, Inc.
Southern New England Telecommunications Corporation

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ATLANTIA SpA
Via A. Bergamini, 50, 00159 Rome, Italy
Phone: +39-06-4363-1, Fax: +39-06-4363-4677

SOURCES: www.atlantia.it and other secondary online sources


2007 Sales: € 720.3 million (Q1)
2006 Sales: € 3,141.2 million
2005 Sales: € 2,957.3 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Atlantia SpA (Atlantia) is a leading provider of toll motorway construction and management
solutions for transport sector. The company provides motorway network management and remote
electronic toll payment systems to over 4.4 million customers throughout the Europe. Atlantia’s
products find applications in the transport and communications infrastructure and network sectors.
The company develops and manages the multilane free-flow toll system used on a large scale to
2000 km of roads and motorways in Austria. The company also constructs and manages toll
motorways in the US, the UK, and in the Austria for heavy goods vehicles. The company’s
subsidiaries include Autostrade per l'Italia, Costanera Norte, Stalexport SA, Essediesse Societa di
Servizi, and TowerCo SpA. Atlantia’s subsidiary Autostrade per l'Italia is the largest toll motorway
builder and operator in Italy.
Atlantia’s Autostrade per l’Italia also designs, develops and constructs functional motorway
network. The company’s Costanera Norte subsidiary manages a 43-km long toll motorway that
crosses the Santiago, from east to west and uses an open free-flow toll system. Atlantia’s
Stalexport SA subsidiary is involved in the sale and distribution of steel, and in the construction
and management of toll motorways. Essediesse Societa di Servizi provides a wide range of
administrative, payroll, general and facility management services, while TowerCo SpA designs and
constructs fully equipped multi-operator sites. Major competitors of the company are ASF,
Autostrada Torino-Milano, and Eiffage.
In 2007, Atlantia completed the acquisition of a controlling stake of 50% + 1 share in Stalexport SA,
and Atlantia’s subsidiary Autostrade per l’Italia SpA acquired 33% stake in IGLI S.p.A. (IGLI).
Atlantia was established in 1950 as Autostrade SpA, and adopted the present name in 2007.

SALES DATA

First Quarter Sales Comparison: 2007 Vs. 2006 (In € million)

2007 2006 %Change


720.3 682.5 5.54

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Annual Sales Comparison: 2006 Vs. 2005 (In € million)

Year Sales %Change


2006 3,141.2 6.22
2005 2,957.3 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Divestiture

Atlantia’s Subsidiary Divests Stake in Autostrade Lombarde…


Atlantia’s subsidiary Autostrade per l’Italia divested its 35.5% stake in Autostrade Lombarde
S.p.A., and 1% stake in Societa di Progetto Bre.Be.Mi. S.p.A., to Intesa Sanpaolo S.p.A.

Year 2006 in Review…


Acquisition
Atlantia Acquires Costanera Norte…
Atlantia’s subsidiary Autostrade Sud America (ASA) Srl acquired 100% of the share capital of the
Chilenian toll-motorway concessionaire Costanera Norte.

SUBSIDIARIES
AD Moving SpA
Autostrade International SpA
Autostrade International of Virginia 0&M, Inc.
Autostrade International US Holdings, Inc.
Autostrade Meridionali SpA
Autostrade Participations SA
Autostrade per l'Italia SpA
Autostrada Torino-Savona SpA
EsseDiEsse Societa di Servizi SpA
Infoblu SpA
Pavimental SpA
Port Mobility SpA
Raccordo Autostradale Valle d'Aosta SpA
Societa Autostrada Tirrenica SpA
Societa Italiana per Azioni per il Traforo del Monte Bianco
SPEA-Ingegneria Europea SpA
Strada dei Parchi SpA
Strada dei Parchi SpA
TowerCo SpA
Tangenziale di Napoli SpA
Stalexport SA
Costanera Norte

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ATLANTIA SpA’S SUBSIDIARY

AUTOSTRADE PER L'ITALIA SOCIETÀ PER AZIONI


Via Alberto Bergamini, 50, 00159 Roma, Italy
Phone: 06/43632121, Fax: 055/4202505

SOURCES: www.autostrade.it and other secondary online sources

BUSINESS PROFILE
Autostrade Per L'italia Società Per Azioni (Autostrade Italia), a part of Autostrade Group, is a leader in toll motorway
construction and management, and related transport services.
Autostrade Group is Italy's main motorway concessionaire and one of the world's largest private motorway operators.

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CAMBRIDGE SYSTEMATICS, INC.
33 East 33rd Street, Suite 804, New York, NY 10016, USA
Phone: (212)209-6640, Fax: (212)209-6641

SOURCES: www.camsys.com and other secondary online sources

BUSINESS PROFILE
Cambridge Systematics Inc., (CSI) offers a wide range of customized tools and products for asset
management, commercial vehicle operations and safety, freight, impact analysis, and simulation.
The company’s product and service portfolio includes software & information technology services,
infrastructure management, operations management, and planning & program development.
CSI specializes in policy, strategic planning and management; corridor and systems planning;
freight systems and inter modal planning; operations and intelligent transportation systems (ITS);
asset management; geographic information systems (GIS); and data management. The company
provides products and services and various solutions to the local, state, national, and international
agencies in the public and private transportation industries.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) In Review…
New Facility
CSI Relocates its New York City Office…
CSI relocated its full service office in midtown Manhattan. The company’s new office is currently
located at New York that enables to better service clients throughout the New York region.

Year 2006 In Review…


Contracts
CSI Signs Contract with Governor’s Highway Safety Bureau (GHSB)…
CSI signed a contract with Governor’s Highway Safety Bureau (GHSB) where the company is
selected to support and enhance the Commonwealth of Massachusetts’ traffic records portal. The
company, as part of the contract would automate and improve data uploading procedures and
processes; develop and execute a comprehensive training and outreach program for users of the
system; make a series of enhancements to the existing portal to support the needs of the
Commonwealth’s end users; and provide safety-related analyses and support to GHSB staff and
select members of the traffic safety community.

CSI Bags FHWA Office of Operations Support Contract…


CSI bagged a contract to provide program and technical support to the Federal Highway
Administration (FHWA) Office of Operations. The company, through the new contract would
continue to provide support to the FHWA on a variety of transportation operations issues. The

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company’s contract scope would include policy and program development, technical assistance,
research and evaluation, technology transfer, and communications.

New Establishment

CSI Opens New Atlanta Office…


CSI expanded its Georgia operations with the opening of its New Atlanta Office. The company’s
new office enables to better meet the needs of clients in Georgia. The office provides a complete
line of services, tools, and products that are offered by the company across the country.

Product Launch

CSI Announces New Web Version (Release 5.0) of Pontis Bridge Management System…
CSI announced the New Web Version the AASHTO Pontis bridge management system. The
company’s new Release 5.0, primarily focuses on user interface organization, desktop content, and
standard report delivery. The company’s Pontis is a bridge management system that assists
transportation agencies in managing bridge inventories and making decisions about preservation
and functional improvements for their structures.

PRODUCT/SERVICE PORTFOLIO

Software & Information Technology Services


IT Strategy Consulting; Software and Systems Development; Additional Services

Infrastructure Management
Asset Manager; Maintenance Budgeting System; Bridge PortalCS™; Pontis® Bridge Management
System; and IIMS

Operations Management
CVIEWCS™- Motor Vehicle Data Repository; PermitCS™- Truck Permitting Solution;
PortalCS™- Motor Carrier E-credentialing Solution; IFTACS™- Automated Fuel Tax System

Planning & Program Development


Freight ToolsCS; NBIAS; HEAT; PEAT; STEAM; HERS; and IDAS

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CANADIAN HIGHWAYS INTERNATIONAL CORPORATION
5711 Mississauga Road, Suite 500, Mississauga, Ontario, L5N 2W3, Canada
Phone: (905) 858-2083, Fax: (905) 858-9597

SOURCES: Company related secondary online sources

BUSINESS PROFILE
Canadian Highways International Corp. (CHIC), is a world-renowned transportation infrastructure
development company. The company offers various toll highway development and financing
solutions, toll highway design/build solutions and toll highway operation/maintenance solutions.
CHIC offers fully integrated packages of expertise in project finance, design, construction and
operation. The company operates through four leading Ontario-based project management,
engineering and construction companies such as AGRA Monenco Inc., Armbro Construction Ltd.,
BFC Construction Corporation and Dufferin Construction Company, a division of St. Lawrence
Cement Inc.
The company was established in 1993.

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CHARYS HOLDING COMPANY, INC.
1117 Perimeter Center West, Suite N415, Atlanta, Georgia 30338, USA
Phone: 678-443-2300, Fax: 678-443-2320
SOURCES: WWW.CHARYS.COM and other secondary online sources
2007 Sales: US$ 57.0 million (Nine Months Ended, January)
2006 Sales: US$ 48.6 million
2005 Sales: US$ 7.5 million
(Fiscal Year Ends in April)

BUSINESS PROFILE
Charys Holding Company Inc., (Charys) is a leading provider of national infrastructure program
management and contracting services. The company operates two business lines namely restoration
and reconstruction; and wireless communications and data infrastructure services throughout the
US. Charys’ restoration and reconstruction business line includes subgroups that are related to
emergency planning and coordination, response to catastrophic losses, reconstruction, restoration
and environmental remediation, which cover the restoration and maintenance of commercial,
marine, residential, industrial, and institutional properties. The company’s wireless
communications and data infrastructure business line includes subgroups that provide an array of
telecommunications infrastructure services to large service providers and other business enterprises
including engineering services, tower and radio infrastructure services, installation and
maintenance services, program management, construction, premise wiring services, and technology
implementation and integration services.
Charys also provides rapid deployment and restoration services in support of the restoration and
reconstruction business unit. Charys works in association with advanced technology firms such as
Cisco, BelAir, Strix, Harris, Nortel, Motorola, Tropos, Alcatel, and others. Charys was established
in 2004 after merging with Spiderboy International, Inc.

BUSINESS OPERATIONS

Restoration and Reconstruction


Emergency Planning and Coordination Services
Emergency planning and coordination services division supports to minimize the human and asset risk
in unexpected catastrophic incidents, personnel situations are predefined, enabling the business to
continue its operations under comprehensive preparedness plans. The division provides a variety of
services to public and private sector clients, including developing responses for emergencies ranging
from minor catastrophes to major disasters on the basis of emergency preparedness management plan
to establish clear practices and procedures. The division assesses catastrophe and accordingly and
tactics are developed, tested and personnel trained. In the event of a catastrophe, the response teams are
deployed, with trained professional tactical leaders as first responders, to establish control,
communications and contingency management needed for asset recovery and business resumption.

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Fire Restorative Services
Fire restorative services division uses the latest technologies and equipment to remove hazardous
contaminants, restores structures and equipment to full productivity, assess and implement
effective and timely reconstruction procedures, and decontaminates facilities and equipment. The
services provided by the division are specifically segregated into round the clock emergency rapid
response and mobilization, content and structure cleaning, smoke deodorization, cleaning and
decontamination of air systems, emergency securing of buildings, electronic file recovery,
document recovery and reproduction, moving and storage, air quality monitoring during
restoration, carpet cleaning, debri removal, and furniture refinishing.

Water Restoration Services


Water restoration services division provides services, which includes rapid response to water
damage, water extraction to minimize losses and subsequent reconstruction. The division provides
specific services in relation to commercial properties to address business interruption, revenue loss
in connection with restoration services for continued business activity. The division also provides
content and structural mold remediation services.

Wireless Communications and Data Infrastructure

Engineering and Project Management Services


Engineering and project management services division provides services including outside plant,
civil and environmental engineering services, and towers and aerial design, underground fiber optic
and copper cable systems. The division provides systems integration services for deploying wide
area radio systems, municipal broadband networks and business enterprise systems. The division
provides project management services including site survey and acquisition, site environmental
engineering and tower engineering and evaluation for wireless installations across the US.

Construction, Installation and Maintenance


Construction, installation and maintenance services division provides services which includes cable
placing and splicing, conduit and cable systems excavation and placement, setting up poles,
cabinets and closures as well as install and maintain transmission and central office equipment. The
division also provides tower and infrastructure services such as engineering, construction, site
acquisition, electronics installation, build to suit, and maintenance. The division also stages,
assembles and tests radio and electronics technology at its secure and environmentally controlled
facilities.

Technology Implementation and Integration


Technology implementation and integration services division supports organizations in building
more effective customer relationships through streamlining of business processes, leverage
sophisticated technologies and increase efficiency of critical business interactions. The division
also provides services including technical support, business process consulting, system
implementation integration, custom system design, application development, communication
systems auditing and analysis, and contact center outsourcing.

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SALES DATA
Nine Months Sales Comparison: 2007 Vs. 2006 (Nine Months Ended, January) (In US$ million)

Year Sales % Change


2007 57.0 72.73
2006 33.0 -

Nine Months Sales Comparison by Quarter: 2007 Vs. 2006 (Nine Months Ended,
January) (In US$ million)
Quarter 2007 2006 % Change
Q3 15.1 21.8 (30.73)
Q2 16.8 5.2 223.08
Q1 25.1 6.0 318.33
Total 57.0 33.0 72.73
Nine Months Sales Comparison by Business Segment (2007 Vs. 2006) - Disaster Restoration
and Remediation Services, Technology Implementation and Integration Services, Data &
Communication Services, Tower and Infrastructure Services and Professional
Administrative Services (In US$ million)
Segment 2007 2006 % Change
Disaster Restoration and Remediation Services 7.4 - -
Technology Implementation and Integration Services 6.9 3.6 91.67
Data & Communication Services 33.5 26.6 25.94
Tower and Infrastructure Services 6.8 - -
Professional Administrative Services 2.4 2.8 (14.29)
Total 57.0 33.0 72.73
Percentage Breakdown of Nine Months Ended Sales (Value) by Business Segment (2007 Vs.
2006) Disaster Restoration and Remediation Services, Technology Implementation and
Integration Services, Data & Communication Services, Tower and Infrastructure Services,
and Professional Administrative Services
Segment 2007 2006
Disaster Restoration and Remediation Services 13.0 0.0
Technology Implementation and Integration Services 12.2 10.9
Data & Communication Services 58.7 80.5
Tower and Infrastructure Services 12.0 0.0
Professional Administrative Services 4.1 8.6
Total 100 100

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Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 48.6 548.00
2005 7.5 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review

Acquisitions

Charys Acquires Mitchell Site Acq. Inc…


Charys bought Mitchell Site Acq. Inc. (MSAI), for US$29.6 million to expand its reach in
providing wireless communications and data infrastructure services.

Charys Purchases Cotton Companies…


Charys, through its subsidiary C&B Holdings Company, Inc. (C&B Holdings), purchased Cotton
Companies (Cotton). Cotton offers services in emergency planning and coordination, response to
loss, reconstruction and restoration and environmental remediation of industrial, residential,
marine, commercial, and institutional properties under Cotton brand name. Following the
acquisition, Charys would operate Cotton under its remediation and reconstruction business.

Charys Takes Over MIQ…


Charys took over Method IQ, Inc. (MIQ) of the US. MIQ provides customer interaction
technologies and solutions, including integrated call centers, supporting businesses to improve
relationships with customers in the communications services, financial services, retail, and
healthcare industries. Following the deal, Charys would operate MIQ under its infrastructure and
services business.

Charys Acquires Complete Tower Sources Inc…


Charys acquired Complete Tower Sources Inc. (CTSI) for US$77.4 million in cash and stock.
Under the transaction, CTSI would operate as one of the largest providers of wireless
communications and data infrastructure services under Charys. The acquisition would assist Charys
to centralize its wireless communications and data infrastructure business.

Corporate Restructuring

Charys Integrates Businesses Under Cotton Brand Name…


Charys integrated its two wholly-owned subsidiaries, Crochet and Borel Services, Inc. (C&B) and
Cotton, in order to synergise its restoration and reconstruction services across the US under
Cotton® brand name. Cotton provides day-to-day restoration and reconstruction services, disaster
preparedness, and related services under its Preferred Client Program. The assimilation of C&B

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and Cotton allowed clientele and resources allowed Cotton to evolve as one of the largest
organizations in the world, providing disaster management services.

Contracts
Charys Deploys Teams into Storm Impacted Areas Under Contract…
Charys, through its subsidiary Cotton Companies (Cotton), a group of disaster recovery companies
deployed resources and trained personnel from its Emergency Response Division in areas affected by
recent storm and fire accidents such as in El Reno, Oklahoma. The trained personnel would be
engaged in executing new emergency remediation projects that are taken up for restoration just after
a disaster. Cotton received contracts worth over US$1.3 million in relation to restoration work across
the US. The Emergency response Team specializes in identifying and evaluating damage exposure
and critical restoration projects and prioritizing possible actions in collaboration with local officials.

Charys Wins New Telecom Infrastructure Contracts…


Charys, through its telecommunications infrastructure division signed new business contracts
worth over US$11 million. Charys’ subsidiary Complete Tower Sources, Inc., (CTSI) won a US$3
million new contract for custom building a tower, as well as US$3.5 million worth of orders for
site expansion of existing locations. CTSI along with other Charys subsidiaries, Aeon Technologies
and CCI won nearly US$5 million worth of orders for upgrading the data services technologies of
wireless service providers. Contracts include upgradation of wireless technologies, and the
construction of new and expanded switching sites for core network technology. CTSI also won
engineering service contracts worth US$1 million for testing and analysis of radio systems for a
project covering nearly 350 tower sites.

Charys Awards Upgrade Contract…


Charys, through its subsidiary, Aeon Technologies Inc., (Aeon) won a US$3 million contract to
upgrade a running mobile switching center from one of the largest wireless carrier service
providers in the Southeastern US.

Charys Awards US$5 Million Wireless Contract…


Charys’ subsidiary, Aeon awarded a US$5 million contract from one of the leading international
communications company in the US for implementing an advanced digital microwave radio network
and associated antenna system which includes technology configuration, staging, installation, testing
and turn-up of services for a new 400 site wireless network solution along the US Gulf Coast.

Charys Wins US$2 Million Digital Radio Network Contract…


Charys, through its subsidiary, Aeon received a US$2 million contract for installation and testing
of a terrestrial repeater system from one of the leading broadband entertainment providers in the
US. Under the contract Aeon would provide full turn-key installation services including quality
assurance testing and network turn-up services for over 100 sites under a nation-wide project. The
terrestrial repeater systems support in the uplink and re-transmittal of signals to destination
locations, enhancing the performance of a wireless network by allowing communications over
greater distances.

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Charys Receives New Contract…
Charys, through its subsidiary Cotton, won a US$0.5 million contract for deploying secured and
deployed resources on a new restoration projects, and for clean up of industrial and health care
facilities damaged by recent storms in and around Dumas, Arkansas.

Charys to Provide Security Network for Florida Governor Inauguration…


Charys, through its subsidiary, Charys Technology Group, Inc. (CTG) won a contract to provide
field systems integration support to the Florida Department of Law Enforcement, The Capitol
Police, and the Seminole County Sheriff's Office by using the Rapid Deployment wireless
surveillance network of CTG for the Florida Governor's Inaugural proceedings. As per the contract,
broadband wireless networks would be deployed in the locations that do not consist a pre-existing
surveillance system in operation.

Charys Awards US$1 Million Wireless Contract…


Charys, through its subsidiary, Aeon won a US$1 million contract from one of the leading
international communications companies in the US for the implementation of an advanced digital
microwave radio network and associated antenna systems. As per the contract, Aeon would provide
full turnkey installation as well as test and turn-up services for the 66 hop wireless backhaul solutions
to provide a statewide wireless system for one of the largest utility providers in the Midwest.

Year 2006 in Review


Acquisitions
Charys Acquires Digital Integration Systems, Inc….
Charys acquired Digital Integration Systems, Inc. (DIS), a newly formed company focused on the
residential installation of satellite and cable services as well as the sale and installation of
technology and structured wiring in newly constructed homes nationwide. The acquisition would
focus on the Data/Communication Network segment.

Charys Acquires LFC, Inc…


Charys, through its subsidiary Ayin bought over LFC Inc. (LFC), of Texas. The acquisition would
expand the company’s presence in site acquisition, management and ownership of wireless cell
towers. Charys established Ayin to oversee all the tower assets and the site acquisition companies
operating under Charys. LFC, as a turnkey solution company is into providing acquisition, zoning,
materials testing, permitting, project management, and environmental services for national wireless
firms. LFC also owns and operates 11 wireless telecommunications towers across Houston.

Charys Takes Over Aeon Technologies…


Charys’ subsidiary CCI took over Aeon Technologies (Aeon). Following the transaction, the
acquired company would operate as Aeon Technologies, Inc. Aeon, provides engineering,
consulting, and project management services to the communications industry, including
deployment of advanced microwave systems, construction of cell site towers, and installation and
testing of complex communication networks.

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Charys to Acquire Florida Tel-Con…
Charys, through its subsidiary Ayin signed an agreement to acquire Florida Tel-Con, Inc. (FTC).
Following the completion of the acquisition, FTC would operate as a wholly-owned subsidiary of
Ayin and work in collaboration with another Charys subsidiary Viasys, in telecom services
business.

Charys Purchases Cell Towers…


Charys’ subsidiary Ayin purchased over 19 of the 53 cellular towers from Tower Company of
Louisiana (TCLA) for nearly US$6.2 million. Ayin also plans to buy the remaining 34 towers
subsequently.

Charys to Buy Viasys…


Charys entered into agreement with New Viasys Holdings LLC (NVH) to acquire its 2
subsidiaries, Viasys Network Services, Inc. and Viasys Services, Inc.

Partnership

Charys Partners with ShoreTel for Next-Generation VoIP Solutions…


Charys, through its subsidiary Method IQ Inc., signed a partnership agreement with ShoreTel, Inc.
(ShoreTel), to work together on deploying next-generation voice technologies into businesses in the
Southeast US. Under the agreement, Method IQ would use ShoreTel 6 IP PBX platform of ShoreTel
to create cost-effective business phone systems that bring voice and data together in powerful
manner, including voice-and-data conferencing and virtual contact centers. IP voice systems are used
to reduce voice signals to standard Internet Protocol data packets, allowing conversations to run over
data networks, providing voices the routing flexibility as well as location independence, and
eliminating the need to build and maintain 2 separate networks for voice and data.

Agreements and Contracts

Charys Signs Agreements…


Charys’ subsidiary Cotton Companies (Cotton) under its Preferred Client Program, signed
agreements with Liberty Property Trust and Parkway Properties. Liberty Property Trust (LRY) is a
real estate investment trust with over 60 million square feet in over 700 offices and industrial
properties across the US and the UK. Parkway Properties, a self-administered real estate
investment trust specializing in operations, ownership, acquisition, management and leasing of
office properties, manages commercial office buildings in 11 states across the US.

Charys Signs New Contracts…


Charys, through its subsidiary C&B entered into Advance Emergency Response Agreements with
3 new clients for expediting response and mitigation of future property loss. C&B signed
agreement with the Louisiana Housing Council to improve standards in all phases of housing and
community development programs. C&B also entered into contract with Prologis Properties for its

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multi-location emergency response solution covering over 10,000,000 square feet in 96 buildings
and to provide immediate restoration response to Prologis property management services
customers. C&B also signed a new Advance Emergency Response Agreement with Capital One
covering of 3,000,000 square feet in more than 400 buildings. Capital One is one of the largest
banking facilities in the South Gulf.

New Establishments
Charys to Build First Wireless Pilot Project in Boston…
Charys, through its subsidiary, Charys Technology Group to work in the non-profit wireless
initiative of Boston, planned to build and operate the city's first high-speed wireless pilot project in
the neighborhoods of Roxbury's Grove Hall and Dudley Square. CTG would be involved in project
management, construction, integration services, and operations of the network, teaming with US
Internet, DT Net and BelAir Networks along with MetroNext and Gigabeam. The initial WiFi
network would set to become the base for the citywide wireless network.

Charys to Set Up New Facility…


Aeon, the wholly owned subsidiary of Charys, expanded its technology staging and assembly
facilities, by leasing a 60,000 square foot facility in the Dallas metroplex. Aeon intends to
centralize its management and administration functions at the facility as well as to provide
significant space for its rapidly expanding wireless technology assembly and deployment services.

Charys Signs Numerous Agreements through Subsidiaries…


Charys, through its subsidiaries signed numerous contracts and agreements. C&B entered into
Advance Emergency Response Agreements with 2 new accounts. The agreements would expand
the company’s preferred client coverage by 2.2 million square feet, which includes the agreement
with Lake Charles Memorial Hospital, one of the premier full service health care facilities in SW
Louisiana, covering more than 1 million square feet and Gold's Gym, the largest co-ed gym chain
in the world, covering 1.2 million square feet.
Cotton USA selected by Sportsman's Warehouse, one of the largest nationwide home hardware store
chain in the US. Cotton USA, under a 3 year contract selected as a preferred vendor in over 25 states.
Cotton USA also signed agreements with Lifetime Fitnessa constituent institution of the University
of North Carolina with more than 60 locations in the US, and East Carolina University as well as the
world's largest mass merchandising retailer for facility remediation and restoration incidents.
CTG selected as the wireless network provider for the 4th annual ConVurge Conference to provide
a broadband wireless, multi-service WiFi platform supporting the networking requirements of the
event as well as enable internet access and VoIP for the attendees. CTG would provide services by
using its specialized integrated solution offered to multiple Government agencies for tactical fast
deployment requirements.
Charys Subsidiary Adds Emergency Response Preferred Clients…
Charys, through its subsidiary C&B, added 3 new accounts to its Preferred Client List under
Advance Emergency Response Agreements. C&B signed agreement with Lamar University of

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Beaumont, Southeast Texas, covering more than 1,000,000 square feet. C&B signed second
agreement with Parc IV and V Condominiums of Houston, covering over 188,000 square feet in
two 12 story high-rise buildings and a third agreement with River Oaks Country Club of Houston
covering 150,000 square feet. C&B is a leading national provider of recovery, restoration, and
rebuilding services.

Charys Wins Alcatel Preferred Service Provider Contract…


Charys’ subsidiary Aeon, won a Preferred Service Provider contract from Alcatel North America.
The agreement allowed Aeon to work as a "Preferred Service Provider" within Alcatel's multi-
divisional and multi-million dollar organization, as well as enhance Aeon's ability to excel within
the telecommunications market as one of the leading service providers in the US.

Charys and iPhone2, Inc. Signs Strategic Agreement…


Charys and iPhone2, Inc. (iPhone2) entered into a strategic relationship, as per which, the Charys
subsidiary CTG would provide strategic marketing, distribution, business and technology
development services. In return Charys would acquire 4.9% equity in iPhone2. iPhone2, in the
forefront of the VoIP sector, markets a proprietary video/voice internet softphone called ImagePhone
as well as provide technology development services for service providers and business enterprise
applications. Under the agreement, Charys would provide infrastructure and additional marketing
support to iPhone2 to rapidly deliver proprietary Video/VoIP services to the new markets.

Charys Receives Two Additional Contracts…


Charys, through its subsidiary, Viasys won 2 additional contracts from the Florida Department of
Transportation and Verizon, a leading provider of voice and data communications systems in
Tampa Bay, Florida to provide infrastructure services including underground construction
and a raceway or conduit system to accommodate fiber optic and/or copper cable for the
Verizon residential and commercial voice and data communications system in Sarasota
County, Florida.

Charys Wins Contract From Leading International Communications Company…


Charys, through its subsidiary Aeon, awarded a contract from Alcatel USA to become a Value-
Added Reseller (VAR) for various Alcatel products divisions, including Wireless Transmission
Division (WTD), Internet Protocol Division (IPD), Communication Services Business Unit
(CSBU), Access Networks Division (AND), Optical Networks Division (OND), and Network
Infrastructure Business Unit (NIBU).

Charys Holding Company's C&B Services Receives 2 Substantial Contracts…


Charys, through its subsidiary, C&B received contracts from Galveston County Junior College and
San Jacinto Junior College in Harris County, Texas to execute all the restoration and renovation
work needed on the campuses as a result of damage ranging from localized events such as small
fires, far reaching disasters including hurricanes and floods. The contracts involve restoration and
renovation work at all 4 campuses of the San Jacinto Junior College and multiple buildings of
Galveston County Junior College, totaling over 2.5 million square feet.

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Charys Awards University of Houston Contract…
Charys’ subsidiary C&B awarded a contract by the University of Houston System for recovery,
restoration and rebuilding at the various campuses of the University of Houston.

Charys Receives Louisiana Contract…


Charys, through its subsidiary C&B, received a contract to be the sole provider of restoration and
remediation services for all the 75 schools in Calcasieu Parrish of Southwest Louisiana. The
Calcasieu school system signed in C&B in the aftermath of Hurricane Rita, which struck the region
in 2005 and to be better prepared for the predicted active hurricane season.

Charys Wins Contract from Leading International Communications Company…


Charys, through its subsidiary Aeon awarded a project that included the implementation of an advanced
digital microwave radio network and antenna system in the Northwestern US, under turnkey basis that
includes installation, test and turn-up services for the 26 hop wireless backhaul solution.

Charys Wins Major Contract from Housing Authority of New Orleans…


Charys, through its subsidiary C&B, won a major contract with the Housing Authority of New
Orleans (HANO) for providing emergency services and restoration work, including remediation,
drying, demolition, abatement, as well as temporary repairs such as roofing and exterior ceiling
repair work for HANO.

Charys Bags Contract from Major Defense Contractor…


Charys’ subsidiary, CCI bagged a contract worth over US$1.75 million from the services
arm of a major defense contractor. CCI and the general contractor, which is a leading
provider of general contracting and electrical contracting services in support of federal
construction projects in the US would act as a prime sub-tier contractor to construct a
infrastructure for the Digital Airport Surveillance Radar (DASR) site in Phoenix, Arizona in
a 8-month period.

Charys and Florida Department of Transportation Increases Contract Size…


Charys, through its subsidiary Viasys awarded a contract in conjunction with the Hurricane Katrina
Emergency Response Program by the Florida Department of Transportation (FDOT), increased the
size of the contract to US$3 million. The contract involves traffic signal repairs and restoration
services in Broward and Palm Beach counties. Viasys also won a nearly US$0.5 million contract in
association with Ranger Construction for providing traffic signal repairs and restoration services in
Lake County, Florida.

Charys Awards US$1.5 Million Contract…


Charys’ subsidiary Method IQ awarded a US$1.5 million contract for providing customer-care,
interactive management solutions to blended call centers in Southeastern US, expanding the
blue-chip customer base of MIQ. MIQ provides customer orientated solutions to over 120
companies.

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New Establishments
Charys Establishes Charys Technologies Group…
Charys established Charys Technologies Group Inc. (CTG), a new strategic business unit to
integrate key Charys strategic assets in the growing technology and telecommunications services
sector. Charys established CTG to expand both horizontally and vertically. CTG would provide
services including Microwave Engineering, Design and Construction; Maintenance retrofits,
upgrades of infrastructure; Disaster and rapid deployment communication systems; Tower, radio,
and switching facilities; Broadband Wireless Network Design and Deployment; Disaster and rapid
deployment communication systems; Recurring Network Services; Microwave communication
installation; Municipal and, First Responder System (Homeland Security); "Triple-Play"
Residential Systems featuring Voice, Video, & Data; Homeland Security wireless solutions; Wifi,
Mesh Wifi, WiMax, and cellular; Network operations management; Software and appliance
solutions; Business operations outsourcing; Facility and security solutions; Packaged, "rapid
deployment" networks; and Crisis and event management systems

Product Launch
Charys Announces New Unified Messaging Services…
Charys, through its subsidiary, Method IQ, Inc. launched a set of solutions and services to support
the deployment of the latest unified messaging capabilities in Microsoft Exchange Server 2007.
Microsoft Exchange Server 2007 started the third wave of unified messaging technologies that
integrate with desktop and mobile clients to provide users access to voice, fax, and e-mail data and
use the phone to manage email, calendar, and personal contacts.

Installations
Charys Installs Advanced Wireless Video Surveillance System on Mass Transit Systems…
Charys, through its subsidiary Viasys installed an innovative, federally funded wireless transit
surveillance system following a month of rigorous testing as per specification and performance
criteria for the iFlorida Project. The iFlorida Project, formally known as Surface Transportation
Security and Reliability Information System Model Deployment, is meant to provide an
information infrastructure basis for future deployments throughout the US. The installation is the
culmination of a contract awarded to Viasys by Florida Department of Transportation (FDOT) as
the main contractor for the LYNX Broadband Wireless Surveillance System in 2005.
Charys Installs Tactical Wireless Surveillance Solution…
Charys, through its subsidiary CTG, successfully deployed and utilized its Tactical Wireless
Surveillance Solutions for 5 Central Florida Sheriffs' Offices for major events in both Sanford and
Altamonte Springs, Florida. The systems would provide live video throughout the event grounds,
which would closely monitor by trained, public safety officials. CTG also collaborated with public
safety personnel to develop a portable communications solution for video surveillance at
community events or public safety incidents. The system includes video cameras and wireless data
nodes strategically placed throughout a designated area and a mobile command center with
network management controls and viewing stations to allow real-time monitoring.

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Charys Completes Metro-Wide Mobile Mesh Broadband System in Medford…
Charys’ subsidiary Viasys completed the installation of the Phase II of the Medford, Oregon city
based Mobile Mesh Broadband System. Under the project, Viasys installed a mobile broadband
system for use by Police, Fire Rescue as well as other city agencies in the metropolitan area of
Medford..

SUBSIDIARIES
Aeon Technologies, Inc.
Cotton Companies
Crochet and Borel Services, Inc.
LFC, Inc.
Florida Tel-Con, Inc.
Mitchell Site Acq., Inc.
Complete Tower Sources, Inc.
Ayin Holding Company, Inc.
Method IQ, Inc.
Viasys Network Services Inc.
Digital Communications Services, Inc.
Viasys Services Inc.
CCI-Telecom, Inc.
Personnel Resources of Georgia, Inc.
Aeon Technologies, Inc.
Ayin Tower Management, Inc.
Digital Integration Systems, Inc.
Personnel Resources of Georgia, Inc.
LFC, Inc.

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CISCO SYSTEMS, INC.
170 West Tasman Drive, San Jose, California 95134-1706, USA
Phone: (408) 526-4000, Fax: (408) 526-4100

SOURCES: www.cisco.com and other secondary online sources

2007 Sales: US$ 25,489 million (Nine Months Ended, April)


2006 Sales: US$ 28,484 million
2005 Sales: US$ 24,801 million
(Fiscal Year Ends in July)

BUSINESS PROFILE
Cisco Systems Inc., (Cisco) is a global leading provider of networking and Internet solutions. The
company manufactures and markets networking and communications products. Cisco also
develops routers and switches for line networks and power the Internet. Cisco specializes in the
fields of Home Networking, Optical, Storage Networking, IP Telephony, Network Security, and
Wireless LAN. The company provides Internet Protocol-based (IP) networking solutions for
business, education, government, and home communications throughout the world. Cisco focuses
on four business fields namely core technologies, routing and switching, the service provider
sector, and Advanced Technology sectors. The company’s switch line includes equipment based on
Ethernet, Gigabit Ethernet, Token Ring, and ATM technologies.
Cisco’s products include remote access servers, IP telephony equipment used to transmit data and
voice communications, optical networking components, and security systems. The company supplies
a wide range of products to various sectors such as IP telephony, voice, security, wireless/mobility,
cable, converged packet networks (CPN), metro optical, storage networking, and virtual private
networks (VPN). The company provides various services such as network service, ASP Termination
Services, Broadband Cable High-Speed Data (HSD) Services, Broadband Cable Video Services,
Enterprise and Internet Content Services, consulting services, Internet Access Services, Prepaid and
Postpaid Calling Card Services, VPN Services, and IP Communications Services.
Cisco’s products are installed at corporations, public institutions, telecommunications companies,
and businesses of all sizes and are also found in personal residences. The company provides a
broad range of products for transporting data, voice, and video within buildings. Cisco operates
manufacturing facilities in the US, Canada, Europe, Asia Pacific, and Japan. The company operates
a wide range of networks in over 152 countries across the world. Cisco distributes its products
through a network of channel partners to large enterprises, small and medium-sized businesses,
service providers, and consumers. Cisco’s subsidiaries include Cisco-Linksys, LLC; Cisco Systems
Canada Co.; Cisco Systems GmbH; Cisco Systems (India) Private Limited; Cisco Systems
Limited; and FineGround Networks, Inc. The company maintains partnership with International
Partners, Local and National Partners, Netaid.org, and Networking Academies. The company is
accredited with ISO-9001-2000 certification. The company competes with Juniper Networks,
Alcatel-Lucent, and Nortel Networks.

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In 2006, the company took over a leading global provider of set-top boxes, end-to-end video
distribution networks and video systems integration, Scientific Atlanta.
Cisco was established in 1984.

SALES DATA

Nine Months Sales Comparison: 2007 Vs. 2006 (Nine Months Ended, April)
(In US$ million)

Year Sales % Change


2007 25,489 24.34
2006 20,500 -

Nine Months Sales Comparison by Geographic Region (2007 Vs. 2006) - USA
and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan
(Nine Months Ended, April) In US$ million)

Region 2007 2006 % Change


USA and Canada* 14,126 11,258 25.48
European Markets 5,410 4,496 20.33
Emerging Markets 2,481 1,760 40.97
Asia Pacific 2,502 2,003 24.91
Japan 970 983 (1.32)
Total 25,489 20,500 24.34

(Net sales in the USA were US$13.3 billion and US$10.7 billion for the nine months ended April
2007 and April 2006, respectively.)

Nine Months Sales Comparison by Product (2007 Vs. 2006) – Routers, Switches, Advanced
Technologies, Service and Others (Nine Months Ended, April) (In US$ million)

Product 2007 2006 % Change


Routers 5,035 4,356 15.59
Switches 9,132 7,999 14.16
Advanced technologies 5,862 3,825 53.25
Other 1,491 1,003 48.65
Service 3,969 3,317 19.66
Total 25,489 20,500 24.34

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Annual Sales Comparison: 2006 Vs. 2005
(In US$ million)

Year Sales % Change


2006 28,484 14.85
2005 24,801 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Quarter 2006 2005 % Change


Q4 7,984 6,581 21.32
Q3 7,322 6,187 18.34
Q2 6,628 6,062 9.34
Q1 6,550 5,971 9.70
Total 28,484 24,801 14.85

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) - USA and Canada,
European Markets, Emerging Markets, Asia Pacific, and Japan (In US$ million)

Region 2006 2005 % Change


US and Canada 15,785 13,298 18.70
Europe Markets 6,079 5,692 6.80
Emerging Markets 2,476 1,805 37.17
Asia Pacific 2,853 2,486 14.76
Japan 1,291 1,520 (15.07)
Total 28,484 24,801 14.85

Percentage Breakdown of Annual Sales (Value) by (2006 Vs. 2005) - USA and Canada,
European Markets, Emerging Markets, Asia Pacific, and Japan

Region 2006 2005


USA and Canada 55.4 53.6
European Markets 21.4 23.0
Emerging Markets 8.7 7.3
Asia Pacific 10.0 10.0
Japan 4.5 6.1
Total 100 100

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Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Product and Service
(In US$ million)

Segment 2006 2005 % Change


Product 23,917 20,853 14.69
Service 4,567 3,948 15.68
Total 28,484 24,801 14.85

Percentage Breakdown of Annual Sales (Value) by Product (2006 Vs. 2005) – Routers,
Switches, Advanced Technologies and Others

Product 2006 2005


Routers 25.1 26.4
Switches 45.3 47.7
Advanced technologies 26.0 22.2
Other 3.6 3.7
Total 100 100

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Acquisitions
Cisco Acquires IronPort Systems, Inc…
Cisco acquired IronPort Systems Inc., a leading provider of e-mail and web security products.
IronPort's products and technology enable Cisco to extend its Self-Defending Network strategy to
include Wide Traffic Inspection capabilities, ensuring a new approach that combines the depth of
network-level security with the breadth of capabilities for inspecting e-mail, web and Instant
Messaging traffic.

Cisco Takes Over BroadWare Technologies…


Cisco took over BroadWare Technologies, a leading provider of IP-based video surveillance
software. BroadWare's software enables web-based monitoring, management, recording and
storage of audio and video, which is accessed anywhere by authorized users.

Cisco Completes Acquisition of WebEx…


Cisco completed acquisition of WebEx Communications Inc., a market leader in on-demand
collaboration applications. WebEx Communications’ network-based solution for delivering
business-to-business collaboration extends Cisco's vision for Unified Communications, particularly
within the small to medium business (SMB) segment.

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Cisco Acquires NeoPath Networks…
Cisco acquired NeoPath Networks, a leading provider of high performance and highly scalable file
storage management solutions. NeoPath's patented SMART virtualization technology and File
DirectorTM family of products simplify the management of network-attached storage (NAS) and
other file servers.

Cisco Purchases Reactivity…


Cisco purchased Reactivity Inc., a leading XML (eXtensible Markup Language) gateway provider
for organizations ranging from commercial enterprises to the Global 500. The acquisition results
Cisco to expand Application Networking Services (ANS) Advanced Technology segment, which is
an important part of Cisco's Service-Oriented Network Architecture (SONA).

Cisco Completes Acquisition of Utah Street Networks, Inc…


Cisco completed acquisition of Utah Street Networks Inc., the operator of the social
networking site Tribe.net. Utah Street Networks uses a proprietary software infrastructure to
create and maintain online communities on the Tribe.net website. As part of the acquisition, the
software would be integrated into the Cisco Media Solutions Group (CMSG), which is focused
on infrastructure products to help digital media content owners improve the consumer
experience.

Cisco Completes Acquisition of Tivella, Inc…


Cisco completed the acquisition of Tivella Inc., a leading provider of digital signage software and
systems. Cisco sees enormous potential for digital signage to be integrated into its existing
enterprise streaming and live video-broadcasting platform.

Cisco to Acquire SpansLogic…


Cisco entered into a definitive agreement to acquire SpansLogic Inc., a leading provider of processors.
With each generation of Ethernet offering a 10x increase in speed, embedding SpansLogic performance
into Cisco's switch platforms would lead to new levels of feature efficiency.

Cisco to Acquire Five Across, Inc…


Cisco entered into a definitive agreement to acquire Five Across Inc., a leading vendor in the social
networking marketplace. The Five Across platform, Connect Community Builder, empowers
companies to easily augment websites with full-featured communities and user-generated content
such as audio/video/photo sharing, blogs, podcasts, and profiles.

Alliance

Cisco Expands Alliance with IBM…


Cisco announced an expansion of existing strategic alliance with IBM to deliver new standards-
based telecommunications service assurance and fault-management solutions. Cisco would launch

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a service-management solution, which combines Cisco Active Network Abstraction (ANA)
technology with the industry-leading IBM Tivoli software to help service providers centrally
manage new services. Both companies also expanded Global Services Alliance and collaboration
to provide product maintenance services for mutual enterprise customers in 46 new countries. The
collaboration includes IBM's extensive service-delivery capabilities and Cisco's technical expertise
in one integrated support offering.

Cisco Expands Alliance with RSA…


Cisco announced an expansion of strategic alliance with RSA, the security division of EMC to
develop technology, which would improve and simplify the encryption of confidential information
such as medical records, social security and credit card numbers. The planned Cisco and RSA
technology would include Cisco Storage Media Encryption (SME), which provides encryption of
data-at-rest as a fabric service, and RSA® Key Manager, a centralized solution for encryption key
lifecycle management.

Joint Venture
Linksys Join Forces with Sotto Wireless…
Linksys®, a division of Cisco Systems Inc., joined forces with Sotto Wireless, to roll out a new
small business communication service that bundles Linksys wired and wireless networking
hardware and desktop IP phones with Sotto’s hosted communication service. The Linksys and
Sotto Wireless bundle provides Value Added Resellers (VARs) with a simple all-in-one wireless
and office communications solution for the small business market.

Cisco Enters into Joint Venture with HIMSS…


Cisco entered into joint venture with Health Information and Management Systems Society
(HIMSS) to provide HIMSS members a forum for education and best practice sharing. The
Community for Connected Health would offer its membership of caregivers, end-users, CIO's and
other IT professionals high-value educational programs, networking opportunities, and access to
Cisco healthcare and technology experts.

Collaborations
Cisco and Etherstack Enters into Collaborations…
Cisco and Etherstack, a global wireless technology licensor, entered into collaboration to develop a
range of new public safety radio network infrastructure products for the first responder segment of
North American markets. Through the deal, Cisco would enhance its range of public safety
interoperability solutions for the APCO P25 ISSI protocol, which allows bridging between
different manufacturers' radio networks and advanced interoperability beyond radio to telephony,
cellular networks and IP devices.

Cisco Enters into Collaborations with VMWare…


Cisco entered into a routine and customary collaboration agreement with VMware to expand
cooperative efforts around joint development, marketing, customer and industry initiatives.

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Cisco Enters into Collaboration with True Corp…
Cisco entered into collaboration with True Corp., to deliver next-generation managed services that
would support customers to prepare for future applications over an integrated Internet Protocol (IP)
networking platform.

Cisco Teams Up with Rockwell Automation…


Cisco collaborated with Rockwell Automation, a global provider of power, control and information
solutions. Under the deal, both the companies collaborated to integrate manufacturing and for
seamless connectivity throughout the enterprise. Cisco and Rockwell Automation are developing
reference architectures using standard networking technologies such as EtherNet/IP, and market
education to enable people and process optimisation.
Cisco and Rockwell Automation are working together on reference architectures and detailed
design guidelines for the use of common networking technologies across the production and
enterprise network, addressing two long-standing industry challenges greater efficiency and
visibility.

Cisco and i-City Properties Enters into Collaboration…


Cisco and i-City Properties Sdn. Bhd., a subsidiary of I-Berhad, announced a memorandum of
understanding (MoU) outlining plans to work together to deliver world-class infrastructure and
services to i-City, the first digital city in the state of Selangor. Both the companies intend to
implement Cisco Connected Real Estate (CCRE) solutions in i-City.

Cisco Teams up with NEC Display Solutions of America, Inc…


Cisco teamed up with NEC Display Solutions of America Inc., a leading supplier of large-screen
commercial LCD display in the world. Following the deal, both the companies would offer scalable
media solution to the digital signage market. NEC Display Solutions would offer large-screen
MultiSync LCD displays and Cisco would offer Cisco Digital Signage solution to provide digital
signage customers rich marketing, advertising and training functionality.

Agreements
Cisco and Cambodian Ministry of Education, Youth and Sport Enters into an Agreement…
Cisco and Cambodian Ministry of Education, Youth and Sport entered into an agreement to deliver
advanced networking skills to educators in Cambodia. Under the agreement, Cisco would integrate
TEIs into existing Networking Academies to develop the ICT skills of pre-service teachers.

Cisco and Nokia Siemens Networks Enters into an Agreement…


Cisco® and Nokia Siemens Networks entered into an agreement to develop a standards-based
telecommunications network management platform that would aid service providers to manage the
increasing complexity of networks and speed time to market of new services. As part of the
agreement, Cisco and Nokia Siemens Networks would deliver a solution to provide a common end-
to-end network view of diverse network elements - across IP and mobile technologies - that are
automatically discovered and represented as a virtual network model.

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Cisco and SAP AG Enters into an Agreement…
Cisco and SAP AG entered into a global market innovation agreement to jointly develop a new
breed of business solutions that transforms applications and networks interact. The solutions are
designed to enable the business network agility that is essential for bringing together customers,
partners, suppliers and employees across geographically dispersed, highly heterogeneous business
and information technology landscapes.
The new network-aware solutions from Cisco and SAP AG would focus on removing the artificial
separation between application infrastructure and network infrastructure to intelligently route
traffic based on contextual business relevance.

Cisco and Apple Reach Agreement on iPhone Trademark…


Cisco reached an agreement with Apple to use free "iPhone" trademark on their products
throughout the world. In addition both companies would explore opportunities for interoperability
in the areas of security, and consumer and enterprise communications.

New Establishments

Cisco to Establish Cisco Institute of Entrepreneurship in Turkey…


Cisco and The Union of Chambers and Commodity Exchanges of Turkey (TOBB) proposed to
establish a Cisco Institute of Entrepreneurship at TOBB University of Economics and Technology.
The institute would teach local entrepreneurs the skills needed for running a small or medium-sized
business (SMB) successfully.

Cisco to Establish Sales Operations Centre in Portugal…


Cisco planned to establish a sales operations centre in Lisbon, known as Hercules, with the support
of the government of Portugal and the Portuguese Investment Agency (API). Cisco develops and
sells networking and communication technology products and services for transporting data, voice
and video to customers worldwide. The Lisbon based Hercules centre would be an integral part of
the customer services organization that supports Cisco throughout Europe.

Product Launches
Cisco Introduces Innovative New Data Center Virtualization Orchestration Solution…
Cisco® introduced VFrame Data Center (VFrame DC), an orchestration platform that leverages
network intelligence to provision resources together as virtualized services. VFrame DC is a highly
efficient orchestration platform for service provisioning, which requires only a single controller
and one back-up controller. VFrame DC includes an open API, and easily integrates with third
party management applications, as well as best-of-breed server and storage virtualization offerings.

Cisco Unveils Cisco Cable ServiceMesh solution


Cisco unveiled Cisco Cable ServiceMesh solution, the industry's first integrated, end-to-end
wireless architecture designed for cable operators desiring to extend indoor Wireless Fidelity (Wi-

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Fi) to outdoor mesh networks in municipalities, tourism centers, small businesses and universities
in North America. The Cisco Cable ServiceMesh solution is a fully integrated outdoor wireless
platform, which enables operators to quickly deploy a variety of value-added, revenue-generating
services via a single network infrastructure.

Cisco Launches Universal Edge QAM Solution…


Cisco launched Cisco® RF Gateway (RFGW) Series of Universal Edge QAM (U-EQAM)
products, which provides cable operators an unprecedented level of performance, functionality,
reliability. The Cisco RF Gateway 1, the first product offering from the Cisco RF Gateway Series,
delivers up to 48 QAM channels in a compact 1RU chassis with redundancy options to expand
system availability.

Cisco Introduces Linksys One…


Cisco’s division Linksys®, announced the launch of Linksys One solutions through Hosted
Solution Provider Partners and authorized Value Added Resellers along with a new Linksys One
2.0 version software release (R2.0) and three new products for Linksys One products. The products
include the next generation Service Node - the Cisco Service Node for Linksys One XA (XA for
eXtensible Architecture) Series; the Linksys One Wireless-G ADSL/Ethernet Services Router with
4-Port PoE Switch and 1 FXS + 1 FXO (SVR200); and the Linksys One (2) Port T1/E1 Services
Router With 24-Port PoE Switch (SVR3500).
Linksys® is a leading global manufacturer of voice, wireless, and networking hardware for home,
Small Office/Home Office (SOHO) and the small business user.

Linksys Launches Enhanced Entry-Level Gigabit Smart Switches…


Cisco’s division Linksys®, launched two new Gigabit Smart Switches for small businesses
including the 8-Port 10/100/1000 Gigabit Smart Switch with PD and AC Power (SLM2008) and
the 5-Port 10/100/1000 Gigabit Smart Switch with PD and AC Power (SLM2005).

Cisco Introduces First Mile Wireless Solution for Oil and Gas Industry…
Cisco introduced a new mobility solution for the oil and gas industry, the Cisco First Mile Wireless
solution. The new solution supports the extension and augmentation of corporate networked data to
be utilized by wellhead workers stationed at desolate oil fields and offshore ocean oilrigs.
With the new solution, oilfields and ocean rig platforms would be able to network SCADA
controls, maintenance sensors, mobile service workers, physical security assets, service vehicles
and location service tags, as well as integrate mobility services, such as wireless voice over IP,
video and guest access.

Cisco Unveils In-Store Mobility Solutions for Retail Industry…


Cisco unveiled Cisco In-Store Mobility Solutions designed to transform retail store environments.
The solutions integrate Cisco Unified Communications and wireless solutions with Cisco Services
best practices. Cisco In-Store Mobility Solutions comprise two offerings namely Cisco In-Store
Mobile Voice and Cisco In-Store Personal Shopper.

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The Cisco In-Store Mobile Voice Solution improves associate productivity and collaboration by
combining Cisco Unified Communications and the Cisco Unified Wireless Network to deliver
mobile voice and data applications through Cisco Unified Wireless IP Phone 7921G handsets and a
variety of other devices from Cisco partners. The Cisco In-Store Mobile Personal Shopper combines
the Cisco Unified Wireless Network and the MediaCart™ solution to produce an interactive
shopping cart with a video display that enables customer self-service at the point of choice.
Cisco Launches Wireless Location Solution and New Unified Wireless Network Software…
Cisco launched an architected industry first integrated Wi-Fi chokepoint and telemetry services
into the Cisco Location Solution. Cisco's Location Solution, which includes the Cisco Unified
Wireless Network and integrated partner applications and active/passive tag offerings, is designed
to mobilize assets across an enterprise environment.
Cisco Unveils Cisco Smart Care Service…
Cisco unveiled Cisco Smart Care Service, designed to aid small and medium-sized businesses
(SMBs) and midmarket customers simplify network maintenance through regular, proactive
network assessments, remote software repairs and technical support. Cisco Smart Care Service
includes a software client or a hardware-based network appliance, which is deployed at the
customer site, after the service is purchased, to collect predetermined data.

Cisco Introduces IP Interoperability and Collaboration System 2.0…


Cisco introduced Cisco® IP Interoperability Collaboration System 2.0 (IPICS). The Cisco IPICS
products and applications enable personnel within the same or different agencies to communicate
across previously isolated radio, IP and non-IP networks.

Linksys Introduces 8-Port Analog Telephone Adapter…


Linksys®, a Division of Cisco introduced Linksys 8-Port Analog Telephone Adapter (SPA8000).
The adapter is used in business and consumer environments in case multiple phones require access
to the Internet to use Voice-Over-IP (VOIP) service. The SPA8000 turns an existing Internet
connection into a high-quality phone line for placing and receiving phone calls, if combined with a
subscription to a specific VoIP service plan.

Cisco and SingTel Launches All-in-One Communications Solution…


Cisco and Singapore Telecommunications Limited (SingTel) launched an integrated office
communications solution to support enterprises streamline business operations and improve
productivity. The SingTel Enterprise360 solution is a fully managed telephony, data, Internet and
security service that significantly reduces the risks and complexities that enterprises face in
implementing and maintaining a robust communications network.
Cisco and IBM Unveils New Platform…
Cisco and IBM unveiled a new platform for unified communications and collaboration client
development. The new platform based on open technologies such as Eclipse and OSGi, would
accelerate application development by enabling developers to easily include a rich set of
communications and collaboration capabilities in solutions.

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Cisco Launches Subnetting Game…
Cisco® announced the availability of "The Subnetting Game," a new educational game designed to make
the highly technical topic of subnetting easier for students to learn. The immersive game allows students
to test subnetting knowledge while developing the necessary skill sets through an entertaining challenge.

Cisco Introduces Wireless Location Solution…


Cisco introduced a new turnkey Wi-Fi Asset Tracking solution specifically geared for aerospace,
automotive, mining and semiconductor manufacturing industries. Cisco Wi-Fi Asset Tracking
Solution improves asset utilization and operational efficiencies. The solution is comprised of the
Cisco 2700 Series Wireless Location Appliance, the Cisco Wireless Control System (WCS),
Lightweight Access Point Protocol Controller, Cisco Aironet® Access Points, AeroScout Wi-Fi-
based Active RFID tags and AeroScout MobileView Software.

Cisco Capital and Ingram Micro Launch Financing Program…


Cisco Systems Capital® a division of Cisco and Ingram Micro Inc., announced a financing program
for North American resellers of Cisco® equipment, software and services. The Cisco Express
Leasing program results Ingram Micro channel partners serving small to medium-sized businesses
and mid-market businesses immediate access to Cisco Capital's available leasing offerings. With the
Cisco Express Leasing program, qualified SMB and mid-market resellers work directly with a
dedicated team of Ingram Micro financing specialists to credit-approve their customers, obtain
lease quotes and complete leasing documentation.

Linksys Introduces PowerLine Networking Products…


Linksys®, a Division of Cisco announced PowerLine networking products, which are designed for
HomePlug AV, the next generation of PowerLine standards from the HomePlug PowerLine
Alliance. The PowerLine AV Ethernet Kit (PLK200) includes two PowerLine AV Ethernet
Adapter (PLE200) units, enabling consumers to purchase a complete solution to connect
computers, networked entertainment products, or peripheral devices utilizing the existing power
lines at data throughput speeds up to 100Mbps around the home.

Product Development
Scientific Atlanta Expands Prisma II Optical Platform…
Scientific Atlanta, a Cisco company announced new, compact, high-density Prisma IITM optics
products designed to improve the performance of existing fiber. The company would also offer a
new DOCSIS® Passive Optical Network (D-PON) architecture to enable operators to deploy
cable-centric/cable-friendly fiber-to-the-home (FTTH) technology.
Year 2006 in Review…
Acquisitions
Cisco to Acquire Tivella…
Cisco entered into an agreement to acquire Tivella Inc., a leading provider of digital signage
software and systems. Through the acquisition, the company could provide live video, video-on-

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demand, and other rich media content to desktops and digital signage displays using IP for
applications such as targeted communications, advertising, and training. Following the completion
of the acquisition, Tivella would be integrated in Cisco's Emerging Markets Technology Group.

Cisco Acquires Greenfield Networks…


Cisco acquired Greenfield Networks Inc., of Sunnyvale, California. Following the acquisition,
Greenfield team and product portfolio would merge with Cisco's Ethernet and Wireless
Technology Group (EWTG). Greenfield Networks provides integrated circuits, hardware and
software optimized for Ethernet packet processing that enables next-generation Metro Ethernet
services.

Cisco Takes Over Orative Corp…


Cisco took over Orative Corp. Under the terms, Orative team and product portfolio would be
merged with Cisco's Voice Technology Group. Through the acquisition, Orative provides an
application that allows Cisco to extend its Unified Communications portfolio to mobile devices
such as cell phones and smartphones.

Cisco Purchases Assets of Ashley Laurent…


Cisco purchased intellectual property and selected assets of privately-held Ashley Laurent, a
leading provider of software for the embedded service provider gateway market. Ashley Laurent’s
software provides essential features found in home networking equipment such as firewall/VPN,
content filtering, quality of service, device management, TCP/IP routing and virus protection.

Cisco Completes Acquisition of Arroyo Video Solutions…


Cisco completed the acquisition of privately-held Arroyo Video Solutions, Inc., a leading provider
of next-generation solutions for on-demand television and related consumer services. Through the
acquisition of Arroyo solution, Cisco could deliver highly extensible platform for video-on-
demand. The integration of the Arroyo platform into the Cisco IP-NGN (Next Generation
Network) architectural framework enables carriers to accelerate the creation and distribution of
network delivered entertainment, interactive media and advertising services across the growing
portfolio of televisions, personal computers, mobile handsets and emerging media capable devices
in increasingly connected lives.

Cisco Purchases Meetinghouse Data Communications…


Cisco purchased Meetinghouse Data Communications, Inc. a provider of client-side 802.1X
supplicant security software. Under the acquisition, Meetinghouse team and products would merge
with Cisco's Wireless Networking Business Unit.

Cisco Acquires Scientific-Atlanta Inc…


Cisco acquired Scientific-Atlanta Inc., a leading global provider of set-top boxes, end-to-end video
distribution networks and video system integration. Following the acquisition, both the companies
would provide world class, end-to-end triple play solutions for carrier networks and the digital home.

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Cisco Acquires SyPixx Networks…
Cisco acquired privately held SyPixx Networks, Inc. The acquisition enables Cisco to deliver video
surveillance as part of an Intelligent Converged Environment. SyPixx Networks is a major provider
of network-centric video surveillance software and hardware that enable existing analog video
surveillance systems to operate as part of an open IP network.

Alliance
Cisco and Sitronics Forms Regional Alliance…
Cisco and Sitronics JSC, the leading technology company in Russia & CIS formed regional
alliance focusing the expanding telecommunications market in Russia and CIS countries (RCIS)
and other emerging markets, such as Central and Eastern Europe (CEE); and Middle East and
Africa (MEA).
Following the deal, Cisco and Sitronics would focus on providing advanced communication solutions
in countries that are undergoing major economic and social transformation. The deal includes
Information and Communications Technologies (ICT) planning and implementation to increase the
productivity of businesses, ramp up connectivity and find new ways to educate the populace.

Cisco and Italtel Extends Alliance…


Cisco and Italtel signed a new agreement to extend strategic technology and commercial alliance to
2008, with an expanded market coverage beyond Europe, Middle East and Africa to include the Latin
America region.
Cisco and Italtel signed original strategic alliance agreement in 2005, to work together on joint
technology solutions for service providers focused on optimization of network infrastructures,
multimedia communication services for the consumer segment, and hosted and managed Unified
Communication services for the business segment.
Italtel is one of the leading providers of solutions, products and services for Next Generation
Networks (NGN) and Next Generation Services (NGS),

Collaboration

Cisco and IDA Expands Technology Collaboration…


Cisco® and the Infocomm Development Authority of Singapore (IDA) expanded technology
collaboration to advance Internet Protocol (IP) networking in Singapore. The expanded agreement,
signed between Cisco Systems® International BV, and the IDA, includes exploring and
implementing technologies enabling to achieve a ubiquitous computing environment and fuel
greater innovation of next-generation networking solutions in Singapore.

Cisco Collaborates with HP…


Cisco Collaborated with HP to Deliver New Fibre Channel Embedded Switch for HP. Under the
collaboration, Cisco would develop a new embedded Fibre Channel fabric switch for HP

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BladeSystem c-Class. The new Cisco embedded switch would enable customers to deploy end-to-
end Cisco intelligent SAN services, such as VSANs, advanced security, and high availability.

Cisco Collaborates with IBM…


Cisco collaborated with IBM. Following the deal, Cisco would develop a new embedded Fibre
Channel fabric switch for IBM blade server chassis. The new Cisco embedded switch would allow
customers to deploy end-to-end Cisco intelligent SAN services, such as VSANs, advanced
security, and high availability.

Cisco Enters into Collaboration with Hanoi University of Technology…


Cisco entered into collaboration with Hanoi University of Technology to launch a Networking
Research and Development (R&D) Laboratory that would focus on network security. The
collaboration is sponsored by the Cisco® University Research Program (URP). The Networking
R&D Lab would be operated by Bach Khoa Networking Academy in HUT, the first regional-level
Cisco Networking Academy® program in Vietnam. Hanoi University of Technology (HUT) is one
of the first and biggest universities that educate technical and science-technology research
personnel.

Cisco and Fujitsu Collaborates…


Cisco and a leading European IT provider, Fujitsu Siemens Computers entered into a technology
collaboration agreement to jointly work together on delivering combined data center products. The
collaboration enables customers to increase their infrastructure. Under the collaboration, Fujitsu
Siemens Computers would add Cisco Gigabit Ethernet switch capabilities to its PRIMERGY
BX600 blade server range and would also make Cisco MDS 9000 Multilayer directors and Fabric
Switches available as components of its industry-leading Storage Solutions portfolio.

Cisco Enters into Collaboration with CSA…


Cisco’s Cisco Systems Capital® division entered into collaboration with Computer Systems
Advisers (M) Berhad (CSA) to extend innovative financing programmes to organizations to
maximize returns on network investments, while lowering deployment costs. CSA is one of
Malaysia's leading information technology (IT) service providers.

Cisco Enters into Collaboration with mtvU…


Cisco entered into collaboration with mtvU to launch New Student-Run Digital Development
Team. The Digital Incubator project is an integral part of mtvU's on-air, online, on campus and
wireless programming.

Cisco and Citrix Collaborate to Unify Communications…


Cisco collaborated with Citrix Systems Inc., a global leader in access infrastructure solutions, to
Unify communications and business applications. The collaboration between Cisco and Citrix would
be initially focused on the integration of the Citrix Application GatewayTM and the Citrix® Voice
Office suite of applications with Cisco Unified CallManager and Cisco Unified Presence Server.

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Cisco Enters into Collaboration with Personeta…
Cisco entered into collaboration with Personeta to deliver a solution for one of Russia and Eastern
Europe's leading mobile service providers, Mobile TeleSystems (MTS). The collaboration would
deliver a new fixed-mobile convergence (FMC) voice solution to MTS' business customers in
across Russia. The combined Cisco and Personeta solution provides MTS with carrier-grade
resiliency, scalability, and security. Personeta, a Cisco Technology Developer Program partner, is a
leading provider of network service creation and delivery platforms to improve profitability with
value-added voice, data and video services.

Cisco and Cellnet Enters into Collaboration…


Cisco entered into collaboration with a leading provider of real-time fixed network and advanced
metering infrastructure solutions to the utility industry, Cellnet Technology Inc., for providing
outdoor "mesh" technology for a Wi-Fi initiative, Mad City Broadband undertaken by Madison
city. Under the collaboration, Cellnet would build and manage a Wi-Fi network to address the
requirements of the city's growing population of wireless users in the consumer, academic,
commercial and government sectors.

Cisco Collaborates with Appear Networks…


Cisco collaborated with a software provider, Appear Networks to deliver an integrated location
services solution for the Stockholm Subway, delivering personalized, real-time information to
users in underground stations at any place across the Wi-Fi network. Under the collaboration, the
Cisco 2700 Series Wireless Location Appliance would be integrated with Appear's platform for
enabling customers to locate the position of their workers via their handheld devices.

Cisco Collaborates with Scott Adams…


Cisco collaborated with Cartoonist Scott Adams, creator of the famous, "DilbertTM" cartoon strip.
Under the collaboration, Scott Adams used Cisco Unified MeetingPlace® to draw and collaborate
with a nationwide audience by highlighting the potential of Cisco® Unified Communications to
improve collaboration and illustrating how the network could serve as a platform for life's
experiences.

Partnerships

Cisco Teams Up with OneCommunity…


Cisco teamed up with OneCommunity, a local nonprofit organization, to bring free outdoor Wi-Fi
mesh services to Cleveland neighborhoods. The mesh network would provide residents with a
Digital Bridge to access online education, healthcare, job placement and government services.

Cisco Partners with MobilePro…


Cisco partnered with a leading wireless Internet service provider, MobilePro Corp., to deliver
outdoor wireless mesh services to farmers branch. Under the partnership, MobilePro would act as

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the wireless Internet service provider for farmers branch and manage the city's mesh network,
allowing to offer Wireless Fidelity (Wi-Fi) 802.11 b/g connectivity to consumer, academic,
commercial and government users.

Cisco Formed Partnership with Schlumberger, Intel…


Cisco, Schlumberger, Cisco and Intel collaborated to develop a first mile wireless service for
oilfield operations. The first mile in the oilfield refers to the critical connectivity of drilling sites or
producing fields into a wider network. The service would assist operators and partners better
manage drilling and production operations through an innovative wireless fabric of sensors,
distributed computing networks and service- oriented applications. The wireless solution for the
digital oilfield would remove traditional barriers for instrumentation and improve communication
services with access to voice, video, data and SCADA.

Cisco Teams Up with Intel, Nokia and RIM…


Cisco teamed up with Intel Corporation, Nokia, Research In Motion (RIM) and other technology
leaders to bring enterprise adoption of voice-ready wireless networks, which is an end-to-end
solutions approach that meets the convergence of VoIP and wireless networks and allows
enterprises to extend the mobility benefits of wireless networks to their voice communications. The
partnership enables the companies to ensure greater voice-over-Wi-Fi caller security, to improve
roaming across campus environments, and also to enhance management features to detect and
mitigate radio frequency interference.

Cisco Partners with T-Systems…


Cisco partnered with one of Europe's leading providers of information and communications
technology (ICT), T-Systems to deliver integrated voice, data and security services to medium-
sized and large businesses. Under the partnership, both the companies would cooperate on
marketing, business development and sales activities over the next few years. The partnership
enables T-Systems to penetrate the German market with our unified communications and security
solutions.

Cisco Teams Up with Optimus…


Cisco teamed up with Optimus for deployment of Cisco's IP RAN optimization solution in its
network. Optimus is deploying Cisco IP RAN optimization to reduce backhaul network traffic by
up to 50 percent, cut operating expenses and to provide new services, such as Universal Mobile
Telecommunication Service (UMTS) and High-Speed Downlink Packet Access (HSDPA). Cisco
IP RAN optimization reduces operating expenses for GSM and UMTS networks by using IP to
optimize and aggregate mixed generation cellular traffic to lower backhaul costs.
Optimus is a leading provider of high-quality services and mobile phones.

Cisco Join Forces with Halifax…


Cisco joined forces with Halifax International Airport Authority (HIAA) for providing technology
and also services from Hewlett-Packard (Canada) Co., to unify voice, video, data and wireless

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communications into a single, airport-wide Cisco Unified Communications system. Under the
partnership, HIAA would integrate Internet Protocol (IP)-based capabilities with the Cisco
Intelligent Airport Solution infrastructure, allowing the airport to offer a multitude of network-
enabled innovations. The partnership enables the company to widen its services, and to increase
productivity and streamlining costs.

Cisco Teams Up with Microsoft…


Cisco teamed up with Microsoft to create a converged solution that would provide desktop Internet
Protocol (IP) telephony call control. Under the collaboration, both the companies would work
together to provide real-time capabilities for businesses through the integration of Microsoft®
Office Communicator 2005 and the open Session Initiation Protocol.

Cisco and Telecom Italia Sparkle Join Forces to Build S@FE…


Cisco and Telecom Italia Sparkle joined forces rollout S@FE, a network-based solution for
international wholesale customers of the TI Sparkle IP backbone. S@fe is designed to provide
more effective protection against Denial of Service (DoS) and Distributed Denial of Service
(DDoS) attacks.

Cisco Partners with Infocomm…


Cisco partnered with Infocomm Development Authority of Singapore (IDA) to provide Network
Infrastructure that offers delegates of Singapore with highly secure wired and wireless networking
access. The partnership enables Infocomm to emerge as dynamic global hub.

Cisco’s Linksys and Yahoo! Music Team to Make Moving Digital Music…
Cisco’s division Linksys and Yahoo! Music teamed to make moving digital music. The agreement
enables the integration of Yahoo! Music with the Linksys Wireless-G Music Bridge (WMB54G)
Agreements
Cisco Reaches an Agreement with SAVVIS…
Cisco entered into an agreement with SAVVIS' Global Network, Data Center Infrastructure and
Management Systems to provide a new breed of IT services for business and government
applications. The agreement enables to deploy next-generation Internet Protocol (IP) network
based on Cisco products and services. The new network enhances SAVVIS' global application
infrastructure and expand SAVVIS' ability to deliver IT-Infrastructure-as-a-Service.
The new SAVVIS infrastructure is based on a combination of the Cisco IP Next Generation
Network (IP NGN) service provider architecture, featuring Cisco CRS-1 routers and Cisco
Internetworking Operating System (IOS) XR software at the core and Cisco 12000 Series routers
as multi-service edge platforms; and the Cisco Service Oriented Network Architecture (SONA).

Cisco Signs an Agreement with CCS…


Cisco signed an agreement to develop joint customers with China Communications Services
Corporation Limited (CCS). Under the terms of the agreement, Cisco and CCS would jointly

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provide managed telecommunications services, such as network operation and administration, to
enterprise customers in China. Additionally, both the companies would provide customers with
new network solutions, including IP infrastructures, digital video, and 3G platforms and
applications.
CCS is the specialized telecommunications support businesses arm of a major telecommunications
group in China.

Cisco Signs an Agreement with CEAC…


Cisco signed agreement with China Electronic Appliance Corporation (CEAC). Under the
terms of agreement, CEAC would import for Cisco channel partners desired Cisco products as
well as complete related import services including customs, inspection, foreign exchange and
anti-counterfeiting. CEAC is one of the largest trading enterprises in the electronic industry in
China.

Cisco And China Mobile Enters Into an Agreement…


Cisco and China Mobile Communications Corporation (CMCC) entered into a framework
agreement for selling of Cisco data networking services. Following the agreement, CMCC would
deploy Cisco services to support its infrastructure development in the near future. Under the
accord, both the companies would continue in providing cooperation in the field of Networking
products and services, and Cisco would also provide leading edge products and state-of-the-art
services for CMCC.

Contracts

Cisco Bags Order for New Turkish Datacentre Backbone…


Cisco bagged order from Garanti Bank, the leading Turkish retail, commercial and corporate bank,
to provide a new backbone network infrastructure for its datacentre operations comprising storage
area networking, data centre switching and integrated security. The new data centre infrastructure
would enable the bank to support the data security requirements of its mainframe applications.

Cisco Receives a Contract from BT's 21st Century Network…


Cisco received a contract from BT's 21st Century Network (21CN) for the supply of Cisco®
Internet Protocol Next Generation Network (IP NGN) technologies in the core and metro area
network domains. Cisco IP NGN solutions for BT's 21CN would help and accelerate network
convergence and provide a cost-effective, intelligent platform to deliver innovative 'triple-play'
voice, video and data services.

Cisco Enters into a Contract with AQR Capital Management…


Cisco entered into a contract with a dynamic financial firm and a provider of investment
management services primarily for pension funds and other corporate clients, AQR Capital
Management for providing Cisco MDS 9000 Multilayer fabric switches as the basis for their
storage area networks (SAN).

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Cisco Signs Contract with Interkabel…
Cisco signed a contract with Flemish cable operator, Interkabel to provide Internet Protocol Next-
Generation Network (IP NGN) technology to upgrade its cable network by providing interactive
broadband services and multimedia applications such as IP television and video surveillance.

Cisco Enters into Contract with Com Hem…


Cisco entered into a contract with a Sweden based leading broadband triple-play service provider
serving a third of households, Com Hem to provide IP NGN for New Peering Network. The
contract enables Com Hem to address the client’s demands for high-speed broadband triple-play
services.

Cisco Inks Contract with Chunghwa Telecom…


Cisco inked a contract with Taiwan's largest telecommunications company, Chunghwa Telecom
(CHT) to provide an optical networking solution, using the Cisco ONS 15454 Multiservice
Provisioning Platform (MSPP) for rapid expansion into overseas markets in Asia, Europe and the
US. Under the contract, CHT would continue to rely on the IP NGN infrastructure as it ventures
into more foreign markets in the future.

Cisco Signs Contract with Valero…


Cisco signed a contract with Valero Energy Corp., the largest refiner in North America for
providing a resilient communications system in the event of emergency or disaster. The new
solution combines a Cisco integrated services router with the new Cisco Internet Protocol (IP) very
small aperture terminal (VSAT) network module, and enables Valero to support high-performance
concurrent applications, while reducing operating costs. The contract also enables Valero to
minimize service disruptions during disasters and terrestrial wide-area network (WAN) outages.

New Establishment

Cisco to Establish Global R&D Centre in Galway…


Cisco announced plans to establish a dedicated world-class Research & Development Centre in
Galway, with the support of IDA Ireland. The investment would be undertaken by Cisco subsidiary
Cisco Internetworking (Ireland) Limited. The Galway centre would operate as an integral part of
Cisco's future worldwide Research & Development activities. The Galway centre represents an
important addition to the global R&D function of Cisco's Voice Technology Group and would be
involved in the development of new applications and services for its Unified Communications
solutions.

Product Launches

Cisco Introduces a New Way to Communicate and Collaborate…


Cisco introduced Cisco TelePresence, a new technology solution to Communicate and Collaborate.
Cisco TelePresence transforms remote experiences by capturing important interactions through a

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rich, high-quality experience that is almost the same as an in-person interaction, regardless of the
distance between the parties.

Cisco Introduces New IP/MPLS Core Router…


Cisco and Fujitsu Limited launched four-slot model of the co-branded Fujitsu and Cisco CRS-1
Carrier Routing System. The latest product in the Fujitsu and Cisco CRS-1 series resulting from the
strategic alliance. The new router model delivers the same 40 gigabits-per-second (Gbps) of
switching capacity per slot as other models in the series, providing a total switching capacity of
320 Gbps in the world's most compact 40 Gbps-per-slot chassis.

Cisco Introduces Integrated Branch-Office Solution…


Cisco introduced integrated branch- office solution. The solution includes Cisco Wide Area
Application Services (WAAS), branch-office networking software, providing WAN optimization,
application acceleration, and Wide-Area File Services (WAFS) in one easy-to-deploy solution.
Cisco also introduced a network module for running WAAS software on the Cisco integrated
services router (ISR), of which more than one million units are deployed worldwide.

Cisco Introduces a New Automated Management Solution…


Cisco introduced Proactive Automation of Change Execution (PACE) solution, a comprehensive
suite of products and services that help enterprises to meet compliance requirements, accelerate
growth, enhance business continuity, and increase user productivity. The integrated solution is the
industry's first to provide customers with a highly secure, automated and scalable configuration
management system. The PACE solution includes the operations, technical and deployment
services needed to complement IT staffs of any size.

Cisco Introduces New, Catalyst Blade Switch 3020…


Cisco introduced the latest product, Cisco® Catalyst® Blade Switch 3020 ideal for HP
BladeSystem c-Class. The new product meets the demanding requirements of data center networks
and helps customers to make usage of e existing network investments to reduce operational
expenses. The new product offers 16 internal Gigabit Ethernet ports connected to servers through
the BladeSystem.

Cisco and Fujitsu Launch New High-Performance Routers…


Cisco and Fujitsu Limited introduced new co-branded, Fujitsu and Cisco XR12400 series (four
models) of high-performance routers for addressing the needs of the Japanese market. The new
series operates on the next-generation Cisco IOS XR operating system. The new product enables
the companies to provide routing system solutions ideally to meet the particular needs of
telecommunications carrier customers in Japan.

Cisco Introduces Cisco® Unified CRM Connector 3.0…


Cisco, with the help of Microsoft introduced the new Cisco® Unified CRM Connector 3.0, a
customer relationship management (CRM) application integrated with Microsoft Dynamics CRM

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3.0. The new solution is ideal for small and medium-sized businesses (SMBs) to quickly gain
access to customer information on inbound and outbound calls. The new solution also provides a
complete view of the customer, including current and past purchases, sales information, order
status, account relationships, and billing information.

Cisco, Linksys and Scientific Atlanta Unveils A New Wideband Solution…


Cisco, Linksys and Scientific Atlanta unveiled a new wideband solution involving channel
bonding, low-cost edge quadrature amplitude modulators (QAMs) and cable modems
together with the industry-leading Cisco® uBR10012 cable modem termination system
(CMTS). The new solution enables cable operators to optimize their networks in order to
deliver this new 'Connected Life' and provide consistent, high quality end-user experiences.
The new product is equipped with three primary components, CMTS, edge QAM and
wideband cable modems.

Cisco Introduces New Open System with SD Video Capabilities…


Cisco’s subsidiary, Scientific Atlanta introduced new open architecture advancements with
switched digital video (SDV) ideal for cable operators in providing an open, Internet protocol-
based (IP-based) SDV system; gigabit quadrature amplitude modulation (GQAM) sharing between
multiple services and advanced bulk encryption support. The new product changes the model for
bandwidth consumption from a linear model based on the program offering to one based on
program viewership.

Cisco Unveils New Line of Set-Tops…


Cisco’s Scientific Atlanta unveiled newest line of set-tops, ideal for providing cable operators with
increased power, flexibility and with advanced security solutions. The new product is equipped
with a principal component of Cisco Connected Home. The new product finds application for
OpenCable Application Platform (OCAP), Separable Security Solutions, Advanced DOCSIS Set-
Top Gateway (ADSG), and Support for Advanced Video Codecs (H.264), and Connected Home
Solutions. The company also intends to launch Explorer® 940TM Compact Digital Only
Interactive Set-Top that helps operators to expand the number of extra cable outlets in the home,
and also increase pay-per-view and on-demand transactions.

Cisco Introduces Catalyst® 6500 Series Switches…


Cisco introduced new and enhanced software, the Cisco® Catalyst® 6500 Series switches. The
company developed over 20 different services modules for the Catalyst 6500 in five categories
such as security, application networking, network monitoring, wireless/mobility, and IP
communications. The new software enables the clients to defend their network infrastructure with
unified threat protection by combining firewall, intrusion protection, denial of service attack
protection, and IPSEC or SSL VPN services. The new software is equipped with Comprehensive
traffic analysis, and network analysis module 3.5 DDoS Multi-Device Manager (MDM).
Cisco Introduces New Unified Communications System…
Cisco introduced Cisco® unified communications system, a new suite of voice, data and video
products and applications. The system is specifically designed to help organizations of all sizes to

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communicate more effectively. The system allows integrating communications system with IT
infrastructure, streamlining business processes for the way effective businesses.

Cisco Launches New Line of SIP-Based Telephony Products…


Cisco’s Division Linksys® lunched Linksys Voice System 9000 (LVS 9000), a new line of SIP-
based telephony products for SOHO and very small business customers. The new line includes an
IP PBX/Key system, various IP desktop phones, an Analog Gateway for connection to the Public
Switched Telephone Network and a selection of authorized Internet Telephone Service Provider
(ITSP) offerings for the Value Added Reseller (VAR).

Cisco Launches Fast Ethernet and Gigabit Switches…


Cisco’s division Linksys® launches affordable family of fast Ethernet and gigabit switches for
small business networks with cost effective way to provide high speed networking to users to
easily migrate their networks from Fast Ethernet to Gigabit.

Cisco Introduces Application Control Engine (ACE)…


Cisco introduced the new next-generation Application Delivery solution, the Cisco® Application
Control Engine (ACE) multi-service module that performs up to 16 gigabits per second (Gbps) of
throughput, rich multi-layer security, and unique virtual partitioning capabilities. The new module
provides several new capabilities, including hundreds of virtual partitions, per-partition resource
allocation, role-based access control, and a powerful XML management API.

Cisco Introduces Intelligent Services Gateway (ISG)…


Cisco introduced the new availability of the Intelligent Services Gateway (ISG) features, the Cisco
10000 Series, Cisco 7200 Series and 7301 model routers. The new products simplify creation and
speed up the delivery of advanced IP services over Cisco IP Next-Generation Networks (IP
NGNs).

PRODUCT/SERVICE PORTFOLIO
Application-Oriented Networking
Catalyst 6500 Series Application-Oriented Networking Module; Cisco 2600/2800/3700/3800 Series
Application-Oriented Networking Module; Cisco AON Management Software (Cisco AON
Development Studio (ADS); Cisco AON Management Console (AMC)); Cisco Application-Oriented
Networking Modules; Cisco Catalyst 6500 Series Application-Oriented Networking Module

Featured Products
Introducing Cisco Service Control; Cisco SCE 1000 Series Service Control Engine; Cisco SCE
2000 Series Service Control Engine; Cisco Service Control Application Suite for Broadband

Internet OSS Broadband


Cable Modem Termination Systems (CMTS); Cisco uBR10012 Universal Broadband Router;
Cisco uBR7200 Series Universal Broadband Routers; Cisco uBR7100 Series Universal Broadband

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Routers; Cable Network Management and Operational Support Systems; Cisco Broadband Access
Center; Cisco Broadband Configurator; Cisco Broadband Operating System; Cisco Broadband
Troubleshooter; Cisco Building Broadband Service Manager; Cisco Cable Diagnostic Manager;
Cisco Cable Manager, CiscoWorks Resource Manager Essentials; Cisco CNS Address and Name
Registrar; Cisco Info Center; Cisco Network Registrar; Cisco VPN Solution Center

Broadband Cable
Cisco RF Switches; UBR 10012 Broadband Router; UBR7200 Series Broadband Routers;
UBR7100 Series Broadband Routers; UBR900 Series Cable Access Routers; All other Broadband
Cable Products

Integrated Solutions
Cable Solutions for Cable Operators; High Speed Data Solutions; Voice Solutions; Video
Transport Solutions; Commercial Service Solutions; Internet OSS Broadband Solutions

Cable Modems
Cisco uBR900 Series Cable Access Routers; Cable Network Management and Operational Support
Systems; Cisco Broadband Access Center CNSP; Cisco Broadband Access Center for Broadband
Aggregation; Cisco Broadband Access Center for Cable; Cisco Broadband Configurator

Cable Network Management and Operational Support Systems


Cisco Broadband Operating System; Cisco Broadband Troubleshooter; Cisco Building Broadband
Service Manager; Cisco Cable Diagnostic Manager; Cisco Cable Manager; Cisco Cable
Troubleshooter Software; Cisco CNS Address and Name Registrar; Cisco CNS Network Registrar;
Cisco Info Center; Cisco VPN Solution Center; CiscoWorks Resource Manager Essentials; Other
Broadband Cable Products; Cisco RF Switches.

Cisco IOS Software


Cisco IOS® Software is the world's leading network infrastructure software, delivering a seamless
integration of technology innovation, business-critical services, and hardware support. Cisco IOS®
Software operates on over ten million active systems ranging from the small home office router to
the core systems. Cisco IOS Software Major Release 12.3, Cisco IOS Software Release 12.3T,
Cisco IOS Software Release 12.2S, and other Cisco IOS Software Releases

Content Networking
Application and Content Networking System, CSS 11500 Content Services Switches, GSS 4490
Series Platforms, IP/TV 3400 Series Video servers, 500 Series Content Engines, Cisco 7300 Series
Content Engines, sco 4600 Series Content Distribution Manager, sco 4400 Series Content Routers,
sco Application and Content Networking System (ACNS) Software, sco Cache Software, Cisco
Enterprise CDN Software, Cisco IP/TV Software, Cisco Storage Arrays Layer 4-7 Switching,
Cisco Content Services Gateway, Cisco DistributedDirector, Cisco Global Site Selector Platforms,
Cisco Persistent Storage Device, Cisco SCA 11000 Series Secure Content Accelerators, and Cisco
Web Network Services Software.

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Interfaces and Modules
Ethernet switching net Modules, Gigabit Interface Converters (GBIC), Line Cards, Network
Modules, Optical service Modules, Voice Modules and Interface Cards, Cisco 10GBASE Modules,
Cisco Broadband Processing Engines, Cisco CWDM GBIC/SFP, Cisco DWDM GBICs, Cisco
Ethernet Switching Network Modules, Cisco GBICs, Cisco High Density Voice/Fax Network
Modules, Cisco Interface Cards, Cisco Interface Processors, Cisco Modem Cards, Cisco
Multiprocessor WAN Application Modules, Cisco Network Modules, Cisco Network Processing
Engines, Cisco Network Processor Modules, Cisco Optical Services Modules, Cisco Optical
Transponders, Cisco Port Adapters, Cisco Route Switch Processors, Cisco Service Adapters, Cisco
Services Modules, Cisco SFPs, Cisco Universal Broadband Router Line Cards, Cisco Versatile
Interface Processors, Cisco Voice Modules and Interface Cards, Cisco WAN Interface Cards,
Cisco WAN Switching Modules, and Cisco WDM Transmission Modules.

LRE and xDSL


LRE 48 Series POTS Splitters, Catalyst 2950 LRE Series Switches, 6000 Series IP DSL Switches,
800 Series Routers, and 500 Series LRE CPE Devices.

Network Management
Ciscoworks IP Telephony Environment Monitor, Ciscoworks Lan Management Solution,
Ciscoworks Vpn/Security Management Solution, and Cisco 12000/10720 Router Manager.

Cisco Secure
Cisco Secure Access Control Server for Unix, Cisco Secure Access Control Server for Windows,
Cisco Secure Access Control Server Solution Engine, and Cisco Secure User Registration Tool

CiscoWorks
Bundled Products, CiscoWorks IP Telephony Environment Monitor, CiscoWorks LAN
Management Solution, CiscoWorks Routed WAN Management Solution, CiscoWorks Small
Network Management Solution, CiscoWorks VPN/Security Management Solution, Components
within Bundles, CiscoWorks Access Control List Manager, CiscoWorks Auto Update Server
Software, CiscoWorks Campus Manager, CiscoWorks CiscoView, CiscoWorks Common Services
Software, CiscoWorks Device Fault Manager, CiscoWorks Internetwork Performance Monitor,
CiscoWorks IP Telephony Monitor, CiscoWorks VPN Monitor, nGenius Real-Time Monitor,
Stand-Alone Products, CiscoWorks Blue Internetwork Status Monitor, CiscoWorks Ethernet
Subscriber Solution Engine, CiscoWorks for Mobile Wireless, CiscoWorks for Windows,
CiscoWorks Hosting Solution Engine, CiscoWorks Network Connectivity Monitor, CiscoWorks
Security Information Management Solution, CiscoWorks Voice Manager, and CiscoWorks
Wireless LAN Solution Engine.

CNS
Cisco CNS Access Registrar Products, Cisco CNS Access Registrar, Cisco CNS Access Registrar
HLR Proxy Server, Cisco CNS Access Registrar Identity Cache Engine, Cisco CNS 2100 Series
Intelligence Engine, Cisco CNS Address and Name Registrar, Cisco CNS Configuration Engine,

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Cisco CNS Netflow Collection Engine, Cisco CNS Network Registrar, Cisco CNS Notification
Engine, and Cisco CNS Performance Engine.

Network Management Services Modules


Cisco Network Analysis Module (NAM), and Cisco Network Analysis Module Software.

Other Network Management Products


Cisco Network Connectivity Center Products, Cisco Network Connectivity Center, Cisco
Access Point Name Manager, Cisco Broadband Configurator, Cisco Broadband Operating
System, Cisco Broadband Troubleshooter, Cisco Building Broadband Service Manager, Cisco
Cable Diagnostic Manager, Cisco Cable Troubleshooter Software, Cisco CPE Commander,
Cisco Embedded Device Manager, Cisco Mobile Wireless Fault Mediator, Cisco Network
Analysis Toolkit, Cisco Network Data Analyzer, Cisco Network Order Manager, Cisco
Optimized Edge Routing Master Controller Engine, Cisco Resource Policy Management
System, and CiscoRemote.

Optical Networking
Cisco ONS 15600 Multiservice Switching Platform (MSSP); Cisco ONS 15540 ESP Extended
Services Platform; Cisco ONS 15501 EDFA Optical Amplifier; Cisco ONS 15540 ESPx Platform;
and Cisco Ons 15216 Metropolitan/Regional Dwdm System.

Routers and Routing Systems


Carrier Routier System, 12000 Series Routers, 7600 Series Routers, 3700 Series Multi Service
Access Routers, 2600 Series Multi Service Platforms, 1700 Series Modular Access Routers, and
800 Series Routers.

Security and VPN


Endpoint Security / Cisco Security Agent, PIX 500 Series Firewalls, Self-Defending Networks, and
Threat Defense Systems

Storage Networking
MDS 9000 Series Multilayer Switches, and SN 5400 Series Storage Routers

Switches
LAN and ATM Switches, LRE Series Switches, WAN Switches, BPX Switches, MGX Switches,
and Other WAN Switching Products.

Universal Gateways and Access Servers


Access Servers, Cisco AS5350, Cisco AS5400, Cisco AS5400HPX, Cisco AS5850, Media
Gateways, Cisco AS5350, Cisco AS5400HPX, Cisco AS5850, Cisco VoIP Solutions, and Flexible
Media Gateway integral part of Cisco VoIP solutions.

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Video
Cisco Alarm Manager, IP/VC 3500 Series Video Conferencing System, Multimedia Conference
Manager, UMG 9800 Digital Video Networking Products, Videoconferencing Products, and Cisco
uMG9800 Series.

Voice and IP Communications


7900 Series IP Phones, Cisco Call Manager, Cisco Unity, Conferencing / Meeting Place, IPCC
Express Edition, Cisco CallManager Express, Cisco IPCC Enterprise Edition, and Cisco Unity
Express.

Wireless Products
Mobile Wireless, Cisco Content Services Gateway, Cisco Gateway GPRS Support Node, Cisco IP
Transfer Point, Cisco Mobile Office Net Software, Cisco Packet Data Serving Node, Cisco
Persistent Storage Device, Cisco Signaling Gateway Manager, Cisco Wireless Network
Management Software Suite, Structured Wireless-Aware Network, and Wireless Integrated
Switches and Routers.

Services
Advanced Services, Partner Advanced Services, Services for Technologies, and Technical Support
Services.

Services for Technologies


Content Networking Services, IP Communications Services, Optical Services, Security Services,
Storage Services, Wireless LAN Services, and Metro Ethernet Services

SUBSIDIARIES
Actona Technologies Ltd.
Actona Technologies, Inc.
Airespace EMEA Limited
Airespace K.K.
Airespace Wireless Networks Private Limited
Airespace, Inc.
Aironet Canada Inc.
Aironet Canada Limited
Asset Acquisition Corporation
Audium Corporation
AYR Networks (UK) Limited
BarcoNet Pty. Ltd.
Capital Acquisition Corporation
Cisco Cable Products and Solutions A/S
Cisco Do Brasil LTDA.
Cisco Linksys Kiss ApS
Cisco Managed Solutions, Inc.
Cisco Photonics Italy S.r.l.
Cisco Ravenscourt LLC

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SUBSIDIARIES
Cisco SBAIF III, Inc.
Cisco Systems (Argentina) S.A.
Cisco Systems (Bermuda) Ltd.
Cisco Systems (Bermuda) Holdings Ltd.
Cisco Systems (Bermuda) International IP Management Ltd.
Cisco Systems (China) Information Technology Services Limited
Cisco Systems (China) Networking Technology Co., Ltd.
Cisco Systems (China) Research and Development Co., Ltd.
Cisco Systems (Colombia) Limitada
Cisco Systems (Czech Republic) S.R.O.
Cisco Systems (Ethiopia) PLC
Cisco Systems (HK) Limited
Cisco Systems (India) Ltd.
Cisco Systems (India) Private Limited
Cisco Systems (Italy) S.r.l.
Cisco Systems (Jordan)
Cisco Systems (Korea) Limited
Cisco Systems (Malaysia) Sdn Bhd
Cisco Systems (Nigeria) Limited
Cisco Systems (Puerto Rico) Corp.
Cisco Systems (Scotland) Limited
Cisco Systems (Senegal) SUARL
Cisco Systems (South Africa) (Proprietary) Limited
Cisco Systems (Spain) S.L.
Cisco Systems (Sweden) AB
Cisco Systems (Switzerland) GmbH
Cisco Systems (Switzerland) Investments Ltd.
Cisco Systems (Thailand) Limited
Cisco Systems (USA) Pte. Ltd.
Cisco Systems Algeria EURL
Cisco Systems Australia Pty Limited
Cisco Systems Austria GmbH
Cisco Systems Belgium S.P.R.L.
Cisco Systems Bulgaria EOOD
Cisco Systems Canada Co./Les Systemes Cisco Canada Cie
Cisco Systems Capital (Australia) Pty Limited
Cisco Systems Capital (India) Private Limited
Cisco Systems Capital (Korea) Limited
Cisco Systems Capital Asia Pte. Ltd.
Cisco Systems Capital Canada Co./Les Systemes Cisco Capital Canada Cie
Cisco Systems Capital China Corporation
Cisco Systems Capital Corp.
Cisco Systems Capital France SAS
Cisco Systems Capital Funding, LLC
Cisco Systems Capital GmbH
Cisco Systems Capital Italy S.r.l.
Cisco Systems Capital K.K.
Cisco Systems Capital Netherlands B.V.
Cisco Systems Capital Sdn. Bhd.
Cisco Systems Capital South Africa (Proprietary) Limited
Cisco Systems Capital Spain, S.L.

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SUBSIDIARIES
Cisco Systems Capital Thailand Limited
Cisco Systems Chile S.A.
Cisco Systems Co.
Cisco Systems Costa Rica, Sociedad Anonima
Cisco Systems Croatia Ltd. For Trade
Cisco Systems Cyprus Ltd.
Cisco Systems Danmark ApS
Cisco Systems de Mexico, S.A. de C.V.
Cisco Systems Dominicana, S.A.
Cisco Systems Ecuador S.A.
Cisco Systems Egypt Ltd.
Cisco Systems El Salvador, Ltda. de C.V.
Cisco Systems Estonia OU
Cisco Systems Finance International
Cisco Systems Finance International Holdings I Limited
Cisco Systems Finance International Holdings II Limited
Cisco Systems Finance International Holdings III Limited
Cisco Systems Finance International Holdings IV Limited
Cisco Systems Finance International Holdings V Limited
Cisco Systems Finance International Holdings VI Limited
Cisco Systems Finance, Inc.
Cisco Systems Finland OY
Cisco Systems France Sarl
Cisco Systems GmbH
Cisco Systems Holding GmbH & Co. KG
Cisco Systems Holdings I, Inc.
Cisco Systems Hungary Ltd. / Cisco Systems Hungary
Cisco Systems Insurance Services Ltd.
Cisco Systems International B.V.
Cisco Systems International Holdings Ltd.
Cisco Systems International Sarl
Cisco Systems Internetworking (Ireland) Limited
Cisco Systems Internetworking Hellas S.A.
Cisco Systems Internetworking Iletisim Hizmetleri Limited Sirketi
Cisco Systems Island Ehf.
Cisco Systems Israel Ltd.
Cisco Systems K.K.
Cisco Systems Limited
Cisco Systems Limited
Cisco Systems Luxembourg International S.a.r.l.
Cisco Systems Luxembourg S.a.r.l.
Cisco Systems Macedonia Dooel Skopje
Cisco Systems Management B.V.
Cisco Systems Management GmbH
Cisco Systems Management LLC
Cisco Systems Management Ltd.
Cisco Systems Netherlands Holdings B.V.
Cisco Systems New Zealand Limited
Cisco Systems Norway AS
Cisco Systems O.I.A. (1998) Ltd.
Cisco Systems Pakistan (Private) Limited

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SUBSIDIARIES
Cisco Systems Panama S. De R.L.
Cisco Systems Peru S.A.
Cisco Systems Poland Sp. Z O.O.
Cisco Systems Portugal—Sistemas Informaticos, Sociedade Unipessoal, Limitada
Cisco Systems Romania S.R.L.
Cisco Systems Sales & Service Y.K.
Cisco Systems Services B.V.
Cisco Systems Slovakia, SPOL. S R.O.
Cisco Systems Taiwan Ltd.
Cisco Systems Venezuela, C.A.
Cisco Systems Vietnam Limited
Cisco Systems Wireless Networking (Australia) Pty Limited
Cisco Systems-Linksys (Asia) Pte. Ltd.
Cisco Technology, Inc.
Cisco-Latitude (UK) Limited
Cisco-Linksys (Chengdu) Networking Technology Co., Ltd.
Cisco-Linksys (HK) Limited
Cisco-Linksys K.K.
Cisco-Linksys LLC
CSI BD (Mauritius)
CSI Mauritius Inc.
dynamicsoft Inc.
Fibrecore Limited
Fineground Networks, Inc.
Infogear Technology (Israel) Ltd.
Latitude Communications Pte. Ltd.
M.I. Secure Corporation
Metaplex, Inc.
Metreos Corporation
Nemo Systems. Inc.
Netsolve LLC
Parc Technologies Limited
P-Cube Inc.
P-Cube Ltd.
Protego Networks LLC
PT Cisco Systems Indonesia
Radiata, Inc.
Riverhead Networks (Israel) Ltd.
SA Japan K.K.
SA Limited Enterprises LLC
SA Management Enterprises LLC
Sameco, S.A. De C.V.
Sammex, L.P.
Scientific-Atlanta (HK) Limited
Scientific-Atlanta (Shanghai) Company Limited
Scientific-Atlanta (Singapore) Pte. Ltd.
Scientific-Atlanta Argentina S.A.
Scientific-Atlanta Belgium NV
Scientific-Atlanta Canada Inc.
Scientific-Atlanta Central Europe GmbH
Scientific-Atlanta China, Inc.

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SUBSIDIARIES
Scientific-Atlanta De Mexico, S. De R.L. De C.V.
Scientific-Atlanta Denmark A/S
Scientific-Atlanta Do Brasil Ltda.
Scientific-Atlanta Eastern Europe Sp. Z O.O.
Scientific-Atlanta Europe NV
Scientific-Atlanta Europe, Inc.
Scientific-Atlanta European Finance
Scientific-Atlanta Export Corporation
Scientific-Atlanta Financial Enterprises, LLC
Scientific-Atlanta Foundation, Inc.
Scientific-Atlanta France S.A.
Scientific-Atlanta Iberia, S.L.
Scientific-Atlanta India Sales & Service Private Limited
Scientific-Atlanta India Technology Private Limited
Scientific-Atlanta International, Inc.
Scientific-Atlanta Italy S.R.L.
Scientific-Atlanta Korea Co., Ltd.
Scientific-Atlanta Latin America, Inc.
Scientific-Atlanta Malaysia Sdn. Bhd.
Scientific-Atlanta Netherlands B.V.
Scientific-Atlanta Pan Asia, Inc.
Scientific-Atlanta Pty. Limited
Scientific-Atlanta Strategic Investments, LLC
Scientific-Atlanta UB Video, Inc.
Scientific-Atlanta Ventas Y Servicios, S.A. de C.V.
Scientific-Atlanta Western Europe Limited
Scientific-Atlanta, Inc.
Sheer Networks Asia Pacific Pte. Ltd.
Sheer Networks Latin America, S. de R.L. de C.V.
Sheer Networks Ltd.
Sheer Networks Mexico, S.A. de C.V.
Sheer Networks, Inc.
Simac Product Market Research B.V.
Sypixx Networks, Inc.
Telebit Corporation
Topspin Communication Technologies India Private Limited
Topspin Communications LLC
UB Video Inc.
UB Video Tunisia Ltd.
Cisco Systems Hong Kong, Ltd.

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CLEVER DEVICES LTD.
137 Commercial Street, Plainview, New York 11803, USA
Phone: 516.433.6100, Fax: 516.433.5088

SOURCES: www.cleverdevices.com and other secondary online sources

BUSINESS PROFILE
Clever Devices Ltd. (CDL), a leader in transit technology, provides technical products and services
to the transit industry. The company offers a wide array of solutions such as Safety and security
solutions: CleverCAD™, CleverCARD™; Pressenger information solutions: Automatic Voice
Annunciation System (AVA), and BusTime™; Intelligent vehicle systems solutions: Automatic
Vehicle Monitoring Systems (AVM), Automatic Passenger Counter (APC) system, BusLink,
BusTools®, and Data Collection Tools; Smart bus systems solutions: Intelligent Vehicle
Network® (IVN®), Seymor, SpeakEasy, and BusLink Switch. CDL also provides engineering and
systems integration, bus type engineering, GIS data collection, digital audio engineering and
production, project management, and on-site maintenance support services.

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CORNET TECHNOLOGY, INC.
6800 Versar Center, Springfield, Virginia 22151, USA
Phone: 703.658.3400, Fax: 703.658.3440

SOURCES: www.cornet.com and other secondary online sources

BUSINESS PROFILE
Cornet Technology Inc., (CTI) is a global leading manufacturer and provider of video, voice, and
data communication products and IT services. The company focuses on a wide range of video and
communications solutions that provides safety and security of transportation and facility
infrastructures and improves critical inter- and intra-business communication. The company’s
state-of-the-art digital matrix switches fully automate time-consuming tasks and support a
complete range of interfaces and environments.
CTI operates through four principal divisions including Anami Communications division, Video
Convergence, The Communications division and The Optim Systems division. CTI offers cap
panels, tactical switches, access switches, multiplexers & extension, tactical terminals, video and
matrix switches. The company’s video products are used for traffic monitoring, site security, and
military video signal management. The company’s subsidiaries include Cornet Technology GmbH
B Nihon, Cornet Technology K.K., Cornet Technology India Private Limited, and Cornet
Technology (UK) Limited. The company operates subsidiaries in Frankfurt, Germany, Tokyo,
Japan, Chennai and India. The company also operates a branch office in London, distributors and
service providers worldwide. The company is accredited with ISO 9000:2000 certification.
CTI was established in 1989.

DIVISIONAL ANALYSIS

Anami Communications
Anami Communications (Anami) specializes in the areas of information technology, portable
storage, program and project management and staff augmentation. The division provides services
including Strategic and Capital Planning, IT Technical Services, and Management Support
Services to federal, state and local governments, and corporations worldwide.

Video Convergence
Video Convergence (VC) is a system integrator proficient in providing turnkey integrated
surveillance systems that combine digital video, access control, and biometric systems with flexible
networking and centralized control. Video Convergence provides sound, customer-focused video,
network, and software systems and services to the Intelligent Transportation Systems (ITS),
facility, vital installation, and perimeter surveillance markets. The division is involved in the multiple
ITS programs across the United States. The division provides integration and installation services for
government and commercial clients as well as Surveillance and Security markets. The company’s
integration service excels in building a resilient infrastructure that integrates today's needs with
tomorrows. The division works on design-build or build ITS projects; transitioning from analog to

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digital transport and distribution; video transport over copper, GigE, SONET, wireless, or ADSL; video
switching and distribution systems; CCTV surveillance system and video management software; radar
detection systems; changeable message signs (CMS); NTCIP compliance.

Cornet Technology Communications


Communications division designs, manufactures and distributes solutions that automate and
optimize data networks for the federal government and private corporations. The division also
focuses on Cornet Technology's core areas of data, voice, and video switches and custom products
for government and commercial clients.

Optim Systems
Optim Systems division focuses on video conferencing products and integration services. The company
is primarily concentrated on providing with the very best Online, Real time, Interactive, Multipoint
(ORIM) Multimedia Conferencing. Optim Systems' new range of Multimedia Conferencing Solutions
features Microsoft Office "Live Meeting" Sony IVE "Instant Video Everywhere" and Polycom UCC
"Unified Collaborative Communications". The division enhances the performance, and reduces the
cost, of video conferencing system, expands multimedia conferencing to personal desktop, office or
home, and could provide the user with mobility and security options.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) In Review…
Contracts
CTI Wins Naval Air System Command Contract…
CTI won IDIQ D contract from the Naval Air Warfare Center Aircraft Division (NAWCAD) of the
U.S. Navy to provide a replacement processor for the SBS Power Sandia VME single board computer.
The company’s VME single board computer is currently in use in the Navy’s shipboard IFF System
AN/UPX-24 (V) F/C 5 as well as other secondary systems. As per the contract, the company would
provide NAWCAD with its Power PC offering that addresses all the contract requirements.

Product/Service Launch
CTI Launches Embedded Design and Manufacturing Service…
CTI’s Communications division launched a new range of Embedded Design and Manufacturing
Service to address the engineering needs of low quantity, long-term military and aerospace
programs. The new service is a natural progression for company that provides responsive custom
products to military clients. The company’s new service offers military and aerospace programs
with form, fit, and functionally compatible products to those in use enabling them to avoid the need
for costly rewrites of their application code and re-qualify their systems.

CTI Introduces ClearWave Automated Remote Fiber Connectivity Switch…


CTI’s Network Communications Solutions division introduced the new ClearWave Automated
Remote Fiber Connectivity Switch. The company’s ClearWave is an all-optical fiber switch

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capable of remotely managing optical networks. ClearWave is available in three scaleable
configurations 96 by 96, 192 by 192 and 320 by 320 input and outputs. ClearWave also supports
remote fiber connection and redistribution, remote monitoring and testing, and rapid fault isolation
and repair in a network operations environment.

CTI Announces the First VME-Based PCI Express Multi-Processing solution…


CTI announced its Celero CVME-7448M product, the first VME-based PCI Express multi-
processing solution. The company’s Celero CVME-7448M is an embedded computing platform
geared towards image, radar and laser processing applications and used in state of the art
intelligence, surveillance and reconnaissance (ISR) military equipment. The platform is capable of
collecting, analyzing and disseminating a high volume of real-time data.
Year 2006 In Review…
Partnership
CTI Enters into Partnership with ObjectVideo…
CTI’s division Video Convergence entered into partnership with ObjectVideo to expand the
product offerings by adding Intelligent Analysis to the interactive video security and surveillance
solutions and provides to supply real-time video to multiple responders in different locations over
multiple viewing devices.

Agreement
CTI Signs OEM Agreement with Calient Networks…
CTI signed an original equipment manufacturer (OEM) agreement with Calient Networks, a leading
supplier of carrier-class fiber optic cross-connection systems. As per the agreement, CTI as part of its
total communication solutions, would offer Calient’s DiamondWave® FiberConnect product under the
name ClearWave to various federal agencies. CTI would also provide control and management of the
new solution through its CorScan® software. The company’s ClearWave is a low-cost, sophisticated
solution that dramatically streamlines the operations of the increasingly complex networks.

Contract
CTI Grabs Contract from Georgia Department of Transportation (GDOT)…
CTI’s Video Convergence, the video products and integration services division, grabbed a contract
from Georgia Department of Transportation (GDOT) to provide its iVDO Streamer 2/4 Encoders
and Decoders. The company’s encoders and decoders would be used by the Georgia Department of
Transportation (GDOT) in the expansion of its Atlanta Metro Area Intelligent Transportation
System (ITS). The company’s iVDO Streamers’ IP technology enables access to real-time images
from any location.

CTI Wins Contract from Texas Transportation Institute (TTI)…


CTI’s Video Convergence division won a contract from Texas Transportation Institute (TTI) to
provide iVDO Streamer 2/4 Encoder and Decoder. The primary users of the company’s products
include City of College Station Fire Department, Police Department and Traffic Operations office.

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CTI Receives Long-Term Contract from Virginia Department of Transportation (VDOT)…
CTI’s Video Convergence division received a long-term contract to design, test, and install
surveillance camera systems on arterial roadways in the Northern Operations Region of the
Virginia Department of Transportation (VDOT). The company’s new system would transmit real-
time video, through an IP-based network, directly to VDOT's Smart Traffic Center (STC/TOC)
located in Arlington, Virginia. The initial project is part of a proactive effort by VDOT to manage
congestion in the Tysons Corner area of Fairfax, Virginia.

Order
CTI’s CTC Receives Order to Install Tech Control Switching System…
CTI’s Cornet Technology Communications (CTC), the network communications solutions division,
received an order for a Tech Control Switching System and Cross Connect Multiplexer for the
United States Army at Fort Belvoir, Virginia. CTC's MTX-256 Tech Control Switching System is an
automated network infrastructure management system especially designed to modernize the tech
control center at Fort Belvoir. The system automates the switching and record keeping processes and
reduces the amount of equipment and resources necessary to perform communications testing.

New Facility
CTI Announces Opening of Optim Systems Division’s New Facility…
CTI announced the opening of its Optim Systems Division’s New Facility. The company’s division
that focuses on providing high-quality, end-to-end audio, video and Web conferencing solutions to
government and commercial customers, would move to a new location at 7955 Cameron Brown
Court in Springfield, Virginia. The move to a larger location enables the division to expand
engineering and manufacturing capacity and provide customers with a fully integrated multi-media
showroom. The new state-of-the-art multi-media showroom would enable Optim Systems to
demonstrate the company’s advanced communications solutions to its expanding customer base.

Product Launches

CTI Launches iVDO Stax Video Encoder Card…


CTI’s division Video Convergence launched iVDO Stax Video Encoder Card for Cisco mobile
router used by the police, fire and emergency response vehicles within a metropolitan area. The
company’s iVDO Stax Video Encoder Card encodes NTSC or PAL signals into MPEG-4 video
streams. The company offers the product for mobile transportation surveillance and management
outside the traffic management center.

CTI Unveils iVDO Mini Video Encoder…


CTI’s Video Convergence division unveiled iVDO Mini Video Encoder. The company offers
product for T1/E1 and IP-based video applications and also offers four configurable T1/E1
ports and an Ethernet network port for video streaming. The company’s product is light in
weight.

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CTI Unveils iVDO Octal IP Decoder…
CTI’s division Video Convergence unveiled iVDO Octal decoder. The company’s iVDO Octal
decoder is designed for security and surveillance applications for video viewing through large flat
panel or projection video systems featuring six Ethernet ports. The dual quad multiplexer outputs
are offered as Composite, S-Video, and VGA signals for connecting directly to computer display
monitors such as plasmas or LCD screens.

CTI Releases Lab Track Software…


CTI’s information technology and consulting division, Anami Communications announced the
availability of Lab Track software. The company’s software solution is a standalone product that
unobtrusively tracks and records equipment usage in a laboratory environment. Lab Track, through
the software’s easy-to-understand user interface, gives lab managers complete, secure, and flexible
access and control of any piece of lab equipment connected to a PC. Lab Track runs on a Microsoft
Windows platform and records equipment usage 24/7.

CTI Introduces One Terabyte Portable External Hard Drive…


CTI introduced the new Maximus Platinum, a one terabyte, lightweight, external hard drive
for high-capacity data storage and easy transport. The company’s highly portable, cost-
effective data storage solution is especially designed for storing and archiving 2D and 3D
image banks, video files, financial documents and engineering files, and backing up multiple
workstations.

CTI Announces Scientific Image Manager Software…


CTI announced the launching of new Scientific Image Manager Software. The company’s software
solution enables users within the life sciences and biomedical industries to display and manage
multiple microscope image files in a convenient easy-to-use format. The new software also enables
the users to view numerous thumbnails and preview images of multiple file types in a single
window eliminating the need for multiple third-party image viewer programs.

PRODUCTS / SERVICE PORTFOLIO


Encoders and Decoders
iVDO Streamer; iVDO Viewer; iVDO Mini; iVDO Octal; iVDO Stax; and iVDO Micro

Analog Video Matrix Switches


VDO Link 256; VDOLink®-128; and VTX-A

Software
VDOScope® 2.1; Switch Control and Management; and Video Control and Management

System Design
I-580

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Switches

Matrix Switches
MTX-L; MTX-256; MTX-2; PCU2; MACX; and CorScan

Tactical Switches
MTX-MR; MTX-R RTS; MTX-R BTS

Protection Switch
IPS-16/32

Optical Switch
ClearWave

Test Monitoring Switch


IMS-16/32

Video Switches
VDOLink®-128; VDOLink®-256; and VTX-A

Patch Panel
PCU; and MACX

Tactical Terminals
CT-2100; CT-2200; CT-2250; CT-5000

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DAMBACH-WERKE GmbH
Adolf-Dambach-Strasse, D - 76571 Gaggenau, Germany
Phone: +49 (7225) 64-01, Fax: +49 (7225) 64-300

SOURCES: www.dambach.de.com and other secondary online sources

BUSINESS PROFILE
Dambach-Werke GmbH (DWG) formerly Enamel Company, is involved in providing
electronically controlled systems for traffic management to control the increasing volume of traffic
in urban and non-urban areas. The company also provides a broad range of systems for public
transport, variable direction indication and warning systems for motorways, parking control
systems and parking space management systems. The company operates through Electronic
Control Systems department, which develops and produces comprehensive hardware and software
for carrying out traffic management tasks. The company also offers traffic management systems,
intelligent traffic guidance systems, traffic control systems, variable message signs, traffic
controllers, Kolibri modular color led VMS, traffic lights, parking solutions includes parking
guidance systems, pay and display ticket machine and parking meters, mobile motorway traffic jam
warning systems, lane signaling systems, tunnel control systems, urban traffic control systems,
tunnel signage includes tunnel traffic sign and emergency fire light and systems for speeding up the
public transport.
DWG offers road traffic management systems such as traffic control systems, traffic light systems,
traffic control computers, parking guidance systems, parking space management systems, road
equipment systems, direction indicators, overhead sign gantries, traffic mirrors, mountings,
roadwork safety systems, traffic and road sign systems, and products for town and city councils.
DWG also provides Changeable Traffic Signs, Dynamic Message Sign, tunnel LED Sign Systems,
Emergency Fire Light with Escape Route Signposting in tunnels, Traffic Lights Control Units,
Pedestrian controller M, Packaged Area Management, Pay and Display Ticket Machine, Packing
Meter, and Computer Systems for various applications in the field of electronic traffic
management. The company also develops a broad spectrum of display technologies such as glass-
fiber technology, prismatic technology, LED technology, LCD technology (liquid crystal), bi-
stable tilting elements, and Vario System.
DWG also offers telematic road traffic management systems, systems for intelligent traffic routes,
dynamic message sign pixels, life – new generation led tunnel sign systems, the Dambach-vario-
system, traffic light control units m series, tailor-made parking guidance systems, Dambach-pay
and display ticket machine park line, Dambach TSG tone signal transmitter, and modular,
extendable, colorful, and flexible Dambach Kolibri modular system.
DWG was established in 1925 and changed its name in 1973.

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DELCAN
625 Cochrane Drive, Suite 500, Markham, Ontario L3R 9R9, Canada
Phone: (905) 943-0500, Fax: (905) 943-0400

SOURCES: www.delcan.com and other secondary online sources

BUSINESS PROFILE
Delcan is a provider of Intelligent Transportation Systems (ITS) services. The company provides a
broad range of integrated systems and infrastructure solutions. Delcan provides transportation
services including transportation planning and traffic planning; infrastructure implementation;
infrastructure management and operation; inter-modal freight efficiency and security; demand
management and sustainable transportation. Delcan operates under three primary sectors such as
transportation, water, and information technology. The company offers a full range of operational
systems including Freeway Traffic Management Traffic Signals, Advanced Traveller Information,
Center to Center, Tunnel Control Systems, and Transit systems. The company provides its services
in more than 70 countries. The company’s operates in the US, Europe, Middle East, Far East,
Africa, and South American regions. Delcan’s customers include national and state-level
departments of transportation, metropolitan planning organizations, local governments, regional
networks, transit operators, port authorities, custom services, freight and logistics companies, and
others. Delcan was established in 1953.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

New Establishment

Delcan Opens New Office…


Delcan opened a new office in Austin, Texas to provide its transport management services to the
Delcan clients in the US.

Year 2006 in Review…

Joint Venture

Delcan Enters into Joint Venture with Innova Aviation…


Delcan entered into a joint venture with Innova Aviation Consulting LLC and Naco BV to provide
integrated business and infrastructure planning services to airports and the aviation industry. The
Joint Venture enables Delcan to expand its business in the fields of information technology,
intelligent transportation systems, program management and quality management oversight
services.
Innova Aviation Consulting LLC provides a broad range of strategic and tactical support services
to the aviation community.

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SERVICE ANALYSIS
Transportation
Systems
Delcan offers a variety of ITS services, covering all phases of the project cycle: from requirement
workshops and project design, through evaluation and procurement of all hardware and software,
software development, configuration management, testing, integration, training and documentation,
and even the troubleshooting and maintenance support services.

Transportation Planning and Traffic Planning


Delcan provides services to Departments of Transportation, Transit Operators, Airports, and Port
and Intermodal Facility Operators. The services include strategic perspectives and studies,
transportation master plans, corridor and area assessments, feasibility studies, site development
requirements, and traffic modeling and micro simulation. In assisting agencies to select appropriate
transit technologies, Delcan provides objective system technology evaluation, cost-benefit analysis,
urban integration options and ITS applications such as transit priority, vehicle location and
passenger information systems.

Infrastructure Implementation
Delcan’s Infrastructure Implementation services cover all project phases from concept through
planning and scheduling, design, value engineering, procurement and implementation—with
particular emphasis on Project Management, Architecture, Project Controls, Quality Management
and Oversight, and Construction Management. Delcan’s services include environmental
assessments and public consultation, functional design, preliminary design, final/detail design,
construction administration, and total project management for Roads and Highways, Urban and
regional public transit, Railways, Pedestrian and bicycle facilities, Bridges and civil structures,
Ports and marine works, Inter-modal facilities, and Airports.

Infrastructure Management and Operation


Delcan provide professional services in the fields of infrastructure management, facilities
management and management consulting.

Inter-modal Freight Efficiency and Security


Delcan’s Freight & Trade expertise includes Intermodal freight operations, International borders,
Technical and operational evaluation, Operational modeling, Process analysis and reengineering,
and Coalition/partnership development

Demand Management and Sustainable Transportation


Delcan’s Demand Management and Sustainable Transportation services include Impact
assessments for land development projects and transportation facilities, Site access, circulation and
parking studies, Traffic management/calming plans, Operational reviews and traffic simulation
studies, Functional planning and the design of road and transit facilities, Before-and-after safety
studies, and Expert testimony.

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Information Technology
Delcan’s IT Services include Systems Services - Concept Development, Planning and Feasibility
Studies, Institutional Analysis and Consensus Building, Funding Applications, Independent
Valuation and Verification (IVV), Policy Development, Program Management, Systems
Engineering and Integration, Field Testing and Training, Independent Validation, System
Operation and Maintenance, NETworks® Integrated Transportation Management System; Network
Services - Enterprise Evaluation, WAN, LAN and VPN Networks, Website Development; and
Software Services.

Water
Delcan provides a comprehensive range of engineering services to water-related projects in North
America and around the world.

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DELPHI CORPORATION
5725 Delphi Drive, Troy, Michigan 48098-2815, USA
Phone: [1] 248.813.2000, Fax: [1] 248.813.2673

SOURCES: www.delphi.com and other secondary online sources


2007 Sales: US$ 13,696 million (H1)
2006 Sales: US$ 26,392 million
2005 Sales: US$ 26,947 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Delphi Corp., (Delphi) is a world’s leading supplier of mobile electronics and transportation
systems, including powertrain, safety, steering, thermal, and controls & security systems,
electrical/electronic architecture, and in-car entertainment technologies. The company
manufactures and supplies auto parts, electronic components, integrated systems and modules, and
other electronic technology for automotive and non-automotive sectors. Delphi designs evaporative
emissions control systems, exhaust gas recirculation systems, sensors to control the oxygen mix in
fuel, air meters, and valves to control hydrocarbon emissions. The company also offers connection
systems, switches, sensors, mechatronic devices and safety systems. Delphi is a major supplier and
promoter of satellite radio technology including multi-speaker, multi-amp premium audio, CD
playbacks, DVD rear seat video, MP3 playbacks, advanced TV reception systems and satellite
radio. The company supplies factory-installed satellite radios to General Motors, DaimlerChrysler,
Ford, Honda, Audi, VW, Porsche, Mercedes, Pana-Pacific and commercial vehicle manufacturers.
Delphi operates through various divisions including Electrical/Electronic Architecture (vehicle
electrical systems), Powertrain Systems (engine management, fuel, and emissions systems),
Electronics and Safety (sensors, security systems, seat belts, airbags, navigation and entertainment
systems), Steering (steering columns, rack and pinion gears), and Thermal Systems (climate
control, radiators, heat exchangers). The company’s product line includes Automotive Systems,
Connectivity and Integration Systems, Entertainment & Mobile Multimedia Systems, Fuel
Economy & Environment Systems, Safety and Security Systems, Commercial Vehicle Systems,
Connection Systems, and Consumer Electronics. Delphi’s products are used in various applications
such as Automobile, Communication, Computer, Consumer Electronic, Energy and Medical
Applications. Delphi also operates in the spare and replacement component’s sector with focus on
electric and electronic products that include batteries, diesel products, and injectors and thermal
products.
Delphi operates through 159 owned manufacturing sites, and numerous joint ventures, customer
centers and sales offices and technical centers in 36 countries throughout the world. The company
provides high quality products and TechSource services such as technical assistance and
information access for customers throughout the world. The company operates through a range of
network in various countries such as Brazil, Korea, India, Turkey, Mexico, France, Spain and the
UK. Delphi operates through subsidiaries such as Delphi Mechatronic Systems, Inc.; Delphi

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Medical Systems Corporation; Delphi Automotive Systems Human Resources LLC (USA); Delphi
Automotive Systems LLC (USA); and Ambrake Corporation (USA). The company manufactures
products in compliance with ISO 9000 and ISO 14001 certifications. Delphi’s major competitors
include DENSO, Robert Bosch, and Siemens VDO Automotive.
The company filed for chapter 11 in 2005 and is operating under bankruptcy.

BUSINESS OPERATIONS
Electrical, Electronics, Safety
Delphi is a global market leader in the production of connectors, wiring harnesses, switches and
sensors for electrical/electronic systems. The company offers a wide range of Advanced Audio
Systems and Components; Wireless Products Providing Mobile Connectivity, Entertainment and
Information; Powertrain and Engine Control Modules; and Sensors and Actuators for Advanced
Digital Control Systems. The division’s product line includes Body and Security systems; Safety
Systems Electronics including Passenger Detection Systems with Advanced Electronic Sensors;
Reception Systems for Vehicle Entertainment, Communication and Information System Solutions;
Collision Warning Systems; Connection Systems; Switches and Mechatronic Devices; Electrical/
Electronic Distribution Systems; Electrical Centers; Occupant Protection Systems; Door Modules;
Power Closure Systems; Cockpit and Interior Systems; and Modular Products.
Delphi’s other products include batteries, vehicle electronics, diesel products and advanced
diagnostic equipment for diesel repair specialists, climate control products, undercar products
and computer-implemented workflow management and vehicle diagnostic systems, and
consumer electronics products such as Delphi XM SKYFi™ and Delphi XM Roady satellite
radio receivers, SKYFi home and vehicle adapter kits, portable audio systems and the Delphi
Mobile Navigation Unit.

Dynamics, Propulsion, Thermal and Interior


Delphi designs and develops engine and energy management systems. The company offers
electronic chassis control systems (braking, steering, suspension, and engine); and complete
thermal management systems such as powertrain cooling and climate control systems. The
company’s thermal products include integrated closure systems, HVAC electronic controls and
cockpits. The company’s engine and energy management systems are designed to improve engine
performance and emission control.
Delphi’s Dynamics, Propulsion and Thermal product line includes Sensors and Actuators;
Gasoline and Diesel Engine Management Systems; Exhaust Emission Systems; Air/ Fuel
Management Subsystems; Valve Train Systems; Batteries/ Energy Storage Products; Fuel
Handling Systems and Evaporative Emissions Canisters; Vehicle Stability Control Systems;
Ignition Products; Controlled Suspension Systems such as Magneride™ Ride & Handling
System; Suspension and Brake Components; Dynamic Body Control Systems; Steering Systems
including Quadrasteer™ Rear Wheel Steering, High-Efficiency Power Steering Systems and
Magnetic Assist Steering Systems; Steering Columns; Driveline Systems; Hydraulic Steering
Components; Heating, Ventilation and Air Conditioning (HVAC) Modules; Climate Control
Systems; and Thermal Management Systems.

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Automotive Holdings Group
Delphi’s Automotive Holdings Group (AHG) supplies batteries, condensers, filters, halfshafts,
generators, spark plugs and compressors.

Mobile MultiMedia
Delphi's Mobile MultiMedia business unit develops and produces Advanced Radios, Telematics,
Smart Radios and Rear Seat Entertainment Systems. The unit also works with various vehicle
manufacturers such as Honda, Toyota, GM (including supplying hardware for the successful multi-
brand OnStar system) and Subaru.

Delphi Connection Systems


Delphi Connection Systems unit is a leading global provider of interconnects solutions and
connection systems. The unit designs, engineers and manufactures advanced interconnect
components. The unit’s products are used in various sectors such as Computer and Peripheral,
Telecom, Semiconductor, Automotive, Military, Aerospace and Commercial Aviation, Medical
and Broadcast Sectors. The unit distributes its products through a network of distributors to major
OEMs throughout the world.

Delphi Mechatronic Systems


Delphi Mechatronic Systems is a global market leader in the production of mechatronic
devices. The unit is a leading supplier of automotive switches, electronic products and
sensors. The unit operates manufacturing facilities in the US, Germany, Spain, Poland,
Mexico, Brazil, Korea and France.

Deltronicos
Deltronicos, a wholly owned subsidiary of Delphi Delco Electronics Systems, is the largest
manufacturer and supplier of radio receivers and satellite digital audio receivers. The unit also
produces remote playback units and controllers and audio amplifiers for automakers throughout the
world.

Mecel AB
Mecel AB is a system, software and service company, involved in the development of
communication solutions for automotive industry. The company specializes in on-board
application platforms (WinCE, JAVA, embedded systems), communication concepts (CAN,
MOST, Bluetooth, GSM) and off-board service development.

Packard-Hughes Interconnect
Packard-Hughes Interconnect is a wholly owned subsidiary of Delphi Automotive Systems. The
company designs and manufactures advanced interconnect components. The company’s products
are used in various sectors such as Computer, Telecom, Broadcast, Semiconductor, Commercial
Aviation, Automotive, and Military Sectors.

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SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In US$ million)

Year Sales % Change


2007 13,696 (1.95)
2006 13,968 -

Half Yearly Sales Comparison by Business Segment (2007 Vs. 2006) - Electronics and Safety,
Thermal Systems, Powertrain Systems, Electrical/Electronic Architecture, Steering,
Automotive Holdings Group, Corporate and Other (In US$ million)

Segment 2007 2006 % Change


Electronics and Safety 2,550 2,574 (.93)
Thermal Systems 1,202 1,257 (4.38)
Powertrain Systems 2,910 2,757 5.55
Electrical/Electronic Architecture 3,002 2,786 7.75
Steering 1,407 1,393 1.01
Automotive Holdings Group 2,600 3,058 (14.98)
Corporate and Other 25 143 (82.52)
Total 13,696 13,968 (1.95)

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 26,392 (2.06)
2005 26,947 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Quarter 2006 2005 %Change


Q4 6,416 6,779 (5.35)
Q3 6,008 6,283 (4.38)
Q2 6,995 7,023 (.40)
Q1 6,973 6,862 1.62
Total 26,392 26,947 (2.06)

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Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – North America, Europe,
Middle East and Africa, Asia Pacific, and South America (In US$ million)

Region 2006 2005 % Change


North America 16,919 18,272 (7.40)
Europe, Middle East and Africa 6,822 6,700 1.82
Asia-Pacific 1,920 1,303 47.35
South America 731 672 8.78
Total 26,392 26,947 (2.06)

Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Electronics and Safety,
Thermal Systems, Powertrain Systems, Electrical/Electronic Architecture, Steering,
Automotive Holdings Group, Corporate and Other (In US$ million)

Segment 2006 2005 % Change


Electronics and Safety 4,899 5,120 (4.32)
Thermal Systems 2,387 2,341 1.96
Powertrain Systems 5,218 5,310 (1.73)
Electrical/Electronic Architecture 5,365 5,310 1.04
Steering 2,592 2,612 (.77)
Automotive Holdings Group 5,635 5,692 (1.00)
Corporate and Other 296 562 (47.33)
Total 26,392 26,947 (2.06)

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Contracts
Delphi Receives a Contract from Chery Automotive…
Delphi received a contract from Chery Automotive for providing complete Occupant Protection
Systems (OPS) and integrated navigation system for several of Chery's platforms. As per the terms
of the contract, Delphi would supply all driver and passenger airbags, curtain airbags, side airbags,
passenger seat occupant detection systems, airbag control units, side- and frontal-impact sensors,
and seat-track position sensors for all vehicles of Chery in the beginning of 2009.

Delphi Secures a Contract from Harley- Davidson…


Delphi secured a contract from a leading motorcycle builder, Harley- Davidson. Under the
contract, Delphi would supply antilock braking systems (ABS) for the popular Touring and VRSC

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range of motorcycles, including the select Touring models that are available in Custom Vehicle
Operations (CVO) and police lines. ABS is designed to assist the rider maintain consistent control
during emergency stopping situations, especially that happen in less than ideal conditions.

Memorandum of Understanding

Delphi Reaches Memorandum Of Understanding with UAW and General Motors…


Delphi reached a tentative agreement and signed a Memorandum of Understanding with the UAW
and General Motors covering site plans, workforce transition as well as other comprehensive
transformational issues.

New Establishment/New Plant

Delphi’s Subsidiary Establishes a New Antenna Company…


Delphi Technologies Inc. (DTI), a subsidiary of Delphi, in association with Michigan State
University and Automation Alley formed a new antenna company, Monarch Antenna, Inc
(Monarch). Monarch would market innovative Self-Structuring Antenna (SSA) technology
developed by Delphi and Michigan State University. SSA find applications in laptops, home
entertainment systems, computers, routers, military networks, cell phones, automotive and
consumer products.

Delphi Plans to Open New Diesel Plant in Romania…


Delphi announced plans to open a new diesel engine management system (EMS) components
plant. The site located in Iasi, in the north-east of Romania would be operated by Delphi
Powertrain Systems division. Following the establishment Delphi intrends to strengthen its
extensive global diesel manufacturing business and customer base in Central and Eastern Europe

Divestitures

Delphi to Divest Catalyst Business…


Delphi announced the sale of its global original equipment and aftermarket catalyst business to
Umicore. Through the divestiture, the company would continue to provide full engine management
systems (EMS), including air and fuel management, combustion and valvetrain technology, and
exhaust systems technology through its gas EMS product business unit.

Delphi to Sell Brake Hose Business…


Delphi entered into an asset sale and purchase agreement with Harco Manufacturing Group LLC
for the sale of its brake hose business. The agreement include the sale and purchase of
machinery and equipment, intellectual property, and assignment and assumption of certain
customer contracts. As per the manufacturing services agreement, Delphi would continue to
produce brake hose products for a maximum of 12 months or as long as the transition of the
business line is completed.

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Delphi to Divest Brake Components Business…
Delphi’s two subsidiaries entered into an asset sale and purchase agreement with Robert Bosch
LLC and its affiliate Frenados Mexicanos S.A. de C.V., for the sale of their brake components
business, including a manufacturing plant in Saltillo, Mexico. The asset sale and purchase
agreement includes the purchase of land, transfer of facility, machinery and equipment lease, and
assignment and assumption of certain contracts.

Delphi to Sell Interiors and Closures Business…


Delphi signed a non-binding term sheet with The Renco Group for sale of Interiors and Closures
business Delphi's Interior and Closures business unit offers products such as instrument panels,
consoles, cockpits, door modules and latch systems. The unit operates in the US, Mexico, Austria,
Germany, China and Korea.
Delphi Plans to Sell Mounts Powertrain and Suspension Business…
Delphi announced plans to sell Powertrain and Suspension Mounts business. Delphi's Powertrain
and Suspension Mounts business is the world’s second largest and the largest supplier of mount
systems in North America. The unit provides engineered solutions for engine vibration, torque
management and other road induced Noise, Vibration and Harshness (NVH).

Product Launches
Delphi Launches Portable GPS Navigation System…
Delphi launched the next generation of its popular portable GPS (Global Positioning System)
navigation system. The new NAV300 comes with with maps of the US, Canada, Alaska,
Hawaii and Puerto Rico. NAV300 features Text-to-Speech (TTS) functionality that announces
street names and provides turn-by-turn directions while navigating for maximum safety.
NAV300 allows drivers to store favorite locations and even assign voice commands through
its My Favorites feature.
NAV300's new, easy and intuitive interface allows users to find locations by city, street or ZIP.
The system features with Speed limit warning software alerts drivers, if the drivers exceed the
posted speed limits, and also displays road signs directly on the screen. NAV300 also offers the
optional traffic information service through Clear Channel, using RDS-TMC (Radio Data System-
Traffic Message Channel) technology to deliver real-time traffic and weather reports. In addition to
its advanced navigational capabilities, the Delphi NAV300 offers popular entertainment
functionality including a movie player, picture viewer and a new matching game
Delphi Introduces NAV200 Portable Navigation System…
Delphi introduced NAV200 portable navigation system that offers a new traffic information service
option and provides up-to-date incident, flow and weather data. With a unique blend of advanced
navigation and entertainment features in a sleek, portable package, the NAV200 comes with
preloaded US and Canada maps to provide voice-guided driving directions calculated using one of
the most trusted mapping databases in the industry. The NAV200's new traffic information service
utilizing RDS-TMC (Radio Data System-Traffic Message Channel) technology provides real-time
traffic and weather reports to the drivers on the NAV200's easy-to-read screen.

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Delphi Introduces New Battery IVT Sensor…
Delphi introduced new Battery IVT Sensor for passenger and commercial vehicles. Delphi's
Battery IVT Sensor reduces the need to store excess energy and allows vehicles to use smaller
batteries and alternators. Delphi's Battery IVT Sensor precisely measures current (I), voltage (V)
and temperature (T), the three parameters essential to determining battery health and, when
integrated into a vehicle as part of active battery management improves fuel efficiency, extend
battery life and help optimize alternator and battery size, further optimizing the electrical/electronic
system. The sensor extends the life of incandescent bulbs by allowing them to operate at lower
average voltages over the vehicle's life.

Delphi Launches Ammonia Sensor…


Delphi launched the world's first automotive ammonia sensor, an innovative engine management,
fuel injection, valve control and after-treatment solution. The new technology allows direct closed-
loop control of the SCR (Selective Catalytic Reduction) systems used by an increasing number of
diesel vehicles to reduce NOx. Measuring the tailpipe ammonia, the sensor allows the injection of
urea (an ammonia rich compound required by the SCR system) to be optimized and reduce
ammonia emissions.
The new sensor detects excess ammonia in the exhaust gas within a range of zero to 100ppm, allowing
the urea dose to be continuously optimized. The sensor also allows vehicle manufacturers to eliminate
an expensive post-oxidation catalyst that would otherwise be needed to remove excess ammonia from
the exhaust and allows the size of the SCR converter to be optimized for the application.

Delphi Launches Premium Sound System…


Delphi launched Premium Sound System to work with multiple satellite radio receivers. The
Premium Sound System enables consumers to enjoy crystal clear XM® Satellite Radio sound
transmitted seamlessly through the Delphi SKYFi3®, Roady XT®, MyFi(TM) and Audiovox®
Xpress(TM) XM receivers. The Delphi Premium Sound System is the easiest, most elegant way to
listen to XM Satellite Radio at home, at the office, or even outdoors with its battery feature. In
addition to its multi-receiver functionality, the Delphi Premium Sound System features an
advanced acoustic and integrated systems design. The system also features a bass enhancer that
provides full sound even at lower volume levels, as well as an integrated handle and an integrated
XM antenna for convenient portability from room-to-room or on-the-go away from home.

Delphi Launches New Diesel Engine Oil Condition Sensor…


Delphi unveiled new type of diesel engine oil condition sensor. The launch of new type of oil
condition sensor for diesel engines would substantially increase service intervals, engine reliability,
thereby reducing warranty issues and would bring further cost reductions for vehicle operators. The
new system is mainly available for integration with vehicle development programs.

Delphi Introduces Innovative Condenser Cooling Fans for the HVAC Market…
Delphi introduced a new generation of metal axial fans for the residential and light commercial
Heating, Ventilation and Air Conditioning (HVAC) market. The new product developed utilizing

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leading-edge air management technology helps HVAC manufacturers to design higher efficiency
products. The metal axial fans are designed specifically for condensing unit and heat pump
applications. The highly streamlined fan blade technology save energy by significantly reducing
the amount of power required to run their condenser fans.
Delphi developed the fan technology through a license agreement with PaxFan, utilizing technology
developed by PAX Scientific, Inc., an industrial design firm based in San Rafael, California.

Year 2006 in Review…

Partnership

Delphi Enters into Partnership with DaimlerChrysler AG…


Delphi extended its partnership agreement with DaimlerChrysler AG to design and manufacture
new Mercedes GL-Class full-size Sport Utility Vehicle (SUV). The GL-Class is available in three-
color variations with numerous wood options and an integral sewn passenger airbag seam. As per
the partnership, Delphi would supply M-Class SUV and the R-Class wagon, the instrument panel,
and console to automakers throughout the world.

Agreement
Delphi Signs an Agreement with Seacom Technologies LLC…
Delphi signed an agreement with Seacom Technologies LLC (Seacom) to develop a marine
emergency communications telematics product that enhances the safety and security for boaters.
The telematic system enables the transmission of detailed messages including information on GPS
position and other critical parameters, between watercraft and the dedicated maritime rescue
coordination center.
Seacom is a provider of sale of unique tracking services and marine telecommunication equipment.

Contracts

Delphi Signs a Contract with Hyundai Motor America…


Delphi signed a contract with Hyundai Motor America, a subsidiary of Hyundai Motor Company
of Korea. Under the terms of the contract, Delphi would supply XM Satellite Radio capable
receivers for the Hyundai’s Santa Fe, Azera and Elantra cars. Delphi’s satellite radio is capable of
receiving a radio signal from coast-to-coast without fading.
Hyundai Motor America, a subsidiary of Hyundai Motor Company of Korea is a distributor of
Hyundai cars and sport utility vehicles across the US.

New Establishment
Delphi Furukawa Starts Customer Service Center in Ann Arbor…
Delphi Furukawa Wiring Systems LLC, a joint venture between Delphi and Furukawa Electric
Company Ltd., started a new customer service center in Ann Arbor. The new center, located across

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the street from Toyota Technical Center (TTC), a division of Toyota Motor Engineering &
Manufacturing North America (TEMA), would initially house 25 engineers, program managers
and sales staff.

Divestiture

Delphi Completes Sale of U.S. Battery Plant to JCI…


Delphi sold its New Brunswick, N.J., battery manufacturing facility to Johnson Controls, Inc (JCI).
The sale includes ownership of the facility and assets, and employment of approximately one-third
of the hourly workforce, represents the final step in the two-stage global battery business sale
announced in July 2005. The sale of the plant would be an important step for overall restructuring
plan.

Product Launches

Delphi Unveils New Portable Navigation System


Delphi launched its latest portable navigation system, NAV200, which is an effective combination
of various special features, in a single compact device. The contraption comes with pre-loaded
digital maps of the US, Canada, Hawaii, Alaska and Puerto Rico. NAV200 is accompanied by
back-up DVD of map files and a LCD screen, and also provides voice-based navigational
directions to users.

Delphi Introduces Satellite Radio Receiver…


Delphi introduced its 13-millionth satellite radio receiver. Satellite radio is the radio medium that
offers customers up to 170 channels of programming in addition to the traditional AM/FM radio
offerings in OEM applications. Satellite radio programming is beamed from satellites and includes
a very wide variety of music, talk, sports, news, traffic, weather and entertainment coast-to-coast in
the US without fading. Delphi, in addition to adding loads of new programming to the vehicle,
developed a digital data decoder that works in conjunction with the Delphi satellite receiver to
enable real-time traffic services in North America.

Delphi Unveils SKYFi3 …


Delphi unveiled satellite radio receiver SKYFi3, the First MICRO SD Compatible MP3 Satellite
Radio with Pause-Replay. SKYFi3 also offers the ability to store an unlimited number of MP3,
WMA and WAV formatted files on optional and removable Micro SD cards. SKYFi3 enables
users to easily manage their content by combining both stored XM and MP3s in personal play lists
to enjoy all music any time.

Delphi Launches New Satellite Radio…


Delphi launched a new satellite radio for the heavy-duty sector. The new CD/MP3 radio with an
integrated satellite receiver features robust, digital-quality audio in a compact package. The single
DIN premium CD/MP3 radio is durably designed and SAE J1455 compliant for used in the harsh
environment of commercial and off-highway vehicles. The new radio features with more

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ergonomically friendly controls such as knobs, buttons, and a 2 X 16 dot matrix display that
provides two lines each with 16 alphanumeric data characters for improved data quality.

Delphi Introduces New Radio Receiver…


Delphi introduced new multimedia Radio Receiver that achieves highest functionality in a small
package. The new Delphi radio head unit includes a wide range of new technologies such as MP3
playback with personalized settings using a secure digital card. The new multimedia radio also
features Bluetooth hands-free cellular telephone operation, streaming audio both in and out of the
receiver, and PDA connectivity.

PRODUCT ANALYSIS

Comfort and Convenience (Automotive System)

Climate Control Systems


Delphi offers a diverse range of climate control systems including accumulator dehydrators; fixed
and variable displacement compressors; compact tube and center (CTC), Headered Tube and
Center (HTC) and the Tube and Fin Condenser (TFC) lines of condensers; HVAC Modules;
evaporators; heater cores; mechanical, electromechanical and electronic climate controls; and
HVAC temperature sensors

Integrated Closure Systems


Delphi is a leader in the supply of integrated closure systems including door systems; vehicle door
and compartment latching systems such as E-Loc®, Mini-Wedge®; and a broad range of power
closure opening and closing systems for all types of vehicles. The company offers Modular Doors,
Door Hardware Modules and Composite Door Hardware Modules.

Powertrain Cooling Systems


Delphi powertrain cooling systems are used to control operating temperatures for increased
performance of vehicles. The product line includes Powertrain Cooling Modules; Oil Coolers;
Automotive Oil Coolers; Radiators; Sensors such as Air Temperature Sensors and Coolant/Fluid
Temperature Sensors.

Connectivity and Integration

Connection Systems
Delphi Connection Systems designs and develops a wide range of electrical connectors to meet the
advanced wiring and packaging requirements. The product line includes Engine Control Module
(ECM) Interconnnect devices such as Gold Dot™; Flat blade connectors for low energy electronic
circuits and power applications; GT Connection Systems (sealed and unsealed inline or device
connection systems); Sealed Electronic Connection System for Engine Controls; Heavy Duty
Connection Systems for all applications that require power and signal distribution; high power

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connection systems; Insulation Displacement Connections (IDC) including IDC splices, IDC
diagnostic probe, and IDC diode pack; low power and electronic devices; Micro64 electronic
connection systems for the Printed Circuit Board (PCB) applications; and Splice Saver
connectors

Electrical/Electronic (E/E) Distribution Systems


Delphi's Electrical/Electronic (E/E) Centers provides centralized electrical power and signal
distribution and all associated circuit protection and switching devices. The product portfolio
comprises a complete line of cables for diverse applications including engine compartments,
interior and chassis wiring harnesses; flat wire; and ignition components such as bulk ignition
cable, spark plug boots, nipples for distributors and coils, fasteners, routing hardware, organic and
inorganic insulating compounds, and complete wiring sets for both conventional and coil-near-plug
ignition systems.

Mechatronic Systems
Delphi integrating both switch technology and electronics expertise provide comprehensive next
generation mechatronic product solutions such as SmartWindow™ Non-Contact Window
Management System; Touch/Appearance/Lighting/Color (TALC) Switches; electronic products
including relay modules, cooling fan control, exterior lighting control, indicator lamp drivers,
adaptive lamp monitor, compass/trip computer, rear HVAC control, memory seat controller and
others; relays for power windows, air conditioner, power antenna, auto transmission, head lamp
washer, power seat/window and other parts of automobile; and mechatronic modules such as
Column Integrated Module (CIM), Compass/Traveler Module, Living Environment Control
Module (LECM) and Multiplexed Door Module

Entertainment and Mobile Multimedia


Delphi’s Entertainment and Mobile Multimedia solutions offer in-vehicle access to the variety of
information and entertainment. The product line includes Mobile Entertainment, Mobile
Multimedia and Advanced Antenna Systems.

Mobile Entertainment Systems


The company’s Mobile Entertainment Systems product line includes Audio Systems, Rear Seat
Entertainment, and Advanced Antenna Systems.

Mobile Multimedia Systems


The company offers an array of Mobile MultiMedia Systems to offer connectivity, information and
entertainment solutions to the vehicle users and passengers. The range of products and solutions
include Internet Radio with Off-board Navigation; Integrated Navigation Radio; Bluetooth Smart
Receiver; Mesh Networks; Telematics that integrate a phone, Global Positioning Satellite Receiver
and Digital Signal Processor to allow communication between a vehicle and a service call center;
and wireless networking that enables fast, wireless connectivity between vehicle, home, office, and
wireless service providers.

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Fuel Economy and Environment
Powertrain Cooling Systems
Delphi supplies powertrain-cooling systems to control operating temperatures for fuel economy,
emissions control and reserved capacity for high-load air conditioning requirements, maximum
towing loads and four-wheel off-road performance. The product line includes powertrain cooling
modules, oil coolers, radiators and sensors.

Diesel Control Electronics


Delphi’s Diesel Systems components provide efficient control of diesel engines, reducing noise,
increasing fuel economy and torque, and lowering emissions. The product line includes
Medium/Heavy Duty Diesel Controller, Diesel Manifold Vacuum Regulator Valves, Dual
Manifold Vacuum Regulator Valve, Smart Remote Actuator, Vacuum Regulator Valve, and more.

Advance Energy Systems


The company offers energy management systems for a wide range of applications including
starting, lighting, ignition and others. The innovative line of products include 42 Volt Systems and
Freedom® Batteries

Engine Management Systems


Delphi designs and supplies complete engine management systems, including injection units and
electronics. Delphi engine management systems deliver immediate responsiveness for drivers and
operators, while lowering emissions and improving fuel economy. The company offers Injectors,
Advanced Fuel System, EUP 200 Electronic Unit Pump, E3 Electronic Unit Injector (EUI),
Medium/Heavy-Duty Diesel Controller, Medium-Duty Diesel Common Rail (DCR) System, Smart
Remote Actuator, and various other products.

Engine and Transmission Control


The company’s engine and transmission controls subsystem consisting electronic control modules
and related software forms the core of the engine management system.

Performance Systems
Electric Steering Systems
Delphi's advanced electric steering systems deliver the high performance of traditional hydraulic
power steering, with significant added value.

Hydraulic Steering Systems


Delphi pioneers in the hydraulic steering with a range of innovative products such as power
steering hoses, power steering pumps, steering gears (integral), and Rack and Pinion steering gears

Columns and Intermediate Shafts


Delphi is a leading provider Steering Columns, and Intermediate Shafts

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Driveline Systems
Delphi offers fixed-center and plunging joints, supporting mini-compact to full-size automobiles
and trucks.

Valve Train Products


Delphi supplies valve lifters, hydraulic lash adjusters, followers and hydraulic element assemblies
to support any engine platform.

Advanced Vehicle Dynamics


The company’s Advanced Vehicle Dynamics offerings include TRAXXAR™ unified chassis
control, advanced ride control suspension systems, damping systems, shock absorbers, struts,
brakes and chassis.

Powertrain Cooling Systems


Delphi powertrain cooling systems include powertrain cooling modules, automotive oil coolers,
radiators and sensors.

Quadrasteer
Quadrasteer™ electronically controls the direction of the rear wheels based on front wheel position
and vehicle speed to enhance vehicle maneuverability, stability, and trailering capability

Safety & Security Systems


Integrated Safety System
Delphi's Integrated Safety System encompasses a wide spectrum of safety technologies and
products including Driver Safety Management Systems, Driver State Monitoring Systems, Driver
Support System and Dynamic Vehicle Safety Management Systems.

Occupant Protection Systems


Delphi’s offers a range of airbag systems such as driver and front passenger airbags, thorax
airbags, head/thorax airbags and airbag products for rollover protection; belt restraint systems;
steering wheels; Supplemental Inflatable Restraint (SIR) Controllers for frontal impact sensing and
distributed sensing; and passive occupant detection systems.

Interior Detection Systems


The interior detection products include electronic satellite sensing; sensing and diagnostic modules;
seat position sensing; occupant mass sensing; seat belt usage sensing; rear-facing infant seat
detection; frontal variable output airbag modules.

Safety Warning Systems


The company’s Safety Warning product range includes Forewarn Collision Avoidance Systems
used to collect data and recognize hazards within detection zone through the strategically located

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sensors around the vehicle. The product line includes Forewarn® Dual Beam Radar Back-up Aid,
Forewarn® Back-up Aid for Dealer Install and Forewarn® Adaptive Cruise Control with Driver
Alert.

Security Systems & Body Electronics


Delphi is a leading provider of a broad range of vehicle security products and systems including
body electronics and security systems, remote keyless entry, vehicle immobilization systems,
ultrasonic interior protection sensors, glass breakage sensors, vehicle inclination sensors, and
security alarms and sirens.

Commercial Vehicle Systems

Audio/Mobile Multimedia
Delphi’s mobile multimedia solutions include Truck Productivity Computer, a complete
information and entertainment system integrating audio, GPS positioning and wireless
communication using voice activation; Fuba® Multiple Antenna Reception System; Fuba® TV
Reception Systems; Satellite Radio Receiver Kit comprising receivers, antennas, and control units;
Delco Electronics® satellite radio compatible heavy-duty receivers, premium cassette receiver and
premium CD receiver for all commercial on- and off-road vehicles; Delco Electronics® Heavy-
Duty AM/FM Stereo Receiver, CD Receivers, and Cassette Receivers; and premium radio
accessories.

Electrical / Electronic Distribution Systems


The electrical/electronic distribution systems include connection components and systems;
distributed multiplexing systems; electronic transmission controls; Electronic Distribution Systems;
heavy-duty connection systems; living environment control module and power pack connection
systems.

Energy Systems
Delphi specializes in electrical energy systems that generate, store, convert, and distribute electrical
power in commercial vehicles. The product line includes a range of Freedom® Batteries; and solid
oxide fuel cell auxiliary power unit producing a highly efficient, and cost-effective supply of
electrical power.

Engine Management Systems


Delphi designs and supplies complete engine management systems including injection units and
electronics. The product line includes a rotary distributor pump fuel injection system for diesel
engines; advanced fuel system; electronic unit injector (EUI); electronic unit pump (EUP); fuel
injectors for pump line nozzle systems, including mechanical or electronically controlled systems;
electronic diesel exhaust gas recirculation systems; medium/heavy-duty diesel controller; medium-
duty diesel common rail (DCR) system; smart remote actuator; vacuum regulator valve; truck body
controller and others.

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Interior Systems
Delphi offers Heated Steering Wheels, Integrated Cockpit Systems, Integrated Modular Door
Systems, Steering Wheel Controls and Thermoelectric Cupholder.

Sensors
The company offers air temperature sensors, coolant/fluid temperature sensors, HVAC temperature
sensors and humidity and integrated dew point and glass temperature (IDGT) sensors.

Thermal Systems
Delphi is a premier supplier of thermal management systems designed using advanced climate
control and powertrain cooling systems for commercial vehicle market. The product line includes
accumulator dehydrators, compact HVAC module, compact variable compressors (CVC),
condensers, condenser/radiator/CAC module, evaporators, high performance aluminum radiator,
and HT-6 and SP compressors.

Connecting Systems
Delphi offers a broad expertise in the design of connection systems and components for
applications in diverse areas including automotive, defense/aerospace, medical equipment,
telecom/datacom, transportation, instrumentation, industrial, computers/peripherals, portable
communications and office automation. The company also offers ECM Interconnects (Gold
Dot™); Instrumentation; Medical Equipment; Office Automation; Portable Communications;
Ps100ns; Pin & Socket - 2mm Pitch; Telecom/Datacom; Transportation.

Automotive
Delphi's connection products and solutions in the automotive market include ECM Interconnects
such as Gold Dot™ Engine Control Module (ECM) Interconnect Device; Flat Blade (Metri-Pack)
family of electrical connection systems; GT terminal and connector systems; Harsh Environment
connector system (Weather Pack); circular and rectangular heavy-duty connection systems; high
power connection systems; Insulation Displacement Connection (IDC) systems; low power and
electronic connection systems; 064 line of compact electrical connection systems; Media Oriented
Systems Transport (MOST) network; and Splice Saver connectors

Computers and Peripherals


The company manufactures products using state-of-the-art equipment with process monitoring
technologies that utilize comprehensive information technology infrastructures. The product line
includes ExpressCard™ connector family; pin and socket connectors; board-to-board connectors;
flexible printed circuits; high density printed circuit family of connectors; high power quick mate clip;
DIMM/ (Dual Data Rate) DDR DIMM and DDR SO (Double Data Rate Small Outline)-DIMM
sockets; FireWire® and i.Link® board mount connectors and cable assemblies for IEEE 1394; a range
of board-mount receptacles for Small Computer Systems Interface (SCSI) data transfer applications;
surface mount PLCC sockets; Serial ATA board connectors and cable assemblies; modular jacks used
for standard telephone cable interface; Mini USB (Universal Serial Bus) Connectors; Lighted Cable
Assemblies for USB interface; and Board mount I/O connectors for USB interface

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Defense/Aerospace
Delphi connection solutions for defense/aerospace sector include modular, high-density, two-piece
backplane connection system; AFI fiber optic connector; Bee-Line connectors; edge card mounted
fiber optic connectors; hermaphroditic fiber optic connectors; SC fiber optic cable assembly;
flexible printed circuits; high density printed circuit line of connectors; HAC PAK Subminiature
Rectangular connectors; Miniature Circular connectors; C-21 connectors; MRS Rectangular
connectors; compression connectors; LC Small Form Factor (SFF) fiber optic interconnect
assemblies; Snap Lock miniature single channel fiber optic connector; Bulls-Eye Subminiature
Circular connectors; and Fiber Optic Termini

Consumer Products

Navigation Systems
The company offers Nav300, Nav200, and Real-Time Traffic Kit.

Satellite Radio
Premium Sound System, Roadyxt, SKYFi3, SKYFi2, XM Signal repeater, Factory Renewed

Industrial
Delphi’s connection systems for industrial applications include hermaphroditic connectors, HAC
PAK connectors, MRS Rectangular connectors, Bulls-Eye connectors, 2-way high power
connection system, and Shielded 6-Way connection system

Electronics
The Speciality Electronics product line includes headers, receptacles and shunts, I/O connectors,
application and packaging schemes, battery interconnects, surface mount PLCC sockets and 1mm
pitch FPC connectors.

SUBSIDIARIES
Ambrake Corporation (USA)
Arabian Financing Company (USA)
Bluestar battery systems international corp. (Canada)
Delphi Automotive Systems Global (Holdings), Inc. (USA)
Delphi Automotive Systems Human Resources LLC (USA)
Delphi Automotive Systems LLC (USA)
Delphi Mechatronic Systems, Inc.
Delphi Medical Systems Corporation
Delphi delco electonics de Mexico SA de CV (Mexico)
Electrotechnica famar S.A.C.I.I.E (Argentina)
Famar Do brasil comerico e Representacao Ltda. (Brazil)
Holdcar SA (Argentina)
Shengai Delco Electronics & Instrumentation Co., Ltd. (China)

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DENSO CORPORATION
1-1, Showa-cho, Kariya, Aichi 448-8661, Japan
Phone: +81-566-25-6724, Fax: +81-566-25-4860

SOURCES: www.denso.co.jp and other secondary online sources


Sales
2007 Sales: ¥ 856.2 billion (Q1) 3250

2006 Sales: ¥ 3,188.3 billion 3100


2950
2005 Sales: ¥ 2,799.9 billion 2800

2004 Sales: ¥ 2,562.4 billion 2650


2500
(Fiscal Year Ends in March) 2004 2005 2006

BUSINESS PROFILE
Denso Corp., (Denso) is a leading global provider of advanced automotive technologies, systems
and components. The company manufactures a wide range of auto components for the automobile
market worldwide. The company’s major products include OEM automotive components,
aftermarket automotive components, and consumer & industrial products. The company supplies
automotive air conditioners, spark plugs, antilock brake system controls and windshield wipers.
The company operates through two divisions namely, automotive, and automobile related
components. The company’s automotive product line includes car air conditioners, starters,
powertrain control systems and meters. The company’s automobile related components division
offers car heaters, air conditioners, SRS air bags, starters, alternators, spark plugs, electronic fuel
injection systems, meters, radiators and engine cooling systems.
Denso also develops control systems for gasoline engines and diesel engines. The company offers a
broad range of products for hybrid vehicles such as microchips, gasoline engine components,
gasoline engine management system, integrated air fuel module, E-VCT (motor-driven electric
variable valve timing control system), diesel engine components, diesel engine management
system, common rail system, diesel exhaust gas Recirculation system, hybrid vehicle components,
components for Prius, and components for ESTIMA / ALPHARD. The company also focuses on
advanced electronics, information and telecommunications technologies, ITS (Intelligent
Transportation System) and progressive safety systems. The company provides Sensing System,
Stereo Vision Processing ECU, Driver Assistance System, Pre-crash Safety System, AFS
(Adaptive Front-lighting System), Remote Security System, Night View Head-Up Display, and
ETC (Electronic Toll Collection) system.
Denso’s intelligent transport systems segment manufactures car navigation systems and electronic
toll collection systems. The company owns three subsidiaries namely DENSO International
America Inc., DENSO Manufacturing Michigan Inc., and Denso Wave that manufactures bar-code
readers, factory automation robots and programmable logic controllers. The company operates in
about 32 countries across the world. The company’s top competitors are Delphi, Robert Bosch and
Visteon. The company is accredited with ISO 14001 and ISO 9001 certifications.
Denso was established in 1949 as Nippondenso Co. Ltd. and adopted the present name in 1996.

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BUSINESS OPERATIONS
Automotive
Powertrain Control Systems Business
Denso manufactures a wide range of Powertrain Control systems and products for the automobile
engines.
Electric Systems Business
Denso manufactures power supplies, engine electrical components and safety and chassis systems.
The segment’s main products include starters, alternators and airbag sensing systems. The
company produces a wide range of electric parts to support customers with advanced technology,
performance and quality throughout the world.
Electronic Systems Business
Denso develops and manufactures a complete range of automotive electronic products for application
in high-performance vehicles. The segment offers a range of products ranging from ICs, sensors and
other microelectronic devices to integrated electronic products and devices. The company develops
engine ECUs, instrument clusters, body-related ECUs and other automotive systems.
Thermal Systems Business
Denso develops and manufactures automobile heating and cooling devices including air
conditioners and radiators. The company also develops household environmental devices.
ITS Products Business
Denso develops and manufactures car navigation systems and electronic toll collection (ETC) systems.
Small Motors Business
ASMO Co. Ltd., (ASMO) a division of Denso, manufactures small motor products. ASMO
develops and designs a wide range of products in cooperation with the company’s four automotive
products/systems groups. ASMO’s product line includes windshield washer systems, power
window motors and blower motors.
Industrial Systems Business
Denso Wave Incorporated (Denso Wave), a division of Denso, manufactures industrial systems
products. Denso Wave provides automatic identification products such as bar-code readers, two-
dimensional code readers and IC card-related products. Denso Wave also offers industrial robots,
programmable logic controllers and others.

SALES DATA
First Quarter Sales Comparison: 2007 Vs. 2006 (In ¥ billion)
Year Sales % Change
2007 856.2 13.64
2006 753.4 -

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Annual Sales Comparison: 2004-2006 (In ¥ billion)

Year Sales % Change


2006 3,188.3 13.87
2005 2,799.9 9.27
2004 2,562.4 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Joint Venture

Denso and Robert Bosch Establish a Joint Venture to Develop and Manufacture Diesel
Particulate Filters…
Denso and Robert Bosch GmbH (Robert Bosch) established a fifty-fifty joint venture in Eastern
Europe to develop and manufacture diesel particulate filters. The new joint venture would
manufacture high performance and cost-effective diesel particulate filters. Denso and Robert Bosch
plan to develop and market competitive cordierite DPFs by utilizing the two companies’ diesel
system technologies.

Facility Expansions

Denso’s Subsidiary to Expand Manufacturing Facility in Canada…


Denso’s subsidiary Manufacturing Canada, Inc., plans to expand its 10,450 square-meter facility by
approximately 20,000 square meters. The new expansion would create approximately 300 new
jobs. Through the new expansion, Denso would produce radiators, condensers and electric fans for
radiators and integrate the products into engine cooling modules.

Denso Plans to Expand U.S. Manufacturing Facility in Kentucky…


Kyosan Denso Manufacturing Kentucky (Kyosan Denso), a subsidiary of Denso, plans to expand
its 80,700-square-foot facility. With the expansion, the company would increase the production of
automotive fuel pump modules and its components including fuel filters and flanges. Kyosan
Denso assembles automotive fuel system components; fuel pump modules and on-board refueling
vapor recovery valves for the North American car manufacturers.

New Establishment

Denso to Establish a New Company in Hokkaido, Japan…


Denso plans to establish a new company, Denso Electronics Corporation in Chitose, Hokkaido,
Japan. The new company would produce automotive semiconductor products.

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Year 2006 in Review…

Facility/Capacity Expansions

Denso Plans to Expand Manufacturing Facility in Hungary…


Denso Manufacturing Hungary Ltd., (DMH) a subsidiary of Denso, plans to expand its diesel
common rail system production capacity by establishing a new 9,600-square-meter facility. With
the increasing demand in Europe for common rail systems, the company would enhance its diesel
common rail system production capacity in Hungary.

Denso Plans to Expand Air Conditioner Production Capability in Turkey…


Denso Otomotiv Parcalari Sanayi Anonim Sirket (DTR), Denso’s manufacturing subsidiary in
Istanbul, Turkey, plans to expand air conditioner production capacity by establishing a new facility
in Gebze Country, Turkey. With the new facility, DTR would increase the annual production
capability of air conditioning units from its current approximately 140,000 to approximately
250,000 units by 2010.

New Establishments

Denso Establishes Branch Office in Moscow, Russia…


Denso Europe BV (Denso Europe), a subsidiary of Denso, established a branch office in Moscow,
Russia. The new facility would provide technical support for customers to develop a service system
for products including diesel fuel injection pumps and support distributors of aftermarket products
such as spark plugs. The new facility would become the company’s first branch office in Russia.

Denso Plans to Establish New Facility for Electronic Products at Agui Plant…
Denso plans to establish a new facility at Agui Plant located in Agui-cho, Chita-gun, Aichi
prefecture, Japan. Denso’s subsidiary, Denso Elecs Co., Ltd., (Denso Elecs) would transfer its
headquarters and electronic product manufacturing plant from the Denso Takatana Plant in Anjo,
Aichi prefecture to the new facility.

Denso Establishes New Company in Tianjin, China…


Denso established a new company in Tianjin, China to produce instrument clusters. The new
company, Tianjin Poong Sung Electronics Co. Ltd., would offer instrument clusters for the
production requirements of Korean automotive manufacturers in China.

Denso Establishes New Facility at Daian Plant…


Denso established a new facility at Daian Plant to manufacture ceramic components including
ceramic substrates and DPFs (diesel particulate filters) for exhaust emission purification. The new
facility also manufactures ignition devices, safety-related equipment, ignition plugs, oxygen
sensors and various actuators and sensors.

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Product Developments
Denso Develops New Power Supply Management ECU for Lexus LS460…
Denso along with Toyota Motor Corporation (Toyota Motor) developed a new power supply
management electric control unit (ECU) for the Lexus LS460. The ECU calculates the battery
charge rate and internal resistance using battery voltage and current. When the battery charge rate
is low, the ECU increases the alternator’s adjustment voltage for generating electricity or raises the
engine revolutions during idling to stimulate battery charging.

Denso Develops New Advanced Products for Lexus LS460…


Denso developed new advanced products for Lexus LS460. The company offers the world’s first
motor-driven electric variable valve timing control system, new pre-crash safety system components,
new air conditioning system that provides individually customized air conditioning to each passenger
seat, world’s thinnest card key for smart entry and start system, instrument cluster with thin film
transistor (TFT) display, world’s first remote security system with remote immobilizer function and
world’s first inertia sensor with inclination-detecting function. Denso and Toyota Motor Corporation
developed the world’s first motor-driven variable valve timing control system.

Denso Develops New Hybrid Vehicle Components…


Denso developed three components for hybrid vehicles that are smaller, lighter and provide better
performance. The company’s new products include DC-DC converter, battery-monitoring unit and
system main relay. The DC-DC converter converts the high voltage (288 volts) supplied by the
main battery to a lower voltage to charge a 12-volt auxiliary battery and supply electric power to
various accessories such as headlamps, wipers and the horn. The battery-monitoring unit monitors
the voltage, current and temperature of the high-voltage battery. The system main relay connects
and disconnects electric currents between the high-voltage battery and high-voltage system through
controlling the contact of movable and fixed parts.

Denso Develops Smaller, Lighter, Less-expensive Front-end Module…


Denso along with Mitsubishi Motor Corporation, developed a smaller, lighter and less-expensive
front-end module (FEM) for the Mitsubishi "i," the light vehicle. The new FEM contains the
carrier, radiator, air conditioning condenser, washer tank, electric fan, motor and duct. The
company also plans to develop FEMs for a wide range of vehicles.

Denso Develops Unique Double-pipe Internal Heat Exchanger…


Denso developed a unique double-pipe internal heat exchanger for car air conditioning systems.
The new heat exchanger is offered for front car air conditioning systems and increases cooling
performance by up to 12 percent. The double-pipe internal heat exchanger integrates two pipes,
which are separated in a conventional refrigeration cycle, into one pipe with inner and outer tubes.

Denso Develops New Electronic Control Unit (ECU)…


Denso developed a new electronic control unit (ECU) for adaptive front lighting systems (AFS), which is
approximately 70 percent smaller in volume compared to the company’s conventional ECU for the AFS.

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PRODUCT PORTFOLIO

Automotive Components (OEM)


Air-Conditioning System
Automatic air conditioners, cool and hot boxes and air purifiers

Engine Related Components


Gasoline engine management systems, diesel engine fuel injection systems, engine electrical
equipment and engine-cooling systems

Body Equipment
Meters, windshield wipers, windshield washers, horns and flashers

Driving Control and Safety Products


ABS controls, TRC controls, VSC controls, door lock controls, SRS air bags, cruse controls and
corner clearance warning systems

ITS (Intelligent Transport Systems)


Car navigation system, network center for advanced vehicle operation system, advanced cruise-
assist highway system and electronic toll collection system

Residential Systems and Air-Conditioning Systems


Automatic faucet system, spot coolers including Inspac® and MovinCool®, CO2 heat pump hot
water supply system and electrically powered kitchen system

Automotive Components (Aftermarket)


ETC (electronic toll collection) system, mapcode, PDA navigation kit Navistant, Patracs,
OmniTRACS, iridium spark plug, clean air filter, car phone (E208), car phone (E401), hands-free
kit, clean air filters, plugs and other replacement parts as well as ITS products including ETC and
other products for car applications

Consumer and Industrial Products


Kerosene heat pump (KHP), spot-cooler, spot-heater, natural refrigent (CO2) heat-pump hot water
supply system, alkaline ionized water apparatus, glass-vision, EL display, robots, IT heat solution
equipment, two-dimension code/barcode related products, IC card related products, RFID related
products, household and industrial air conditioners, bar-code readers, industrial robots and
piezoelectric actuators

SUBSIDIARIES
Denso International America, Inc.
Denso Manufacturing Michigan, Inc.

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DEUTSCHE TELEKOM
Friedrich-Ebert-Allee 140,
53113 Bonn, Germany
Phone: +49-228-181-0, Fax: +49-228-181-8872

SOURCES: www.telekom3.de and other secondary online sources Sales


62
2006 Sales: € 61.3 billion 61
60
2005 Sales: € 59.6 billion
59
2004 Sales: € 57.3 billion 58
57
(Fiscal Year Ends in December)
2004 2005 2006

BUSINESS PROFILE
Deutsche Telekom is a global leading provider of telecommunications and information technology
services. The company is German’s leading fixed-line phone operator, with about 50 million access
lines. The company’s strategic business area Broadband/Fixed-network consists of the business
units T-Com and T-Online, which serve private customers along with small and smallest
enterprises. The company focuses its activities on three strategic markets such as Broadband/Fixed-
network, Business Customers and Mobile Communications. Deutsche Telekom operates through
four divisions namely T-Mobile, T-Com, T-Online and T-Systems.
Deutsche Telekom provides network access, communication services and value-added services
with ever increasing bandwidth via the fixed and mobile networks. Deutsche Telekom offers millions
of private and corporate customers all over the world the entire spectrum of modern information
technology and telecommunications services - sfrom wireless communications, Internet and fixed-
network to complex IT and telecommunications solutions. The focus at T-Com (Broadband/Fixed
Network) is on the high-growth broadband market with top customer care and customer retention in
voice communication. T-Mobile International is one of the world's leading mobile communications
providers, with more than 100 million customers in Europe and the United States.
Within the Business Customers area, Deutsche Telekom concentrates its business with
multinational corporate groups at T-Systems Enterprise Services, while T-Systems Business
Services is responsible for business with around 160,000 large and medium-sized companies
within Germany. The company operates the business operations in more than 50 countries.
Deutsche Telekom’s major competitors are BT, France Telecom and Vodafone.

DIVISIONAL ANALYSIS

T-Com
Deutsche Telekom’s unit, T-Com is one of the largest operators in the European fixed network
segment. T-Com’s products and services are widely used by residential and business customers. T-
Com provides end-to-end, integrated IT and telecom solutions to residential and business
customers with a wide range of products and services.

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T-Online
Deutsche Telekom’s unit, T-Online is one of the leading Internet service providers in Germany. T-
Online operates a combined business model within DT, such as e-commerce services; access
business and paid content; and advertising.

T-Mobile
Deutsche Telekom’s unit, T-Mobile operates a transatlantic GSM mobile communications network
and provides the standardized technical platform for a broad range of customers mainly in Austria,
Germany, the UK, the USA, The Netherlands and the Czech Republic. T-Mobile also invests in
Polish and Russian markets.

T-Systems
Deutsche Telekom’s unit, T-Systems provides information and communications technology (ICT)
solutions. T-Systems provides computing and the network and infrastructure that are required for
the needed customers. T-Systems, with 56,000 employees, handles operations in more than 20
countries. The company’s broad expertise in both fields makes the business customer division of
Deutsche Telekom a preferred partner for multinational corporations, small and medium-sized
businesses and public institutions. T-Systems is the only company to offer its own complete ICT
portfolio and to combine IT and communication technology to produce new solutions. The
company’s special expertise in providing integrated ICT solutions from a single source benefits
over 160,000 customers from every industry worldwide.
T-Systems is the largest IT services provider in Germany, and an international market leader for
desktop solutions, supporting more than 1.4 million desktops and over 870,000 active SAP users in
over 20 countries. The company holds 32 data centers worldwide, more than 50,000 m2 of hosting
space and 36,360 open systems servers.

SALES DATA
Annual Sales Comparison: 2004-2006 (In € billion)

Year Sales % Change


2006 61.3 2.85
2005 59.6 4.01
2004 57.3 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Domestic


and International (In € billion)

Region 2006 2005 % Change


Domestic 32.4 34.2 (5.26)
International 28.9 25.4 13.78
Total 61.3 59.6 2.85

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Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Mobile Communications,
Broadband/Fixed Network, Business Customers, Group Headquarters and Shared Services
(In € billion)

Segments 2006 2005 % Change


Mobile Communications 32.0 29.5 8.47
Broadband/Fixed Network 24.7 26.0 (5.00)
Business Customers 12.6 12.9 (2.33)
Group Headquarters and Shared Services 3.7 3.5 5.71
Reconciliation (11.7) (12.2) --
Total 61.3 59.6 2.85

Annual Sales Comparison by Geographic Region (2005 Vs. 2004) – Domestic


and International (In € billion)

Region 2005 2004 % Change


Domestic 34.2 34.7 (1.44)
International 25.4 22.6 12.39
Total 59.6 57.3 4.01

Annual Sales Comparison by Business Segment (2005 Vs. 2004) - Mobile Communications,
Broadband/Fixed Network, Business Customers, Group Headquarters and Shared Services
(In € billion)

Segments 2005 2004 % Change


Mobile Communications 29.5 26.5 11.32
Broadband/Fixed Network 26.0 27.0 (3.70)
Business Customers 12.9 13.0 (.77)
Group Headquarters and Shared Services 3.5 3.5 (.00)
Reconciliation (12.2) (12.7) (3.94)
Total 59.6 57.3 4.01

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…


Merger
Deutsche Telekom’s Unit, T-Systems Successfully Completes Gedas Integration
Deutsche Telekom’s business unit, T-Systems concluded integration of gedas AG, approximately
one year after taking over gedas AG. The complex project was completed on schedule while

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simultaneously creating numerous synergy effects. T-Systems reached an important milestone in its
international growth strategy with the successful completion of the integration project.
The successful integration of gedas AG enabled T-Systems to strengthen its position as one of the
leading service providers for information and communications technology (ICT). As a result, T-
Systems now able to offer unique expertise, especially to the automotive and manufacturing industries,
and to do so on an international scale. With over 50 international locations in 13 countries, gedas made
a significant contribution to T-Systems' international growth and to extending the company's
international reach. The integrated gedas areas form an important element of T-Systems’ new
Automotive Industry Line. The merger is accelerating the positive international growth of T-Systems.

Agreements
Deutsche Telekom’s T-Mobile Clinches Mobile TV Deal with SKY
Deutsche Telekom’s unit, T-Mobile launched its revamped Mobile TV service with the addition of
three Sky Mobile TV packages and 24/7 Football to provide customers with more choice than ever
before. The deal sees T-Mobile add live Barclays Premier League football, live premium news, a
music package and a range of entertainment channels to its existing portfolio of entertainment,
sports and news content. The agreement also brings 24/7 Football from Sky Sports, The Sun and
The News of World to T-Mobile customers providing Premiership goals and UEFA Champions
League highlight clips for download.

Contract
Deutsche Telekom’s T-Systems Receives Outsourcing Contract from Jet Aviation
Deutsche Telekom’s unit, T-Systems received an outsourcing contract from Jet Aviation, one of
the world’s leading business aviation companies based in Switzerland. As per contract, Jet
Aviation is outsourcing its global SAP systems to T-Systems. As a result, one million users now
utilize the SAP platform of the T-System.
With the signing of the contract, T-Systems assumes operations of Jet Aviation’s SAP
infrastructure in Europe, North and South America as well as the Middle and Far East. T-Systems
would provide the required computing power for all SAP applications for a term of five years. Jet
Aviation plans its entire company resources with SAP – from controlling, through procurement to
maintenance, repair and equipment of aircraft. In addition, T-Systems is responsible for the central
resource center for technical questions from Jet Aviation users.

Deutsche Telekom’s T-System Receives a Contract from Alphyra Group


Deutsche Telekom’s business unit, T-System received a contract from Alphyra Group. As per the
contract, the Irish-based Alphyra Group outsources the entire operation of its over 40,000 payment
terminals in Germany to T-Systems. The contract runs over a term of ten years and with a volume
of around 50 million euros and includes complete network infrastructure and data center services as
well as logistics services for the terminals. T-Systems would connect all of the terminals to the data
center in Magdeburg via a standardized network platform.
Alphyra is Europe's largest independent electronic payment network.

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Deutsche Telekom’s T-System Bags a Contract from Bosch
Deutsche Telekom’s business customer unit, T-System bagged a contract from Singapore-based
Bosch to connect over 200 sites in the Asia Pacific region through a high-performance network. T-
Systems would also provide ICT services on site from its local data centers. The contract runs five
years and is valued at 20 million euros.
The Bosch Group plans to provide all of its locations in the Asia Pacific region with IT services
from Singapore. The major ICT project would support Bosch's strong growth in the Asia Pacific
region. The set-up and operation of data centers and networks is part of T-Systems' core business.
Bosch is a leading worldwide supplier for automotive and industrial technology, consumer goods
and building technology.

Deutsche Telekom’s T-System Wins a Contract from Lufthansa…


Deutsche Telekom’s business unit, T-System won a contract from Lufthansa Systems to provide a
global wide area network (WAN) for Lufthansa Passage. The WAN would connect over 600 of the
airline's locations worldwide to Lufthansa Systems' central data center in Kelsterbach, Germany.
In the future, every Lufthansa check-in terminal and office would hold access to a fast MPLS
(Multiprotocol Label Switching) connection. To date, booking requests and flight reservations
typically must be navigated through the IP-based WAN across many individual stations. The
services to be provided by T-Systems are part of the global wide area network that set up by
Lufthansa Systems for the airline and aviation industry.
By operating the Lufthansa WAN, T-Systems would once again prove its expertise as a provider of
high-performance, globally linked ICT solutions.

Deutsche Telekom’s T-System Secures a Contract from Centrica plc…


Deutsche Telekom’s unit, T-System signed a ten-year IT outsourcing contract with Centrica plc
(Centrica). T-Systems assumes responsibility for part of Centrica’s IT infrastructure, including data
center operations and desktop support services for more than 23,000 users. As part of the deal, T-
Systems acquired two data centers and transferred over 230 positions from Centrica to T-Systems.
The new contract in the UK, Europe’s largest ICT market, marks a major milestone in the ICT
provider’s international growth strategy. The data centers that T-Systems acquired provide a strong
basis for the company’s future growth in the coveted British IT market.

Business Expansion

Deutsche Telekom Expands T-Systems…


Deutsche Telekom’s T-system confirmed its growth strategy outside of Germany by winning more
international contracts. T-Systems is developing new solutions and services for e-government in Spain.
In Austria, the ICT service provider is optimizing global customer networks, and in Switzerland, the
company successfully completed the largest technical project so far for the Graubündner Kantonalbank.
As one of the leading service providers of information and communications technology (ICT) in

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Europe, T-Systems announced plans to double its share of international revenue to 30 percent by 2010
and assume a leadership position in key Western European markets.
T-Systems is modifying the infrastructure and integrating systems to create innovative e-
government services in Barcelona.

Service Launch

Deutsche Telekom’s T-Mobile USA Launches "HotSpot @Home"


Deutsche Telekom’s T-Mobile launched T-Mobile HotSpot @Home, a Wi0Fi fixed mobile
convergence service. T-Mobile is the first nationwide wireless carrier in the US to launch the
revolutionary service to provide customers with unlimited nationwide calling, great coverage from
home, and the advantage of having only one phone.

Year 2006 in Review…

Partnerships

Deutsche Telekom Partners with Microsoft…


Deutsche Telekom partnered with Microsoft to form an alliance to deliver Internet Protocol
Television (IPTV) services to consumers across Germany. The partnership enables Deutsche
Telekom group to deliver next-generation television, complementary interactive services and a
range of entertainment products, over its VDSL broadband networks utilizing Microsoft TV®
IPTV Edition software platform.
The partnership enables customers to receive regular TV programmes as well as advanced
television services including standard and high-definition programs, special-interest channels,
interactive TV, digital video recording and video on demand.

Deutsche Telekom Enters into a Strategic Partnership with Lufthansa…


Deutsche Telekom and Deutsche Lufthansa AG entered into a strategic partnership in the interest
of their customers. The major focus of the partnership is to leverage products and services from
both Groups and consolidated companies more effectively for the benefit of their respective
customers. Under the partnership both the companies would focus on developing and compelling
offerings along the travel chain for their business customers.

Collaboration

Deutsche Telekom Teams up with Ben Gurion University …


Deutsche Telekom and Ben Gurion University joined forces to set up a joint research and
development institute in the Israeli town of Beer Sheva in the Negev Desert. The institute would be
an academic satellite of the Deutsche Telekom Laboratories based at Berlin's Technical University
would explore the practical aspects of Security in telecommunications.

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Product Launch

Deutsche Telekom Launches MDA Vario II


Deutsche Telekom’s unit, T-Mobile launched a super fast mobile hand-held. T-Mobile is the first
mobile communications operation in Europe to launch MDA Vario II, which supports HSPDA
alongside WiFi, GPRRS, EDGE and UMTS mobile broadband technologies. Vario II is available
in a smart exclusive design colored in anthracite, black and bordeaux. The compact high-
performance device is already in the shops in Germany and the United Kingdom and would be
available in Austria and the Netherlands in a few days time. The company also announced plans to
introduce the Vario II in Hungary and Slovakia.
With the MDA Vario II, T-Mobile offered its customers an all-rounder device for voice and data
communication in combination with its mobile broadband network simultaneously in several
important European markets.

SUBSIDIARIES
T-Mobile Deutschland GmbH (Germany)
T-Mobile USA
T-Mobile Holdings Ltd (UK)
T-Mobile Austria Holding GmbH, Austria
T-Mobile Netherlands Holding B.V. (The Netherlands)
T-Mobile Czech Republic a.s.
T-Systems Enterprise Services GmbH, Germany
T-Systems Business Services GmbH, Germany
T-Systems GEI GmbH, Germany
GMG Generalmietgesellschaft mbH, Germany
DeTeImmobilien, Deutsche Telekom Immobilien und Service GmbH, Germany
Magyar Telekom Telecommunications Public Limited Company, Hungary
Slovak Telekom, a.s., Slovakia
HT-Hrvatske telekomunikacije d.d., Croatia

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DIAMOND TRAFFIC PRODUCTS
76433 Alder Street, Post Box 1455,
Oakridge, Oregon 97463, USA
Phone: (541) 782-3903, Fax: (541) 782-2053

SOURCES: www.diamondtraffic.com and other secondary online sources

BUSINESS PROFILE
Diamond Traffic Products (Diamond Traffic) is a leading provider of hardware and software
solutions for vehicle traffic, remote trail usage, bicycle, and pedestrian traffic in the US and abroad.
The company offers exclusive range of vehicle traffic counters, and products for the traffic
measurement industry. The company provides end to end-to-end solutions for gathering and
reporting traffic data. The company also provides a range of supportive services for both hardware
(troubleshooting, data integrity and repairs) and software (installation notes and updates). The
company’s customers include the US States, Federal Government Agencies, Private Industry,
International Governments and Businesses.
The company was established in 1976.

PRODUCT ANALYSIS

Software

Centurion CC - Traffic Data Management Software For Windows®


Centurion-CC is latest traffic data management software that manages traffic data such as Per-
vehicle data (time, speed, axle, length), classification (binned), and count (volume).

Centurion Parks
Centurion Parks and Recreation software is specialized in volume/count data for the USFS and
park services. The Parks & Recreation software simplifies the normal data collection processes to
focus on data processing and reporting without the overhead of needless steps or waiting.

Chronos - Software for the Titan Intersection Counter


The company designed Chronos software for turning movement tracking and reporting. The
software restores and updates the predecessor software for the Titan turning movement board. The
software analyzes and print reports to keep informed of traffic flow and peak usage of intersections
and traffic types.

TrafMan - Traffic Data Management Software (DOS)


TrafMan is a complete software suite that offers great flexibility and features from counter remote
programming to custom reporting and data management. TrafMan includes all aspects of counter
communication.

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TT-Link/Remote - Telemetry and Autopolling Software (DOS)
TT-link provides users to remotely communicate through phone line to remote stations. TT-link in
combination with TrafMan could program and monitor ATR sites without traveling to the physical
location, provides complete control over data collection operation right from PC.

Centurion Lite (for Pocket PC)


Pocket PC software offers users the capacity to utilize a Pocket PC to download data from any
serial unit to move back to the office computer for easy transport without the hassle of bulky
hardware.

Telemetry/Auto Polling
TT-Link and Cent Lite (for Pocket PC)

Hardware

Phoenix
Phoenix is a multi-lane time interval counter/classifier designed for permanent installation or large
portable applications. The hardware includes the ability of 1 to 8 lanes count through axle sensors,
16 lanes count with loops, classification for 1-8 lanes of traffic with gap, headway and speed by
axle type studies. Phoenix could be programmed through a laptop, PC, TAM, by the counter
keyboard/display, or remotely with a modem.

Phoenix Rax
Phoenix Rax is a rack-mounted unit intended for permanent installation in a cabinet, functionality
and circuitry is similar as the standard Phoenix.

Unicorn
Unicorn is a lightweight, compact vehicle classifier/counter, classified up to two lanes of traffic
through road tube, piezo, and/or loop presence sensors.

Accessories
DTP also offers accessories such as Custom and Stock Cabinets, Concrete Pad Mount Cabinets,
Pole and Pedestal Mount Cabinets, Steel and Aluminum Poles and Pedestals, In-Pavement Security
Box; Cabinet Accessories (AC outlet and light, Terminals, Vents and Filters, Ventilation Fans,
Cabinet Door Latches, Lightning Surge Protection); Sensors; Counter Accessories (Road Tube,
Figure-Eight Cable Grip, Road Tube Grips, Concrete Nails, Road Tube Center Line Anchors,
Lock-SM Master Lock, Moisture Indicator Cards, Desiccant Packs and Test Equipment).

Remote/Data Retrieval
Cascade Low Power Data Modem (CDM) for extreme temperatures; TT-Link/Remote Telemetry
software; and Data Hog Field Data Collector

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DIGITAL TRAFFIC SYSTEMS, INC.
3813 Academy Parkway South NE, Albuquerque, New Mexico 87109, USA
Phone: 505-881-4470

SOURCES: www.dtsits.com and other secondary online sources

BUSINESS PROFILE
Digital Traffic Systems Inc., (DTS) is involved in designing, integrating, installing, operating and
maintaining a complete traffic monitoring systems such as sensors, data collection devices, display
and telecommunication technologies for the surface transportation industry. The company offers a
full range of sensors, surveillance and display products and life cycle services for the collection and
use of accurate traffic data. The company provides real-time digital traffic information to Media
(Radio & TV), Internet Service Providers, Wireless Service Providers (cell phones and palm tops),
and In-Vehicle Navigational Units (IVU). The company supplies products to wholesalers,
electronic markets, wholesale trade agents and brokers.
DTS announced the release of TigreEye — Advanced Video Image Processing (AVIP) software
that transforms a standard video camera into an automated intelligent data collection system for
surface transportation.
The company was established in 1999.

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DMJM HARRIS – AECOM
605 Third Avenue, New York 10158, USA
Phone: 212 973 2900

SOURCES: www.dmjmharris.com and other secondary online sources

BUSINESS PROFILE
DMJM Harris – Aecom (DMJM Harris), a subsidiary of AECOM Technology Corp., is the
transportation flagship company specializing in transit and rail, highways and bridges, marine,
airports, energy and power, planning, program management and construction management, and
design-construct services. The company is a global market leader in the transportation and
infrastructure industry. The company develops state-of-the-art computer models for analyzing the
stability of dams and elevated structures. DMJM Harris provides a wide range of cost-effective
solutions for transportation problems. The company’s subsidiaries include DMJM Harris Planning
and AECOM Consult.

BUSINESS OPERATIONS

DMJM Harris Projects


DMJM Harris Projects division is involved in the implementation of many of the country's largest
and most complex design-build projects. The division provides a wide range of engineering
services for major design-build transportation infrastructure projects.

DMJM Harris Planning


DMJM Harris Planning is a global market leader in providing project planning, implementation,
management, and construction management (PM/CM) services.

AECOM Consult
AECOM Consult is a leader in analytical planning support for multimode urban corridor
transportation projects with highway, transit and technology-based solutions. AECOM Consult
specializes in technical, financial, and policy analyses to support a wide range of transportation
programs. The company provides a wide range of services such as forecasting, OandM Costing,
Financial Capacity Analysis, and Economic Impacts Analysis.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 Review

Acquisitions
DMJM Harris Acquires Egis-Semaly Inc.
DMJM Harris acquired Egis-Semaly Inc., Semaly SA, a French-based engineering firm. Egis-
Semaly’s employees joined DMJM Harris and continue to provide services and available to all its

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existing clients and projects. Following the acquisition, Egis-Semaly would be integrated with
DMJM Harris. Integration of the two corporations would be completed by January 2007.

DMJM Harris Acquires Korve Engineering, Inc.


DMJM Harris acquired Korve Engineering Inc., a civil engineering and planning firm. All of
Korve Engineering’s employees joined DMJM Harris and would continue to provide the same
level of excellent service to all of its existing clients and projects.

SERVICE PORTFOLIO

Highway/Bridge Services
Planning and environmental services; full design services; construction management and
inspection; program management; project delivery and finance; its and toll facilities; and security
and safety services.

Highways and Bridges


Transportation planning, design, construction management, traffic control, rehabilitation and retrofit,
construction engineering and inspection, and construction consulting and value engineering services.

Transit and Rail


Planning and program management, environmental analysis, financial planning, designing
(stations, facilities, parking, right-of-way, and track), signals and communications construction
management, bridge demolitions and erections over railroads, and evaluation of facilities.

Marine
Planning, Coastal Engineering, Dredging and Reclamation, Economic Evaluations, Port and
Harbor Engineering, Off Shore Structures, and Program and Construction Management services.

Energy
Strategic planning, energy analysis, energy-related building technologies, project delivery,
feasibility studies, operations and maintenance, EPCM (engineering, procurement, construction
management), design/build, cost estimating, and indoor air quality assessment services.

Energy and Power Services


Energy Conservation, Energy Program Management, Energy Savings Performance Contracting,
DSM Program Implementation, Outsourcing, Energy Infrastructure, Central
Plant/Cogeneration/CHP, Campus Utilities Infrastructure, Distributed Generation, Power
Generation, Transmission and Distribution, Energy Supply/Risk Management, Energy Information
Management, Commodity Procurement, Rate Analysis and Negotiation, Energy
Benchmarking/Tracking, Professional Services, Energy Auditing, Engineering/Architecture,
PM/CM, and Operations and Maintenance services.

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The company’s other services include structural engineering services for a replacement of the
Allen Street Bridge; construction management and inspection services; contract administration;
resident engineering/inspection; materials testing; survey control; seismic monitoring of
construction activities to avoid damage to adjacent structures; utility coordination prior to
construction; Regional, Statewide, and Community Transportation Planning; multimodal Corridor
Planning and Alternatives Analysis; Transportation Facilities Programming and Design;
Comprehensive Land Use and Community Planning; Strategic and Implementation Planning; New
Starts Project Planning; Context Sensitive Design; Station Area Planning and Transit Oriented
Development; Community Impact Assessment; Environmental Stewardship and Streamlining
Services; National Environmental Policy Act Process Management and Documentation;
Environmental Permitting and Mitigation Monitoring Public Involvement and Agency
Coordination; Geographic Information Systems; Financial Analyses; Training Programs and Policy
Development; and Cultural Resource Services; Strategic project delivery and procurement
strategies; Innovative financing and funding; Risk management plan implementation;
Program/project sequencing and planning; Program/project master schedule development;
Program/project master budget development and control; Configuration control; Value
engineering; Change and dispute avoidance and resolution; Comprehensive safety and health
programs; Certified quality programs and methods; Establishment of web-based program
management control systems; Operational readiness assessments; and PM/CM training services.

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DRI CORPORATION
5949 Sherry Lane, Suite 1050, Dallas, Texas 75225, USA
Phone: (214) 378-8992, Fax: (214) 378-8437

SOURCES: www.digrec.com and other secondary online sources


2007 Sales: US$ 12.17 million (Q1)
2006 Sales: US$ 51.34 million
2005 Sales: US$ 45.34 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
DRI Corporation (DRI) formerly Digital Recorders Inc., is a leading provider of transportation, law
enforcement and security digital communications systems for vehicle makers, transit operators, and
state and local governments. The company designs automatic voice announcement systems, and
electronic destination signs for mass transit systems. DRI’s major product line includes Talking
Bus® voice announcement systems, TwinVision® and Mobitec® electronic destination sign
systems, Digital Recorders® Internet-based passenger information and automatic vehicle location /
monitoring systems, and VacTell™ video actionable intelligence systems. The company’s Talking
Bus announcement systems broadcast stops and transfer information for buses, subways, and
trains. The company mainly operates through two major segments namely Transportation
Communications, and Law Enforcement and Surveillance Communications.
DRI also manufactures electronic destination signs that display transit information for buses, and
recorders for law enforcement agencies. The company, through its subsidiaries Digital Recorders,
TwinVision NA Inc., and RTI Inc., supplies TwinVision® electronic destination sign systems,
Talking Bus® voice announcement systems, Digital Recorders® Internet-based passenger
information and automatic vehicle location/monitoring systems, and VacTell™ video actionable
intelligence systems across the country. The company’s subsidiaries Mobitec AB, Mobitec GmbH,
Mobitec Brasil Ltda., and Mobitec Pty Ltd., supplies Mobitec® electronic destination sign systems
to international markets. The company’s major competitors are Mark IV, Orbital Sciences, and
Siemens AG. In 2007, the company sold its Digital Audio Corporation (DAC) subsidiary.
DRI was established in 1983, and adopted the present name in 2007.

BUSINESS OPERATIONS
Transportation Communications
The Transportation Communications segment produces automated voice announcement systems,
automated vehicle location systems, security products, and electronic destination sign products for
municipalities, regional transportation districts, departments of transportation, and bus vehicle
manufacturers. The segment offers an excellent array of products such as route destination signage
systems, route voice announcement systems, and Internet-based automatic vehicle monitoring
systems for passenger information communication industry and market.

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The segment markets its products under Talking Bus®, VacTellTM and TwinVision® brands across
the US and Canada. The segment also markets the Mobitec® brand products in Sweden, Norway,
Denmark, and Finland, Germany, France, Poland, the UK, Spain, Greece, and Hungary as well as in
South America and the Asia-Pacific and Middle-East. The segment’s major customers include
municipalities, regional transportation districts, state and local departments of transportation, transit
agencies, and rental car agencies as well as the manufacturers of transportation vehicles.

Law Enforcement and Surveillance Communications


DRI’s Law Enforcement and Surveillance segment produces digital signal processing products for
law enforcement agencies and intelligence gathering organizations. The segment manufactures tape
transcribers used to improve the quality and intelligibility of both live and recorded voices. The
segment offers a wide range of products including electronic surveillance products such as
microphone amplifiers and processors, countermeasures devices, speech activity detectors, radio
and television noise cancellers, and others. The segment offers law enforcement and surveillance
products domestically and internationally to law enforcement entities and other customers.

SALES DATA
First Quarter Sales Comparison: 2007 Vs. 2006 (In US$ million)

Year Sales % Change


2007 12.17 9.54
2006 11.11 -

First Quarter Sales Comparison by Geographic Region (2007 Vs. 2006) – North America,
Europe, Asia Pacific, Middle East, and South America (In US$ million)

Region 2007 2006 % Change


North America 6.12 6.26 (2.24)
Europe 3.63 2.52 44.05
Asia-Pacific 1.09 1.03 5.83
Middle-East 0.29 0.42 (30.95)
South America 1.04 0.88 18.18
Total 12.17 11.11 9.54

First Quarter Sales Comparison by Business Segment (2007 Vs. 2006) - Transportation
Communications, Law Enforcement and Surveillance (In US$ million)

Segment 2007 2006 % Change


Transportation Communications 12.00 10.75 11.63
Law Enforcement and Surveillance 0.17 0.36 (52.78)
Total 12.17 11.11 9.54

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Annual Sales Comparison: 2006 Vs. 2005
(In US$ million)

Year Sales % Change


2006 51.34 13.23
2005 45.34 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Quarter 2006 2005 % Change


Q4 13.57 11.16 21.59
Q3 13.1 10.89 20.29
Q2 13.56 12.66 7.11
Q1 11.11 10.63 4.52
Total 51.34 45.34 13.23

Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Transportation


Communications, Law Enforcement and Surveillance (In US$ million)

Segment 2006 2005 % Change


Transportation Communications 49.16 43.09 14.09
Law Enforcement and Surveillance 2.18 2.25 (3.11)
Total 51.34 45.34 13.23

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – North America,
Europe, Asia Pacific, Middle East, and South America (In US$ million)

Region 2006 2005 % Change


North America 25.44 23.4 8.72
Europe 15.43 12.27 25.75
Asia-Pacific 4.02 3.04 32.24
Middle-East 1.62 0.68 138.24
South America 4.83 5.95 (18.82)
Total 51.34 45.34 13.23

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STRATEGIC CORPORATE DEVELOPMENTS
Year 2008 (1st Half) in Review…
Contract
DRI Bags Order from WestCAT
DRI, through the subsidiary Digital Recorders Inc. (DR), obtained an order worth US$0.55 million
from the California based Western Contra Costa Transit Authority (WestCAT) for the supply of
intelligent transportation systems. As per the agreement, DR produces and delivers Digital
Recorders® automatic vehicle location system, Talking Bus® automatic voice annunciation system
and Otvia® software to WestCAT.

Year 2007 in Review…


Joint Venture
DRI Enters into a Joint Venture with Cast Master…
Mobitec AB (Mobitec), a subsidiary of DRI, entered into a 51% joint venture agreement with Cast
Master Enterprise Private Ltd., (Cast Master) to establish Cast Master Mobitec India Private
Limited (Cast Master-Mobitec). The new joint venture would produce, market, and service
Mobitec® electronic destination sign systems for India’s transit market and selected other markets.
Cast Master supplies aluminum, zinc, and copper die cast and other automotive products to original
equipment manufacturers in the Indian automotive sector.

Orders
DRI Receives an Order for Mobitec® Electronic Destination Sign Systems…
Mobitec Brazil Ltda., a joint venture of DRI’s Swedish subsidiary Mobitec AB (Mobitec),
received an order for Mobitec® electronic destination sign systems. Mobitec supplies
electronic destination sign systems in the Nordic markets. As per the Columbia order,
Mobitec’s electronic destination sign systems would be installed on new MarcoPolo transit
buses. DRI’s Mobitec subsidiary also received an order to supply Mobitec® electronic
destination sign systems in Sweden.

DRI Receives an Order from CDTA…


TwinVision NA Inc., (TVna) a subsidiary DRI, received $500,000 order from the Capital District
Transit Authority (CDTA) in Albany, New York. TVna would offer TwinVision® amber all-LED
electronic destination sign system, a solid-state, technologically innovative product for the CDTA’s
bus vehicle fleet.

DRI Receives an Order for Electronic Destination Sign Systems in Israel…


Mobitec GmbH, a business unit of DRI, received an order for Mobitec® electronic destination sign
systems to utilize on bus vehicles in Israel. As per the deal, Mobitec would deliver and install

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electronic destination sign systems on new bus vehicles at original equipment manufacturers’
factories in the Middle East.

DRI Receives Orders for Multi-Color Electronic Destination Sign Systems…


TwinVision NA Inc., (TVna) a subsidiary of DRI, received more than $900,000 orders for
electronic destination sign systems. As per the deal, TVna would provide TwinVision®
multi-color electronic destination sign systems for California. TVna designs, manufactures,
markets, and services TwinVision® electronic destination sign systems for public transit
vehicles.

DRI Receives an Order from ÖBB (Austrian Postbus)…


Mobitec GmbH, a business unit of DRI, received $840,000 order for Mobitec® electronic
destination sign systems from ÖBB (Austrian Postbus) of Austria. Aas per the deal, Mobitec would
offer electronic destination sign systems for bus vehicle manufacturers in Germany and Turkey.

Divestiture

DRI Divests Digital Audio Corporation…


DRI divested Digital Audio Corporation (DAC) subsidiary in Durham, North Carolina to Dolphin
Direct Equity Partners LP, a private investment firm and an affiliate of Dolphin Offshore Partners
LP. DAC business unit is a leading provider of forensic audio solutions for law enforcement,
intelligence, military, and security organizations across the world. DAC designs, develops,
manufactures and markets audio technologies to support audio collection, enhancement, and
countermeasures applications.
Year 2006 in Review…
Agreement
DRI Enters into an Agreement with Laurus…
DRI entered into an agreement with US based, Laurus Master Fund Ltd., (Laurus) for gaining
million-term note for general corporate applications. The agreement enables DRI to become a key
player in executing strategic and operating plans. Laurus is a financial institution involved in
making of direct investments in the US.

Contract
DRI Enters into a Contract with JTA…
DRI’s transportation division entered into $1.0 million contract for transporting vehicle location
and talking bus® voice announcement systems for the operators of paratransit bus fleet of the
Jacksonville Transportation Authority (JTA). The contract enables JTA to widen its fleet location
and performance worldwide. JTA’s vehicle location is suitable for various applications such as
passenger information systems, security systems, and other equipment. DRI’s talking bus AVAS
systems is an effective and reliable way to communicate with on-board passengers.

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JTA is a designer and constructor of bridges and highways and provides varied mass transit
services including express and regular bus service, the trolley service, and other services.

Order

Mobitec Receives Orders for Electronic Destination Sign Systems…


Mobitec AB (Mobitec), a Swedish subsidiary of DRI, received $1.5 million order for Mobitec®
electronic destination sign systems. As per the deal, Mobitec would install electronic destination
sign systems on new bus vehicles of DeLijn in Belgium. Mobitec also received another $230,000
order from Manufacturing Commercial Vehicles (MCV), an original equipment manufacturer in
Egypt. Mobitec would provide its electronic destination sign systems for installation on bus
vehicles in Kuwait.

Proposed Product Launch

DRI to Introduce New E Ink® Display Systems…


DRI along with Vossloh Information Technologies Karlsfeld GmbH (Vossloh IT) of Germany
plans to introduce new electronic ink (E Ink®) display systems to the U.S. transit market. DRI
would market E ink® display systems through its TwinVision NA Inc., (TVna) business unit in
North Carolina.

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DYNA GROUP SA
Freire 4801, Buenos Aires (1429), Argentina
Phone: (5411) 4546-3141/0

SOURCES: www.dynagroup.com.ar and other secondary online sources

BUSINESS PROFILE
Dyna Group SA (Dyna) designs and manufactures Toll Collection Systems, Illuminated Signals
with LEDs, Industrial Automation with PLCs, Access and Parking Control, Information Processing
Systems and Electromechanical Barriers. The company is involved in providing a diverse range of
such as development of electronic controllers based on DSP, PLC microprocessors; maintenance of
Toll Systems and Access Controls; repair lab for PLC and all sorts of electronic controllers;
technical assistance and assessment on Automation Systems used in the industry; maintenance of
electronic and computer systems used in the industry; and software development.
Dyna specializes in automation and industrial instrumentation projects, including electronic and
electromechanical circuits design as well as the Hardware and Software know-how of the
components required by such systems. In 2006, Dyna in association with IPICO Inc. of Canada
unveiled the passive Radio Frequency Identification (RFID) system designed on the IP-X™
technology of IPICO, for electronic toll collection in South America. Passive and active RFID
systems are used in open lane tolling, for reduction in traffic congestion, restricting excessive
speeding, and combating crime.

PRODUCT PORTFOLIO

Toll Collection
Hardware and Software

Lane Collection Hardware


Multifunction Panel, Video Camera, Gates, Metal Mass Detector, Toll Traffic Lights and Blinker

Luminous Signals
LED Lamps for Traffic Lights, Intelligent Traffic Lights, Traffic Signals and Panels for Variable Messages

Access Control

Vehicles and Pedestrians


Gates, Turnstiles, Card Scanners and Vehicle detectors

Industrial Control
Automation
Programmable controllers, Microcontrollers, Integration to the management computer systems and
Electrical test Equipment

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
ECONOLITE CONTROL PRODUCTS, INC.
3360 E. La Palma Avenue, Anaheim, California 92806-2856, USA
Phone: 714-630-3700, Fax: 714-630-6349

SOURCES: www.econolite.com and other secondary online sources

BUSINESS PROFILE
Econolite Control Products Inc., (Econolite) is a leading transportation solution provider and
manufacturer of advanced traffic controllers (NEMA & ATC/2070), Aries®, icons®, and
PYRAMIDS™ traffic management systems, Autoscope® - video vehicle detection systems,
vehicle and pedestrian signals, and Intelligent Intersection™ technology. The company is also
supplier of traffic control equipment. The company’s core product line includes actuated and
pretimed controllers, distributed/closed loop traffic control systems, arterial masters, advanced
traffic management systems, traffic control cabinets, traffic signal display equipment, wide area
video vehicle detection systems, wireless communications, DCMS (Telematics), and lane
delineation. The company provides a diverse range of services including traffic engineering,
planning, and analysis, systems integration and test needs analysis, functional and environmental
testing, data collection management service and maintenance services.
The company owns more than 50,000 wide-area video vehicle detection systems at intersections
and on freeways. Econolite also provides custom hardware and software development services for
specific requirements. The company’s top competitors include Brady, Image Sensing Systems, and
Quixote.
Econolite was established in 1933.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) In Review…

Product Launch

Econolite Introduces Autoscope ® Terra™


Econolite introduced Autoscope ® Terra™, a new generation of advanced and easy-to-use
Autoscope. The Autoscope family of products empowers transportation professionals to reduce
congestion, improve traffic flow, and promote safety for intersections, highways, bridges and
tunnels worldwide.

Year 2006 in Review…

Partnerships

Econolite Join Hands with PTV America, Inc…


Econolite entered into partnership with PTV America, Inc., a multi-disciplinary transportation
software and consulting firm, to design a product package of faster-than-real-time mobility

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simulation software, PTV Vision ® suite (VISSIM). ASC/3 SIL (Software-In-the-Loop),
developed by Econolite, is an enhanced version of the ASC/3 software.
VISSIM is the most powerful tool available for simulating multi-modal traffic flows, including
cars, trucks, buses, heavy rail, trams, LRT, bicyclists, and pedestrians.

Econolite Enters into Partnership with Safetran Traffic Systems, Inc…


Econolite entered into partnership with Safetran Traffic Systems Inc., to develop new traffic
control product lines. The partnership enables both the companies to strengthen their software and
hardware product suites, accelerate innovation, increase the value proposition to customer base,
and add long-term value to meet the needs of customers.

Product Launch

Econolite Installs Video Detection Device…


Econolite installed Autoscope Solo® Pro video vehicle detection system that senses traffic waiting
to pass the junction and at the same time gathers travel data volume, occupancy and speed per lane.

PRODUCT PORTFOLIO
Controllers
Controllers range include ASC/3, ASC/2S, ASC/2M, 2070 Controller, ASC/2070 Controller
Software, and OASIS™.

Systems
The company offers systems such as Icons®, Aries®, TransLink 32™, and Pyramids™.

Autoscope
Autoscope products include Solo Pro II, AIS Color, Communications Panel, Mini Hub II, Mini
Hub TS2, 2020, and Rack Vision.

DCMS
Vehicle Signals
Econolite offers vehicle signals such as 8-Inch Aluminum, 12-Inch Aluminum, 8-Inch
Polycarbonate, and 12-Inch Polycarbonate.

Pedestrian Signals
Pedestrian Signals include 12-Inch pedestrian Signal

Cabinets
The company offers cabinets such as NEMA TS2, Traffic Control Cabinets – Aluminum, Plug-N-
Go Cabinet, Model EIC Cabinet, and Plug-N-Go Specifications

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OEM
OEM includes Wireless, Smart Stud, Smart Stud 24V Power Supply, 110V Power Supply, Solar
Power System, Smart Pedestrian, Smart Button, Smart Sign, Tut's XL1010i, and UPS

Accessories
Accessories include 56K Modem, BIU-64, PS-2412 Cabinet Power Supply, and MMU.

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EFKON AG
Andritzer Reichsstraße 66, 8045 Graz - Andritz, Austria
Phone: +43 (0) 316 69 56 75, Fax: +43 (0) 316 69 56 75-9

SOURCES: www.efkon.com and other secondary online sources

BUSINESS PROFILE
Efkon AG (Efkon) is a leader in intelligent transportation systems, electronic payment applications,
vehicle-to-vehicle and vehicle-to-roadside communication solutions. The company is also a leader
in offering fully automatic electronic toll systems based on active bi-directional high- speed
communication (ISO CALM standard) and a major supplier of solutions for contact less smart card
payment systems in connection with ETC On Board Units (Two piece Tag). Efkon is accredited
with ISO 9001:2000 certification.
Efkon was established in 1994.

BUSINESS OPERATIONS

ITS Payment Systems


ITS Payment Systems provides multi application ITS clearinghouse turn key solution/end to end
solutions.

Center Communication Systems GmbH


Center Communication Systems GmbH provides sophisticated radio communications for
critical applications. The unit provides TETRA, GSM-R, Command/Control Center for public
safety: police rescue, fire brigade and sophisticated tunnel traffic management and
communications.

Tollink SA Pty., Ltd.


Tollink SA Pty. Ltd., specializes in offering plaza based toll turn key systems.

EFKON Mobility GmbH


EFKON Mobility GmbH offers SAT-Tolling, Digital Tachograph, and Special Fleetmanagement
solutions.

Transport, Traffic Telematics


The company’s Transport, Traffic Telematics unit is comprised of 7 business lines: Toll and ETC
Systems, Operations (Toll, WIM, Red Light/Speed), Traffic Telematics, Traffic Law Enforcement
Systems (Red light and speed violations, WIM), AFC-Automated Fee Collection System, Parking
and Access, and Traffic Management.

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STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreement

Efkon and Swarco Holding AG Sign Strategic Cooperation Agreement…


Efkon and the Tyrolean Traffic-Technology Group, Swarco Holding AG (Swarco) signed a
strategic cooperation agreement, whereby Efkon and Swarco would appoint each other’s preferred
partners integrating their know-how. The agreement intends to intensify the information flow
between both corporations and also enable the formation of joint consortia.

Contracts/Orders

Efkon Receives a Contract From IRAT/TERAS Sdn Bhd…


Efkon ASIA, a part of Efkon received a contract from IRAT/TERAS Sdn Bhd for the delivery of
100 High Speed Infrared Lanes for Free Flow Electronic Toll Collection. The contract represents
an extension of current deployed more than 200 Smartag Free Flow Electronic Toll Collection
Lanes.

Efkon Wins an Order From Asfinag…


Efkon won an order from Asfinag to supply up to 500,000 new generation Go Boxes for the
Austrian ETC System. The new Go Boxes would enable broad interoperability in European Toll
Systems.

Year 2006 in Review…

Partnership

Efkon Enters into an OEM Agreement with Sirit Inc for New Toll Products…
Efkon USA, a part of Efkon and Sirit entered into a partnership agreement with respect to toll
technologies. As per this partnership agreement, the 21-based toll tag technology of Sirit would be
utilized by Efkon USA for its latest toll products, which were manufactured by including many
other relevant technologies. The 21-based toll tag would be used as a platform for effective
functioning of these technologies. The agreement also conferred selling rights on Efkon USA, with
respect to some products of Sirit.

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EFKON AG’S SUBSIDIARY

EFKON USA
1401 Elm Street, Suite 3480, Dallas, Texas 75202, USA
Phone: 214-453-4500, Fax: 214-257-0432

SOURCES: www.efkonusa.com and other secondary online sources

BUSINESS PROFILE
Efkon USA, a subsidiary of Efkon AG, is a global leader in intelligent transportation systems and advanced vehicle
communications. The company designs and integrates intelligent transportation systems and vehicle communications
technology. The company provides Dedicated Short Range Communications (DSRC) solutions for smart card electronic toll
collection payment and enforcement systems; and products for vehicle-to-roadside data communications for electronic toll
collection, vehicle and driver identification, traffic separation, and central clearing house operations. Efkon USA is a single
source provider with services ranging from concept and design to engineering, manufacturing and implementation.
The company’s systems address facets of transportation management, including electronic tolling; mobile enforcement;
electronic payment systems with multi-faceted (contactless) smart card operations and simplified central clearing
operations; fleet management with technologies from RFID, Infrared, Microwave, GPS, GSM and Satellite. The
company provides highly customized ITS and AVC solutions designed to solve various challenges of transportation
managment and streamline traffic flow. Efkon USA owns and manages a large international installed base of integrated
systems in the US, Europe, Asia and Africa. The company’s products are marketed under the brand names of
Sherlok™, and ArgusVES™. The company markets its products in the US, Europe, Asia and Africa.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 Review

Partnership

Efkon USA Partners with Sirit, Inc…


Efkon USA and Sirit entered into a partnership agreement with respect to toll technologies. As per this partnership
agreement, the 21-based toll tag technology of Sirit would be utilized by Efkon USA for its latest toll products, which
were manufactured by including many other relevant technologies. The 21-based toll tag would be used as a platform
for effective functioning of these technologies. The agreement also conferred selling rights on Efkon USA, with respect
to some products of Sirit.
New Establishment
Efkon USA forms Subsidiary in South America…
Efkon USA established a wholly owned subsidiary in Bogotá, Colombia. The new company, Efkon Colombia Ltda
represents the expansion of Efkon USA to support the growth in the Americas and its commitment to developing the market
in Central and South America. The newly opened office would operate as a hub for the Latin American countries.

Divestiture

Efkon USA Completes SHERLOK™ sale to Affiliated Computer Services, Inc…


Efkon USA sold SHERLOK™ laser classification units to Affiliated Computer Services, Inc. (ACS) for vehicle
classification, height indication, and vehicle separation functions for their toll facilities operations in the North East corridor
of the United States. The SHERLOK™ system is a complete Automatic Vehicle Classification solution for tolling systems.

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PRODUCT ANALYSIS

Traffic Management Systems


Traffic Management Systems (TMS) include violation enforcement and processing solutions, vehicle classification,
and counting for traffic flow auditing and analysis. Traffic management systems quickly and accurately map incidents
and profile traffic, allowing authorities to monitor and analyze traffic flow for more effective planning, administration
and operation of road systems.

Electronic Payment Systems


Electronic Payment Systems include contact less smart cards, which are used for multiple applications including toll
and non-toll applications, that coupled with simplified central clearing house operations. Efkon electronic payment
systems (EPS) provides software solutions and transaction means for non-toll applications such as transit, rail, taxi and
parking with a central clearing house to link all user accounts.

Electronic Toll Collection


Electronic Toll Collection solutions focus on toll facilities and provide both lane equipment and backend software.
Electronic toll collection solutions provides both lane equipment and backend software ITS focusing on toll facilities,
traffic management and violation enforcement systems. The company’s electronic toll collection product line includes
laser vehicle classification sensors, high resolution cameras with optical character recognition and image acquisition
processing, which are versatile for use in both toll and traffic management environments.

Telematics
Telematics provides bi-directional communication for vehicle-to-vehicle and vehicle-to-roadside communication and
fleet management. Efkon USA’s telematics are offered for increased safety and efficient management of road systems
using bi-directional communication devices. The company’s radio communications systems solutions enhance
performance for public transportation, emergency services and security applications.

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ELECTRONIC TRANSACTIONS CONSULTANTS CORPORATION
1705 N. Plano Road, Richardson, Texas 75081, USA
Phone: (214) 615-2302, Fax: (214) 615-5001

SOURCES: www.etcc.com and other secondary online sources

BUSINESS PROFILE
Electronic Transactions Consultants Corp., (ETC Corp) is a leading toll collection solutions and
services provider that delivers empowering electronic toll collection solutions through systems
integration, consulting, maintenance, and operations services. The company provides browser-
based toll solution suite, known as RITE® Solution, which is a web-based platform eliminates the
difficulties associated with a typical Client/Server application deployment. The RITE Solution
application suite is the most advanced and user-friendly toll revenue collection system in the
industry. ETC Corp provides various services including customized systems design and
integration, customer service operations and technical outsourcing, maintenance operations, and
consulting. The company’s customers include North Texas Tollway Authority (NTTA); Harris
County Toll Road Authority (HCTRA); Illinois State Toll Highway Authority (ISTHA); Texas
Turnpike Authority (TTA); and Division of the Texas Department of Transportation (TxDOT).
In 2006, ETC Corp and Mark IV Industries entered into a partnership agreement for installing
Open Road Tolling (ORT) at 20 mainline plazas of Illinois Tollway and offering 85 ORT lanes.

SERVICE ANALYSIS

Systems Integration
ETC Corp organizes, schedules, and integrates all the individual elements of a project including
complete program analysis and design, management, execution, testing, and reporting throughout
the project life cycle.

Operations

ETC Corp is a premier provider of customer service center and technical services operations and
staff.

Maintenance
ETC Corp provides both onsite and remote maintenance services and onsite and field operations by
responsible, technically qualified personnel. The company’s Staff services are supported by an
integrated maintenance online management system (MOMS).

Consulting
ETC Corp offers consulting services including the planning, design, and supervision of electronic
toll collection projects.

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ERG GROUP
247 Balcatta Road, Balcatta, Western Australia 6021, Australia
Phone: + 61 8 9273 1100, Fax: + 61 8 9273 1208

SOURCES: www.erggroup.com and other secondary online sources


2006 Sales: A$ 187.37 million
2005 Sales: A$ 227.46 million
(Fiscal Year Ends in June)

BUSINESS PROFILE
ERG Group (ERG) is a world leader in the development and supply of integrated fare management
and software systems for the transit industry, and for its smart card systems and service. The
company designs and supplies a wide range of hardware, and software products used on buses,
trams, ferries, and station platforms for processing contactless smart cards. The company’s product
line includes CP5000 card processor, DC5000 driver console, gate adaption kit, MPR multi
processor, P4000 portable, TP5000 ticket processor, AVM2000 ticket vending machine, and
V3000 validator. ERG offers a complete range of products including cards, devices, AFC, and
clearing applications. The company’s systems support more than 20 million smart cards in
circulation and handle about 5 billion transactions per annum. ERG operates through various
segments namely automated fare collection and smart card systems. The company provides multi-
application smart card solution to manage a large smart card database, financial reconciliation, and
gathering management data for transit and other card applications.
ERG’s hardware products include driver consoles, on-board smart card processors, hand held card
readers, gate adaption kits, platform smart card processors, smart card office terminals, and add
value machines. The company installs systems in major cities such as Hong Kong, Melbourne,
Rome, San Francisco, Singapore, Gothenburg, Seattle, Stockholm, Sydney, and Washington DC.
ERG operates a wide range of networks in 11 countries throughout the world. The company
provides services such as smart card system design, integration expertise, and project management
services for various smart card projects. The company installed systems in major cities throughout
the world including Hong Kong, Melbourne, Rome, San Francisco and Singapore.
ERG was established in 1984 as Energy Research Group Australia Ltd.

BUSINESS OPERATIONS

Automated Fare Collection


ERG is a world’s leading provider of automated fare collection products and systems for all modes
of transport using various ticket technologies such as paper, magnetic stripe and contact less, and
dual interface (contact / contactless) smart cards. The company provides fully integrated systems
for transit operators including from backend processing to depot computer software, to on-vehicle
or on-station equipment.

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Smart Card Systems
ERG’s smart card systems provides smart card systems and solutions that include membership
programs, loyalty schemes, security access, biometric data, and social security information as well
as electronic purse functions including retail, public transport ticketing, telephone, road tolling,
vending, and parking. The company provides smart card system design, integration expertise and
project management services for all types of smart card projects.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005


(In A$ million)

Year Sales % Change


2006 187.37 (17.63)
2005 227.46 -

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 in Review…

Collaborations

ERG Enters into Collaboration with Stagecoach…


ERG’s subsidiary ERG Transit Systems (UK) Ltd., entered into collaboration with Stagecoach.
The collaboration enables Stagecoach to supply ERG’s ITSO conditionally certified fare collection
solution for Stagecoachbus operations taking part in the Scottish National Concessionary Travel
Scheme.

ERG Enters into Collaboration with UTA…


ERG entered into collaboration with Utah Transit Authority (UTA) to supply the US first
contactless credit card bus payment solution. The collaboration enables to develop and deploy
UTA’s existing on-board equipment and ERG’s software and hardware.

Contract

ERG Sings Contract with Smartcard Solutions Corp…


ERG signed a contract with First Versatile Smartcard Solutions Corp., a private investor in public
transport and cashless payments, to supply a smart card based payment system in Manila,
Philippines. The project includes the issuance of 500,000 smartcards for cashless purchases in the
city of Manila, followed by a transit application for use on public transport in the greater Manila
Region.

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Under the contract, ERG would be installing equipment on board 1627 buses, which in addition to
validating electronic tickets and reading smart cards, would also locate the vehicles and
communicate in real time through GPRS to the CoTral Operations Centre.

PRODUCT ANALYSIS
CP5000 Card Processor
CP5000 card processor is a high performance smart card reader / writer, which is used to process a
wide variety of card types such as stored value, period, and multi-trip passes. The CP5000 card
processor interfaces with devices such as vehicle location systems, automatic vehicle management
systems, and portable hand held inspection devices, laptop computers, and other legacy equipment.

DC5000 Driver Console


DC5000 driver console provides a flexible platform for transport operators to integrate fare
collection and non-fare collection requirements into a single unit. The DC5000 drive console is
used to control multiple peripheral devices such as smart card entry / exit processors, vehicle
location systems, automatic vehicle management systems, bus scheduling systems, portable hand
held inspection devices, laptop computers, and other legacy equipment.

Gate Adaption Kit


Gate Adaption Kit is designed to utilize in various applications such as rail systems and contactless
smart cards.

MPR Multi Processor


MPR1000 multi processor is a freestanding card processor designed for transit riders. The
MPR1000 is an ideal card processor for railway platforms and ferry piers. The MPR1000 is also
utilized in an open system without entry and exit gates.

P4000 Portable
P4000 portable is an innovative design combining high performance technology with a contactless
smart card reader in a very small package. The P4000 is used for transit environments and
automated fare collection performance.

TP5000 Ticket Processor


TP 5000 processor is a truly flexible ticket processor designed to meet the requirements of
transport operators such as integration with specific communications interfaces / integration into
existing systems. The TP5000 ticket processor is also designed for issuing paper tickets and
processing contactless smart cards.

AVM2000 Ticket Vending Machine


AVM2000 is a customer friendly, secure, self-service machine for adding value to contactless
smart card. The AVM2000’s rugged stainless steel case is designed to withstand the harsh
environments of station platforms.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
V3000 Validator
V3000 validator is designed to integrate various smart card technologies. The V3000 validator is
also used as a flexible validator, which read both high coercivity magnetic stripe tickets and
contactless smart cards.

SUBSIDIARIES
Integrated Transit Solutions Ltd.
ERG Management Services Ltd., Australia
ERG Share Plan Pty Ltd., Australia
ERG Property Pty Ltd., Australia
The Energy Research Group Unit Trust, Australia
ERG Telecommunications Pty. Ltd., Australia
Integrated Transit Solutions (Italy) Srl, Italy
Triumphant Launch Sdn Bhd, Malaysia
OneLink Holdings Pty., Ltd.
OneLink Transit Systems Pty. Ltd., Australia
ERG Holdings Ltd.
ERG Transit Systems (HK) Limited, Hong Kong
ERG IP Pty Ltd., Australia
ERG R&D Pty Ltd., Australia
ERG Transit Systems (Sing) Pte. Ltd., Singapore
ERG Transit Systems (USA) Inc., USA
ERG Transit Systems (Ger) GmbH, Germany
Integrated Transit Solutions Ltd., Australia
ERG Transit Systems (Eur) NV, Belgium
ERG Transit Systems (Fra) SA, France
ERG Card Systems Ltd., Australia
ERG Card Systems (Aust) Ltd., Australia
ERG Transit Systems Ltd., Australia
ERG Transit Systems (Scand) AB, Sweden
ERG Transit Systems (UK) Ltd., UK

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
ETL ÉLECTRONICS LTÉE
2396 de la Province, Longueuil, Quebec J4G 1G1, Canada
Phone: (450) 44 ASTUS, (442-7887), Fax: (450) 442 0605

SOURCES: www.etlelectronique.com and other secondary online sources

BUSINESS PROFILE
ETL Électronics Ltée (EEL) is the largest manufacturer of electronic protection products in
Canada. The company designs and manufactures both standard and custom-made electronic
accessories. The company’s product portfolio includes fleet management system (FMS), vehicle
sentries and vehicle starter disablers. Astus® is specifically designed for light vehicle fleet owners
operating in the business and utilities services such as plumbing, heating, pest control, cable TV,
telephone, refrigeration, flower shops delivery, and locksmiths. The company sells more than
400,000 vehicle starter disablers in Canada. The company was established in 1995.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
EXTREME CCTV, INC.
3021 Underhill Avenue, Burnaby, British Columbia V5A 3C2, Canada
Phone: 604-420-7711, Fax: 604-420-3300
SOURCES: www.extremecctv.com and other secondary online sources
2007 Sales: Can$ 32.7 million (Nine Months Ended, June)
2006 Sales: Can$ 27.0 million
2005 Sales: Can$ 23.9 million
(Fiscal Year Ends in September)

BUSINESS PROFILE
Extreme CCTV Inc., (Extreme CCTV) is a global leader in designing, developing and manufacturing
active infrared night vision surveillance equipment. The company also manufactures invisible lasers
used to read license plates and identify people from long distances. The company’s core product line
comprises Infrared Illuminators, Integrated Day Night™, Hi-Impact Domes, REG™ License Plate
Capture, Extreme Optics, WZseries Integrated Day-Night bullet cameras, Moondance®
PowerDome™, MECC™ and accessories. The end-use markets for the company’s products include
critical infrastructure, defense, homeland security, transportation and national heritage sites. Extreme
CCTV markets its products to commercial, governmental (including the US Department of
Homeland Security), institutional, and residential customers located throughout Asia, Canada,
Europe, South America, and the US. The company’s major competitors include Henry Bros.
Electronics, Sentry Technology and Vicon Industries.
The company was established in 1997.

SALES DATA
Nine Months Sales Comparison by Quarter: 2007 Vs. 2006 (Nine Months Ended,
June) (In Can$ million)

Quarter 2007 2006 %Change


Q3 10.4 5.9 76.3
Q2 12.2 6.3 93.7
Q1 10.1 6.0 68.3
Total 32.7 18.2 79.7
Nine Months Sales Comparison by Geographic Region (2007 Vs. 2006) – United States,
Canada and Europe (In Can$ million)

Region 2007 2006 %Change


United States 11.0 8.4 30.9
Canada 20.5 8.8 132.9
Europe 1.2 1.0 20.0
Total 32.7 18.2 79.7

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Annual Sales Comparison: 2006 Vs. 2005 (In Can$ million)

Year Sales %Change


2006 27.0 12.97
2005 23.9 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – United States,
Canada and Europe (In Can$ million)

Region 2006 2005 %Change


United States 11.8 9.9 19.2
Canada 1.4 1.3 7.7
Europe 13.8 12.7 8.7
Total 27.0 23.9 12.9

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review
Product Development
Extreme CCTV Develops Multi-spectral Thermal Sensing Moondance™ PTZ…
Extreme CCTV developed its first thermal sensor device Moondance Thermal to deliver
comprehensive surveillance capability for the Department of Homeland Security applications and
other national defense applications worldwide.
Year 2006 in Review…
Acquisition
Extreme CCTV Completes Acquisition of Forward Vision CCTV…
Extreme CCTV acquired Forward Vision CCTV Ltd., a designer, developer and manufacturer of
intelligent mechanical PTZ cameras in the UK. The acquisition strengthens Extreme CCTV’s
intention to become a leader in advanced day and night surveillance camera technologies.

Agreement
Extreme CCTV Enters into an Agreement with EO Integrated Systems…
Extreme CCTV entered into a three-year purchase agreement with EO Integrated Systems. Under
the terms of the agreement, Extreme CCTV would provide surveillance products for critical
infrastructure security projects of EO Integrated Systems.
EO Integrated Systems designs and develops turnkey integrated security systems, security
monitoring & intrusion detection systems, as well as interfaces and integration for a wide variety of
security requirements.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Contract

Extreme CCTV Receives Contract from Quebec’s Ministry of Transportation…


Extreme CCTV received contract from Province of Quebec’s Ministry of Transportation for its
EX100 stainless steel camera for the first phase of a tunnel surveillance project on a Montreal
highway. The company’s EX100 camera is constructed with high-grade stainless steel, and is a
robust, all-weather, explosion- protected camera housing specially designed for durability and
performance in explosive hazardous locations.

EXTREME CCTV, INC.’S SUBSIDIARY

FORWARD VISION CCTV LTD.


Unit 1/2, Taplins Court, Church Lane, Hartley Wintney, Hants, RG27 8XU, UK
Phone: 0870 011 3131, Fax: 0870 011 3132

SOURCES: www.fvcctv.co.uk and other secondary online sources

BUSINESS PROFILE
Forward Vision CCTV Ltd., (FV-CCTV) a part of CCTV Group, is a leading technology provider of advanced
positioning devices for CCTV in Britain. The company also leads in the design, development and manufacture of
intelligent mechanical PTZ cameras in various models such as Mic1-400 PowerDome PTZ Camera, Mic1-400
PowerDome PTZ Camera, Mic1-410 Dual-Spectra Imager / 25mm, Mic1-411 Dual-Spectra Imager / 40mm, Mic1-440
Explosion Protected PTZ Camera, Mic1-400 Mounting Brackets, and others. The company’s prodcuts are used in
Defense, High Security, Hostile, Marine, Architectural, and Broadcasting sectors. The company manufactures products
in compliance with ISO 9001:2000 certification.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
FEDERAL HIGHWAY ADMINISTRATION
400 7th Street SW, Washington, DC 20590, USA
Phone: 202-366-0660, Fax: 202-366-7239

SOURCES: www.fhwa.dot.gov.com and other secondary online sources

BUSINESS PROFILE
Federal Highway Administration (FHA), a part of the US Department of Transportation, is a
provider of federal financial resources and technical assistance to the state and local governments
for constructing, preserving, and improving the National Highway System. The company also
develops a Federal-aid Highway Program to provide resources for one million additional miles of
urban and rural roads that are eligible for Federal-aid. The company’s Federal Lands Highway
(FLH) Program provides funding for public roads and highways within the federally owned lands
and tribal lands. FHA also offers Federal-aid funding to the state and local governments; and
Federal Lands Highways funding to national parks, national forests, Indian lands, and other lands
under the Federal stewardship. In addition, the company provides safety programs to address three
crash types related to roadway departures, intersections and pedestrians.
FHA also established a Federal Motor Carrier Safety Administration, which is responsible for
motor carrier operations and functions and separate modal administration within the Department of
Transportation.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
FEDERAL SIGNAL CORPORATION
1415 W. 22nd Street, Suite 1100, Oak Brook, Illinois 60523-2004, USA
Phone: 630-954-2000, Fax: 630-954-2030

SOURCES: www.federalsignal.com and other secondary online sources


2007 Sales: US$ 609.4 million (H1)
2006 Sales: US$ 1,211.6 million
2005 Sales: US$ 1,119.0 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Federal Signal Corp., () is a global manufacturer and supplier of safety, signaling and
communications equipment, fire rescue products, street sweeping and vacuum loader vehicles,
refuse truck bodies, high-performance water blasting equipment, parking control equipment,
carbide and super-hard tipped cutting tools, precision metal stamping punches, and components for
plastic injection molds. The company also designs and manufactures a wide range of products and
integrated solutions for municipal, governmental, industrial and airport customers. FSC’s core
products include interoperable communications platforms, safety and security systems, fire
apparatus, aerial devices, street sweepers, industrial vacuums, waterblasters, sewer cleaners and
consumable industrial tooling.
FSC carries out its business operations through four segments namely, Fire Rescue Group,
Environmental Products Group, Safety & Security Systems Group, and Tool Group. FSC operates
manufacturing facilities in 13 countries across the world. FSC also provides customer and dealer
financing to support the sale of its vehicles. The company’s key competitors include Firecom,
Oshkosh Truck, and Tennant.
FSC was established in 1901.

BUSINESS OPERATIONS

Safety and Security Systems Group


Safety and Security Systems (SSS) Group of FSC designs and manufactures emergency vehicle warning
lights and sirens, industrial and outdoor signaling, warning, lighting and communication devices and
integrated systems; and parking revenue and access control systems. The segment’s products are
marketed under the Federal Signal, Target Tech, VAMA, Pauluhn, Victor and Federal APD brand names.
SSS Group operates manufacturing facilities in North America, Europe and South Africa.

Fire Rescue Group (FR)


FSC’s Fire Rescue Group manufactures a wide range of fire rescue apparatus in its facilities
located in North America and Europe. FR Group supplies vehicles under the E-ONE, Superior,
Saulsbury and Bronto Skylift brand names.

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Environmental Solutions Group (ES)
FSC’s Environmental Solutions Group manufactures and markets a complete range of street
cleaning and vacuum loader vehicles and high-performance water blasting equipment. ES Group
also manufactures products for the new markets of hydro-excavation, glycol recovery and surface
cleaning. The segment’s key brands include Elgin, RAVO, Vactor, and Guzzler, Leach, Shanghai
Federal Signal and Jetstream.

Tool Group
Tool Group of FSC supplies industrial customers with die components and precision tools. Tool
Group also manufactures and supplies precision tooling, ejector pins, core pins, sleeves and
accessories for the plastic injection mold industry; and precision tooling and die components for
the metal stamping industry. The segment’s tooling products are marketed under the Dayton
Progress and PCS brand names.

SALES DATA

Half-Yearly Sales Comparison: 2007 Vs. 2006 (In US$ million)

Year Sales % Change


2007 609.4 4.51
2006 583.1 -

Half-Yearly Sales Comparison by Business Segment (2007 Vs. 2006) –Safety and Security
Systems, Fire Rescue, Environmental Solutions, and Tool (In US$ million)

Segment 2006 2005 % Change


Safety and Security Systems 174.5 144.0 21.18
Fire Rescue 144.9 174.6 (17.01)
Environmental Solutions 230.4 201.2 14.51
Tool 59.6 63.3 (5.85)
Total 609.4 583.1 4.51

Annual Sales Comparison: 2006 Vs. 2005


(In US$ million)

Year Sales % Change


2006 1,211.6 8.28
2005 1,119.0 -

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Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Region 2006 2005 % Change


Q4 273.6 253.9 7.76
Q3 309.5 291.1 6.32
Q2 289.4 276.4 4.7
Q1 339.1 297.6 13.94
Total 1,211.6 1,119.0 8.28

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – US, Europe,
and Canada (In US$ million)

Region 2006 2005 % Change


US 782.5 780.0 0.32
Europe 318.9 269.8 18.2
Canada 102.0 59.6 71.14
Other 8.2 9.6 (14.58)
Total 1,211.6 1,119.0 8.28

Annual Sales Comparison by Business Segment (2006 Vs. 2005) –Safety and Security
Systems, Fire Rescue, Environmental Solutions, and Tool (In US$ million)

Segment 2006 2005 % Change


Safety and Security Systems 304.5 276.5 10.13
Fire Rescue 384.8 371.2 3.66
Environmental Solutions 399.4 347.7 14.87
Tool 122.9 123.6 (0.57)
Total 1,211.6 1,119.0 8.28

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Acquisitions

FSC Takes Over PIPS Technology…


FSC in a move to enhance the company’s market for public safety and security solutions, acquired
a manufacturer of automatic license plate recognition (ALPR) systems, PIPS Technology for an

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
estimated US$ 115 million. PIPS Technology would be integrated into FSC’s Safety and Security
Systems Group. The combined entity would be able to provide enhanced solutions for public
security and safety law enforcement agencies, and emergency managers and first responders. With
the addition of ALPR technology to the company’s product portfolio, FSC would be able to expand
its product offerings and solutions.

FSC Acquires Riverchase Technologies LLC…


FSC acquired the business and assets of Birmingham, Alabama-based Riverchase Technologies
LLC (Riverchase), a developer of public safety software. The Riverchase public safety software
suite provides municipal leaders with computer-aided dispatch, records management, mobile
command center and integrated digital video capabilities. The acquisition of Riverchase would
expand FSC's comprehensive portfolio of municipal security solutions.

FSC Purchases Codespear LLC…


FSC purchased the business and assets of Codespear LLC, a developer of specialized software used
in emergency management situations. The acquisition provides a solid industry platform for
interoperable communications that enables FSC to expand suite of integrated security and well-
being solutions.

Divestiture

FSC Completes Sales of Industrial Cutting Tool Businesses…


FSC completed the sale of its industrial cutting tool businesses to Kennametal Inc. The
businesses sold include Manchester Tool Company, On Time Machining Company and Clapp
Dico Corporation. The sale of the industrial cutting tool businesses would enable FSC to
strengthen its core-integrated solutions that enhance security and well being for communities
and workplaces.

Product Launches

FSC Launches New Products…


FSC’ subsidiary E-ONE launched suite of new products, which offers firefighters new ways to help
protect people, property and the environment. The new product offerings include, The QuestTM
chassis, HP 100' aerial platform, 134' Bronto rescue ladder platform, and the Titan ForceTM F6
airport rescue firefighting vehicle.
E-ONE is a leading manufacturer of fire rescue vehicles.

FSC Introduces Elgin Pelican Sweeper and Vactor HXX Prodigy Vacuum Excavator…
FSC introduced the new Elgin Pelican sweeper, Vactor HXX Prodigy vacuum excavator and
Jetstream X-Series waterblast unit. The next-generation solutions offer municipal and industrial
customers new ways to meet the challenges of emerging environmental standards.

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Year 2006 in Review…
Divestitures
FSC Completes Sale of Red Deer Facility…
FSC completed the sale of its E-ONE production facility in Red Deer, Alberta, to Copper Core Ltd for
a consideration value of $2.5 million. The sale of the Red Deer facility is consistent with FSC’ strategy
to streamline and optimize its manufacturing footprint to advance competitive edge in the fire industry.

FSC Completes Sale of Refuse Truck Body Business…


FSC completed the sale of certain assets of its Leach refuse truck body business to Labrie
Equipment Limited. The sales of Leach Refuse truck body business, enables FSC to focus its
efforts on growing Federal Signal profitably.

PRODUCT PORTFOLIO

Lightbars
Raydian and Raydian SL, Jetsolaris, Jetstream, Jetstrobe, V-Shaped Led, Vision Halogen, Smart
Vector Halogen, Vector Halogen, Viewpoint/Vector-Fire-EMS, Vista SL, Vista, EMS Escape,
Escape, Aerodynic, Streethawk

Mini-Lightbars
Highlighter Led, Highlighter, Highlighter Strobe, Highlighter Strobe, 40w, Mini-Jet, Mini-
Aerodynic, Three-Pod Vector, Fs2000, Turbobeam 2000, Turboflash 2000

Sirens & Speakers


Rumbler, Pa300 Series, Smartsiren, Ss2000-Lms, Pa640, 650 Series Remote Siren, Unitrol
Touchmaster, Unitrol Touchmaster Delta, Unitrol Omega, Unitrol 80k, Pa4000, Ms4000 Series, Q-
Siren, E-Q2b Siren

Interior/Exterior Warning Lights


Viper S2, Delta Ray Led Visor Light, Condor Led Windshield Light, Solaris And Mini ILS, Cuda
Trioptics, Firebeam/Magnabeam, Corner Led Lighting, Corner Strobes, Deck Lights, Mirror Lights

Perimeter Lights
3K Series Lights, Quadraflare Brake/Tail/Turn/Backup Assemblies, Quadraflare Led Warning
Lights, Modled Warning Lights, Modled B/T/T Series, Fireray Warning Lights, Grille Lights,
Flush Mount Lights, Traffic Clearing Lights

Flashers & Strobe Power Supplies


Headlight And Taillight Flashers, Intelli-Flash Flashers, Ricochet Strobe Power Supply, Silver
Series Strobe Power Supplies, Six And Eight-Head Strobe Power Supplies, Two And Four-Head
Strobe Power Supplies

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Area Lighting
Visibeam Wireless, Visibeam, Ghscene, Night-Fighter, Littlite, Tractor And Utility Lamps

Backup Alarms
Evacuator Plus, Evacuator Heavy Duty, Models 660 And 861 Mechanical Alarms, Reactor, Two-
Tone Alarms

Additional Products
Switch Controls, Voiceguns, 3m Opticom, Plexus, Atkinson Dynamics Intercoms, Stinger,
Streetheat High-Rise Warning System, Roof Bar Mount Kit

SUBSIDIARIES
Elgin Sweeper Company

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
FLORIDA’S TURNPIKE ENTERPRISE
Turnpike Mile Post 263, Building 5315, Ocoee, Florida 34761, USA
Phone: (407) 532-3999, Fax: (407) 822-6679

SOURCES: www.floridasturnpike.com and other secondary online sources

BUSINESS PROFILE
Florida’s Turnpike Enterprise (FTE), a part of the Florida Department of Transportation (FDOT),
is involved in making substantial improvements to the existing road system, delivering six
expansion projects, and contracting most in-house functions to the private sector. The company
also made substantial investments in electronic toll collection and intelligent transportation
systems. FTE is responsible for all operations on every FDOT-owned and operated toll road and
bridge, which represent about 600 miles of roadway and 80 percent of all toll facilities in Florida.
The company provides a wide range of customer services including maintained financial stability
and improved bond ratings. The company also operates additional resources such as Transportation
for the Disadvantaged, Turnpike Technical Advisory Committee (TAC), and the National Council
for Public Private Partnerships, State of Florida Emergency Operations Center.
FTE provides traveler information, real-time traffic updates, interchanges & mileage, paying tolls,
toll violations, toll rate calculator, interactive system map, traffic management center, dynamic
message signs, highway advisory radio, motorist call boxes, park & ride lots, state farm safety
patrol, weekly construction update, current construction projects, and future construction projects.
FTE was established in 1957.

STRATEGIC CORPORATE DEVELOPMENT

Year 2006 in Review

Agreement

FTE Enters into Agreement with Raytheon…


Raytheon Company secured a contract, valued at about $230 million, for the supply of electronic
toll collection systems to the State of Florida. The contract is slated for a period of ten years, and
for the execution of the same, Raytheon would partner with FTE.
The contract entails the presence of open road tolling technology, central processing and audit
system, and 835 lanes of toll equipment, which would all be supplied by Raytheon. The system
would emulate a similar one that was successfully deployed at Canada, about a decade ago, by
FTE.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
FORTRAN TRAFFIC SYSTEMS LIMITED
470 Midwest Road, Toronto, Ontario, Canada M1P 4Y5
Phone:(416) 288-1320, Fax: 416-288-9914

SOURCES: www.fortrantraffic.com and other secondary online sources

BUSINESS PROFILE
Fortran Traffic Systems Limited (Fortran), a subsidiary of Guild Electric Limited, is a leader in the
North American traffic industry. Fortran is the number one manufacturer and distributor of traffic
signals in Canada. The company designs, develops, manufactures, and distributes Local
Intersection Control Equipment such as Signals and Controllers, Intelligent Transportation Systems
(ITS), Computerized Traffic Control Systems (CTCS), Corridor Traffic Management Systems
(CTMS), and Customized Software. The company is also an exclusive distributor of traffic
management products to some of the leading companies including Naztec Inc., and Tomar
Strobecom system in Canada. The company also offers Traffic Management Support Services. The
company’s systems division specializes in the application and development of computer-based
systems for transportation and communication. The division provides complete hardware and
software capabilities including analysis, design and development; systems management and
integration; installation, commissioning and ongoing support; traffic engineering services; and
customized solutions.
Fortran’s product line includes Field service Systems, Conflict Monitors, Cabinets, Cabinet Power
Supplies, Loop Detectors, Fastracs™ integrated platform for Intelligent Traffic Systems (ITS),
Modems, Lightning Protection Modules, Signal Preemption Devices, Microwave Detectors,
Pedestrian Detectors, Chronomax Pager System Software, School Zone Flashers/Chronomax, Test
Equipment, Temperature Alert Systems, and Lightning Surrestors. The company offers a wide
range of products and services to provide total integrated, turnkey transportation solutions.
Fortran was founded in 1970.

PRODUCT PORTFOLIO

Signal Products
Polycarbonate and aluminum backboards; Beacons and flashers; Signal mounting hardware (mast
arm and spanwire hangers, pole brackets); Countdown pedestrian signals; Audible pedestrian
signals; and Polycarbonate and aluminum vehicle and pedestrian signals
Polycarbonate Traffic Signal Head; Polycarbonate Pedestrian Signal; PolyFlex™ Backboard;
Traffic Signal Mounting Hardware; Plumbizer Arm; Span Wire Hanger; Astro-Brac® line of signal
mounting hardware; Post Top Bracket; Polycarbonate Lens; and polycarbonate visors

Controllers
NEMA TS-2 Type 1 Secondary and Master Controllers; NEMA TS-2 Type 2 Secondary and
Master Controllers; Naztec 2070N ITS Controller; and Model MC 682 MicroCab Controller

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Conflict Monitors
Naztec MMU 516 Malfunction Management Unit; Naztec Series 500 NEMA Conflict Monitor;
Naztec Series 500 NEMA Conflict Monitor; Naztec Series 500 NEMA Conflict Monitor; and
Naztec Lamp Monitoring System

Loop Detectors
Naztec Model 722 high-speed dual channel Inductive Loop Detector; Naztec Model 724 Four-
Channel Inductive Loop Detector; and Naztec Model 710-TX/I Inductive Loop Detector

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FRANCE TELECOM SA
6, place d'Alleray, 75505 Paris Cedex 15, France
Phone: +33-1-44-44-22-22, Fax: +33-1-44-44-95-95

SOURCES: www.francetelecom.com and other secondary online sources


2006 Sales: € 51,702 million
2005 Sales: € 48,082 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
France Telecom SA (Tele France) is one of the world's leading telecommunications operators. The
company provides consumer and business fixed-line and wireless voice and data services. The
company is a leading mobile operator and provider of internet services in Europe. The company
provides telecommunication services to multi-national companies. The company offers a wide
range of Residential services, Personal communications services, Enterprises Communication
Services, Integrated Communication Services, International Wholesale Solutions, and Business
services. The company’s Orange mobile phone unit provides services to 21 million subscribers in
France, 35 million in other European countries, and more than 63 million subscribers globally. The
company operates in Poland, Spain, Portugal, Africa, Mauritius, Vietnam and Jordan. The
company markets wireless telecommunications in Poland, Jordan, Senegal, Mauritius and Mali
through its subsidiaries.
Tele France operates across five continents through its subsidiary GlobeCast, which is the world's
leading provider of satellite content distribution services. GlobeCast provides TV and radio
broadcast services, secure Internet content delivery and mobile access to satellites for news events
and sports coverage. The company competes with Vodafone, Bouygues and SFR.
In 2007, Tele France announced the acquisition of a mobile and internet license in the Central
African Republic to strengthen its presence in Africa.
The company was established in 1988.

SALES DATA
Annual Sales Comparison: 2006 Vs. 2005
(In € million)

Year Sales % Change


2006 51,702 7.52
2005 48,082 ---

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Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – France, UK, Poland,
Spain, Rest of Europe, and Rest of the World (In € million)

Region 2006 2005 % Change


France 27432 27555 (0.44)
UK 6266 6209 0.91
Poland 4752 4543 4.60
Spain 3827 1187 222.40
Rest of Europe 4907 4541 8.05
Rest of the World 4518 4047 11.63
Total 51,702 48,082 7.52

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review

Acquisitions

Tele France Acquires One GmbH…


Tele France and Mid Europa Partners announced the acquisition of 100% stake in One GmbH. The
acquisition allows Tele France to reinforce its position in a dynamic western european market and
introduce the Orange brand in Austria. Orange is a flagship brand of the group, which regroups its
Internet, television and mobile activities. The partnership constitutes a new approach of
cooperation between an operator and a private equity fund, which allows to combine the
operational expertise of a leading telecom operator and the recognized know-how of a private
equity fund strongly active in the sector and the region.

Tele France Acquires Ya.com


Tele France announced the acquisition of a 100% stake in the Spanish company Ya.com. The
acquisition strengthens Orange's position as #2 in the Spanish ADSL market with more than one
million subscribers, offering Spanish consumers a genuine alternative to the historical operator.
The acquisition represents a further step forward with the deployment of a new strategy to make
Tele France one of the world's leading integrated operators. Ya.com is the third biggest ADSL
player in Spain.

Tele France Acquires Lightspeed Communications


Tele France’s subsidiary Jordan Telecom Group acquired a 51% stake in Lightspeed
Communications in Bahrain. The acquisition is fully embedded in Tele France's development
strategy in the Middle East. Through the acquisition, Jordan Telecom Group would be able to
position itself in new highly promising and highly profitable markets. Jordan Telecom Group is the
leading operator for fixed-line, mobile, internet and content services in Jordan.

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Partnerships

Tele France Partners with FranceTelevisions


Tele France’s subsidiary Orange partnered with FranceTelevisions to offer Orange customers a new
service to view France Televisions Group channel programmes on any screen (TV, PC, Mobile), at
any time. The objective of France Televisions and Orange partnership is to make flow programmes
(magazines, entertainment programmes) available for 7 days from the time of broadcasting and
"stock" programmes (series, soaps and documentaries, excluding films) available for 7 to 30 days.

Tele France Enters into Partnership with China Telecom


Tele France’s subsidiary Orange Business Services entered into a commercial partnership with
China Telecom to offer advanced MPLS (Multi-Protocol Label Switching) - based IP VPN
services to multinational corporations in China. As part of the partnership, Orange Business
Services would expand further its network coverage through China Telecom's Next Generation
Network to 200 additional cities, including Dongguan, Dalian, Guangzhou, Shenzhen and Xiamen.
The extended network would provide a variety of advanced IP services, including virtual private
network and high-quality IP voice and video streaming. Orange Business Services would also
increase further its quality-of-service to multinational businesses in China, through managed IP
services and high-quality customer access and management capabilities. China Telecom is one of
the leading telecommunications providers in China.

Collaboration
Tele France Collaborates with Microsoft
Tele France’s subsidiary Orange Business Services collaborated with Microsoft to form a new
service ‘Business Together with Microsoft’, an innovative collaborative solution for messaging,
collaboration and unified communication in companies. Business Together with Microsoft also
helps companies keep up with the latest market requirements for fast communication, constant
contact with colleagues, customers and partners, and efficient information sharing.

Agreements

Tele France Signs an Agreement with Paramount Pictures


Tele France’s subsidiary Orange signed an agreement with Paramount Pictures. The agreement
with Paramount would allow Orange customers with a broadband digital television package or a
High-Speed Internet package in France to enjoy a Video-On-Demand programming schedule
including the studio's latest releases, such as Mission Impossible III; Over the Hedge; World Trade
Center, and many others.
Tele France Signs an Agreement with Alcatel-Lucent
Tele France’s subsidiary Orange Business Services signed an agreement with Alcatel-Lucent. The
global agreement enables enterprises around the world to harness the power and economics of IP-
based communications solutions as part of an overall network and business transformation effort.

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Orange and Alcatel-Lucent would provide enterprises with a comprehensive set of end-to-end
business critical solutions, supported from design to global implementation, which would enable
businesses to utilize the new technologies available to drive new business opportunities, improve
employee productivity and deliver enhanced customer service.

Product Launches

Tele France Launches i-SAN


Tele France’s subsidiary Orange Business Services announced the launch of i-SAN. i-SAN is a
SAN storage systems interconnection solution intended for large and medium-sized companies.
With the i-SAN solution, large and medium-sized companies would benefit from continuous data
replication onto a remote back-up site, consequently avoiding any disruption to live operation in
the event of an IT incident.

Tele France Launches BlackBerry 8800 Smartphone


Tele France’s subsidiary Orange Business Services and Research In Motion announced the
launch of the new BlackBerrya 8800 smartphone in France. The BlackBerry 8800, thin and
elegant, is avialble with a full ergonomic AZERTY keyboard. The phone also integrates
advanced features including built-in GPS for the Orange GPS navigation application, a
multimedia player and expandable memory slot. The partnership between Orange Business
Services and RIM allows to meet the growing needs of business customers in mobile
communication technology.

Service Launch

Tele France Launches Unik for Professionals


Tele France launched Unik for Professionals, the new generation fixed and mobile telephony
solution tailor-made for business customers. With Unik for Professionals, a call started through the
Livebox Pro at workplace could continue outside without any interruption.

Year 2006 in Review

Partnership

Tele France Enters into Partnership with STMicroelectronics


Tele France entered into partnership with STMicroelectronics. The partnership provides both the
companies to use its respective and complementary business strengths and technical R&D
competences to jointly analyze and define end-to-end services, and platform requirements, to
enable faster service deployments and greater end-user satisfaction. Tele France and
STMicroelectronics also include a joint R&D project, which addresses the analysis of end-to-end
advanced security for mobile devices and services. Tele France and STMicroelectronics work
together to develop a secure and open environment for personal multimedia services and next-
generation portable platforms.

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Agreement

Tele France Enters into an Agreement with Buena Vista


Tele France entered into multi-year VOD agreement with Buena Vista International Television
(BVITV), to allow subscribers to enjoy a selection of movies from BVITV's portfolio, through the
company’s Wanadoo broadband, and MaLigne TV IPTV set top boxes. Under the new agreement,
the company’s subscribers provide the ability to enjoy a selection of current and library features
from manufactured groups such as Touchstone Pictures and Miramax Films. The agreement also
provides the company to develop partnership with other contents such as BVITV's fantastic
portfolio of series.

Product Launches

Tele France Launches Linux Phone Standards Forum (LiPS)


Tele France launched Linux Phone Standards Forum (LiPS), to accelerate mass-market adoptions
and avoid fragmentation of Linux-based mobile, fixed and convergent terminals. The company’s
new LiPS enables better communication and cooperation between the open source and proprietary
worlds to face common challenges in telephony terminals. The company’s LiPS also provide
innovative telephony terminal devices with lower costs and fewer constraints.

Tele France Launches Le Bouquet TV package to its MaLigne TV…


Tele France launched Le Bouquet TV package to its MaLigne TV. The company’s phone line-
based digital television service expands its offering to include new services with the only complete
digital television package available on the market including Le Bouquet TV, premium packages
from TPS, and CanalSat and Canal+ Le Bouquet.

Tele France Launches Very High Speed pilot program


Tele France launched a Very High Speed pilot program (Fiber To The Home) for customers in six
districts in Hauts-de-Seine and Paris. The company offers a broad range of services including High
Definition TV, unlimited telephony and Very High Speed Internet access in line with the pilot
program.

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GOLDEN RIVER TRAFFIC LTD.
6 Talisman Business Center, Talisman Road, Bicester, Oxford shire, OX26 6HR, UK
Phone: +44 (0) 1869 362800, Fax: +44 (0) 1869 246858

SOURCES: www.goldenriver.com and other secondary online sources

BUSINESS PROFILE
Golden River Traffic Ltd., (GRT) is a world leader in the fields of automated traffic data collection
and proprietary hardware and a major supplier of highway traffic data system. The company
develops and manufactures state-of-the-art traffic monitoring products to provide reliable, accurate
traffic data for efficient and cost effective road management. The company also manufactures a
range of mobile survey equipment ideal for temporary traffic surveys from bicycle classification to
vehicle speed, length and type classification on dual carriageways. The company’s product
portfolio includes vehicle count and classification, real time traffic monitoring, journey time
monitoring / ANPR, weigh in motion, software and communication solutions, and roadside
furniture. The company also provides manual surveys and field services in the traffic management
sector. GRT’s products find applications in real time traffic monitoring and shadow tolling and
intelligent transport systems. The company develops a range of products to meet the needs of
traffic data professionals. GRT also develops hardware including the motorway incident detection
systems such as the MIDAS system on M25.
In 2007, GRT launched next generation of vehicle counters and classifiers. The Marksman 68x and
72x ranges build on the success and proven reliability of the existing range providing unsurpassed
accuracy.

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GROUPE STERIA SCA
46 rue Camille Desmoulins, 92782 Issy-les-Moulineaux, Cedex 9, France
Phone: +33-1-34-88-60-00, Fax: +33-1-34-88-69-69
SOURCES: www.steria.com and other secondary online sources
2006 Sales: € 1,262.0 million
2005 Sales: € 1,175.2 million
(Fiscal Year Ends In December)

BUSINESS PROFILE
Groupe Steria SCA (Steria) is a leading IT service provider in Europe. Steria specializes in three core
businesses such as consulting, systems integration and managed services. The company provides
network systems integration and facilities management services to customers in the industrial and
transportation, insurance, banking, and telecommunications industries, as well as to public-area
entities. The company’s IT solutions include Business process management solutions (BPM), CRM-
portals, enterprise applications, IT security, application packaging and rollout / intelligent service
desks (ITIL), application management, and infrastructure management. The company also provides
operational services such as platforms operations (PO), application management (AM), applications
operations (AO), and global operations (GO). The company provides management services
outsourcing for Cegetel's mobile phone division in the telecommunication sector.
Steria provides innovative solutions through its enhanced line of technological competencies such
as freeware, mobility, smart cards, biometrics, and RFID. The company also offers complete
consulting and systems integration services as well as information systems to more than 50
ministries and 60 public bodies in Europe. The company maintains public private partnerships
(PPP) and business process outsourcing (BPO) projects. The company operates Global Delivery
Unit (GDU), a network of production and business intelligence centers supporting two mirrored
supervision centers to coordinate managed services projects. Steria's non-telecommunications
customers include Carrefour, the Swiss national railroad system, and Société Générale. Major
competitors of Steria include Atos Origin, Capgemini, and IBM.

BUSINESS OPERATIONS
Public Sector
Steria offers data integrity and security solutions on large-scale with public key infrastructures
(PKI). The company also works in association with the European Commission to develop a new
Schengen Information System (SIS II) and the Visa Information System (VIS). The company
helps central and local authorities to transform internal processes through major changes of
management systems in accounts, purchasing, and human resources. The company also works on
projects that directly benefit the general public as jobseeker support, online tax returns, electronic
voting and identity cards, public authority websites, immigration management, emergency call
centers and command and control systems for police forces or fire brigades. The company
provides on-line services, and content management and legal electronic archiving solutions to the
public authorities.

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Healthcare
The company provides creating and operating healthcare services to interface and run the
heterogeneous information systems of various healthcare organizations with maximum
security at the national and international levels. The company provides an innovative data
repository management solution that guarantees a high-level of quality and data integrity for
various European hospitals, healthcare authorities and state health insurance organizations.
Steria also provides medical procedure management solutions for hospitals and private
clinics and implemented access solutions to high security medical networks for healthcare
providers.

Banking and Insurance


Steria develop a wide range of solutions for payment platforms that combine advanced functions
and a high-level of performance with reinforced security. Steria integrated the EMV standard into
its bankcard management solution and its inter-bank messaging systems include tools designed to
combat money laundering. The company also provides consulting services and solutions to help
financial organizations deals with the changes brought by new regulatory standards in the sector,
such as the Markets in Financial Instruments Directive (MiFID).

Telecommunications
Steria provides pioneering service activation and billing solutions to help carriers cut their response
times and rapidly roll out innovative sales proposals that include multi-platform offers and multi-
supplier content. The company’s Business Service Management (BSM) offer enables carriers to
identify and address weak areas in information systems to optimize performance and stay on top of
the perpetually higher demand for network resources.

Transportation
Steria provides services for traffic forecasts and management, tunnel supervision and toll system,
and car park management. The company offers rolling out mobile technology to help its customers
develop Intelligent Transport Systems (ITS). The company also facilitates the exchange of
information between airport functions from tickets, baggage handling, stopover management,
planning, real-time flight tracking and billing systems to noise pollution measurement tools. The
company’s airport management solutions meet all the specific requirements of the establishments,
including reception capabilities and planning resources in line with traffic trends and airline sales
offers.

Utilities
Steria designs and develops solutions for optimizing performance, predicting consumption and
balancing production and consumption to regulate supply and demand in the short and medium
term. Steria also develops solutions for managing infrastructure maintenance (power lines), legal
reporting to European regulators and the invoicing process. The company for the specific needs of
the gas industry, developed GAS-XTM, an integrated solution for collecting and calculating data
used for billing.

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Manufacturing
Steria, through its RFID and M2M specializes in providing collaborative solutions and services.
Steria developed an innovative integration offer facilitating the convergence of PLM (2)
management systems and corporate information systems.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005


(In € million)

Year Sales % Change


2006 1,262.0 7.39
2005 1,175.2 -

Annual Sales Comparison by Segment (2006 Vs. 2005) – Consulting and Systems
Integration and Outsourcing (In € million)

Segment 2006 2005 % Change


Consulting and Systems Integration 725.5 686.9 5.62
Outsourcing 536.5 488.3 9.87
Total 1,262.0 1,175.2 7.39

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) - France, UK,
Germany, and Other Europe (In € million)

Region 2006 2005 % Change


France 533.2 483.2 10.35
UK 289.7 263.5 9.94
Germany 203.2 185.4 9.60
Other Europe 236.0 243.0 (2.88)
Total 1,262.0 1,175.2 7.39

STRATEGIC CORPORATE DEVELOPMENTS


Year 2007 (1st Half) in Review…
Contracts
Steria Signs a Contract with British Airport Authority…
Steria secured a contract from the British Airport Authority (BAA) to install and maintain taxi
management system at London Heathrow Airport’s new Terminal 5. The project scheduled to open

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in the first half of the year 2008 would make the airport authority systematically control and track
taxi services. The BAA awarded the project, owing to satisfactory performance of Steria’s Taxi
management system at terminals 1 to 4 at the airport. The terminal 5-taxi management system is
planned and designed specifically to cater to the heavy rush expected during the 2012 London
Olympics.

Steria Receives a Contract from Eastbourne Borough Council…


Steria received a ten-year business transformation contract from Eastbourne Borough Council to
modernize and update IT systems. As per the terms of the contract, Steria would focus on
improving the council’s CRM system, enabling employees to manage and respond to resident
enquiries with online services. The company would also provide interactive maps online, and
‘Where is my nearest?’ online search facility supplying residents with details of local services,
organizations and resources.

Steria Bags a Contract from Gematik (Gesellschaft für Telematikanwendungen der


Gesundheitskarte mbH)…
Steria bagged a contract from Gematik (Gesellschaft für Telematikanwendungen der
Gesundheitskarte mbH) to introduce electronic patient’s card. The company would work on behalf
of Gematik to develop the necessary broker services for the project. Steria, as part of the
introduction of the electronic patient’s card, operates as consultant to the test region Rhineland-
Palatinate and the largest National Health Insurance fund in Germany.

Agreement

Steria Reaches an Agreement with The Belgian Ministry of Finance…


Steria reached an agreement with The Belgian Ministry of Finance to design the integrated system
for calculating and enrolling taxes for individuals. The agreement covers a six-year period, and
would be carried out by Steria operating as the Prime Contractor, in partnership with Software AG
and Deloitte. As per the terms of the agreement, Steria and its partners would develop a new IPP
enrolment application to calculate and enroll the taxes of individuals that would simplify the work
of the government agency.

Steria Signs an Agreement with Eastbourne Borough Council…


Steria signed a business transformation deal to modernize and update IT systems at Eastbourne
Borough Council. The contract would improve the customer’s experience for Eastbourne’s
90,000 plus residents by streamlining key services and business processes. As part of the
agreement, the company would focus on improving the council’s CRM system, enabling
employees to manage and respond to resident enquiries from council tax payments to refuse
collection and offering customers the facility to serve themselves online. The company would
also help the Council in its ongoing efforts to provide interactive maps online, enabling
residents to check for planning applications and other relevant developments near to their
homes.

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Year 2006 in Review…

Contracts

Steria Signs a Contract with Bristol International Airport…


Steria signed a five year supply contract of fully manage ICT services with Bristol International
Airport (BIA). The contract forms a strategic element of BIA’s expansion plans that involve
doubling passenger numbers from 4.5 million in 2004 to 9 million in 2015. As per the contract,
Steria would identify, plan and deliver a wide-range of business transformation solutions to enable
and support the airport’s growth and realize the significant cost reductions, increased operational
efficiency and business effectiveness. The new solutions include biometric (fingerprint, iris, hand
and facial recognition) security solutions and vehicle management systems.

Steria Signs a Contract with CNES…


Steria signed a contract with CNES, the Centre National d'Etudes Spatiales (French space agency),
to provide managed services for its IT infrastructure, networks and telecommunications. The
outsourcing contract would enable CNES to focus on its core business and benefit from its service
providers.

Steria Signs a Contract with ODPM…


Steria signed a 5-year contract with ODPM, Office of the Deputy Prime Minister, to provide fully
managed IT and consultancy services. As per the terms of the contract, Steria would provide the
day-to-day delivery services and management of the ODPM's wide and local area networks
(WAN/LAN), as well as IT support services through its Intelligent Service Desk.

Steria Bagged a Contract from The Civil Aviation Authority of Singapore (CAAS)…
Steria bagged a contract from the Civil Aviation Authority of Singapore (CAAS). The scope of the
contract includes performing a thorough review of CAAS business processes related to gate
management. Steria would undertake the project management of the system implementation up to
the commissioning of the system.

Product/Service Launch

Steria Introduces Risk Management System for Iberdrola…


Steria introduced a risk management system for Iberdrola, Spain's second largest electricity and
natural gas supplier. The company’s new system would enable Iberdrola to progressively enhance
the way as that manages information about its business. The company’s new system applies risk
analysis techniques, establishes risk scenarios, selects the processes that need to be controlled and
sets up indicators and follow-up dashboards.
Iberdrola is an all-round energy company that produces, transports, distributes and supplies gas and
electricity to customers.

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Steria Launches New Traffic Supervision System…
Steria launched a new system of traffic supervision at Swiss Canton of Zurich. The system would
be the largest one in the country, and would start functioning from the same time as that of opening
of first section of Western Zurich bypass.

SERVICE PORTFOLIO

Services
Transformation services such as Consulting and Systems Integration; Operations services such as
Platforms Operations (PO), Application Management (AM), Applications Operations (AO), Global
Operations (GO), Business Process Outsourcing (BPO); IT solutions such as BPM – SOA, CRM-
Portals, Enterprise Repository, IT Security, Application packaging and Rollout / Intelligent Service
Desks (ITIL), Application and Infrastructure Management; Industrial delivery such as the Global
Delivery Unit and Optimized sourcing

GRUPO ALGAR
Brazil

SOURCES: Company related secondary online sources

BUSINESS PROFILE
Grupo Algar is a Brazilian firm with a holding company for the telecommunication business, Algar
Telecom. The company owns minority stakes in mobile operator ATL and Engeredes. The
company planned to buy Telecom Italia’s stake in the country’s third largest fixed line operator,
Brasil Telecom.

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HERTZ CORPORATION, THE
225 Brae Boulevard, Park Ridge, New Jersey 07656, USA
Phone: 201-307-2000, Fax: 201-307-2644

SOURCES: www.hertz.com and other secondary online sources


2007 Sales: US$ 1,921.5 million (Q1)
2006 Sales: US$ 8,058.4 million
2005 Sales: US$ 7,469.2 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Hertz Corp. The, (Hertz), a subsidiary of Hertz Global Holdings Inc., is the world’s largest general
use car rental brand, operating from approximately 7,700 locations in 145 countries worldwide.
Hertz is the number one airport car rental brand in the US and at 69 major airports in Europe,
operating both the corporate and licensee locations in cities and airports in North America, Europe,
Latin America, Australia and New Zealand. In addition to supplying over 525,000 vehicles, the
company provides truck and van rental car leasing and heavy equipment rental services. The
company also sells used-cars and heavy equipment. The company holds licensee locations in cities
and airports in Africa, Asia, and the Middle East.
Hertz’s wholly owned subsidiaries include Hertz Equipment Rental Corporation (HERC), Hertz
Claim Management Corporation (HCM), and Hertz Local Edition® (HLE). Hertz Equipment
Rental Corporation (HERC) rents a full range of construction and industrial equipment to
contractors, and industrial and government sectors. Hertz Claim Management Corporation is a
Third Party Liability Claims Administrator, which provides services to major corporations, self
insured entities and the insurance marketplace. Hertz Local Edition® (HLE) specializes in
providing insurance replacement and local car rentals. Product and service initiatives such as Hertz
#1 Club Gold, NeverLost customized, onboard navigation systems, SIRIUS Satellite Radio, and
unique cars and SUVs offered through the company’s Prestige, Fun and Green Collections, set
Hertz apart from the competition.
Hertz’s other operations include Hertz Car Sales, Hertz Claim Management, Hertz Equipment
Rental, and Hertz Local Edition. Hertz's Worldwide Reservations Centers handle approximately 40
million phone calls and deliver approximately 30 million reservations annually. Hertz’s Airline
partners include Aer Lingus; AeroSvit; Aerolineas Argentinas; Aeromexico; Air Canada Aeroplan;
Air China; Air France; Air Jamaica; Air New Zealand; AirTran Airways; Alaska Airlines; Alitalia;
All Nippon Airways; Aloha Airlines; America West Airlines; American Airlines; Asiana Airlines;
BWIA Airlines; Bmi; British Airways; CSA Czech Airlines; Cathay Pacific Airways - Asia Miles;
China Airlines; China Eastern Airlines; China Southern Airlines - Sky Pearl Club; Continental
Airlines OnePass; Croatia Airlines; Delta Air Lines; EVA Air; El Al Israel Airlines; Emirates;
Finnair; Frontier Airlines™; Gulf Air; Hainan Airlines; Hawaiian Airlines; Iberia; Iceland Air;
Japan Airlines; Jet Airways; KLM Royal Dutch Airlines; Korean Air; LAN-LanPass; Lithuanian

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Airlines; Lufthansa; Malaysia Airlines - Enrich Programme; Mexicana Frecuenta; Midwest
Airlines; Philippine Airlines; Qantas Airways; Royal Brunei Airlines - Royal Skies; Ryanair; SAS;
SN Brussels Airline; Saudi Arabian Airlines; Singapore Airlines; Southwest Airlines; Spanair;
Spirit Airlines; Swiss International Airline; TACA Distancia; TAM Airlines; TAP Air Portugal;
Thai Airways; US Airways®; United Airlines®; VLM Airlines; Varig; and Virgin Atlantic.
With more than 1,300 off-airport locations, Hertz's suburban locations presently reach customers in
the top 50 metropolitan areas. Hertz Local Edition is an ideal option for individuals needing a
replacement rental. Hertz’s rail partners include Amtrak Guest Rewards®; VIA Rail Canada; and
Earn Points/Miles with Hertz. The company’s service partners include AAA; American Express;
American Express Membership Rewards; American Express OPEN Savings for Small Business;
and National Park Foundation. Hertz’s key competitors include Alamo, Enterprise Rent-A-Car and
United Rentals..
Hertz was established in 1918.

BUSINESS OPERATIONS

Hertz Car Sales


Hertz’s Car Sales division sells one-year-old vehicles from the company’s rental fleet to make
room for new models. The division’s cars are more actively and carefully maintained than most
privately owned vehicles. The division’s prices are significantly lower than prices for comparable
vehicles at conventional used-car outlets.

Industrial Equipment
Hertz’s Industrial Equipment is one of the leading rental providers and marketers of heavy
equipment and tools for construction and industrial needs. The Equipment Rental provides daily,
weekly, monthly and long-term rentals, tools and supplies, new and used equipment for sale. The
Hertz Equipment Rental product line includes everything from small hand held tools to large
earthmovers. The Equipment Rental offers all types of rental/purchase programs including Short or
Long Term Rentals, Customized Rental Programs, Equipment Delivery and Pick Up, 24/7
Emergency Service, New and Used Equipment for Sale, Small Tools and Supplies for Sale, Rent to
Own/Rental Purchase Option Programs, National Account Rebate Programs, Specialty Pump
Programs and Safety Training Programs.

Hertz Claim Management (HCM)


Hertz Claim Management segment provides professional claim management services for liability
exposures; specializing in automobile and general liability claims. The Claim Management offers
services such as Claim Management Services for Automobile and General Liability Claims and
completely priced services. HCM handles claims from inception to conclusion.

Hertz Lease
Hertz Lease offers a wide range of operational leasing and fleet management services through its
franchise network around Europe, the Middle East and Africa.

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Hertz Equipment Rental
Hertz Equipment Rental is one of the largest suppliers of rented and leased heavy equipment in the
world.

Hertz Local Edition


Hertz Local Edition is a leader in the local car rental market.

SALES DATA

First Quarter Sales Comparison: 2007 Vs. 2006 (In US$ million)

Year Sales % Change


2007 1,921.5 7.55
2006 1,786.6 -

First Quarter Sales Comparison by Business Segment (2007 Vs. 2006) – Car Rental
and Equipment Rental (In US$ million)

Segment 2007 2006 % Change


Car rental 1,529.7 1,421.6 7.60
Equipment rental 389.9 363.1 7.38
Other 1.9 1.9 (.00)
Total 1,921.5 1,786.6 7.55

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 8,058.4 7.89
2005 7,469.2 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Quarter 2006 2005 % Change


Q4 1,786.6 1,640.6 8.90
Q3 2,040.6 1,862.3 9.57
Q2 2,240.6 2,123.6 5.51
Q1 1,990.6 1,842.7 8.03
Total 8,058.4 7,469.2 7.89

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Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – United States
and Foreign (In US$ million)

Segment 2006 2005 % Change


United States 5,631.2 5,274.2 6.77
Foreign 2,427.2 2195.0 10.58
Total 8,058.4 7,469.2 7.89
Percentage Breakdown of Annual Sales (Value) by Geographic Region (2006) –
United States and International
Region 2006
United States 60.9
International 30.1
Total 100
Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Car Rental
and Equipment (In US$ million)
Segment 2006 2005 % Change
Car rental 6,378.0 6,046.8 5.48
Equipment rental 1,672.6 1,415.3 18.18
Other 7.8 7.1 9.86
Total 8,058.4 7,469.2 7.89
Percentage Breakdown of Annual Sales (Value) by Business Segment (2006) –
Car Rental and Equipment
Segment 2006
Car Rental 79.1
Equipment 20.8
Other 0.1
Total 100

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review
Acquisition
Hertz Completes Acquisition of Autotravel Franchise in United Kingdom
Hertz Global Holdings, Inc’s Hertz car rental brand acquired the vehicle rental business of former
licensee, Autotravel, in the United Kingdom. The deal signals Hertz' strategy to take advantage of

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growth opportunities and leverage its global infrastructure through acquisitions and joint ventures.
The acquisition strategy also strengthens Hertz’s ability to leverage its infrastructure to reduce
costs and further enhance its service to customers. The investment increases the number of Hertz
UK corporate locations by 26 percent. The Autotravel territory would also be a strong contributor
to further grow Hertz’s van rental business.
Autotravel’s territory stretches from the East Midlands to Liverpool, covering two major
conurbations including several large industrial cities and two airports -- Liverpool (John Lennon)
and Blackpool.

Partnership
Hertz Enters into Partnership with the New Jersey Alliance of Automotive Service Providers
Hertz partnered with the Alliance of Automotive Service Providers of New Jersey, an organization
of 500 New Jersey-based collision and mechanical repair shops, to provide car rental services,
including free pick up and return service, and an expanded benefit program to the Alliance's
network of service repair shops.

New Business

Hertz Inaugurates Simply Wheelz by Hertz…


Hertz inaugurated Simply Wheelz by Hertz, a new company under the Hertz brand that puts
travelers in the driver's seat with faster, easier and more affordable access to today's most popular
rental cars. With low, competitive rates starting at $15 a weekend day (with a 2-day minimum
keep) and $94 a week, Simply Wheelz offers an easy-to-use website for reservations
(www.SimplyWheelz.com) and an advanced self-service rental machine to rent and return vehicles.
Simply Wheelz would accept online reservations for rentals at its initial location in Orlando,
Florida. Designed for online customers who seek low prices from recognized companies, Simply
Wheelz makes car rental economical and hassle-free. Customers reserve one of the 8 vehicle types
offered online and, when arriving at the Simply Wheelz airport location, customers rent cars using
a self-service rental machine similar to those used by the airlines.

HERTZ to Inaugurate SC General Rental Facility…


HERTZ’s subsidiary, Hertz Equipment Rental Corporation (HERC) announced plans to re-open its
Greer, SC General Rental facility. The company would showcase the facility’s renovated
showroom and newly expanded product line, which includes small tools, construction equipment and
contractors’ supplies. The grand re-opening of HERC Greer is part of the company’s General Rental
program expansion, which HERC began in 2003 in support of its commitment to increase services
and products for small, medium and large contractors as well as homeowners. The company added
24 General Rental locations in 2006 as part of its planned expansion in the line of equipment rental
and currently holds 115 General Rental locations throughout the United States and Canada.
HERC’s Greer General Rental location offers a broad range of products, including roto-tillers,
floor sanders and buffers, trenchers, paint sprayers, ladders, pumps and scaffolding. In addition to
the newly expanded product line, HERC Greer still offers a wide assortment of products from

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manufacturers such as Case, Genie, Ingersoll-Rand, JLG, John Deere, Wacker and Stihl. Located at
302 East Frontage Road, Greer, SC, easily accessible from Highway 14 and I-85, the renovated
facility consists of a 5,000-square foot showroom and small equipment shop housed on a 3-acre lot.

Service Expansion

Hertz Expands Prestige Collection With Five New Models, Including Audi Q7 SUV
Hertz announced the expansion of its popular Prestige Collection, featuring make and model reservable
luxury and performance vehicles and premium service components. Rounding out an already robust
line-up of 11 luxury and performance SUVs, sedans and convertibles, new additions to the Prestige
Collection include models by Audi, Infiniti, Lincoln, and Volvo (exclusive to Hertz), bringing the total
number of Prestige vehicles available for rent to 16. The Hertz Prestige Collection is available at select
major airport locations throughout the United States, Canada, Europe and New Zealand.
New cars in the Hertz Prestige Collection include Audi's first-ever sport-utility vehicle, Audi Q7;
dynamic Audi A4 sedan; The Lincoln MKX, a five-seat SUV; The seven-seat, four-door Volvo
XC90 SUV; and Infiniti G35 Sedan. The added service components of the Hertz Prestige
Collection program include reserving model-specific vehicles; complimentary NeverLost®, Hertz's
on-board navigational system or a manufacturer installed GPS system in all Prestige vehicles;
dedicated, on-site staffing to answer questions about the vehicles and assist customers; free pick-up
and return from suburban hotels and resorts within a 15-mile radius of Hertz Prestige Collection
locations; and a one-year fee-waived membership in Hertz #1 Club Gold® (a $50 value).
The new additions join the ranks of 11 existing Prestige Collection models, including: SUV models
HUMMER H2, Cadillac Escalade, Lincoln Navigator and Infiniti FX35; sedan models Mercedes
C230, Audi A6 Quattro and A4 Cabriolet, Volvo S80 and V70 Cross Country XC Wagon, Infiniti
M35; and the Infiniti G35 Coupe. The Hertz Prestige Collection, originally introduced in 2001, is
available in 52 major airport locations throughout the United States and Canada, more than 25
European locations, as well as in New Zealand.

Year 2006 in Review…

Agreement

Hertz Signs a Deal with BMI


Hertz signed an exclusive a three-year deal with BMI, the second largest airline at London
Heathrow and one of the world’s busiest airports. BMI offers a great value car hire to all
passengers and diamond club members. The partnership follows the success of Hertz'
relationship with BMI's award winning low cost subsidiary airline, bmibaby, which began in
March 2006.
Hertz' exclusive car hire deals would be offered to all passengers booking through the BMI website
(www.flybmi.co.uk) or through the BMI call centre. Members of the BMI frequent flyers club, the
Diamond Club, would also be able to earn points. The partnership enables both the companies to
offer new and existing customers great value and service benefits, for which both brands are
known.

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New Facilities

Hertz Expands Operations in Various Locations…


Hertz started new car rental facilities in various locations as part of the company’s strategic move
to spread its horizon into suburban markets. The strategic plan of the company is to effectively
provide unmeet needs of suburban customers looking out to rent a car for business trips,
replacement needs, daily purposes or vacations. As a part of the plan, Hertz inaugurated various
new Hertz Local Edition car rental facilities in Venice, Florida; Carrollton, Texas; Cherry Hill,
New Jersey; Waipahu, Hawaii and Hollywood, Florida.

Hertz Starts Another Car Rental Facility in New York…


Hertz started another new car rental facility in West 95th Street, New York to assist the ever-growing
clientele in the area. The facility would provide a complete range of full-size to compact cars and
minivans. The company would also provide vehicles with on-board satellite navigation system such
as NeverLost®. The company operates in more than 150 countries through 7600 locations.

New Market

Hertz Forays into Indian Leasing Business…


Hertz ventured into Indian leasing business citing substantial growth opportunities in the country.
The company launched Hertz Lease, particularly for corporate people, to provide cars on lease basis.

Product Launch

Hertz Launches PlatePass™ Electronic Toll Technology


Hertz launched PlatePass™ electronic toll payment system in New York, permitting renters to use
high-speed E-Z Pass electronic toll collection lanes, thereby avoiding backups at regular cash toll
roads. The device allows renters to travel through the electronic lanes, and charge toll amounts to
their credit cards, without stopping for toll payment. American Traffic Solutions Inc., a supplier of
traffic management solutions, supports the PlatePass technology.

Product/Service Launch
Hertz Launches PlatePass™ Electronic Toll Technology
Hertz launched PlatePass™ electronic toll payment system in New York, permitting renters to use
high-speed E-Z Pass electronic toll collection lanes, thereby avoiding backups at regular cash toll
roads. The device allows renters to travel through the electronic lanes, and charge toll amounts to
their credit cards, without stopping for toll payment. American Traffic Solutions Inc., a supplier of
traffic management solutions, supports the PlatePass technology.

Hertz Launches Green Collection…


Hertz announced the launch of a new collection of fuel-efficient, environmentally friendly cars that
are both easy on the wallet and suitable for families and small groups traveling together.

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Reservable by specific make and model, with an EPA highway fuel efficiency rating of 28 miles or
more per gallon, the Hertz Green Collection features Toyota Camry, Ford Fusion, Buick LaCrosse
and Hyundai Sonata. Most of the Camrys, Fusions and LaCrosses also carry EPA's SmartWay*
certification, indicating lower emissions of air pollutants and greenhouse gases.
With more than 35,000 cars in the Green Collection, Hertz guarantees availability at 50 major
airport locations across the United States. In addition to premium segments for luxury and sporty
vehicles, Hertz offers a reservable collection of high MPG, lower emission cars for customers who
want to save on gas, drive a car with environmental benefits, but not sacrifice comfort or
roominess.
The reservable Green Collection vehicles join the luxury Prestige Collection and sporty Fun
Collection vehicles that could be reserved at major airport and resort locations across the United
States.

HIGHWAY TOLL ADMINISTRATION LLC


P.O. Box 222209, Great Neck, New York 11022-2209, USA
Phone: 800-HTA-0159 (800-482-0159), Fax: 516-267-6807

SOURCES: www.htallc.com and other secondary online sources

BUSINESS PROFILE
Highway Toll Administration LLC (HTA) is a market leader in providing electronic toll collection
services to rental car agencies. The company provides a range of services such as transponder
rental solutions for rental vehicle customers (such as E-ZPass), transponder-less solutions for rental
vehicle customers and processing toll violations incurred by rental agency customers.
In 2006, HTA partnered with Cendant Car Rental Group to install electronic toll collection devices
on Cendant’s fleet vehicles in the E-ZPass region, which include tolls, bridges, and tunnels. The
purpose of the partnership is to bring the program to Avis and Budget locations in all parts of the
country where electronic toll collection systems are utilized.
Cendant Car Rental Group, Inc., a subsidiary of Cendant Corporation (NYSE: CD), is the largest
car rental company and the owner of the Avis and Budget Rent-A-Car brands.
HTA was established in 2002.

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HITACHI LTD.
4-6, Kanda-Surugadai, Chiyoda-ku, Tokyo, 101-8010, Japan
Phone: +81-3-3258-1111, Fax: +81-3-3258-2375

SOURCES: www.hitachi.com and other secondary online sources


Sales
10400
2007 Sales: ¥ 10,247.9 billion
10100
2006 Sales: ¥ 9,464.8 billion 9800
9500
2005 Sales: ¥ 9,027.0 billion
9200
(Fiscal Year Ends in March) 8900
2005 2006 2007
BUSINESS PROFILE
Hitachi Ltd., (Hitachi) is one of the world's largest electronic and electrical manufacturers. The
company manufactures a wide range of powerful, corporate transaction-oriented mainframes, as well as
semiconductors, PCs, and other information system and telecommunications technologies. The
company also manufactures a broad range of products, including power systems and equipment,
industrial machinery and parts, electronic devices, information and communication systems, computers,
and consumer products. The company offers a wide range of elevators and escalators, industrial robots
and control systems, power plant equipment, and consumer goods ranging from TVs to refrigerators
and washing machines. The company’s other products include a wide range of metals, wire, and cable.
Hitachi operates through various business segments including Information & Telecommunication
Systems, Electronic Devices, Power & Industrial Systems, Digital Media & Consumer Products,
Financial Services, High Functional Materials & Components, and Logistics, Services & other. The
company also operates in the property management and transportation sectors. The company’s R&D unit
mainly focuses in the areas of IT systems, services, and solutions; Advanced devices and high
performance system LSIs; Social infrastructure systems, Energy and environment; New materials;
Healthcare and biotechnology; Home Appliances; Knowledge-based management-Financial Engineering;
and Exploratory and fundamental research, including nanotechnology. The company’s major competitors
are Matsushita, Fujitsu, and Toshiba. The company is accredited with ISO 14001 certification.
Hitachi was established in 1910.

DIVISIONAL ANALYSIS
Information and Telecommunication Systems
The Information and Telecommunication Systems segment provides a range of products and
services such as systems integration, outsourcing services, computer hardware, servers,
mainframes, PC, and telecommunications equipment and components.

Electronic Devices
The Electronic Devices segment offers liquid crystal displays, or LCDs, semiconductor
manufacturing equipment, test and measurement equipment, and medical electronics equipment.

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The segment’s product portfolio also includes semiconductors, device production/inspection
system, electronic devices, and automotive equipment.

Power and Industrial Systems


Hitachi’s power and industrial systems segment offers power plants, industrial machinery,
automotive products, construction machinery, transportation equipment and other products and
related services for power utilities and industry. The power sector’s main customers include Power
companies. The segment’s products include power generation/transmission systems, elevators, rail
vehicles, air conditioning equipment, hydroelectric power plants, thermal power plants, energy
saving devices, industrial systems, construction machinery/equipment/material, and power
semiconductors.

Digital Media and Consumer Products


Hitachi manufactures and markets products in two main categories such as digital media products
and consumer products. The segment offers room air conditioners, batteries, videotapes,
information storage media, refrigerators, washing machines, and other appliances.

High Functional Materials and Components


Hitachi’s high functional materials and components segment offers fabricated chemical and metal
products that are supplied as parts or materials to downstream manufacturers of mainly electric and
electronic products. The sector product portfolio includes wires and cables, copper products,
semiconductor related materials, LCD related materials, magnetic materials, and organic and
inorganic chemical materials, and printed wiring boards.

Logistics, Services and Others


The segment is involved in business of general trading, logistics, and property management.

Financial Services
The financial services segment provides leases, loan guarantees, and insurance services and
conducts business in the area of security and outsourcing.

SALES DATA

Annual Sales Comparison: 2005-2007


(In ¥ billion)

Year Sales % Change


2007 10,247.9 8.27
2006 9,464.8 4.85
2005 9,027.0 -

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Annual Sales Comparison by Business Segment (2007 Vs. 2006) - Information and
Telecommunication Systems, Electronic Devices, Power and Industrial Systems,
Digital Media and Consumer Products, High Functional Materials and Components,
Logistics, Services and Others, Financial Services (In ¥ billion)

Segment 2007 2006 % Change


Information and Telecommunication Systems 2,472.2 2,360.9 4.71
Electronic Devices 1,287.5 1,204.4 6.90
Power and Industrial Systems 3,022.3 2,805.2 7.74
Digital Media and Consumer Products 1,506.1 1,305.7 15.35
High Functional Materials and Components 1,794.5 1,600.2 12.14
Logistics, Services and Others 1,213.5 1,214.8 (.11)
Financial Services 500.1 518.0 (3.46)
Eliminations (1,548.3) (1,544.4) 0.25
Total 10,247.9 9,464.8 8.27

Annual Sales Comparison by Geographic Region (2007 Vs. 2006) – Japan, Asia,
North America, Europe and Other Areas (In ¥ billion)

Region 2007 2006 % Change


Japan 8,284.2 7,780.4 6.48
Asia 2,020.8 1,632.4 23.79
North America 1,071.0 964.1 11.09
Europe 682.8 546.4 24.96
Other Areas 173.3 131.6 31.69
Eliminations (1,984.2) 1,590.1 (224.78)
Total 10,247.9 9,464.8 8.27

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) - Japan, Asia,
North America, Europe and Other Areas (In ¥ billion)

Region 2006 2005 % Change


Japan 7,780.4 7,535.8 3.25
Asia 1,632.4 1,447.4 12.78
North America 964.1 832.5 15.81
Europe 546.4 490.8 11.33
Other Areas 131.5 104.3 26.09
Eliminations (1,590.1) (1,383.9) 14.90
Total 9,464.8 9,027.0 4.85

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Percentage Breakdown of Annual Sales (Value) by Geographic Region (2006 Vs. 2005) -
Japan, Asia, North America, Europe and Other Areas

Region 2006 2005


Japan 70 72
Asia 15 14
North America 9 8
Europe 5 5
Other Areas 1 1
Total 100 100
Annual Sales Comparison by Segment (2006 Vs. 2005) - Information and Telecommunication
Systems, Electronic Devices, Power and Industrial Systems, Digital Media and Consumer
Products, High Functional Materials and Components, Logistics, Services and Others,
Financial Services (In ¥ billion)

Segment 2006 2005 % Change


Information and Telecommunication Systems 2,361.0 2,268.4 4.1
Electronic Devices 1,204.4 1,320.2 (8.8)
Power and Industrial Systems 2,805.2 2,515.4 11.5
Digital Media and Consumer Products 1,305.7 1,280.3 2.0
High Functional Materials and Components 1,600.2 1,504.3 6.4
Logistics, Services and Others 1,214.8 1,248.3 (2.7)
Financial Services 518.0 529.7 (2.2)
Eliminations (1,544.4) (1,639.5) (5.8)
Total 9,464.8 9,027.0 4.85

Percentage Breakdown of Annual Sales (Value) by Segment (2006 Vs. 2005) - Information
and Telecommunication Systems, Electronic Devices, Power and Industrial Systems, Digital
Media and Consumer Products, High Functional Materials and Components, Logistics,
Services and Others, Financial Services
Segment 2006 2005
Information and Telecommunication Systems 21 21
Electronic Devices 11 11
Power and Industrial Systems 26 25
Digital Media and Consumer Products 13 12
High Functional Materials and Components 15 15
Logistics, Services and Others 10 11
Financial Services 4 5
Total 100 100

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STRATEGIC CORPORATE DEVELOPMENTS
Year (2007) in Review…
Acquisitions
Hitachi’s Subsidiary Acquires Iteration2…
Hitachi’s subsidiary Hitachi Consulting acquired Iteration2, Southern California, a global
consulting company and a leading microsoft dynamics partner firm. Iteration 2 is also a highly
regarded microsoft national implementation partner.

Hitachi’s Subsidiary Acquires UK Business and IT Consulting Firm…


Hitachi’s subsidiary, Hitachi Consulting acquired Impact Plus, a London-based business and IT
consulting firm, which specializes in providing a wide range of products and services to the public
sector and financial services sector. Impact Plus provides valued business and IT consulting
services to its clients in the areas of customer strategy, sales effectiveness, operational
performance, technology exploitation, program & change management, regulation & compliance,
and mergers & acquisitions.

Partnerships
Hitachi Teams Up with NEC and NEC Personal…
Hitachi teamed up with NEC Corporation (NEC), and NEC Personal Products, Ltd. s(NEC
Personal), to develop a new liquid cooling system for desktop PCs, which would reduce PC
operating noise to approximately 1/3 that of current models in Japan. The new system would be
realized by adopting Hitachi's world-leading, advanced CPU liquid cooling cold plate, and the
world's first hard disk drive (HDD) liquid cooling cold plate. The new system would be available
in NEC brand consumer desktop PCs for the Japanese market.
NEC Corporation (NEC) is one of the world's leading providers of Internet, broadband network
and enterprise business solutions.

Hitachi and Matsushita Electric Strengthen Partnership…


Hitachi and Matsushita Electric Industrial Co., Ltd. (Matsushita Electric), best known for its Panasonic
brand products, strengthened their partnership in the plasma TV business. Under the partnership, the
two companies would supply each other with plasma display panels. The partnership would also focus
on to include the cross supply of 103-inch and 85-inch plasma panels. Matsushita Electric Industrial
Co., Ltd. (Matsushita Electric) is a worldwide leader in the development and manufacture of electronic
products for a wide range of consumer, business, and industrial needs.

Agreements
Hitachi Signs a Distribution and Maintenance/Service Agreement with Alfa Wassermann
Diagnostic…
Hitachi signed a distribution and maintenance/service agreement with Alfa Wassermann
Diagnostic Technologies, LLC (Alfa Wassermann Diagnostic), to sell and market Hitachi's clinical

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chemistry systems for the Physician Office Laboratory (POL) market in the United States.
Following the agreement, the company would mainly focus on providing exciting new technology
and innovative solutions for practicing physicians; as well as to expand and diversify Alfa
Wassermann's current portfolio of clinical chemistry systems and acquiring technologies that
would be applied to strengthen its broad portfolio.
Alfa Wassermann Diagnostic Technologies, LLC (Alfa Wassermann Diagnostic), is a leading
provider of medical diagnostic instrumentation and reagents to the medical community.

Hitachi Enters into Formation Agreement with GE Energy…


Hitachi entered into a formation agreement with GE Energy to create a global alliance of their
nuclear businesses. Based on the agreement, GE Energy and Hitachi would form cross-shareholding
companies in US, Canada, and Japan. The alliance would also combine GE Energy and Hitachi’s
nuclear businesses to create one of the world’s foremost nuclear power plant and services operations.
Under the formation agreement, GE Energy and Hitachi would forge an alliance that would enable
both companies to benefit from their combines capabilities and resources.
GE Energy is a leading supplier of power generation and energy delivery technologies.

New Facility
Hitachi Opens a New Design Center…
Hitachi and Cadence Design Systems, Inc., opened a new design center in Yokohama, Japan,
which is focused on enhancing design efficiency and reducing the design-cycle time for Hitachi's
hardware products, as part of its focus on the company's manufacturing capability. The design
infrastructure, which is co-developed by Hitachi and Cadence, would be used for large-scale-
integration (LSI) and printed-circuit-board (PCB) designs.

Divestiture
Hitachi to Divest its Compact and Contact Less Finger Vein biometric Authentication Device
and SDK…
Hitachi plans to divest its compact and contact less Finger Vein biometric authentication device
and SDK (Software Development Kit) to Europe, North America, Asia, Oceania and others.
Hitachi developed the product based on the original model designed for the Japanese market and
sold in Japan. In addition, SDK is available to allow for the development of custom applications or
integration into existing application environments.

Product Launch

Hitachi Introduces New Blu-ray Disc (BD) Camcorders…


Hitachi introduced new Blu-ray Disc (BD) Camcorders, which record one hour of 1920x1080 Full
High-Definition video onto a BD (single side, single layer). The new DZ-BD7H is a Hybrid Cam
with a BD drive and a 30 gigabyte (GB) built-in hard disc drive (HDD), which would record
approximately four hours of 1920x1080 full high-definition video, or up to eight hours of

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1440x1080 high-definition video. The new DZ-BD70 is a BD single drive camcorder, which would
record approximately one hour of 1920x1080 full high-definition video (two hours of 1440x1080
high definition video) on an 8cm BD.

Year 2006 in Review…


Joint Venture
Hitachi Enters into Joint Venture with Toshiba…
Hitachi entered into joint venture with Toshiba Corp., (Toshiba) and Renesas Technology Corp.,
(Renesas) to establish Advanced Process Semiconductor Foundry Planning Co. Ltd., for a
semiconductor foundry business. The new entity would study the feasibility of an independent
semiconductor foundry business to which the partners could effectively outsource fabrication of
advanced system LSI products based on 65-nm or finer process technologies.

Alliance

Hitachi and GE to Enter into a Global Alliance for Nuclear Power Business…
Hitachi and GE signed a letter of intent to enter into a global alliance for their nuclear power
business to improve and expand their boiling water reactor (BWR) technology offerings. The
alliance also includes plans for the Hitachi and GE to combine their nuclear divisions through a
shareholding arrangement between their two businesses based in Japan and US.

Collaboration
Hitachi Teams up with HP Labs Bristol…
Hitachi’s Hitachi Systems Development Laboratory teamed up with HP Labs Bristol to conduct
joint work on key security and focus on privacy issues. Hitachi and HP Labs Bristol research
collaboration would focus on two primary themes such as authenticating users and devices to
improve security inside networks and the use of digital signatures to guarantee the authenticity of
document content.

Agreements

Hitachi Enters into an Agreement with Clarion…


Hitachi entered into a basic agreement with Clarion Co. Ltd., (Clarion) to purchase additional
shares of Clarion through a Takeover bid (TOB). Hitachi would develop its business by leveraging
Clarion’s strengths under Hitachi group. The transaction would strengthen Hitachi’s Car
Information Systems Business.

Hitachi Signs an Agreement with Bridgestone…


Hitachi signed an agreement with Bridgestone Corp., (Bridgestone) to develop electronic paper
display solutions. As per the agreement, Hitachi would utilize the Bridgestone’s display modules in
the production of electronic paper displays.

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Hitachi Enters into an Agreement with Ingram Micro…
Hitachi entered into a global distribution agreement with Ingram Micro Inc., (Ingram Micro) a
global leading technology distributor. As per the agreement, Ingram Micro would distribute the
next generation, channel-optimized Hitachi TagmaStore™ Workgroup Modular Storage model
WMS100 and Adaptable Modular Storage model AMS200 to its vast reseller network reaching
SMEs worldwide. Hitachi entered into the agreement through its operating subsidiary Hitachi Data
Systems Corp., a provider of application optimized storage™ solutions.

Contract
Hitachi Receives a Contract for Propulsion System…
Hitachi and Hitachi Australia Pty Ltd., together with the Australian train manufacturer, EDI Rail, received
a contract from Reliance Rail for 78 eight-car double deck sets and two spare carriages (626 cars) for the
Sydney train operator, RailCorp. As per the contract EDI Rail would be responsible for the car body and
bogie, and Hitachi would be in charge of the propulsion system on behalf of Reliance Rail.

New Establishments

Hitachi to Establish a Manufacturing Plant in Czech Republic…


Hitachi proposed to establish a company in the Czech Republic for Flat-panel TV Assembly to
meet the expansion of demand for flat-panel TVs (plasma and LCD TVs) in Europe. The new
company Hitachi Home Electronics (Czech) Sro would assemble flat-panel TVs and produce
plasma panel modules. Hitachi would establish a design and R&D division in the new company to
meet local requirements, such as digital broadcasting and strengthen its development capabilities in
cooperation with the R&D division of Hitachi Europe.

Hitachi Establishes Hitachi Consulting…


Hitachi established a company named Hitachi Consulting Co. Ltd., (Hitachi Consulting) to
strengthen its business and IT consulting operations worldwide including Japan, the US, and
Europe. The new construction provides seamless consulting services throughout the world.

Hitachi to Establish HR and Finance Outsourcing Unit…


Hitachi collaborated with outsourcing firm, Hitachi Triple Win Corp., to form a new business for offering
HR & Finance services to the Hitachi Group of Companies and other business houses as well. The new
business would operate a fully owned enterprise of Hitachi combining capabilities of Human Capital
Solution Center of Hitachi Ltd and Finance Shared Service Division of Hitachi Triple Win Corp. The
move is seen as a part of Hitachi’s strategic plan to venture into the HR and finance outsourcing market.

Product Development

Hitachi Develops µ- Chip…


Hitachi developed and verified the operation of a 0.15 x 0.15 millimeter (mm), 7.5 micrometer
(µm)*1 thick contactless IC chip is the smallest and thinnest chip in the world. By taking

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advantage of the merits of compactness, high authenticity and contactless communication, with
Internet technology, the µ-Chip is used in a broad range of applications such as security,
transportation, amusement, traceability and logistics.

PRODUCT PORTFOLIO
Products for Home
Accessories
Batteries; Visual/Audio/Data Media; Lamps; and other Accessories

Home Appliances
Kitchen Products; Beauty/Health Products; Home/Life Solutions; AV Equipment/PC/Mobile
Phones; Air Conditioners; Home Equipment/Remodeling; and others

Computing
Accessories; PC; and others

Mobile Phones
Mobile Gear; Mobile Phones; and others

AV Products
Audio Equipment; Televisions/Projectors; Camcorder; Video Recorder/Player; Visual/Audio
Media; and others

DIY
Garden Supplies and Power Tools

Social Benefit/Care Products


Accessible Information Equipment; Hand Language Animation Software; and others

Service/Finance Solutions
Consumer Finance; Travel; and other services

Products & Solutions for Business


Computer/Network Systems
Hardware; Information Technology; Software; Visual System; and other solutions

Environmental Solutions
Environment Systems; Security Systems; Transportation Systems; Social Systems; Public
Administration Solutions; Educational Solutions; and others

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Medical/Social/Scientific Solutions
Science/Biotechnology/Life Science; Pharmaceutical; Social Benefit/Care; and others

Building/Condominium/Store
Building/Condominium/Store Equipment for stores, and others

Power
Power Generation/Transmission; Energy Saving; and other solutions

Industrial
Industrial Systems; Construction Machinery/Equipment/Material; Power Semiconductors; and
others

Semiconductors/Materials/Components
Semiconductors; Electronic Devices; Device Production/Inspection System; Automotive
Equipment; Design/Services; Materials; and others

SUBSIDIARIES
Information & Telecommunication Systems
Hitachi Communication Technologies, Ltd.
Hitachi Electronics Services Co., Ltd.
Hitachi Information Systems, Ltd.
Hitachi-Omron Terminal Solutions, Corp.
Hitachi Software Engineering Co., Ltd.
Hitachi Systems & Services, Ltd.
Hitachi Computer Products (America), Inc.
Hitachi Computer Products (Europe) S.A.S.
Hitachi Data Systems Holding Corp.
Hitachi Global Storage Technologies Netherlands B.V.
Electronic Devices
Hitachi Displays, Ltd.
Hitachi High-Technologies Corporation
Hitachi Medical Corporation
Hitachi Electronic Devices (USA), Inc.
Hitachi Semiconductor Singapore Pte. Ltd.
Power & Industrial Systems
Babcock-Hitachi Kabushiki Kaisha
Hitachi Air Conditioning Systems Co., Ltd.
Hitachi Building Systems Co., Ltd.
Hitachi Construction Machinery Co., Ltd.
Hitachi Engineering Co., Ltd.
Hitachi Engineering & Services Co., Ltd.
Hitachi Industrial Equipment Systems Co., Ltd.
Hitachi Industries Co., Ltd.
Hitachi Kiden Kogyo, Ltd.
Hitachi Plant Engineering & Construction Co., Ltd.

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SUBSIDIARIES
Hitachi Via Mechanics, Ltd.
Japan Servo Co., Ltd.
Guangzhou Hitachi Elevator Co., Ltd.
Hitachi Automotive Products (USA), Inc.
Digital Media & Consumer Products
Fujitsu Hitachi Plasma Display Limited
Hitachi Home & Life Solutions, Inc.
Hitachi Maxell, Ltd.
Hitachi Media Electronics Co., Ltd.
Hitachi Home Electronics (America), Inc.
Shanghai Hitachi Household Appliances Co., Ltd.
High Functional Materials & Components
Hitachi Cable, Ltd.
Hitachi Chemical Co., Ltd.
Hitachi Metals, Ltd.
Logistics, Services & Others
Chuo Shoji, Ltd.
Hitachi Life Corporation
Hitachi Mobile Co., Ltd.
Hitachi Transport System, Ltd.
Nikkyo Create, Ltd.
Hitachi America, Ltd.
Hitachi Asia Ltd.
Hitachi (China), Ltd.
Hitachi Europe Ltd.
Financial Services
Hitachi Capital Corporation
Hitachi Insurance Services, Ltd.
Others
Alaxala Networks Corporation
Global Nuclear Fuel Americas LLC
Global Nuclear Fuel-Japan Co., Ltd.
Hitachi Telecom (USA), Inc.
Hitachi Plasma Patent Licensing Co., Ltd.
Hitachi-GE Nuclear Energy, Ltd.

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HTS GROUP LTD.
68 Victoria Street, Petone, Wellington, New Zealand
Phone: + 64-4-939-1010, Fax: + 64-4-939-1009

SOURCES: www.harding.co.nz and other secondary online sources

BUSINESS PROFILE
HTS Group Ltd. (HTS Group), is involved in the design, production, installation, service and
maintenance of traffic and parking related products and systems. Major products offered by the
company include Traffic signaling systems (vehicle and pedestrian), traffic monitoring and
analysis, carpark control systems, vehicle id/location systems, vehicle access systems, carpool
access control systems, electronic fare collection, sports timing, hotel accommodation security
systems, electronic/digital safes and storage, and weather information systems. HTS Group also
provides a range of services such as sub consultancy, traffic counting and classification, traffic
signal design, service and maintenance, and project management services. HTS Group operates
offices in Auckland and Wellington as well as active in other towns and cities through local agents.
In 2006, HTS Group secured the maintenance contract for Transit Wgtn and Hutt City traffic signals.
HTS Group was established in 2000.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 in Review…

Contract

HTS Group Receives the Hutt City Street Light Maintenance Contract…
HTS Group received the Hutt City Street Light maintenance contract. HTS Group, extending its
existing partnership with Hutt City Council, would improve the performance of streetlights in the
Hutt Valley.

Installations

HTS Group Installs New Pedestrian Crossing…


HTS Group installed a new pedestrian crossing outside Hutt Valley High School to improve the
safety for the school users and to improve traffic flows. The intersection would include high tech
detection systems to ensure false detections are minimized. Earlier, HTS Group in association with
Works Infrastructure installed 4 sets traffic signals into Karori Wellington.

HTS Group Announces the Installation of New LED Sign System…


HTS Group announced the installation of new LED sign system that displays the number of
carparks available in carparks around the Auckland city. The installation is scheduled to be
complete by the end of first half of 2006.

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IMTECH NV
Kampenringweg 45a, 2803 PE Gouda, The Netherlands
Phone: +31 (0) 182-543-543, Fax: +31 (0) 182-543-500

SOURCES: www.imtech.nl and other secondary online sources


2007 Sales: € 1,517 million (H1)
2006 Sales: € 2,839 million
2005 Sales: € 2,379 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Imtech NV (Imtech) formerly Internatio-Muller N.V., is a European technical services provider in
the fields of electrical engineering, ICT (information and communication technology) and
mechanical engineering. The company offers a broad range of high-value technical solutions to its
customers. Imtech’s range of innovative products and services include project and site
management, interfaced and integrated ship bridges, propulsion solutions, power generation and
distribution, alarm and monitoring systems, local area networks on board, navigation,
communication and entertainment equipment, air conditioning and climate control solutions, fire
safety & sprinkler solutions, and integrated security solutions.
Imtech provides its services to a wide variety of markets including the buildings, industry,
infrastructure and telecom, and the global maritime market, in Belgium, Germany, Luxembourg,
the Netherlands, Eastern Europe, Spain and the UK. The company also operates in the Eastern
European countries. Imtech also provides its services to over 12,000 clients, including a cohesive
package of technical services to the clients in the Benelux, Germany, the UK, and Spain. The
company operates over 200 offices in Europe.
Imtech was established in 2001.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In € million)

Year Sales %Change


2007 1,517 17.60
2006 1,290 -

Annual Sales Comparison: 2006 Vs. 2005 (In € million)

Year Sales %Change


2006 2,839 19.34
2005 2,379 -

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STRATEGIC CORPORATE DEVELOPMENTS
Year (2007) in Review…
Acquisitions
Imtech’s Subsidiary Acquires German X-Wert Consulting and Swiss Interex…
Imtech’s subsidiary Fritz & Macziol acquired all the shares in both German X-Wert Consulting
GmbH (X-Wert Consulting) and Swiss Interex AG (Interex). Following the acquisition, X-Wert
Consulting would act as a full-fledged region (Duisburg region) within Fritz & Macziol; as well as
Interex would be linked to the Swiss business unit of Fritz & Macziol (Rosenheim). Both the
acquired ICT companies are specialized in consultancy, software development, software licenses,
hardware and services.

Imtech Acquires Free Technics…


Imtech acquired all shares of the Dutch-based Free Technics B.V. (Free Technics), a small
software specialist on the international maritime market. The broad international scope of Imtech’s
maritime businesses (60 locations worldwide) provides an excellent basis for the accelerated
growth of the maritime software solutions offered by Free Technics. Following the acquisition of
Free Technics, Imtech would further increase its delivery program on the market of smaller ships.

Imtech Acquires Hoffmann S.A…


Imtech acquired all shares of the Hoffmann S.A., a regional technical services provider, active in
electrical engineering and security in the region of Thionville. Following the acquisition, Imtech
would strengthen its position in Thionville, which includes the border region of Luxembourg and
Northern France.

Imtech Acquires The Aqua Group…


Imtech acquired The Aqua Group Ltd. (The Aqua Group), and its subsidiary companies. The Aqua
Group is a renowned multidisciplinary technical service provider, and maintenance provider in the
fields of electrical engineering, mechanical engineering (air conditioning and climate control
technology), ICT, data and telecommunications, security and control in the growing market of
utilities. Following the acquisition, Imtech would significantly strengthen its position in the UK.

Imtech Acquires Peek Traffic


Imtech acquired Peek Traffic Holdings Limited, an intelligent mobile traffic solutions provider in the
European countries of Croatia, the Netherlands, Poland and the United Kingdom. The development
would bring in key positive changes in the areas of Traffic enforcement, safety & security of road users,
bright lighting of roads, bridges & tunnels, ensuring a safe and secure environment. While Imtech would
benefit through an enlarged market reach, Peek would benefit from Imtech’s strong position in the
European market. Peek Traffic would continue to operate under the previous name.

Imtech Acquires Seacoast Electronics…


Imtech acquired Seacoast Electronics, Inc. (Seacoast Electronics), a full-service maritime
contractor and service provider with a strong position in the US maritime market. The acquisition

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would fit in with Imtech's focus for further growth in the global maritime market for construction,
maintenance and services. The acquisition would serve to significantly increase the scope of
Imtech in the USA, and expand its network of branches.

Imtech Acquires Service Activities of Cegelec…


Imtech acquired the service activities of Cegelec in Luxembourg. Following the acquisition, Imtech
would focus on to further expand its activities strategically in the areas of services, maintenance,
security, and energy management.

Imtech Acquires German Company…


Imtech acquired all the equity of the German company, BMS Systems IT Solutions (BMS), located
in the German town of Obertshausen, near Frankfurt. BMS specializes in software development,
service and software licenses. Following the acquisition of BMS, Imtech would further strengthen
its partnership with IBM.

Partnership

Imtech Enters into Partnership with Lemnis Lighting B.V…


Imtech entered into partnership with Lemnis Lighting B.V., a technology company that focuses on
low-energy LED technology, for the development, production and sale of public lighting based on
low-energy, sustainable LED technology. Imtech and Lemnis Lighting B.V. would work together
to unveil low-energy applications based on the LED (Light Emitting Diode) technology in the
market for public lighting. Under the partnership, the two companies would produce low-energy,
sustainable products in the field of public lighting.

Contracts

Imtech Receives a Contract from Allseas…


Imtech received a contract from Allseas, for around 35 million euro, to provide the automation and
technical infrastructure on board, a new to be built offshore construction vessel named the Pieter
Schelte. The vessel would be the largest offshore construction vessel in the world. The new vessel,
Pieter Schelte would include the capacity to assemble, disassemble or relocate jackets of up to
25,000 tonnes (the substructure of oil or gas platforms), as well as topsides of up to 48,000 tonnes.
Following the contract, Imtech would strengthen its position in the international offshore market.
Allseas specializes in the deployment of pipe-laying vessels for the international oil and gas market.

Imtech Bags a Contract from Shell…


Imtech bagged a contract from Shell, for providing the technical and facilities services in all Shell
offices in the Netherlands. Shell also awarded Imtech, and Sodexho, with a joint contract for
structural and technical management and maintenance of its buildings, along with responsibility for
the so-called hard services. Under the contract, Imtech's focus would be on management,
maintenance and upgrading of all constructional and technological facilities.

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Orders
Imtech Receives 40 Million Euro Orders for Technology at Airports…
Imtech received orders worth over 40 million euro for the technical infrastructure in the expansion
of both the Berlin-Tegel and the Frankfurt Rhein-Main airports in Germany. Imtech is a leading
player in Germany, with regard to multidisciplinary technical services provision in both industry
and buildings markets. Imtech recently provided the full technological infrastructure in the
expansion of the airports in Munich, Dusseldorf and Hamburg. Imtech is currently providing the
Berlin-Tegel airport with high-tech technological solutions.

Imtech Wins an Order from BMW Group…


Imtech won an order from BMW Group, in Germany for advanced testing technology in the BMW
research and innovation center in Munich. In addition to implementing the technical infrastructure
in automotive manufacturing plants, Imtech is a market leader in the development, construction
and operation of sophisticated testing technology. Imtech would offer total solutions for the
development of new automotive techniques and for new vehicle models. Imtech, through its own
competence center in Hamburg (UMSI, Umweltsimulation/Prufstandtechnik), would market a wide
range of services to the entire German automotive industry.

Imtech Receives 85 Million Euro Orders for Technology in Computer and Data Centers German
Financial Market…
Imtech received orders worth more than 85 million euro, for providing total technological solutions
for the overhaul and/or expansion of computer and data centers of financial institutions in
Germany. In addition, Imtech provides a reliable power supply, innovative cabling, preventative
fire safety, no-break facilities and professional disaster plans. Imtech would also provide high tech
solutions for extra cooling and warmth removal, by making use of innovative cooling technology
and water circulation. All the Imtech’s solutions are characterized by optimum attention to energy
conservation and fit in seamlessly with the primary and secondary processes at the enormous
computer and data centers.

Year 2006 in Review…


Acquisitions
Imtech Acquires Fritz & Macziol…
Imtech acquired Fritz & Macziol, one of the fastest growing German ICT companies. Fritz &
Macziol is located in Germany (eleven branches), Austria (two branches) and Switzerland (two
branches). The acquisition fits in with Imtech's strategy for further growth of its ICT activities in Europe.
The impact of ICT solutions as part of Imtech's integral technological solutions (the combination of ICT,
electrical engineering and mechanical engineering) would increase even more in Germany.

Imtech Acquires Majority Interest in Tess USA…


Imtech acquired a majority interest of 51% in Tess Electrical Marine Inc. (Tess), in Fort
Lauderdale in Florida, USA. The acquisition would fit in with Imtech's strategy of further growth

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in the maintenance and services market for luxury yachts and megayachts. The market for luxury
yachts and megayachts would be primarily concentrated on the Mediterranean Sea region in the
south of France (Cote d'Azur: around Monaco, Antibes, Nice and St. Tropez) and the Caribbean (in
Florida, with Fort Lauderdale as its center). The acquisition of Tess would also provide Imtech
with a second service point in the Caribbean.

Imtech Acquires Industrial Maintenance Unit of Emmtec Services…


Imtech acquired the Industrial Maintenance unit of Emmtec Services (part of Nuon Business),
including all current activities and maintenance contracts. Emmtec Services' Industrial
Maintenance unit is specialized in mechanical engineering maintenance and servicing of industrial
machinery, such as fitting and overhauling pumps, drive units, valves, machine components and
industrial piping. The unit also provides industrial services for the companies located at the
EMMTEC Industry & Business Park in Emmen. The acquisition fits in with Imtech's strategy of
further growth in the industrial market in the Netherlands.
The acquisition would also further reinforce Imtech's portfolio, expanding its activities in the field
of mechanical engineering maintenance services.

Imtech to Acquire Radio Holland Group…


Imtech plans to acquire Radio Holland Group, an international specialist in marine satellite
and radio communications, automation, and observation and navigation systems. The
acquisition would double the revenue of Imtech in the maritime market, which yields a place
in the global top 5. The acquisition would fit Imtech’s strategy of further international growth
in the marine market.

Contracts/Orders

Imtech Wins Mobility Contracts Worth 20 Million Euro…


Imtech won mobility contracts valued at around 20 million euro, to help speed up considerably
the flow of traffic on vital road links in the Netherlands. Additionally, Imtech also won
maintenance contracts for the traffic management centers at Rhoon (a ten-year contract, in
combination) and Geldrop (a six-year contract). In addition, under a performance-related
contract with the Directorate General of Public Works and Water Management
(Rijkswaterstaat), Imtech would provide a high-level of maintenance and management services
at the centers.

Imtech Receives 75 Million Euro Maintenance Contract for Schiphol Runways…


Imtech and Dura Vermeer, a construction company received a 3-year contract, for 75 million euro,
for maintaining and improving the infrastructure on and around all the runways at Schiphol Airport
in Amsterdam/Haarlemmermeer, the Netherlands. Schiphol Airport, one of the largest airports in
Europe with over 45 million passengers annually, developed a Plan of Action with the focus of
increasing the airport's capacity, optimizing business efficiency, eliminating operational disruptions
and reducing total maintenance costs.

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Imtech Bags a 20 Million Euro Order for Environment Friendly Technology On-Board Four
Container Vessels…
Imtech, in close co-operation with Siemens Marine Solutions, bagged an order worth more than 20
million euro for the environment friendly technical solutions in four container vessels (capacity:
5300 containers each) for German ship owner Hermann Buss GmbH & Cie. Imtech would be
responsible for the electrical engineering and deliver and commissioning all equipment for the
electric and electronic disciplines.

SUBSIDIARIES
Meica Group (UK)
Goodmarriott & Hursthouse (UK)
Mavisa (Spain)
Radio Holland Group
Fritz und Maziol (Germany)
HDW-Hagenuk Schiffstechnik (Germany)
Mavisa
Seacoast Electronics, Inc.
The Aqua Group Ltd.

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INRIX, INC.
4055 Lake Washington Boulevard NE, Suite 200, Kirkland, Washington 98033, USA
Phone: (425) 284-3800, Fax: (425) 284-3879

SOURCES: www.inrix.com and other secondary online sources

BUSINESS PROFILE
Inrix Inc., (Inrix) is a provider of offers predictive traffic services, including real-time traffic speed
information for major highways, side streets, freeways, and arterials in every key metropolitan
region in the US. The company’s traffic services include Inrix Real-Time Flow Traffic Service,
Inrix Dynamic Predictive Traffic Service, Inrix Real-Time Incidents Traffic Service, and Inrix
National Average Speeds & National Reference Speeds Traffic Services. The company’s Traffic
Services are used for logistics, mapping, navigation and other location-based service (LBS)
applications. Inrix currently provides businesses and regional department of transportation (DOTs)
agencies with real-time traffic speed, real-time traffic incidents and construction alerts, historical
traffic speeds and dynamic predictive traffic information. Inrix currently possess real-time speed
information for nearly 50,000 miles of road and historical traffic average speed information for
every major road in the US, nearly 500,000 miles of roadway at the Traffic Messaging Channel
(TMC) level. The company provides Inrix Traffic Services through an XML interface that allows
flexible delivery to customers through SMS text alerts, e-mails, Web, cell phones, satellite and
terrestrial radio, TV, personal and in-car navigation devices, and other devices.
Inrix provides various solutions including Real-Time Traffic Service, Inrix Smart Dust Network,
Nationwide Average Speeds, Predictive Traffic Service, Flow Market Coverage, Incident Market
Coverage and others. The company provides traffic services directly and through channel partners
to a broad range of markets, web portals and destination sites including automobile manufacturers
and tier one equipment suppliers, telematics service providers, satellite radio and HD radio service
providers, regional and federal government agencies, fleet management solution providers and
mobile phone application developers and wireless operators. The company’s clientele and business
partners include Tom Tom, Microsoft, TeleNav, Clear Channel Radio’s Total Traffic Network,
deCarta, Tele Atlas, TCS, and Telmap.
Inrix was established in 2004.

STRATEGIC CORPORATE DEVELOPMENTS


Year 2008 (1st Half) in Review…
Partnership
Inrix Expands Partnership withTomTom Navigator
Inrix extended its partnership with TomTom Navigator GPS to offer INRIX traffic information,
fuel pricing and incident alert services for TomTom portable navigation devices in the US through
Tom Tom Plus. INTRIX is one of the leading traffic flow information providers in the US, where
as TomTom ranks among the largest providers of navigation solutions worldwide.

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Year 2007 in Review…
Partnerships
Inrix and TCS Enters into Partnership…
Inrix and TCS Inc., announced the enhancement of TCS' 20/20 Mobility Suite™ through the
incorporation of Inrix's real-time traffic information. TCS 20/20 Mobility Suite™ provides
enterprises with complete visibility into mobile workforces, including proof of delivery and related
information for managing outside-the-warehouse logistics. TCS’ 20/20 Traffic Alerts, with the
addition of Inrix's real-time traffic technology could monitor traffic incidents in the vicinity of the
driver's planned route and alert the driver's wireless mobile computer while traffic incidents occur.
TCS is the leading provider of mission-critical wireless data solutions.

Inrix and SEH Partners with WisDOT to Monitor Primary Transportation…


Inrix and Short Elliott Hendrickson Inc. (SEH®), a Midwest-based professional consulting services
firm are selected by the Wisconsin Department of Transportation (WisDOT) to provide real-time
traffic flow data for nearly 250 miles of US 41 and I-43. WisDOT would use the information to
provide real-time travel information, traffic flow, travel speeds, travel times, congestion, and incident
reports to commercial, commuter and leisure travelers to enable for more safe and efficient travel.

Inrix and Clear Channel's Total Traffic Network Extends Partnership…


Inrix and Clear Channel's Total Traffic Network, a division of Clear Channel Radio extended its
already existing partnership. The extended partnership includes real-time traffic speed data from
Inrix's 'Smart Dust Network,' that combines the largest GPS-enabled vehicle probe network in the
world with speed information from conventional road sensors and numerous other sources. Clear
Channel would deliver enhanced real-time traffic information through its Total Traffic Network in
U.S. cities. Total Traffic Network, with the enhanced relationship, expands its real-time speed
market coverage by leveraging Inrix's Smart Dust Network.

Agreement
Inrix Signs an Agreement with TeleNav Inc…
Inrix signed an agreement with TeleNav Inc., (TeleNav) under which Inrix is selected as TeleNav’s
traffic information partner for TeleNav GPS Navigator™ and TeleNav Traffic™. As per the
agreement, Inrix would provide traffic data to TeleNav for the first mobile phone-based GPS
navigation service with intelligent traffic notification and one-click rerouting functionality.
TeleNav traffic leverages Inrix's smart dust network consisting of traffic-related data from over 250
public and private sources including traditional road sensors, and traffic incident and construction
data from Clear Channel Traffic.

Product/Service Launch
Inrix Introduces Real-Time and Predictive Traffic Application for Windows Mobile Devices…
Inrix introduced the real-time and predictive traffic application for windows mobile devices. Inrix’s
traffic for windows mobile is the first wireless application featuring dynamic predictive and

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comparative traffic speed information in addition to highly accurate real-time traffic speed and
incident information. The wireless users could gain instant access to real-time and predictive traffic
conditions on windows mobile devices in more than 60 U.S. metropolitan markets, with additional
markets becoming available in the coming months. The company’s Traffic for Windows Mobile
also delivers a superior user experience giving a variety of unique features including patented zone
panning, ability to select and add market maps over the air and others.

Year 2006 in Review…

Partnerships

Inrix Signs Partnership with Dash Navigation…


Inrix signed a partnership with Dash Navigation (Dash) under which Inrix is selected as Dash’s
traffic information partner. As per the agreement, Dash would use real-time traffic flow data from
Inrix in its Dash Express™ product, the industry's first Internet-connected auto navigation device.
Dash Express, by adding the Inrix information to its own data, would offer consumers the most
comprehensive traffic flow information and the most accurate forecasted travel times available in
the industry.
Dash Navigation connects people to the information that empowers them in their cars.

Inrix and Tele Atlas Expands Partnership…


Inrix and Tele Atlas expanded the partnership to deliver next-generation traffic services in North
America. As per the new agreement, Inrix and Tele Atlas would form joint operations to collect,
integrate and deliver enhanced Tele Atlas traffic solutions and related map information within
wireless applications and personal and in-car navigation systems. Tele Atlas customers would be
benefited with access to Inrix’s industry-leading real-time and predictive traffic information and
the ability to develop next generation navigation solutions featuring applications such as traffic-
influenced dynamic routing.
Tele Atlas provides the digital maps and dynamic location content that power the world’s most
essential geographic solutions.

Product/Service Launch

Inrix and TCS Delivers Accurate Real-Time Traffic for Market-Leading Mobile Traffic
Applications…
Inrix and Telecommunication Systems, Inc. enhanced TCS mobile traffic applications by
incorporating Inrix's real-time traffic technology. TCS mobile traffic applications are currently
available through leading carriers nationwide. TCS provides BREW, Java, and WAP-based versions of
its mobile phone applications including the popular Tele Atlas Traffic and Rand McNally Traffic. TCS
also offers WAP Traffic 2.0, extending its leadership in the traffic application market. Inrix offers the
most comprehensive suite of traffic solutions including real-time and predictive speed information for
40 major U.S. metropolitan markets, traffic incident information for 138 metropolitan markets and
historical road speed information for the entire U.S. road network.

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Inrix Delivers Accurate, Real-Time Speed & Flow Information…
Inrix delivered its accurate, real-time speed and flow information for 36 metropolitan markets,
making the company the leading nationwide coverage provider of real-time flow information. The
company launched six new metropolitan markets leveraging the real-time vehicle GPS probe data
from the ‘Inrix Dust Network in Dallas, Hartford, Indianapolis, Jacksonville, Las Vegas, and
Orlando. Inrix provide accurate real-time and predictive traffic speed and flow information for
major freeways, highways, arterials and side streets in every major metropolitan area.

Inrix 'Dust Network' Delivers First Nationwide Traffic System…


Inrix unveiled its Inrix Dust Network, the first nationwide traffic service. The company also
provides accurate real-time and predictive traffic speed and flow information for major freeways,
highways, arterials and side streets in every major metropolitan area in the US. The company’s
Dust Network represents a traffic technology breakthrough that improves the quality, accuracy and
coverage of traffic information and provides information needed by businesses, government
agencies and consumers to avoid gridlock, and save time and money.

Inrix Expands Real-Time Traffic Flow Coverage to 73 U.S. Markets & 47,000 Miles of Road…
Inrix announced the availability of the largest real-time traffic flow data network in the US,
covering over 47,000 miles of road in 73 metropolitan markets. The company’s Inrix Traffic
Fusion Engine enables the latest expansion in coverage using sophisticated statistical techniques
and proprietary error correction technology. The company’s traffic fusion engine combines real-
time information aggregated from the hundreds of data sources in the Inrix Smart Dust Network.
The company’s Smart Dust Network provides the first scalable approach to enabling ubiquitous,
high quality, real-time traffic information.

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INTERMAP TECHNOLOGIES CORPORATION
8310 South Valley Highway, Suite 400, Englewood, Colorado, 80112-5847, USA
Phone: (303) 708-0955, Fax: (303) 708-0952
SOURCES: www.intermap.com and other secondary online sources
2007 Sales: US$ 13.3 million (H1)
2006 Sales: US$ 21.8 million
2005 Sales: US$ 15.0 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Intermap Technologies Corp., (Intermap) is a world leader in the development of high-resolution digital
surface and digital terrain models, orthorectified radar images and other value-added products. The
company provides mapping and surveying services to governmental and corporate clients using its
STAR mapping technology. The company provides uniform 3D road geometries to automotive
suppliers and vehicle manufacturers worldwide. The company develops digital elevation models, and
numerous value-added products based on proprietary airborne Interferometric Synthetic Aperture
Radar (IFSAR) technology. Intermap’s offerings include elevation data and imagery, value-added
products, software applications, automotive / ADAS, and other product applications.
Intermap proactively remapping Europe and the US, and building unprecedented national
databases, called NEXTMap®, consisting of highly accurate digital topographic maps that include
3D geometric data. The company’s NEXTMap® program is a proactive mapping initiative that
empowers government agencies and commercial enterprises worldwide to quickly and affordably
meet a wide range of geospatial needs. The company’s products are used in various applications
such as geographic information systems (GIS), flood modeling and watershed analysis, image
rectification, line-of-sight analysis, base mapping, 3D visualization and navigation, flight
simulation, precision farming and forestry, surface analysis, landslide hazard analysis, internet
mapping, intelligent transportation systems (ITS), and auto safety / advanced driver assistance
systems (ADAS). The company’s products are supplied to commercial, aviation, agricultural,
geospatial, military, government, Automotive/ADAS, Consumer Electronics, Utilities, and
Insurance sectors. The company operates in Denver, Calgary, Ottawa, Munich, and Jakarta.
Intermap was established in 1996.

SALES DATA
Half Yearly Sales Comparison: 2007 Vs. 2006 (In US$ million)

Quarter 2007 2006 % Change


Q2 7.1 3.7 91.89
Q1 6.2 2.1 195.24
Total 13.3 5.8 129.31

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Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 21.8 45.33
2005 15.0 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Acquisition

Intermap Acquires MultiMedia Computer Sro (MMC)…


Intermap acquired the shares and ongoing operations of MultiMedia Computer SRO (MMC). The
acquisition enables to enhance its product offerings from strictly data sales to solution-based sales
for specific markets. Furthermore, the acquisition allows the company to deliver complete
geospatial solutions to its customers and partners within a variety of diverse markets.

Partnerships

Intermap and Viewtec AG Forms Partnership…


Intermap and ViewTec AG entered a strategic business partnership to provide TerrainView-
Globe™ 3D with premium elevation models, based on Intermap’s highly reliable geospatial core
products and ViewTec’s state-of-the-art visualization, exploration, and simulation software. Under
the terms of agreement, ViewTec and Intermap would market the premium elevation models
bundled with TerrainView-Globe™ to the 3D visualization, exploration, and simulation
community.
ViewTec is a global leader in 3D software development for realistic scene modeling, interactive 3D
visualization, exploration and simulation.

Intermap and East View Cartographic Teams Up…


Intermap teamed up with East View Cartographic to provide greater access to Intermap’s high
quality and affordable 3D elevation datasets and geometric images. The partnership would enable
GIS and geospatial professionals worldwide to download elevation models and images. EVC
specializes in custom GIS data production using data from a variety of in-house or client sources
and in helping clients find and manage the right mapping and GIS data production resources for
projects. EVC offers a broad range of geospatial raster and vector data, from high-resolution DEMs
to full vector GIS datasets through their web site.

Intermap Partners with Map Your World…


Intermap and Map Your World entered into a partnership, under which Map Your World agreed to
distribute Intermap’s precise 3D digital elevation models and images. Under the terms of the

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agreement, Intermap provides existing core datasets, including high-resolution digital terrain
models, digital surface models, and orthorectified radar images, immediately available to Map
Your World.
Map Your World, a regional distributor of online geospatial products and services for the
southwest and southeast United States.

Intermap and GeoContent forms Partnership…


Intermap and GeoContent agreed to provide a bundled solution that meets the geospatial needs of
dozens of applications and markets in Germany. The partnership, focused on complementing high-
resolution aerial imagery with the most accurate and uniform 3D geometric datasets available of
Germany, would pave the way for greater accessibility and savings in German geospatial markets.
GeoContent is Germany’s only provider of quality aerial imagery covering the entire country.

Intermap Forms Partnership with MapMart…


Intermap formed a partnership with MapMart to provide greater online access to Intermap’s high
quality and affordable 3D geometric datasets through MapMart’s leading on-line geospatial
product distribution website. Intermap data available on the MapMart site includes digital elevation
models, digital surface models, and orthorectified radar imagery. The coverage includes all of
Great Britain, over 500 counties of the United States.

Intermap Forms Partnership with GAF AG…


Intermap signed an agreement with GAF AG to enable the latter to immediately begin distributing
Intermap’s high-resolution 3D digital elevation data and geometric images throughout Germany
and the rest of Europe.
GAF AG, a part of the Telespazio group of companies, is an international consulting company with
leading competence and expertise in applied remote sensing and spatial information systems.

Agreements
Intermap Signs an Agreement with Microsoft Corp…
Intermap signed an agreement to provide Microsoft Corp., with NEXTMap® Britain digital
elevation data for use within Microsoft Corp.’s Virtual Earth platform. The agreement enables
Microsoft Corp., to create and deliver a Live Search Maps product powered by the most current
and accurate digital terrain model of Great Britain. The company’s 3D digital terrain model data
would serve as the base layer or foundation for the placement and alignment of aerial photography
and other geospatial layers.
Intermap Enters into an Agreement with Visteon Corporation…
Intermap entered into a joint development agreement with Visteon Corporation (Visten), a globally
recognized automotive technology developer. As per the agreement, Intermap would supply
Visteon with 3D elevation data and geometries across Germany. The initial focus of the agreement
would be on predictive adaptive front lighting systems that offer enhanced visibility for drivers at
night by directing the headlamp light, before the driver directs the vehicle into the bend.

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Contracts

Intermap Wins Mapping Contracts…


Intermap won four contracts for radar mapping in Tsunami Preparedness and Energy Exploration
in Southeast Asia. As per the agreement, the company would collect and deliver three-dimensional
digital elevation data and orthorectified radar imagery utilizing Intermap’s IFSAR radar mapping
technology. The accurate and digital elevation models (DEMs) in the region would enable the
company’s clients to formulate strategies to assist in the decision-making needs to mitigate tsunami
and geohazard effects in the island-rich region. Another client would use the data to assist in
seismic planning and advanced energy exploration without disturbing the environment.

Intermap Bags Contract for Providing International Radar Imagery and Elevation Data…
Intermap’s subsidiary, Intermap Federal Services Inc., bagged a contract to provide digital
elevation data and orthorectified radar imagery for an international project. The company’s data
would be used for topographic mapping and regional planning that otherwise would not be
achievable without accurate imagery and elevation data. The geospatial data collected and
delivered would be generated using the company’s Interferometric Synthetic Aperture Radar
(IFSAR) technology aboard one of the Company’s five aircraft.

Intermap Receives Contract for Mapping and Imagery Data…


Intermap received US$1.5M contract to provide 3D digital elevation data and orthorectified radar
imagery for an international project. As per the contract, the company would deliver high-
resolution data and imagery during the second quarter of 2007 from geography collected in 2006
using the company’s proprietary Interferometric Synthetic Aperture Radar (IFSAR) technology.

Intermap Receives a Contract to Map Island in Southeast Asia…


Intermap received a US$3.1 million contract to collect and deliver geographic three-
dimensional elevation and imagery data in Southeast Asia. The company would utilize one of
its five aircraft equipped with proprietary IFSAR (Interferometric Synthetic Aperture Radar)
mapping technology to complete the project. As per the terms of the agreement, the company
would deliver Digital Surface Model (DSM) and Orthorectified Radar Imagery (ORI) data
incrementally throughout 2007. Intermap’s revolutionary IFSAR technology allows mapping
large areas more quickly and efficiently than any other airborne radar mapping technology in
the world.

Intermap Wins a Contract from Parsons Brinckerhoff…


Intermap, on behalf of The California High-Speed Rail Authority (CHSRA), won a contract from
Parsons Brinckerhoff (PB), under which Intermap’s NEXTMap® 3D digital elevation models are
chosen as preferred GIS mapping datasets. The company’s data sets would assist in the design of
the high-speed rail system linking northern and southern California. As per the terms of the
agreement, preliminary engineering and design, project-level environmental studies, and right-of-
way preservation analyses would be based on Intermap’s high-resolution elevation data. PB is the
program manager for the California High Speed Train Project (CHSTP).

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Intermap Bags a Contract from Santa Ana Watershed Project Authority (SAWPA)…
Intermap bagged a contract from Santa Ana Watershed Project Authority (SAWPA) for providing
high-resolution digital terrain model elevation data for use by Riverside County. The agreement
was secured through the Company’s data distribution partner, CyberCity 3D LLC. As per the
agreement, Intermap would deliver high-resolution 5-meter posted / 1-meter vertical accuracy bare
earth elevation data, 4-foot contours, and Global Mapper software.

Product Launches

Intermap Launches Fifth Plane…


Intermap launched a second Learjet 36 aircraft, the company’s fifth plane equipped with
proprietary industry-leading IFSAR (Interferometric Synthetic Aperture Radar) airborne data
collection system. The company’s new aircraft would continue to operate in the United States and
is capable of collecting approximately 1,600,000 sq. km. (618,000 sq. mi.) of highly accurate 3D
digital elevation data per year. The new plane joins a technically-sophisticated fleet of four other
craft that are proactively collecting country-wide data throughout the United States and Europe as
part of Intermap’s accelerated NEXTMap® initiative.
Microsoft Corp., is the worldwide leader in software, services and solutions.

Intermap Introduces 3D Map Product…


Intermap introduced AccuTerra™, the newest product offering that provides existing outdoor GPS
and PND products with 3D maps and off-road points-of-interest (POI) – integrated with interactive
3D rendering software. AccuTerra map content is developed from the company’s ongoing and
highly successful NEXTMap® countrywide 3D digital mapping program and includes the
aggregation of data from other sources.

Intermap Unveils Virtual Earth™ 3-D Viewing Platform…


Intermap unveiled the new Virtual Earth™ 3-D viewing platform that is based on company’s
highly accurate and up-to-date elevation data for all of Great Britain. Intermap also creates similar
maps for all of Western Europe and the continental United States. Intermap’s precise and uniform
3-D digital terrain model serves as the foundation for the placement and alignment of aerial
photography and other geospatial images. The resulting product delivers a more seamless and
accurate 3-D experience for all Internet users visiting Microsoft’s Live Search Maps for England,
Scotland and Wales.
Microsoft Corp., is the worldwide leader in software, services and solutions.

Year 2006 in Review…


Partnership
Intermap Partners with 3DVU…
Intermap partnered with 3D Visualization Company (3DVU) Ltd., a leading developer of three-
dimensional visualization technology. Following the agreement, Intermap and 3DVU would jointly

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market their products and services to customers focusing on the automotive, personal navigation
and Internet mapping markets. The partnership strengthens both companies’ respective
technologies and competencies in delivering seamless solutions to their clients.

Agreements & Contracts

Intermap Signs an Agreement with German Auto Industry


Intermap signed a second joint development agreement with the German automotive industry for
meeting the requirements of Intelligent Transportation Systems (ITS) applications. The agreement
includes the integration of German automotive manufacturer’s automotive engineering and
development expertise with Intermap's geospatial databases.

Intermap Enters into Agreement with Several German Automotive Manufacturers


Intermap entered into a development contract with several Germany based automotive
manufacturers wherein, as per the contract, Intermap would provide the manufacturers with the
company’s NEXTMap 3-D road data geospatial databases for enhancing the vehicle engine control
in Germany’s intelligent transportation systems segment.

Intermap and Definiens AG Signs Agreement…


Intermap and Definiens AG, the leading Enterprise Image Intelligence software provider, signed an
agreement to develop a land cover vector layer product called EARThemes®, covering all of
Germany and the UK. EARThemes® combines radar imagery, digital surface models, and IFSAR
data and through an automatic analysis engine creates uniquely accurate land cover datasets.
EARThemes® would consist of a contiguous, contemporary thematic layer of Germany that
includes five categories of land cover such as urban, vegetation, agriculture, water, and rural area.

Intermap and Siemens VDO Enters Into Joint Development Agreement…


Intermap and Siemens VDO, a foremost provider of novel automotive systems, entered into an
agreement for jointly developing support products for Intelligent Transportation System
applications. The present agreement enables integration of the NEXTMap-based 3D road vector
data with map-based predictive applications of Siemens VDO. The applications would deliver ob-
board sensors and functionality for reducing traffic accidents. Intermap played a proactive role in
creating NEXTMap, a global 3D geospatial database.

Intermap Signs Partnership Agreement with CyberCity…


Intermap signed a partnership agreement with CyberCity to use its highly accurate elevation
models in conjunction with ViewTec's state-of-the-art TerrainView software. The main aim of the
agreement is to create precision 3-D visualization models of five California counties: Los Angeles,
Orange, Sacramento, San Diego, and Ventura. The resulting models, 3D Terrains would be used by
local and state government agencies, and commercial enterprises, in the fields of urban planning,
utilities and telecommunications infrastructure, watershed management, tourism, safety, and
navigation.

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Intermap Enters into a Contract with Sinar Mas Forestry…
Intermap entered into a contract with Sinar Mas Forestry for collection of elevation data and radar
imagery. Under the contract the company uses its proprietary Interferometric Synthetic Aperture
Radar (IFSAR) technology to map diverse geography throughout the areas of interest. The
Intermap's elevation data and high-resolution radar imagery enables Sinar Mas Forestry to manage
its pulpwood resource more efficiently.

Intermap Receives a Contract for Imagery and Elevation Data…


Intermap received a contract through its subsidiary, Intermap Federal Services Inc., to provide
imagery and elevation data from the company's NEXTMap USA geospatial datasets. Under the
contract, the company immediately supplies California data and delivers other areas over the next
few quarters as the data collected.

Intermap Receives a Contract for Radar Mapping in Southeast Asia…


Intermap received a contract for radar mapping in Southeast Asia. Under the agreement, the
company collects and delivers geographic three-dimensional elevation and imagery data by
utilizing Intermap's IFSAR radar mapping technology.

Intermap Wins a Contract for Radar Mapping Technology…


Intermap’s subsidiary, Intermap Federal Services won a contract to collect and deliver geographic
three-dimensional elevation and imagery data via Intermap's radar mapping technology. As per the
contract, the company would deliver Digital Surface Model (DSM) and Orthorectified Radar
Imagery (ORI) data incrementally through 2006 and into early 2007. The collected data enables
Intermap's client to update topographic maps and digital databases for terrain that is not accurately
mapped or updated in recent years.

Intermap Receives a Contract for Geographic Three-Dimensional Elevation and Imagery Data…
Intermap received a contract through its subsidiary, Intermap Federal Services Inc., to provide
geographic three-dimensional elevation and imagery data via Intermap's radar mapping technology.
Under the agreement, the company delivers Digital Surface Model (DSM) and Orthorectified
Radar Imagery (ORI) data.

Intermap Bags a Contract for Elevation and Geospatial Data…


Intermap bagged a contract of worth $1.57 million for providing elevation and geospatial data from
the company's NEXTMap USA and NEXTMap International data collection. Following the
contract, the company works and delivers radar imagery and elevation products over a year. Under
the contract the company provides digital surface models (DSMs), digital terrain models (DTMs),
and orthorectified radar imagery (ORI).

Intermap Signs a Contract with Credent Technology Asia…


Intermap signed a contract with Credent Technology Asia (Credent) as its newest data distributor
serving Southeast Asia. The contract would enable Credent to provide accurate, cost-competitive

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data to its extensive customer base throughout Southeast Asia. The contract also allows Intermap to
realize goal of building on the success of NEXTMap product by making digital elevation datasets
available to companies throughout Southeast Asia.

Intermap Wins a Contract from U.S. Department of Agriculture…


Intermap’s subsidiary, Intermap Federal Services Inc., won a contract to provide digital elevation
data to the Natural Resources Conservation Service (NRCS), an agency of the U.S. Department of
Agriculture. The contract would deliver data collected as part of Intermap's ongoing NEXTMap®
USA mapping program for various applications, including assistance in preparing soil surveys.
NRCS would use highly accurate and cost-effective elevation models, based on the company's
Interferometric Synthetic Aperture Radar (IFSAR) technology to speed up and improve soil survey
mapping by reducing time spent in the field.

Intermap Receives a New Digital Mapping Contract…


Intermap received a subcontract of worth US$650,000 through its subsidiary, Intermap Federal
Services Inc., for performing an international radar-mapping program. Under the contract, the
company provides a digital surface model, a digital terrain model, and orthorectified radar imagery
(ORI) by utilizing its proprietary X- and P-band interferometric radar technology. The X-band
system is ideal for providing the surface model and orthorectified imagery, and the P-band for
supplying the terrain data and orthorectified imagery through the vegetation penetration qualities.

Intermap Receives Boeing Contract…


Intermap, through its subsidiary, Intermap Federal Services Inc., received a follow-on contract of
worth US$1.5 million from Boeing Company for supporting the continued processing of elevation
data from the NASA Shuttle Radar Topography Mission (SRTM).

Intermap Receives Contract from National Oceanic and Atmospheric Administration (NOAA)…
Intermap received a contract to provide 3D digital geometric elevation data to the Coastal Services Center
Branch of the National Oceanic and Atmospheric Administration (NOAA), an agency of the U.S.
Department of Commerce. As per the contract, the company would deliver data collected as part of its
ongoing NEXTMap® USA mapping program for various geospatial applications along the California
coastal region. NOAA and the Coastal Community in California would use the company's highly
accurate and cost-effective geometric models for applications such as shoreline mapping, watershed and
wetlands mapping, and shoreline and wetland change detection and imagery orthorectification.

Intermap Announces Contract for Geospatial Mapping Data…


Intermap announced that its subsidiary, Intermap Technologies GmbH received a contract from an
important international client for geospatial data. As per the agreement, Intermap would collect,
process and deliver the data by the end of 2006. The contract deliverables include high-resolution
digital elevation data and radar imagery generated through company’s Interferometric Synthetic
Aperture Radar (IFSAR) mapping systems. The client would use the data to orthorectify existing
high-resolution satellite imagery for updating regional maps, databases, and future planning.

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Intermap Signs LOI With Tele Atlas…
Intermap in conjunction with Tele Atlas North America, Inc inked a letter of Intent for the development
of 3-D and 2-D digital road maps. The digital road maps intended for vehicle navigation segment, is a
combination of Intermap’s 3-D NEXTMap data along with the 2-D road data of Tele Atlas.

Intermap Signs Letter Of Intent with GeoContent …


Intermap signed a letter of intent with GeoContent GmbH to jointly develop a 3-dimensional
digital map of Germany in full color, combining GeoContents aerial imagery with Intermap's
highly accurate 3-D digital elevation model. The joint effort would produce the most accurate 3D
map product of Germany in existence. GeoContent is a leading German provider of digital
geospatial information and the only company with a countrywide digital aerial image (DLK(R)).

Product Launches
Intermap Introduces New Digital 3D Map…
Intermap introduced a new digital three-dimensional color map of California state. The new map
features rich data of terrain models and color imagery ideal for various applications such as
geographical information systems (GIS), engineering planning, transportation, automotive,
navigation, flood, irrigation, environmental management and planning, telecommunications
network planning, aviation, simulation and 3D visualization.

Intermap Launches Advanced Planar Array Antennae…


Intermap reached a significant breakthrough to its STAR-4 airborne mapping system with the addition
of an advanced planar array antennae that improves the efficiency and accuracy of the IFSAR
technology. The upgraded system would enable Intermap's STAR-4 mapping system to collect 3D
elevation data 12% to 15% more efficiently than with the previous antenna configuration. Additionally,
the company includes additional aircraft equipped with IFSAR technology that are used for data
collection in its NEXTMap programs and for its fee-for-service business throughout the world.

Intermap Expands its Online Geospatial Data & Product Offerings…


Intermap expanded its online geospatial data & product offerings to include countrywide and
statewide SRTM (Shuttle Radar Topography Mission) elevation datasets, contours and Global
Mapper geospatial software. The company’s all the offerings complement the Intermap suite of
NEXTMap® digital elevation models. The company’s SRTM elevation datasets would supplement
the NEXTMap® high-resolution datasets while the company collects and builds national elevation
database of countries around the world.

PRODUCT ANALYSIS
Elevation Data and Imagery
The company offers Elevation Data and Imagery products such as Orthorectified Radar Images
(ORIs), Digital Surface Models (DSMs), and Digital Terrain Models (DTMs). The company’s
product range includes Contours, TOPO Line Maps, Global Mapper® Software, and Color
Orthorectified Radar Imagery.

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Value-Added Products
The company’s Value-Added Products include GIS Applications, 3D Applications, Image
Applications (STARplus, Topographic Line Map (TLM)), and Custom Applications (Difference
layer, Decimated datasets, Alternative geodetic reference systems, Customized metadata file
structures, Customized delivery, Correlation file, and Substitution of other DEM sources).

Automotive / ADAS
Road Vectors and 3D Visualization products

Software Applications
The company’s Software Applications include products such as Trainz Terrainz, VFR
Photographic Scenery, VFR Terrain, Photoscape 3D, and Global Mapper.

Insurance
Flood Modeling / Watershed Analysis

Product Applications

Aviation
The company’s Aviation products include three-dimensional visualization, interactive 3D approach
charts and flight planning tools, in-cockpit synthetic vision, situational awareness and terrain
avoidance warning systems (TAWS), and flight simulators.

Transportation
The company’s Transportation products include Vehicle navigation/intelligent vehicle systems, and
Location-based systems.

Mapping
Mapping products of the company include Topographic mapping, Image rectification,
Orthorectified Image and Base mapping.

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INTERNATIONAL ROAD DYNAMICS, INC.
702-43rd Street East, Saskatoon, Saskatchewan, S7K 3T9 Canada
Phone: 306.653.6600, Fax: 306.242.5599
SOURCES: www.irdinc.com and other secondary online sources
2007 Sales: Can$ 19.42 million (H1)
2006 Sales: Can$ 34.48 million
2005 Sales: Can$ 33.55 million
(Fiscal Year Ends in November)

BUSINESS PROFILE
International Road Dynamics Inc., (IRD) is a leading highway management products and systems
technology company operating in the global ITS industry. The company designs and manufactures
transportation systems and equipment, including toll road equipment, weigh-in-motion machines,
traffic safety and advisory systems, driver and fleet management systems, and automated truck weigh
stations. The company primarily focuses on advanced traffic control and toll management technologies.
IRD designs and builds its leading edge products, systems and solutions for worldwide transportation
management applications. The company develops advanced technology solutions to detect and weigh
vehicles at highway speeds. IRD integrates advanced technology solutions and other proprietary ITS
technologies into advanced traffic solutions and custom-designed systems.
IRD provides ITS (Intelligent Transportation Systems) solutions such as automated toll road
systems, automated truck weigh station systems, WIM (Weigh-in-Motion) systems, advanced
traffic control, driver management systems, and data collection systems. The multi-systems
solutions of the company include automated truck weigh stations/commercial vehicle operations,
traffic data collection systems, automated toll systems, traffic safety and advisory systems, and
driver and fleet management systems. The company markets its products and advanced systems
primarily to private corporations, transportation agencies and highway authorities worldwide.
IRD, through its subsidiary PAT Traffic offers a wide range of weigh-in-motion systems, traffic data
collection systems, portable weigh scales and other related ITS products and services. IRD owns and
manages operational systems worldwide with major installations across Canada, the US, Saudi Arabia,
Pakistan, India, China, Hong Kong, Indonesia, Korea, Malaysia, Brazil, Colombia, Chile, Ecuador,
Honduras, Peru, Uruguay, Mexico, and other countries. IRD’s major competitors are Balfour Beatty, Inc.,
DMJM+Harris, and Navteq. The company is accredited with ISO 9001:2000 certification.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In Can$ million)

Year Sales %Change


2007 19.42 43.64
2006 13.52 -

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Half Yearly Sales Comparison by Quarter: 2007 Vs. 2006 (In Can$ million)

Quarter 2007 2006 %Change


Q2 11.12 7.20 54.44
Q1 8.30 6.32 31.33
Total 19.42 13.52 43.64

Annual Sales Comparison: 2006 Vs. 2005 (In Can$ million)

Year Sales %Change


2006 34.48 2.77
2005 33.55 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In Can$ million)

Quarter 2006 2005 %Change


Q4 11.81 7.65 54.38
Q3 9.15 10.08 (9.23)
Q2 7.20 8.65 (16.76)
Q1 6.32 7.17 (11.85)
Total 34.48 33.55 2.77

Annual Sales Comparison by Geographic Region (2006 Vs. 2005)- Canada, United States
and Offshore (In Can$ million)

Region 2006 2005 %Change


Canada 6.48 6.10 6.23
United States 18.39 18.10 1.60
Offshore 9.61 9.35 2.78
Total 34.48 33.55 2.77

Percentage Breakdown of Annual Sales (Value) by Geographic Region


(2006 Vs. 2005)- Canada, United States and Offshore

Region 2006 2005


Canada 18.8 18.2
US 53.3 53.9
Offshore 27.9 27.9
Total 100 100

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Percentage Breakdown of Annual Sales (Value) by Business Segment (2006 Vs. 2005) –
Projects, Products, Service & Maintenance

Segment 2006 2005


Projects 48 43.2
Products 30.5 31.9
Service & Maintenance 21.5 24.9
Total 100 100

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Contracts/Orders

IRD Receives WIM Contract from Zignego


IRD received a contact to supply, install, and maintain Weigh-In-Motion (WIM) equipment from
Wisconsin, US based Zignego Company, Inc. The total cost of the project is estimated at about
Canadian $1.4 million. The Automated Safety and Weight Enforcement Facility would enable
Zignego to prescreen commercial trucks at highway speeds in the main lanes of the highway.
Additionally installation of the equipment would enable routing as well as tracking of vehicles safely
through the Weigh Station. As part of the contract, IRD would install the company’s proprietary
Single Load Cell WIM Scales, vehicle movement compliance system, video verification system, and
software required to operate the facility. Installation of the WIM system would enable truckers
complying with weight restrictions to pass the facility without having to stop.

IRD Bags a Contract for Virtual Weigh Stations in the Country of Qatar…
IRD bagged a contract for Virtual Weigh Stations in the Country of Qatar. The contract would
represent the first award through their partner Traffic Tech (Gulf), to supply Weigh-In-Motion
(WIM) Pre-Screening Systems in the country. The 16 Virtual Weigh Station sites would weigh
trucks in motion, capture images of suspected overloaded trucks and transmit the vehicle
information and images to an enforcement facility downstream. The systems utilize IRD WIM
technology, powered by IRD’s iSINC electronics system to provide a system to identify and
provide information on specific trucks.

IRD Receives a Purchase Order from the joint venture of SBC and UCI...
IRD secured work zone safety contract from Scott Bridge Company (SBC) and United Contractors
Inc (UCI) worth CAD$ 550,000 in the US. As per the terms of the contract, IRD would supply,
install and operate Automated Portable Real-Time Workzone Information System on I-20 and I-
520 near Augusta, Georgia. IRD would use ADAPTIR™ technology, licensed from The Scientex
Corporation in the project. Once completed, the project would enable motorists to be informed
about traffic and incidents, to enable them to plan or alter the journey accordingly.

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Business Expansion

IRD to Expand Manufacturing Facility


IRD announced plans for expansion of its production capacity, and as a part of the endeavor, a
new production unit would be constructed at a site adjacent to the company’s present corporate
office. The company anticipates that the expansion process is necessary for meeting the
increased demand for IRD’s technologies and products. The company’s clientele base, which is
spread across the globe, includes highway authorities, private corporations and transportation
agencies.

Year 2006 in Review…

Contracts

IRD Receives a Contract from PENNDOT…


IRD received a contract from the Pennsylvania Department of Transportation (PENNDOT) Bureau
of Planning and Research for Can$ 3.2 million, to repair, service, maintain, and calibrate existing
In-Road Weigh-in-Motion (WIM) and Continuous Automated Vehicle Classification (CAVC)
sites. PENNDOT currently maintains thirteen WIM sites and four CAVC sites throughout
Pennsylvania, all with IRD equipment. The sites would provide classification and weight data
necessary for future pavement design. In addition, the contract would also cover repairs to State
Police Weigh-in-Motion Enforcement sites located throughout the State.

IRD Bags a Contract from Parisi Construction…


IRD bagged a contract from Parisi Construction Co., Inc. (Parisi Construction), of Verona,
Wisconsin, to supply, install and maintain an automated safety and weight enforcement facility and
two virtual weigh station systems. The contract includes the supply and installation of Weigh-In-
Motion (WIM) equipment at a Weight Enforcement facility located on I-39 near Madison, and at
two Virtual Weigh Station System sites located on bypass routes near the Weight Enforcement
facility. The systems would allow prescreening of commercial trucks in the main lanes of the
highway at highway speed. In addition, the contract would also include maintenance, service and
support of the equipment.
Following the contract, IRD would strengthen its business in the U.S. Commercial Vehicle
Operations market and increase its presence in Wisconsin.

IRD Receives a Contract from HDOT…


IRD received a contract from the Hawaii Department of Transportation (HDOT), to provide
Weigh-in-Motion (WIM) and Continuous Vehicle Data Collection (CVDC) goods and services
statewide. The project is intended to supplement HDOT’s existing program and provide
maintenance and data collection services, as well as enhanced features and performance to their
existing systems. HDOT, through operating WIM Projects with IRD, would provide high quality
maintenance, data collection, and data validation services.

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IRD Bags a Contract from SAITM…
IRD bagged a contract from South African Intelligent Traffic Monitoring (SAITM). As per the
terms of the contract, the company would supply 24 Weigh-in-Motion (WIM) systems to the South
African National Roads Agency Limited (SANRAL). The new project would significantly
strengthen IRD’s position in South Africa as a leading supplier of WIM data collection systems.

IRD’S Brazilian Subsidiary Receives a Contract from the Department of Highways…


IRD’s subsidiary PAT Traffic Sistemas de Transporte Inteligente Ltda (PAT Traffic Brazil) of Sao
Paulo, Brazil, received a contract from the Department of Highways in the state of Bahia, Brazil
(DERBA), for the design, supply and installation of WIM systems in Bahia. Under the contract,
PAT Traffic Brazil would supply and install 6 portable WIM systems, 2 fixed WIM stations with
selective and slow speed enforcement scales, and an additional 2 slow speed enforcement systems,
at several locations throughout the state of Bahia. Additionally, PAT Traffic Brazil would also
provide maintenance for the systems and components.
Through its subsidiary, PAT Traffic Brazil, IRD would strengthen its leadership position in the
WIM business in Brazil.

IRD Bags a Contract from Transport Canada…


IRD bagged a Can$ 3.3 million contract from Transport Canada, to supply Weigh-In-Motion
(WIM) and Traffic Data Collection Systems at various locations throughout Canada. The contract
is part of the National Roadside Surveys (NRS) initiative by Transport Canada and the provinces to
collect heavy truck data to determine intra and inter-provincial National Highway System (NHS)
infrastructure and Canada-U.S. border crossing traffic flows. Under the contract, IRD would
install, maintain, collect and report data from 63 WIM sites and 17 non-intrusive sensor sites. The
contract would also include both permanent and temporary installations.

IRD Receives a Contract from SGC…


IRD received a contract from Swanson General Contractors, Inc. (SGC), of Anchorage, Alaska, to
provide technology upgrades at three weigh stations. IRD would install its automatic vehicle
identification equipment and software to automatically search vehicle operating and safety records
as part of the State’s initiative to provide CVISN (Commercial Vehicle Information Systems and
Networks) capabilities. The contract reinforces IRD’s commitment to provide and support
innovative ITS solutions in the State of Alaska and for all its customers worldwide.

IRD Receives a Contract from the DNIT…


IRD’s subsidiary PAT Traffic Sistemas de Transporte Inteligente Ltda (PAT Traffic Brazil) of Sao
Paulo, Brazil, received a contract from the Brazilian Federal Department of Transport
Infrastructure (DNIT), for the refurbishment of 20 Weigh-In-Motion (WIM) stations, and the
maintenance of a further 13 WIM stations on federal highways, for a total of approximately Can$
4.2 million. The contract is the continuation of the refurbishment program by the DNIT to
modernize the largest network of WIM stations outside North America.

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IRD Bags a Multi-Year Contract from North Carolina Department of Transportation…
IRD bagged a multi-year contract with the North Carolina Department of Transportation, for the
supply, installation, operation and maintenance of truck pre-clearance sites in the State. Under the
contract, IRD would provide and install up to ten new pre-clearance sites in the State at existing
Truck Weigh Stations. The systems would allow vehicles enrolled in the TransExpress program to
bypass the weigh stations following a check of their credentials and safety history in the State.

IRD Receives a Contract from Alberta Infrastructure and Transportation Department…


IRD received a contract from Alberta Infrastructure and Transportation Department, for the design,
supply and installation of pre-clearance equipment, and data hosting services in the province of
Alberta. Under the contract, IRD would supply and install 16 systems at 12 locations in the province.
Additionally, IRD would also provide maintenance for the systems and components. The equipment
would consist of radio frequency identification (RFID) equipment to allow vehicles enrolled in the
provincial Partners In Compliance (PIC) program to bypass weigh stations. Following the contract,
IRD would manage an on-line data system that would be run by the province and the PIC
organization for the management of credentials of vehicles enrolled in the program.

IRD Bags Two Contracts from XZPAT…


IRD bagged two contracts from Xuzhou PAT Control Technology Co., Ltd. (XZPAT), the company’s
business partner in Jiangsu, China, for the supply of bending plate Weigh-In-Motion (WIM) scales.
Under the new contracts, IRD would provide bending plates for the purpose of dynamically weighing and
screening commercial vehicles for overloading at toll facilities. Vehicles identified by the WIM system to
be in violation of the weight regulations are charged a fine proportionate to the degree of overloading.
Following the contracts, IRD would expand its presence in offshore markets such as in China.

PRODUCT PORTFOLIO
Counters & Classifiers
Accumulators, Interval Counters, Classifiers, Classifiers with Weigh-In-Motion, Handheld
Counters, People Counters, and Software
Sensors & Accessories
In-Road Sensors, Grouts & Epoxies, On-Road Sensors, and Non-Intrusive Sensors
Toll Treadle Systems
Conventional, Unibody, and Single/Dual Tire Sensor
Vehicle Weighers
SAW Series Static Weighers, and DAW 300 PC Dynamic Axle Weigher
Traffic Control/Safety
LED Products, Lane Merger (Dynamic Work Zone Safety System), Travel Messenger, Overheight
Vehicle Detection, Under Vehicle Surveillance System, and Rubber Parking & Traffic Control
Accessories

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Fleet Management Information Systems
Fleet management information systems are enterprise-wide vehicle information systems. Fleet
management information systems include driver management, vehicle management,
communications management, location management, work management, fleet security & recovery,
logistics & telematics, and iresponder™.

Hardware
The company provides integrated Central Tire Inflation (CTI) system monitoring solutions, fleet
manager impact sensor, fleet manager keypad (FM keypad), fleet manager trailer ID, fleet manager
map viewer (FM map viewer), fleet manager terminal (FM terminal), and concrete maturity
monitor.

SUBSIDIARIES
PAT Compania Limitada (PAT Chile)
International Road Dynamics Corporation (US)
IRD South Asia Pvt Ltd. (India)

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IPICO
4480 Harvester Road, Burlington, Ontario, Canada L7L 4X2, Canada
Phone: +1 905 631 6310, Fax: +1 905 631 6614
SOURCES: http://www.ipico.com and other secondary online sources
BUSINESS PROFILE
IPICO-Intellectual Property and Innovation Company (IPICO) is an RFID solution supplier with
operations in the US, South Africa, Europe, Asia and Australia. IPICO produces smart labels, RFID
inlets, readers and device management middleware, and tags based on the IP-XTM communication
protocol. The company’s low interference readers are designed to meet regulatory requirements in
many major markets. The company’s products include DF readers, DF tags, Ultra high frequency
products, UHF readers and RF units, UHF tags and inlets, and demonstration and evaluation kits.
IPICO developed IP-XTM RFID Air-interface Protocol to overcome the limitations experienced by
conventional Reader-Talk-First (RTF) protocols in challenging environments. IPICO’s Dual
frequency products are ideal for tracking people, animals, documents, paper rolls, mining and
underground applications such as marking buried pipes. Read-Only Tag is suitable for medium
range, multi-read, high-speed item identification. BiT Intermodal Seal is used to secure ocean
containers, trailers, rail cars, air cargo and other containers.
STRATEGIC CORPORATE DEVELOPMENTS
Year (2007) in Review
Agreement
IPICO Signs an Agreement with China Academy of Transportation Sciences…
IPICO signed an exclusive distribution agreement with China Academy of Transportation Sciences
(CNATS). As per the agreement, CNATS would supply IPICO’s electronic vehicle toll and
management solution into the Chinese market in order to address the growing need for cost-
effective traffic management systems.
IPICO Reaches an Agreement with RFID Systemes…
IPICO signed an exclusive partnership agreement with RFID Systemes for the supply of people
tracking solutions to the French casino industries. As per the agreement, RFID systems would integrate
the IPICO dual frequency (DF) product range into its complete solution for casinos and provide the
integrated solutions on an exclusive basis into the casino industries in France over the next three years.
Year 2006 in Review…
Product Launch
IPICO and Dyna Group Unveil Passive RFID Electronic Toll Collection System
IPICO and Dyna Group SA of Argentina unveiled the passive Radio Frequency Identification
(RFID) system designed on the IP-X™ technology of IPICO, for electronic toll collection in South
America. Passive and active RFID systems are used in open lane tolling, for reduction in traffic
congestion, restricting excessive speeding, and combating crime.

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ITERIS, INC.
1515 South Manchester Avenue, Anaheim, California 92802-2907, USA
Phone: (714) 774-5000, Fax: (714) 780-7246

SOURCES: www.iteris.com and other secondary online sources

2008 Sales: US$ 15.8 million (Q1) Sales


60
2007 Sales: US$ 58.3 million 57
54
2006 Sales: US$ 50.5 million 51
48
2005 Sales: US$ 46.4 million
45
(Fiscal Year Ends in March) 2005 2006 2007

BUSINESS PROFILE
Iteris Inc., (Iteris) formerly Odetics ITS Inc., is also a leading provider of Intelligent Transportation
Systems (ITS), traffic engineering and transportation planning. The company provides video sensor
systems, and other engineering and consulting services to the ITS industry. The company offers
next-generation software, sensor and information technologies for improving the efficiency and
safety of road transportation. The company through the integration of information technology,
system integration and applied sensors provides a spectrum of transportation solutions. Iteris also
designs and implements transportation management systems that help public agencies reduce the
traffic congestion and provide greater access to traveler information. Iteris enables the technology
to provide complete up tominute traffic information using ITS including the flowing traffic speed,
road accidents, on going construction work, estimated travel time to reach destination through a
streaming video image on PCs, Cell Phones and PDAs that have Internet access. The company
offers vision systems for both inside and outside the vehicle. Iteris mainly operates through three
divisions namely Roadway Sensors, Automotive Sensors and Transportation Systems. In addition,
the company provides planning, design and implementation of surface transportation infrastructure
systems.
Iteris employs its outdoor image recognition software expertise to develop proprietary algorithms
for video sensor systems that improve vehicle safety and the flow of traffic. The company’s
proprietary image recognition systems include Vantage and AutoVue. Vantage is a video vehicle
detection system that detects the presence of vehicles on roadways. Vantage systems are used at
signalized intersections to enable more efficient allocation of green signal time and are also used
for incident detection and highway traffic data collection applications. AutoVue Lane Departure
Warning (“LDW”) systems consist of a small windshield mounted sensor that uses proprietary
software to detect and warn drivers of unintended lane departures. The company sells over 83,000
AutoVue LDW systems for use on car and truck platforms across European and North American
markets. The company’s major competitors are Delphi, Econolite, and Parsons Brinckerhoff. The
company is accredited with ISO 9001 certification.
Iteris was established in 1987 as Odetics, Inc., and later adopted its present name in 2004.

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DIVISIONAL ANALYSIS
Roadway Sensors
Roadway Sensors division provides Vantage vehicle detection systems for traffic intersection
control, incident detection and highway traffic data collection applications. The division’s video
vehicle detection systems are installed at intersections to help manage the flow of traffic and traffic
data collection. Iteris applies video detection to a broad range of traffic management applications,
including both highway management and intersection control systems. Iteris' advanced image
processing technology is used in its Vantage product line to detect vehicle presence, count, speed,
occupancy and other traffic data used in traffic management systems.

Automotive Sensors
Iteris is a technology leader in providing systems and sensors that optimize the flow of traffic and enhance
driver safety. Automotive Sensors division manufactures a wide range of windshield-mounted video
sensor. Iteris combines outdoor image processing, traffic engineering and information technology to offer
a broad range of safety solutions for surface transportation markets around the world. The company’s
Automotive Sensors division is comprised of all activities related to its AutoVue LDW systems for
vehicle safety. The product line includes AutoVue, Lane Departure Warning System (LDW); Vantage,
Vehicle Detection Systems; and Mil-Lektron, Video Transmission and Isolation products.

Transportation Systems
The company’s Transportation Systems division develops transportation management and traveler
information systems for the ITS industry. The transportation management systems division
provides a broad spectrum of transportation engineering and consulting services focused on the
planning, design, development and implementation of software-based systems that integrate
sensors, video surveillance, computers and advanced communications equipment to enable public
agencies to monitor, control and direct traffic flow, assist in the quick dispatch of emergency
crews, and distribute real-time information about traffic conditions.

SALES DATA
First Quarter Sales Comparison: 2008 Vs. 2007 (In US$ million)

Year Sales %Change


2008 15.8 14.49
2007 13.8 -

Annual Sales Comparison: 2005-2007 (In US$ million)

Year Sales %Change


2007 58.3 15.45
2006 50.5 8.84
2005 46.4 -

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Quarter Sales Comparison: 2007 Vs. 2006 (In US$ million)

Quarter 2007 2006 %Change


Q4 15.5 13.5 14.81
Q3 14.5 12.2 18.85
Q2 14.5 12.7 14.17
Q1 13.8 12.1 14.05
Total 58.3 50.5 15.45

STRATEGIC CORPORATE DEVELOPMENTS

Year 2008 (1st Half) in Review…

Contract

Iteris Wins Supply Contract for ITS Designs


Iteris received a contract worth US$0.9 million to deliver Intelligent Transportation Systems (ITS)
design services for I-15 Design-Build project of North Corridor Constructors (NCC). The project
involves expansion of the 5.5-mile long I-15 freeway between Craig Road in Las Vegas and the
US-95. The deal allows Iteris to take part in the project’s ITS improvements, including a
Communications System, Traffic Monitoring Sensors, Trailblazer Signs, Systems Integration and
Testing, and CCTV Surveillance Cameras.

Year 2007 in Review…

Agreement
Iteris Signs a New Distribution Agreement with Western Systems…
Iteris signed a new distribution agreement with Western Systems, a regional distributor of traffic
control and signal systems. Under the agreement, Western Systems would be the newest distributor
for Iteris’ Vantage line of video vehicle detection products. Western Systems would service the
entire Pacific Northwest including Alaska, Idaho, Oregon, Montana, and Washington. Iteris and
Western Systems would work together in order to make Vantage the sensor of choice in its market.
Western Systems is a full line distributor of traffic control and signal products, as well as
specializes in advanced networks, data communications and transfer, and ruggedized control boxes
for the transportation and utilities industries.

Contracts

Iteris Secures ITS Contract Worth US$1.25 Million in California


Iteris secured US$ 1.25 million contract from the City of Westminster, California. The contract
involves design and integration of some existing ITS infrastructure as well as new addition of new

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equipment. Iteris would replace about 58 traffic signal controllers, 13 CCTV (closed circuit
television) cameras, and 12 new video detection locations, and design of about 8 miles of fiber
optic cable. Additionally, Iteris integrates the filed devices and the Traffic Management Center.

Iteris Bags a Contract from Los Angeles County Metropolitan Transportation Authority…
Iteris bagged a $5.95 million contract from the Los Angeles County Metropolitan Transportation
Authority (Metro), to provide transportation and engineering services relative to the extension of
the Metro Orange Line Busway in the San Fernando Valley. The contract also includes two
options, which would allow Iteris to assist in the development of design/build documents and
provide assistance to the design/build contractor during the construction phase of the project.

Product Launch

Iteris Unveils New ITS Products


Iteris unveiled new set of advanced ITS products in the US market. The new products include
Edge2-4 processor, a first of its kind and advanced rack mounted 4-channel video detection system,
and other products such as Input/Output Module 32 (IOM32), TS2 Interface Module (TS2 IM), and
V Rack, which enable easier installation and improve the functioning of the Edge2-4 processor.
The Edge2-4 processor is manufactured to fit into standard NEMA detector racks and Type 170
input files. The new processor is a cost effective, and small modular system, which includes four
cameras for various vehicle detection applications including traffic signal control.

Year 2006 in Review...


Contracts
Iteris Bags Five-Year Contract from FHWA…
Iteris bagged a five-year highway administration contract from the Federal Highway
Administration (FHWA). As per the contract, Iteris would operate as a part of the Booz Allen
Hamilton team, a technology consulting company, wherein Iteris would offer key technical aid and
support for the intelligent transportation systems. The technical support offered by Iteris facilitates
in reduction of recurring and non-recurring congestion, improving transportation management,
enhancing freight operations and management as well as improving day-to-day operations.

Iteris Bags a Contract from the Georgia Department of Transportation…


Iteris bagged a contract form the Georgia Department of Transportation (GDOT), to complete the
final phase of the advanced transportation controller implementation program. The advanced
transportation controller implementation program is a project designed to systematically replace all
existing traffic signal controllers throughout the state over the next five years.

Iteris Secures ITS Contract Worth US$1.25 Million in California…


Iteris secured US$ 1.25 million contract from the City of Westminster, California. The contract
involves design and integration of some existing ITS infrastructure as well as new addition of new
equipment. Iteris would replace about 58 traffic signal controllers, 13 CCTV (closed circuit television)

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cameras, and 12 new video detection locations, and design of about 8 miles of fiber optic cable.
Additionally, Iteris would integrate the filed devices and the Traffic Management Center.

Iteris Bags Contract worth $1 Million…


Iteris received contract worth $1 million from San Francisco Bay Area Metropolitan Transportation
Commission (MTC) for analyzing existing traffic-related conditions like travel time, planning of
timings and signal timings, and suggesting appropriate solutions. The company would also provide
relevant technologies for effective implementation of these solutions. The project would
encompass all zones that come under MTC.

Product Launches
Iteris Launches Second-Generation Lane Departure Warning System…
Iteris launched Second-Generation Lane Departure Warning System for European Commercial
Truck sectors. Iteris' second-generation LDW system provides advanced features such as single-
line tracking, improved curve tracking, and lighting conditions. The second-generation LDW
system uses a windshield-mounted camera that tracks lane markings using image recognition
software and monitors the relative position of the truck within the lane.

Iteris Introduces eAccess(TM) Video Transmission Product…


Iteris introduced a new video transmission system, under the brand name eAccess™. The
technology connects various cameras fixed in diverse locations to remote users by sending high
quality video. eAccess thereby enables both effective monitoring and controlling of traffic from a
single point thus, eliminating expenses related to fieldwork. Various latest and sophisticated
technologies went into the manufacture of eAccess.

PRODUCT/SERVICE PORTFOLIO
Roadway Sensors
Vantage Video Detection
Vantage Vrack™, Vantage Edge2 I/O Module™, Vantage Edge 2™, Vantage RZ4 Camera™,
Vantage Wireless Systems™, Vantage Viewer™, Vantage Express™, Vantage Access™, Vantage
V2 Rack™, Vantage Eaccess™, and Vantage TS2-IM™

Mil-Lektron Video Transmission & Isolation Systems


ML108A Video Isolation System, and ML928 Video Hardwire System

Automotive Sensors
Passenger Vehicles, and Commercial Vehicles

Software Products
SystemView™, CVAR Direct™, CView Plus™, and CView Plus Enterprise™

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Services
Software Engineering Design and Development; System Integration, Installation, Test and
Maintenance; Systems Engineering and Development; Traffic Control Systems; Traffic
Engineering; and Transportation Planning

SUBSIDIARIES
MAXxess Systems, Inc.
Broadcast, Inc.
Zyfer, Inc.

ITS AUSTRALIA
National ITS Centre, 3 Rocklea Dve, Port Melbourne VIC 3207, Australia
Phone: +61 3 8680 2222, Fax: +61 3 8680 2300

SOURCES: www.its-australia.com.au and other secondary online sources

BUSINESS PROFILE
ITS Australia develop and deploy advanced technologies across all modes of transport such as air,
sea, road and rail. The company currently represents over 80 organisations and companies involved
in ITS, including infrastructure providers, hardware suppliers, content aggregators and suppliers,
service providers, vehicle manufacturers and transport companies. ITS Australia markets its
products by direct links to customers and business partners through the global ITS network
comprising over 50 ITS organisations and their members; including regional bodies such as ITS
America (the America’s), ERTICO (Europe) and ITS Japan (Asia-Pacific). The company was
established in 1992.

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KYOCERA WIRELESS CORPORATION
10300 Campus Point Drive, San Diego, California 92121, USA
Phone: 1.858.882.2000, Fax: 1.858.882.2010

SOURCES: www.kyocera-wireless.com and other secondary online sources

BUSINESS PROFILE
Kyocera Wireless Corp., (KWC) a wholly owned subsidiary of Kyocera International Inc., is the
world’s leading manufacturer and supplier of CDMA (Code Division Multiple Access) wireless
devices and accessories. The company manufactures a wide range of mobile handsets and other
wireless products such as phones, accessories, gaming, M2M business solutions and PC mobility
accessories. The company’s handset accessories include clips, car kits, batteries, and headsets.
KWC operates in Australia, New Zealand, India, Brazil and Mexico. The company is accredited
with ISO-14001 and ISO 9001:2000 certifications. The company’s key competitors include Nokia,
Samsung Electronics, and Sony Ericsson Mobile.
In 2006, KWC and Land-Cellular introduced the CDM-819s - Serial Data Modem and the CDM-
822 - Serial, Ethernet Full Routing Data Modem. The new Land-Cellular CDM-819s and CDM-
822 modems are designed for use in a variety of wireless applications including automated vehicle
tracking, automated meter reading, telematics, kiosks, ATMs, disaster relief modems and wireless
routers, remote equipment monitoring, environmental monitoring applications, resource
management, asset tracking, SCADA, intelligent traffic systems, security alarm panels, oil
pipeline, and wellhead monitoring.
KWC was established in 2000.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Collaboration

KWC Enter into Collaboration with Puretracks…


KWC entered into collaboration with Puretracks to bring "White Label" music service to mobile
phones. The solution would allow smaller, regional carriers to take advantage of increased
revenues from digital music sales without investing in wireless services. Following the deal,
Puretracks back-end with the intuitive, user-friendly music players on KWC's phones would help
carriers of any size delight the customers while adding a potentially huge revenue stream.
Puretracks is a leading North American digital music solutions provider.

KWC and Newstep Enter into Collaboration on CMDA/WI-FI Fixed-Mobile Convergence


Interoperability
KWC entered into collaboration with NewStep Networks Inc. (NewStep), a leader in convergence
solutions for carriers and enterprises. Following the deal, both the companies would work together

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in trials for CDMA-compliant Voice Call Continuity (VCC) solutions for fixed-mobile
convergence. Both the companies successfully tested a Wi-Fi enabled prototype handset with the
NewStep CSN fixed-mobile convergence platform. The seamless CDMA-to-VoIP handoff furthers
the leadership exhibited by both companies in the FMC space and brings complete and powerful
solutions for wireless mobility in both the residential and enterprise spaces.

KWC Join Hands with Dielectric Communications to Provide Aviation Obstruction Lighting
KWC and Dielectric Communications, a leading provider of machine-to-machine (M2M)
monitoring equipment and services, joined forces to offer ArgusON monitoring and asset
management platform, enabling an end to end M2M solution to remotely monitor, track and report
aviation obstruction lighting status to meet Federal Aviation Administration (FAA) guidelines. In
addition to its existing offerings, Dielectric Communications integrated Kyocera 200 Module into
its ArgusON product and leveraged the power and coverage of the Sprint nationwide wireless data
network for real-time communication.

KWC Enters into Collaboration with PCTEL, Inc.


KWC and PCTEL Inc. (PCTEL), a leader in wireless broadband solutions, entered into
collaboration on a Voice Call Continuity (VCC) solution for dual-mode Wi-Fi/CDMA handsets.
The solution, which incorporates PCTEL's Roaming Client - Voice Enabled (VE), is demonstrated
on a prototype Kyocera handset. VCC technology allows a dual-mode handset to make seamless
handoffs of active calls while moving between Wi-Fi and CDMA air interfaces.

KWC Teams Up with Cellular South…


KWC and Cellular South, the US’ largest privately held wireless provider, announced a
collaboration to launch a multi-city consumer trial for its new Wireless Wallet technology. Cellular
South and KWC would begin the first-ever community-wide Wireless Wallet trial that allows
participants the opportunity to use the technology at multiple retail locations in multiple trial cities.

Agreement

KWC and Runcom Technologies Enter into an Agreement to Devleop Mobile WiMAX-Powered
Wireless Devices…
KWC and Runcom Technologies, a pioneer in OFDMA® enabling technologies for Mobile
WiMAX, entered into a development agreement to leverage Kyocera's expertise in wireless device
development and Runcom's leading chipset technologies. As per the pact, Both KWC and Runcom
work jointly to develop new consumer electronic devices employing the latest in broadband Mobile
WiMAX technology.

Product Launches
KWC Unveils Five New Handsets Designs and a PC Card…
KWC unveiled five new handsets designs and a new PC card. KWC’s new handsets offer
sophisticated appearance complementing some of the industry's most compelling and in-demand

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mobile entertainment features. The new line-up includes E5000, an elegant, slim EV-DO handset
with a first-of-its kind, iconic "S" hinge design; E2000, a sleek EV-DO music-centric clamshell
with expandable memory; E1000, a crisp, affordable clamshell with 1.3 megapixel camera and
Bluetooth® wireless technology; M1000, a stylish, ergonomically designed handset with a hidden
QWERTY keypad for the power texter; and S1000, an ultra-affordable bar-style phone. KWC’s
KPC680 CDMA2000® 1xEV-DO Rev. A PC card features next-generation speeds in a compact
ExpressCard form factor.

KWC Launches Two New Module Solutions…


KWC announced the launch of two new compact and cost-effective machine-to-machine modules,
Kyocera 300 Module and Kyocera 1xD Module for CDMA 1xRTT networks. The Kyocera 300
Module, based on a smaller footprint for more widespread integration, provides integrated voice,
data and autonomous global positioning system (GPS) capabilities. The Kyocera 300 Module
enables ubiquitous, real-time communications over CDMA 1xRTT networks for both voice and
data. The module is well suited to telematics and fleet management, and is also ideal for vertical
markets such as asset tracking or roadside call boxes. The Kyocera 1xD Module debuts as a low
cost CDMA data-only module platform for telemetry applications.

KWC Introduces Kyocera K132 Flip Phone…


KWC and Cricket Communications Inc., a leading provider of wireless services, introduced the
Kyocera K132, a compact and sleek flip phone with a blue soft feel exterior for Cricket®
customers. The Kyocera K132 includes a built-in speakerphone for hands-free talking, a large color
display for quick and easy reading of numbers and graphics, as well as pre-loaded polyphonic
ringtones.
The handset features Cricket Clicks™ functionality, including downloadable wallpapers,
screensavers, ringtones, games and more. K132 is also compatible with Cricket's roaming service,
Travel Time™. The phone also features a contact directory, keypad backlighting, predictive text
entry and voice-activated dialing.

KWC Launches Two New Cellular Phones…


KWC launched K122 and K352 new advanced CDMA technology cellular phones that meet the
needs and demands of Dominican consumers. The K122 provide users with ease of use and stylish
affordability, while the K352 is an elegant fun phone that offers a VGA camera and advanced MP3
player for hours of music enjoyment.

Product Upgradation

KWC Upgrades its Kyocera KR1 Mobile Router…


KWC upgraded Kyocera KR1 Mobile Router to support CDMA2000® 1x Evolution Data
Optimized (EV-DO) Revision A (Rev. A). Rev. A is an upgraded network technology that offers
uplink and downlink speeds rivaling broadband landline connections. KWC’s router by supporting
the new Rev. A network delivers download speeds reaching over one megabit per second (1 Mbps)
and upload speeds up to 800 kilobytes per second (800 kbps). The KR1 Mobile Router is a

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universal accessory that is compatible with most PCMCIA EV-DO cards, including the Kyocera
Passport KPC650, or with USB-enabled EV-DO handsets.

Year 2006 in Review…


Joint Venture
KWC and Verizon Wireless Join Forces…
KWC and Verizon Wireless (Verizon), the nation's leading wireless service provider, joined forces
to bring efficient mobile computing and communications to business customers, including the U.S
Navy and GE's Consumer and Industrial Appliance Division.

Alliance

KWC Enters into an Alliance with Marvell…


KWC entered into a strategic alliance with Marvell, the leader in the development of storage,
communications, and consumer silicon solutions. As per the agreed terms, KWC would incorporate
Marvell's WLAN technology and chipsets into its dual-mode Wi-Fi/CDMA handset platform.

Collaborations

KWC and Microtel Electronica Enter into Collaboration…


KWC and Microtel Electronica, a leading telecommunications equipment manufacturer in
Venezuela, entered into collaboration on a new CDMA wireless payphone that makes calling less
expensive and more convenient than ever before in restaurants, malls and other public locations.
Microtel Electronica phones use the CDMA KWC’s 200 Module to enable voice communications
while downloading airtime rates and calculating the cost of calls based on the length.

KWC Teams Up with International Road Dynamics…


KWC teamed up with International Road Dynamics (IRD) on IRD's Active Nuclear Source Tool
Alarm. The new radiation tampering alarm system would integrate the Kyocera 200 Module for
real time, CDMA wireless communications, and safeguards vehicles carrying hazardous nuclear
materials. The Kyocera-enabled Active Nuclear Source Tool Alarm takes advantage of the inherent
data capabilities and ubiquity of CDMA networks to provide mission-critical four-way protection
against theft and dangerous accidents. In addition, the solution immobilizes vehicles parked in
unsecured areas preventing unauthorized drivers from moving or stealing valuable resources.
IRD is a leading provider of intelligent transportation systems technology.

KWC Enters into Collaboration with Comverge…


KWC entered into collaboration with Comverge, a leading Demand Response company on the
Comverge Maingate® S4e endpoint. The Maingate® S4e endpoint is the Comverge's first under-
glass automated meter reading (AMR) gateway that integrate the Kyocera 200 Module, which
enables real-time CDMA wireless data communication for electric utility applications.

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Agreement

KWC Enters into an Agreement with Novotech Technologies, Inc…


KWC entered into a distribution agreement with Novotech Technologies Inc., (Novotech), a
leading supplier of machine-to-machine (M2M) and man-to-machine products and technologies.
As per the deal, Novotech would bring the Kyocera 200 module and future generations of Kyocera
CDMA modules to an expanding market, and provides industry-leading M2M solutions. Under the
terms of the agreement, Novotech also provide fulfillment, design assistance and front-line technical
support for customers using the Kyocera 200 Module in various industries such as
trucking/transportation/distribution, utilities, energy, manufacturing, building/construction,
vending/gaming/lottery, telecommunications, security/law enforcement, government and healthcare.

Product Launches

KWC Launches New Line of Wireless Products


KWC launched its new product portfolio for the Puerto Rican market. The new line-up includes
three innovative cellular phones such as EV-DO-enabled Kyocera KX18 Slider Jet™ offering a
high-speed Internet connection, MP3 player and VGA camer, and Kyocera K132 is a dual-mode
digital-only entry-tier flip phone for global CDMA markets.

KWC Unveils New KX18 EV-DO Mobile Phone Series


KWC unveiled KX18 series featuring 262,000 color-display, MP3 music player and a VGA
camera, amongst other hi-tech capabilities The new phones increase KWC's EV-DO-based product
portfolio in Mexico, initiated with the Passport card for high-speed mobile Web service Mexico.
The series is comprised of the black Slider Jet™ and its white version.

KWC Launch KR1 Mobile Router


KWC released KR1 Mobile Router for the Mexican market. The KWC’s KR1 Mobile Router uses
a single CDMA2000® 1x Evolution Data Optimized (EV-DO) wireless broadband connection and
creates a mobile Wi-Fi access point for multiple computers with 802.11g technology to deliver
download speeds of up to 2.4 Mbps. The KR1 Mobile Router overcomes the need for users to
implement costly fixed cable or DSL connections for many applications and is ideal for small and
medium-size companies or home-based users.

KWC Release Chameleon™ CTM


KWC and Cypress Solutions released Chameleon CTM 152 that delivers data communication speeds
of up to 2.4 Mbps, and provides Mobile IP, and discrete 12 channel global positioning system and
Internet capabilities on virtually any CDMA2000® network - whether 1xEV-DO or 1xRTT. The full-
featured Chameleon CTM 152 is a Kyocera-enabled M2M solution designed to leverage EV-DO
networks and is the first industrial data modem to integrate the Passport KPC650 PC Card.
Cypress Solutions focuses on the supply and engineering support of its Chameleon industrial
wireless data products.

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KWC Launches New K352 Camera Phone
KWC launched new K352 camera cell phone, featuring an integrated MP3 player, a compact
modern device with multiple fun functions The K352 for Movistar includes the rights to six songs
from the Venezuelan musical group Voz Veis, preloaded on the phone

KWC Releases Two New Ultra-Affordable Handsets


KWC released the bar-style Kyocera K122 and clamshell-style Kyocera K132 entry-tier mobile
phones for CDMA carriers around the world. The Kyocera K122 is an ultra-low-tier single-mode
800 MHz phone that allows carriers to offer a stylish, full-featured CDMA handset priced to
compete against low-cost phones from GSM operators.
The Kyocera K132 is a dual-mode digital-only entry-tier flip phone for global CDMA markets.
With an internal antenna and a large, 65,000-color display, the K132 also features a premium
design with a soft-touch finish. The product also includes a speakerphone, polyphonic ringtones,
vibrate alert, predictive text entry, WAP 2.0 and is BREW 2.1-capable for downloading simple
games, ringtones, wallpapers and screensavers.

KWC Launches Kyocera KX9e Silver Flip Phone


KWC and Leap Wireless International Inc. (Leap) launched Kyocera KX9e, a sleek clamshell
handset designed to be both fashionable and affordable, for Cricket customers. The handset
features Cricket Clicks™ functionality, including downloadable wallpapers, screensavers,
ringtones, games and more. A compact silver flip phone with an easy-to-use keypad for quick
dialing and text messaging, KX9e offers a high-quality, 65,000-color display, a loud and clear
speakerphone and Kyocera's renowned intuitive user interface.
Leap Wireless International Inc., is a leading provider of innovative and value-driven wireless
communications services.

KWC Releases New Slider Jet™


KWC and Movistar released Kyocera Slider Jet™ KX18 into the Venezuelan market. The new
handset is KWC's first cell phone designed with 1xEV-DO wireless access for high-speed Internet
connection and offers a broad selection of advanced multimedia features. The introduction of the
Slider Jet KX18, which follows on the heels of the Kyocera Passport KPC650 wireless PC card, is
designed to meet the growing demand for EV-DO technology in Venezuela. KWC is the only
mobile-phone manufacturer that makes both EV-DO cards and phones.

KWC Launches KR1 Mobile Router in Canada


KWC launched KR1 Mobile Router in Canada. The KR1 Mobile Router uses a single high-speed
cellular connection to create a low-cost mobile Wi-Fi "hot spot" or Ethernet hub for multiple PCs,
and delivers download speeds of up to 2.4 Mbps. The KR1 Mobile Router delivers high-speed
wireless connectivity for the job site, mobile sales team or family at home. The KR1 Mobile Router
also provides additional security controls such as 128-bit WEP encryption and an advanced
firewall for added protection against viruses, hacking and identity theft.

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KWC Unveils Feature-Rich Wireless Handsets
KWC unveiled three new wireless handsets such as K822, K342, and K320 Series. The three new
stylish clamshell-style handsets would deliver a variety of lifestyles for the KWC’s wireless
customers. The company’s new handset line includes K822, a music-lover's dream phone, which
captures the true essence of a digital music player, with Microsoft Windows Media Audio and
Windows Media Digital Rights, Management support and an FM radio, complemented by external
music control buttons and built-in stereo speakers; K342, a 1.3 megapixel camera phones with
zoom, flash, a dedicated camera button and a number of advanced camera features; and K320
Series, an 800 MHz-only ultra-thin bar-style music phone for international markets.

KWC Introduces New Suite of Universal Accessories with Bluetooth Wireless Technology
KWC introduced a broad lineup of universal accessories featuring Bluetooth® wireless technology.
The company’s new products include nearly a dozen new Bluetooth-enabled accessories ranging
from Bluetooth headsets to sunglasses and rear-view mirrors.

KWC Launches Six New Kyocera Wireless Phones with Reliance Infocomm
KWC launched six new Kyocera wireless phones such as Kyocera Slider, a sliding phone with a
large 65,000-colour display, Kyocera Koi, a unique swiveling phone with a 1.2 megapixel digital
camera, Kyocera SoHo, a color flip phone with user-changeable faceplates, Kyocera KZ830, an
entry level color flip phone with Dual Display, Kyocera KZ860, an excitingly slim camera flip
phone with 65,000 color display, and Kyocera KZ870, a camera flip phone with OE L sub-display
and 65,000 color main display. The company’s six new phones would represent a strong and
diverse portfolio of mid-to-high tier offerings for Reliance customers. Reliance Infocomm is the
largest provider of information and communications services across India.

KWC Launches Xcursion KX160 Color Camera Phone with Bluetooth Wireless Technology
KWC launched Xcursion KX160, a full-featured camera phone with Bluetooth® wireless
technology to Cricket's lineup of handsets. The company launched its new phone together with
Leap Wireless International Inc., a leading provider of innovative and value-driven wireless
communications services. The company’s Xcursion KX160 features a VGA camera with flash and
digital zoom, dedicated camera button, multi-shot adjustment, auto-focus, self-timer and more, all
on large vivid external and internal color displays.

KWC Introduces New Strobe™ Wireless Handset


KWC introduced new Strobe™ wireless handset. The company’s new handset is ideal for text
messaging, e-mail and instant messaging (IM). The new handsets unique feature would allow the
users to alternate between the open and closed modes for many times. Strobe's simple VGA camera
supports a flash, dedicated camera button and digital zoom.

PRODUCT PORTFOLIO
The company’s product portfolio includes EV-DO, Music and Camera Phones; Bluetooth® and
Music Phones; Koi™ / KX2 Camera Phones; Slider™ Phones; Candid Camera Phones; Topaz Cell

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Phones; Opal; 7135 PDA Phones; QCP 6035 PDA Phones; KX12 Walkie-talkie; Prisma Cell
Phones; Phantom™ Phones; Aktiv Phones; Blade™ Cell Phones; Koi™ / KX2 Phones; KX12
Phones; KX440 Walkie-talkie; K404 Phones; Milan Cell Phones; Rave Phones; SoHo / KX1
Phones; Slide/Swivel Phones; Slider Remix™ Bluetooth® & Music Phone; Slider Sonic Music &
Camera Phone; Xcursion Bluetooth® & Camera Phone; Bluetooth Accessories; Kyocera 5135 Cell
Phones; 7135 Smartphones; and many other. The company’s other products include Kyocera 200
Module and Passport KPC 650 card.

LANDSONAR, INC.
542 Alvarado Street, Suite 6, San Francisco, California 94114, USA
Phone: 415.483.1470, Fax: 415.483.1479

SOURCES: www.landsonar.com and other secondary online sources

BUSINESS PROFILE
LandSonar Inc., (LandSonar) is a leading supplier of network delivered predictive traffic products.
The company’s products are used to increase routing accuracy for fleet, logistics and navigations
systems. The company’s product line includes SpeedGauge AVL and SpeedGauge Fleet.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review

Product Launch

LandSonar Introduces LPS Plus…


LandSonar, in association with TrafficCast International Inc., announced the product launch of
LPS Plus, an enhancement to LandSonar Predictive Speed (LPS™). LPS Plus offers a unique
historical traffic speed data set for LBS and GIS applications, an integration of the two largest
historical traffic flow databases in the traffic industry.

Year 2006 in Review

Agreement

LandSonar Enters into an Agreement with NAVTEQ…


LandSonar entered into technology and product licensing agreement with NAVTEQ, a leading
provider of comprehensive digital map information for automotive navigation systems, mobile
navigation devices, Internet-based mapping applications, government and business solutions. As per
the agreement, LandSonar licensed to NAVTEQ its core LandSonar Predictive Speed (LPS™) product,
which offers predictive speed values with extensive coverage of the US continental road network.

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MASTERNAUT (UK) LTD.
Priory Park, Great North Road, Aberford, Leeds, LS25 3DF, UK
Phone: 08444 150 150, Fax: 0113 281 4009

SOURCES: www.masternaut.co.uk and other secondary online sources

BUSINESS PROFILE
Masternaut (UK) Ltd., (Masternaut) is the market leader in vehicle telematics across the UK and
Europe. The company offers M-Vehicle Tracking, M-Hourtrack, M-Messenger, M-Reports, M-
Scheduler, M-OptiTime, M-Delivery, M-Mobile Applications and M-Navigation products.

PRODUCT ANALYSIS

M-Vehicle Tracking Solution


M-Vehicle Tracking Solution is used to monitoring driver position and progress.

M-Hourtrack Solution
M-Hourtrack Solution is used to record and monitor driver hours.

M-Messenger Solution
M-Messenger Solution provides real time updates and alerts.

M-Reports Solution
M-Reports Solution provides tailored data to inbox, daily, weekly or monthly.

M-Scheduler Solution
M-Scheduler Solution is a fast and accurate planning solution to increase productivity.

M-Optitime Solution
M-Optitime Solution is used to automatically schedule the right resource to the right client.

M-Delivery Solution
M-Delivery Solution is used for efficient, automatic, vehicle and load management.

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MCH GEOPOINTS
Two Pershing Square, 2300 Main Street, 9th Floor, Kansas City, Missouri 64108, USA
Phone: 1-816-448-3771, Fax: 1-816-448-3827

SOURCES: http://www.mchgeopoints.com and other secondary online sources

BUSINESS PROFILE
MCH GeoPoints (MCH GeoPoints), a subsidiary of MCH Inc., is a leading compiler of
institutional data in the US. The MCH GeoPoints database is the first comprehensive, national
database on critical facilities. The company provides geospatially-enhanced data used by local,
state, and federal government agencies for emergency preparedness and planning purposes. MCH
GeoPoints compiles extensive information that is vital for emergency notification purposes
including contact names, telephone and fax numbers, and other data on sites that required for
extensive evacuation resources.
MCH GeoPoints’ Places2protect™ is the first comprehensive national database on critical facilities
and captive population sites with gatherings of people to protect or evacuate. The company’s
People2notify™ is a feature rich data source used to identify the physical addresses of schools,
daycares, nursing homes, hospitals, and other institutions with captive populations.
MCH Inc., specializes in compiling institutional data that updates and enhances places2protect™
and people2notify™ databases continuously.

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MEDIAMOBILE
14 (a), street Marty, 94220 Charenton the Bridge, France
Phone: 01.43.77.75 .81, Fax: 01.43.77.66 .54

SOURCES: www.media-mobile.fr and other secondary online sources

BUSINESS PROFILE
Mediamobile develops a selective network of taxis with “tactical” solutions. The company
provides its services in 19 cities across the country.

METODO TELECOMUNICACOES
R Manoel Garcia Velho, n° 215, Bandeirantes. Cuiabá - MT, 78010190, Brazil
Phone: 65/ 3624-0751/ 3322-7288

SOURCES: http://www.portalmetodo.com.br and other secondary online sources

BUSINESS PROFILE
Metodo Telecomunicacoes (Metodo) is a leader player in telecommunications industry. The
company’s product line includes Equipment Phonecards, Headset's (Fones of Head), Nobreak's and
Batteries, Interface Celular Mobile Interface, and Post Voice Automatic Atendendores. The
company is involved in repairing appliances, digital KS's and Headset's-head of Fones. The
company provides installation, preventive and corrective maintenance, contracts for lease,
contracts for maintenance services.

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METROPOLITAN TRANSPORTATION AUTHORITY OF NEW YORK
347 Madison Avenue, New York, New York 10017-3739, USA
Phone: 212-878-7000, Fax: 212-878-0186

SOURCES: http://mta.info and other secondary online sources

2006 Sales: US$ 5,487 million


2005 Sales: US$ 5,198 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Metropolitan Transportation Authority of New York (MTA) is a leading public transportation
system in the US. The company provides subways, buses, and commuter trains and transport to 2.4
billion passengers a year. MTA through its New York City Transit Authority unit runs a fleet of
about 4,900 buses in New York City's five boroughs and provides subway service and operates the
Staten Island Railway. The company’s offers bus and rail service to Connecticut and Long Island
and maintains the Triborough system of toll bridges and tunnels. The company’s subsidiaries
include The Long Island Rail Road Company, Metro-North Commuter Railroad Company, and
New York City Transit Authority.

BUSINESS OPERATIONS
New York City Transit Authority
New York City Transit Authority is the leading agency in the MTA regional transportation
network, which includes MTA Staten Island Railway (part of NYC Transit's Department of
Subways), MTA Long Island Rail Road, MTA Long Island Bus, MTA Metro-North Railroad,
MTA Bridges and Tunnels, and MTA Capital Construction. MetroCard, the MTA's automated fare
collection medium, is accepted on all New York City Transit subway stations and on buses. The
card is also be used on Long Island Bus, MTA Bus, and on the PATH system (operated by the Port
Authority of New York and New Jersey), a subway linking New York and New Jersey.

The Long Island Rail Road Company


Long Island Rail Road (LIRR) is the busiest commuter railroads in North America, carrying an
average of 282,400 customers each weekday on 728 daily trains. LIRR serves 124 stations in
Nassau, Suffolk, Queens, Brooklyn and Manhattan, providing service for some 81 million
customers each year.

MTA Metro-North Railroad


MTA Metro-North Railroad is recognized as one of the nation's preeminent railroads. The
company operates 120 stations distributed in seven counties in New York State including Dutchess,
Putnam, Westchester, Bronx, New York (Manhattan), Rockland, and Orange-and two counties in
the state of Connecticut--New Haven and Fairfield. The railroad also operates The Hudson Rail

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Link feeder bus service in the Bronx, and The Haverstraw-Ossining and Newburgh-Beacon ferries,
all of which connect with the Hudson Line.
In 2007, MTA entered into an agreement with Teamsters to Avert Metro-North Strike. The
company was founded in 1983.

MTA Capital Construction Company


MTA Capital Construction Company provides major capital expansion and Downtown Manhattan
transit infrastructure projects. The capital projects are funded from a combination of bond sales and
federal, state, and local allocations. The unit was established in 2004.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 5,487 5.56
2005 5,198 -

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MITSUBISHI ELECTRIC INTELLIGENT TRANSPORTATION SYSTEMS
Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo 100-8310, Japan
Phone: +81-3-3218-2111

SOURCES: http://global.mitsubishielectric.com/bu/its/index.html and other secondary online sources

BUSINESS PROFILE
Mitsubishi Electric Intelligent Transportation Systems (Mitsubishi Electric) is a provider of
electronic toll collection solutions, advanced cruise solutions-assist highways and on-board real-
time navigational solutions. The company provides ITS technology in fields ranging from space
and infrastructure technology to vehicle control. The company supports aspects from vehicle-to-
roadside communication to on-board and roadside equipment and security. The company offers
Electronic Toll Collection (ETC) systems, Advanced Cruise-Assist Highway Systems (AHS),
Advanced Logistics Transport Information systems and Auto Incident Recording Systems (AIRS).

PRODUCT ANALYSIS

Electronic Toll Collection (ETC) Systems


Electronic Toll Collection (ETC) communicates information on vehicle traffic and toll collection
between roadside systems at the toll gate and on-board equipment in vehicles to automatically
collect tolls. ETC offers traffic congestion solutions at toll gates on highways, improve efficiency
in toll collection, and ease road management operations and user services.

Advanced Cruise-Assist Highway Systems


Advanced Cruise-Assist Highway Systems (AHS) provides information on driving, such as
obstacles on the road and road surface conditions.

Auto Incident Recording Systems


The company developed a sound-actuated video system that records accidents and near-misses at
several busy intersections in Japanese cities.

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MOTOROLA, INC.
1303 E. Algonquin Road, Schaumburg, Illinois 60196, USA
Phone: 847-576-5000, Fax: 847-576-5372
SOURCES: www.motorola.com and other secondary online sources
2007 Sales: US$ 18,165 million (H1)
2006 Sales: US$ 42,879 million
2005 Sales: US$ 35,262 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Motorola Inc., (Motorola) is the second largest manufacturer of wireless handsets in the world. The
company is a leading supplier of wireless infrastructure equipment such as cellular transmission
base stations, amplifiers, and servers. The company is a leading provider of wireless, broadband
and automotive communications technologies and embedded electronic products in the world.
Motorola is a leader in providing customized, mission-critical radio communications and
information systems, end-to-end digital broadband entertainment, communication and information
systems, embedded telematics systems and embedded processing and connectivity products. The
company manufactures wireless handsets and communications products such as voice and data cell
phones and two-way radios. The company also develops, manufactures and distributes public and
enterprise wireless infrastructure communication systems comprising of hardware, software and
services. Motorola operates through four business segments namely Mobile Devices, Networks,
Government and Enterprise Mobility Solutions, and Connected Home Solutions.
Motorola also provides AFIS and biometric solutions for commercial, government, and public safety
agencies, which include Portable Radios, Fixed Data Products, Mobile Radios, Mobile Data Terminals,
Dispatch Products, Mobile Applications, Infrastructure Products, Computer Aided, Dispatch (CAD),
Government Applications, Biometrics, Test Equipment, Site Equipment, Paging, and Accessories.
Motorola’s diversified product portfolio includes integrated radio communications and information
solutions, embedded semiconductor solutions, wireless subscriber and server equipment, two-way radio
and messaging products, and embedded electronic systems. The company offers a wide range of wireless
handsets used in transmitting and receiving voice, text, images and other forms of information and
communication. Motorola supplies its semiconductor solutions for application in the networking and
computing, transportation, wireless communications and digital consumer/home networking markets.
Motorola's semiconductor unit is a leading manufacturer of embedded chips used in wireless,
networking, automotive, and consumer products. The company provides Voice Over IP Solutions,
Dispatch Communications Solutions, Homeland Security Solutions, Internet and Wireless Software
& Solutions and Public Safety Communications Solutions. The company competes with Ericsson,
Nokia and Sony Ericsson Mobile. The company's major customers include Nextel
Communications, Inc., KDDI and Avnet.
Motorola was incorporated in 1928 as Galvin Manufacturing Corporation and adopted the present
name in 1947.

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BUSINESS OPERATIONS

Mobile Devices Segment


Mobile Devices Segment is a leader in multi-mode, multi-band communications products and
technologies. The segment focuses on the design, manufacture, supply and service of wireless
handsets, with integrated software and accessory products. The segment’s core product line
includes wireless subscriber and server equipment for cellular systems, portable energy
storage products and systems, servers and software solutions and associated software and
accessories.

Networks Segment
As a leader in the integration of core networks through wireless IP, wireless softswitch and IP
multimedia subsystems, the Networks segment designs, manufactures, markets, deploys and
services wireless infrastructure communication systems including hardware and software.
The Networks segment specializes in cellular, wireless broadband and wireline access
technologies.
The segment provides end-to-end wireless networks including radio base stations, base site
controllers, related software and services, mobility soft switching, application platforms and third-
party switching for CDMA, GSM, iDEN® and UMTS technologies. The segment also designs,
manufactures, and distributes embedded communications computing platforms, wireless broadband
systems, and fiber-to-the- premise (FTTP) and fiber-to-the-node (FTTN) transmission systems
supporting high-speed data, video and voice applications.

Government and Enterprise Mobility Solutions


Government and Enterprise Mobility Solutions segment is a leader in integrated radio
communications and information solutions. The segment designs, manufactures, markets, installs
and services analog and digital two-way radio, voice and data communications products and
systems to a wide range of customers in public-safety, government, utility, transportation and other
worldwide markets. The segment is also a leading player in the emerging market for integrated
information management, mobile and biometric applications and services. The segment also
designs, manufactures and distributes automotive and industrial electronics systems, and telematics
systems to offer automated roadside assistance, navigation and advanced safety features for
automobiles.

Connected Home Solutions


The Connected Home Solutions segment provides integrated end-to-end systems for the delivery of
broadband services. The segment designs, manufactures and markets a diverse line of broadband
products including digital systems and set-top terminals for cable television and broadcast
networks; high speed data products including cable modems and cable modem termination
systems, and Internet Protocol-based telephony products; hybrid fiber coaxial network transmission
systems used by cable television operators; digital satellite television systems; and direct-to-home
satellite networks and private networks for business communications.

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SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In US$ million)

Year Sales %Change


2007 18,165 (11.18)
2006 20,452 -

Half Yearly Sales Comparison by Business Segment (2007 Vs. 2006) - Mobile Devices,
Home and Networks Mobility, and Enterprise Mobility Solutions
(In US$ million)

Segment 2007 2006 % Change


Mobile Devices 9,681 13,543 (28.52)
Home and Networks Mobility 4,901 4,458 9.94
Enterprise Mobility Solutions 3,637 2,492 45.95
Other & Eliminations (54) (41) 31.71
Total 18,165 20,452 (11.18)

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales %Change


2006 42,879 21.6
2005 35,262 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – USA, China, UK,
Germany, Israel, Singapore and Other Nations (In US$ million)

Region 2006 2005 % Change


USA 18,808 16,701 12.62
China 4,664 2,908 60.39
UK 1,306 1,532 (14.75)
Germany 874 882 (0.91)
Israel 659 534 23.41
Singapore 176 156 12.82
Other nations 16,392 12,549 30.62
Total 42,879 35,262 21.6

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Percentage Breakdown of Annual Sales (Value) by Geographic Region (2004-2006) –
USA, Europe, Asia Excluding China, China, Latin Amercia, and Others

Segment 2006 2005 2004


US 44 47 48
Europe 15 19 19
Asia Excluding China 11 9 10
China 11 8 10
Latin America 10 10 10
Others 9 7 3
Total 100 100 100
Annual Sales Comaprison by Business Segment (2006 Vs. 2005) - Mobile Devices,
Networks and Enterprise, and Connected Home Solutions (In US$ million)

Segment 2006 2005 % Change


Mobile Devices 28,383 21,459 32.27
Networks and Enterprise 11,245 11,202 0.38
Connected Home Solutions 3,327 2,871 15.88
Other and Eliminations (76) (270) (71.85)
Total 42,879 35,262 21.6

Percentage Breakdown of Annual Sales (Value) by Business Segment (2005) –


Mobile Devices, Networks, Connected Hone Solutions

Segment 2005
Mobile Devices 58
Networks 17
Connected Home Solutions 8
Others 17
Total 100

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Acquisitions
Motorola Acquires Leapstone Systems…
Motorola acquired Leapstone Systems Inc., a leading communications software developer that
provides a unified platform for rapidly creating, managing and delivering converged video, and
voice and data service bundles across multiple networks and devices.

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Motorola Acquires Terayon Communication Systems, Inc…
Motorola acquired Terayon Communication Systems Inc., for $1.80 per share in cash. The
acquisition of Terayon and its software-driven application solutions enhances Motorola’s video
infrastructure and seamless mobility core by providing Motorola with industry-recognized video
processing solutions that enable digital ad insertion, motion and graphical overlays, channel
branding and channel line-up solutions as well as cutting-edge ad insertion delivery technologies.
The solutions would enable Motorola’s customers to optimize bandwidth and deliver content based
upon the regional and local interest of viewers, accelerating the service provider’s ability to evolve
and capitalize on new business opportunities.

Motorola Acquires Modulus Video, Inc.


Motorola acquired Modulus Video Inc., a leader and innovator in MPEG-4 Advanced Video
Coding (AVC) compression systems designed for delivery of high value video content in the IPTV,
cable, broadcast and satellite marketplace. Following the acquisition, Modulus Video would be
integrated into the Motorola Home and Networks Mobility business and operate as a wholly owned
subsidiary of Motorola. Motorola intends to maintain Modulus Video operations in Sunnyvale,
California

Motorola Acquires Symbol Technologies Inc…


Motorola announced the acquisition of Symbol Technologies, Inc. Symbol Technologies would be
the core Motorola’s enterprise mobility business, uniquely positioning the company to take
enterprise mobility to a new level. Following the acquisition, Motorola would offer the broadest
array of innovative products and technologies available that enable enterprise customers to access
business-critical information anytime, anywhere. The enterprise mobility business would offer a
device portfolio ranging from mobile office devices such as the Motorola Q to rugged mobile and
wearable computers from Symbol.
By combining the company’s complementary technology portfolios, deep industry-specific domain
knowledge, sales channels and customer bases, the new Motorola enterprise mobility business
establishes itself as a global leader in providing real-time technology solutions for customers, both
inside and outside the enterprise.

Alliance

Motorola and Wind River Systems Form Alliance…


Motorola and Wind River Systems formed a strategic alliance to provide integrated
AdvancedTCA® (ATCA®) and MicroTCATM communication platforms with Carrier Grade
Linux and VxWorks runtimes. Through the agreement, Motorola’s embedded communications
computing business and Wind River would work together to deliver bundled hardware and
software solutions for next-generation networking designs for the telecom, military and aerospace,
medical and industrial automation industries. Furthermore, both the companies would provide joint
customer support, as well as collaborate on product development and on driving joint value for
industry initiatives such as OpenSAF high availability software, virtualization technologies and
development environments for multicore processors.

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Partnership

Motorola Partners with WMG…


Motorola partnered with Warner Music Group Corp. (WMG), to create new music-based products
and experiences for the mobile platform. By aligning with music powerhouse WMG, Motorola
may offer consumers exclusive content, including premium products such as pre-loaded and over-
the-air delivered full-length songs, ringtones, ringback tones, mobile music videos and wallpapers.
The partnership lays the foundation for an ongoing collaboration to match Motorola's global
handset marketing initiatives with WMG's artist promotions. Motorola and WMG would work
closely with wireless carriers in the development of these new music-based products in an effort to
provide consumers with a seamlessly integrated mobile music experience. The partnership enables
to opens the door for exciting entertainment opportunities for Motorola consumers.

Motorola and Microsoft Extends Partnership…


Motorola and Microsoft extend strategic relationship to develop Microsoft Dynamics-based
applications for select Motorola mobile computers. The relationship, announced in conjunction
with Microsoft’s launch of the new Microsoft Dynamics AX Mobile Sales solution and Microsoft
Dynamics Mobile Development Tools, paves the way for Motorola PartnerSelect members
globally to port their existing enterprise mobility solutions to the Microsoft Dynamics platform.

Agreements

Motorola Announces Distribution Agreement with Dragon Technology…


Motorola signed a distribution agreement with Dragon Technology Distribution (HK) Ltd., to meet
increasing demand for open, standards- based AdvancedTCA® and MicroTCATM based products
in China. The agreement also covers the distribution of Motorola’s broad portfolio of
CompactPCI™ and VMEbus products.

Motorola Signs Distribution Agreement with Tai Full Technologies…


Motorola signed a distribution agreement with Tai Full Technologies Corporation that would
enable wider access to Motorola’s broad range of embedded communications computing products
to original equipment manufacturers (OEMs) in Taiwan. The agreement covers the distribution of
Motorola’s standards-based blades, modules, shelves, application-ready platforms and
communications servers based on industry standards such as AdvancedTCA®, MicroTCATM,
CompactPCI and VMEbus.

Motorola Enter into an Agreement with MTC Kuwait…


Motorola announced an agreement with MTC Kuwait to optimize the speed of data services on its
network and increase overall operational efficiency. Under the agreement, MTC Kuwait would
deploy Motorola’s Global Applications Management Architecture (GAMA) solution including
systems integration and advanced network optimization services, which are designed to enhance
the mobile data capacity of the operator’s network and improve the performance of mobile data
applications even over low-bandwidth connections.

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Motorola Signs an Agreement with NewsGator…
Motorola signed an agreement with NewsGator Technologies Inc., (NewsGator), to mobilize RSS
content for enterprises. Under the terms of the agreement, Motorola would extend NewsGator-
aggregated RSS content from behind the firewall to mobile users on a broad range of devices,
including the Motorola Q, Samsung BlackJack™, the Palm® Treo™ family and many other
standards-based smartphones.
NewsGator is the world's leading RSS platform company.

Motorola Expands Agreement with Comcast…


Motorola expanded previously announced multi-year purchase agreement for digital set-tops.
Under the expanded agreement, Comcast would purchase several set-top models from Motorola,
including dual-tuner, high-definition (HD) digital video recorders (DVRs) and all-digital cable
receivers. The next-generation digital set-tops would support Comcast’s Residential Network
Gateway (RNG) specification along with the Open Cable Application Platform (OCAP) initiative.
Several of the models would support Motorola’s Follow Me TV solution and Motorola’s Linux-
Java™ software platform. Comcast Corporation is the nation's leading provider of cable,
entertainment and communications products and services.

Contracts

Motorola Receives Contract from Warid Telecom…


Motorola awarded a four-year full-operations and managed services contract by Warid Telecom for
its GSM and Canopy® networks in major cities and sub-districts in the eastern part of Bangladesh.
The contract includes managed services covering the operations and maintenance of GSM Base
Station Systems (BSS), transmission quality, as well as operations and maintenance of the
MOTOwi4 Canopy systems used for last mile customer connectivity.

Motorola Signs a Contract with Celtel Nigeria…


Motorola signed a $50 million contract with Celtel Nigeria, a part of Celtel International, to expand
its GSM network within the South East and South regions of the country. Under the agreement,
Motorola would deploy its latest Motorola Reach GSM solutions and provide comprehensive
services. The expansion would enable Celtel to increase its subscriber capacity, extend its coverage
into new areas and improve the quality of its network.

Memorandum of Understanding (MoU)

Motorola Signs MoU with International Institute of Information Technology Bangalore…


Motorola signed a Memorandum of Understanding (MoU) with the International Institute of
Information Technology Bangalore (IIIT-B), for collaborative research to develop cutting-edge
technology innovations and solutions, conducting research programs and jointly work on projects
in designated fields of science and technology. The partnership would also enable Motorola to
effectively utilize the results of the research efforts aimed at developing innovative wireless
broadband solutions for emerging markets such as India.

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Product Launches

Motorola Launches MOTORAZR2…


Motorola launched MOTORAZR2, which would be available from Alltel, AT&T, Sprint, T-
Mobile USA, US Cellular, and Verizon Wireless. The MOTORAZR2 family – V9 (3G HSDPA),
V9m (3G EVDO CDMA) and V8 (GSM) – WOULD be available to users of all three major
technology networks. The product features a larger internal screen for full HTML web browsing1
and a best-in-class external screen that enables viewing media, music and/or messaging without
opening the flip.

Motorola Announces two Additional Radio Configurations for the MOTOMESH product
series…
Motorola announced two additional radio configurations for the MOTOMESH product series of
municipal wireless networks. Motorola offers 2.4/5.4GHz and 2.4/4.9GHz versions of
MOTOMESH Duo, to expand its two radio meshed WiFi product, which is available in
2.4/5.8GHz configurations. The additional radio options provide municipalities and network
providers with more choices and greater flexibility to meet the wireless application and coverage
needs of end users.

Year 2006 in Review…

Acquisitions

Motorola Acquires Vertasent LLC…


Motorola acquired Vertasent LLC. The acquisition of Vertasent, coupled with its purchase of
Broadbus Technologies. The acquisition allows the company to provide pay-TV service providers
with an end-to-end, open standards hardware and software portfolio that supports advanced video
services and improves bandwidth management. Vertasent LLC is a privately held developer of
software applications that enables services such as content-on-demand or IPTV to share resources
and be delivered over a common infrastructure.

Motorola Completes Acquisition of Kreatel Communications…


Motorola completed the acquisition of Kreatel Communications. Kreatel is a leading developer of
innovative Internet Protocol (IPTV) based digital set-tops.

Motorola Acquires Orthogon Systems…


Motorola acquired Orthogon Systems, a leading provider of high-performance fixed wireless
solutions, to expand the MOTOwi4 portfolio of IP, wireless broadband solutions. Following the
acquisition, Orthogon’s industry leading expertise in wireless Ethernet connectivity is highly
strategic to Motorola’s rapidly growing wireless broadband business. The acquisition would
enhance the Motorola’s OFDM capability and strengthen its MOTOwi4 wireless broadband
offerings, which include WiMAX, Mesh Solutions, Canopy products, and accelerate the growth of
its existing wireless IP access business.

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Orthogon Systems is a leader in providing intelligent OFDM-based, wireless IP, and point-to-point
transmission solutions.

Alliance

Motorola Enters into an Alliance with Google, Inc…


Motorola entered into an alliance with Google Inc., to provide users with an easy access to Google
on Motorola handsets. Motorola would integrate a Google icon onto select devices so that users
could connect directly to Google anytime, anywhere at the click of a button.

Partnership

Motorola and Eastman Kodak Company Enter into Global Mobile-Imaging Partnership…
Motorola and Eastman Kodak Company announced a 10-year global product, cross licensing and
marketing alliance intended to fulfill the promise of mobile imaging for the benefit of consumers.
The integration of Kodak’s image science and system integration expertise with Motorola iconic
mobile device design enables with ease-of-use and image captures experience of camera phones.
The partnership covers licensing, sourcing, software integration, marketing, and extends to co-
development of image-rich devices with joint engineering teams.

Collaboration
Motorola, Freescale, and Nikko Collaborate on a New Remote Control Toy Car…
Motorola and Nikko entered into collaboration to develop a new Wireless Wheels remote control
toy car controlled by select Motorola iDEN® handsets. Based on the Freescale Semiconductor
wireless Personal Area Network (PAN) technology which utilizes the IEEE® 802.15.4 standard,
the 1/16 scale replica is the latest remote control model to be introduced by Motorola to the
consumer market. Using the Motorola iDEN phone attachment, which leverages PAN technology,
the Motorola iDEN handset replaces traditional remote controls by operating multiple devices such
as toys or robots with reliable two-way communications.

Agreements
Motorola Signs an Agreement with Tut Systems, Inc…
Motorola and Tut Systems Inc., signed a definitive merger agreement. Under the agreement,
Motorola would acquire all the outstanding shares of Tut Systems common stock. The
integration of Tut Systems’ solutions with Motorola’s industry-leading digital video delivery
solutions would expand Motorola’s ability to help service providers deploy advanced video
services over IP, ATM, or RF-based network architectures. Upon completion of the transaction,
Tut Systems would become a wholly owned subsidiary of Motorola and would be integrated
into the Motorola Connected Home Solutions business. Motorola intends to maintain Tut
Systems’ operations in Lake Oswego, Oregon, San Diego California and Pleasanton California.
Tut Systems provides carrier-class end-to-end digital video encoding, processing and
distribution products.

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Motorola Enters into an Agreement with Pentair Electronic Packaging Company…
Motorola entered into a licensing agreement with Pentair Electronic Packaging Company for multiple
fan cooling module technology that is useful in infrastructure equipment. The licensed technology,
which is used in Pentair’s Schroff brand of products involve a method of orienting multiple cooling
fans to allow a portion of airflow to pass through and around a successive fan in the arrangement.
According to the terms of the agreement, Pentair Electronic Packaging grants Motorola and its
subsidiaries a non-exclusive worldwide license under the Licensed Patents to manufacture, import, sell,
offer for sale and otherwise distribute the technology in licensed products.
Pentair Electronic Packaging Company is a world-leading provider of standard and custom
electronic enclosure solutions.

Motorola Enters into an Agreement with Netopia Inc…


Motorola and Netopia Inc., entered into a definitive merger agreement. Under the terms of the
agreement, Motorola would acquire all the outstanding shares of Netopia. The acquisition advances
Motorola’ vision by strengthening the Connected Home Solutions business positioning as a leading
supplier of technology and services to telecom providers worldwide. The acquisition enables
Motorola to further address the global broadband DSL opportunity. Netopia is a leader in providing
carrier-class broadband customer premise equipment (CPE), remote management software, and
broadband services to telecom operators worldwide.

Motorola Signs an Agreement with Good Technology, Inc…


Motorola and Good Technology Inc., signed a definitive agreement under which Motorola would
acquire privately held Good Technology, a leader in enterprise mobile computing software and
service. Good Technology, based in Santa Clara, is a strategic addition to Motorola’s Mobile
Devices business. The acquisition would extend Motorola’s mobile computing capabilities and
increase the company’s enterprise client base. Good Technology’s wireless messaging, data access
and handheld security offerings provide intuitive and advanced productivity solutions for mobile
professionals with enterprise-level device security and management. The addition of Good
Technology would advance Motorola’s vision of seamless mobility.

Motorola Signs an Agreement with BenQ…


Motorola signed an agreement with BenQ. Under the terms of the agreement, Motorola would
acquire BenQ’s state-of-the-art research and development center, associated development and test
equipment, and a team of product development engineers in Aalborg, Denmark. The new Aalborg
facility features state-of-the-art measurement facilities such as antenna chambers, acoustical
chambers, radio frequency chambers, environmental laboratories, and measuring facilities related
to mechanical development. The acquisition would enhance Motorola’s capabilities in mobile
phone development, software application development and antenna technology.

Divestiture
Motorola Divests The Automotive Electronics Business….
Motorola divested the Automotive Electronics business to Continental AG. The acquired business
is integrated into Continental’s Automotive Systems Division.

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Product Launches
Motorola Launches MOTOROKR E6…
Motorola launched its new flagship entertainment PDA – MOTOROKR E6. MOTOROKR E6 is a
complete re-visioning of traditional music and PDA devices. The pinnacle of Motorola’s heritage,
innovation, and leadership in multimedia, MOTOROKR E6 provides a winning balance in portable
entertainment and business efficiency.

Motorola Introduces MOTOSLVR L7e…


Motorola introduced MOTOSLVR L7e handset. The skinny mobile gets a technology makeover
with a new metallic blue finish, enhanced multimedia functions and high-speed data access. The
MOTOSLVR L7e incorporates advanced music features including an integrated MP3/AAC music
player coupled with Stereo Bluetooth® technology, users may revel in a hands-free music
enjoyment.

Motorola Introduces 3G Cellular Gateway in Latin America…


Motorola introduced 3G Cellular Gateway in Latin America through a distribution agreement with
Brightstar, a leading distribution and supply chain solutions company serving the wireless industry.
Motorola Cellular Gateway and service enables the users to wirelessly connect to the Internet via
the computers wherever CDMA cellular coverage is available.

PRODUCT/SERVICE ANALYSIS

Biometrics

Motorola Printrak Biometric Identification Solution


Motorola Printrak Biometric Identification Solution MOTOROLA PRINTRAK™ Biometric
Identification Solution (BIS) Accurate and easy to use Fingerprint and Palmprint Solution

Motorola Printrak BatchScan Station


Motorola Printrak BatchScan Station Motorola® Printrak BatchScan StationDesigned specifically for
high volume processing, capable of scanning over 1,000 documents per hour at 500 or 1,000 ppi.

Motorola Printrak Latent Station


Motorola Printrak Latent Station Motorola Printrak Latent StationComplete Solution For
Examining And Submitting Latent Fingerprints And Palmprints

Motorola Printrak LiveScan Ruggedized


Motorola Printrak LiveScan Ruggedized Motorola® Printrak LiveScan is a StationMotorola
LiveScan enable law enforcement agencies, government entities, and private companies to
efficiently and accurately capture and identify various biometric features for applications such as
criminal arrest booking, background check submission, and entry/exit verification.

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Motorola Printrak PrintScan Station
Motorola Printrak PrintScan Station Motorola® Printrak PrintScan is a StationCentralized
processing station for multi-biometrics media including scanning, feature extraction, and
submission capabilities.

Motorola Printrak Verify Station


Motorola Printrak Verify Station is a Motorola® Printrak Verify StationReal-time identification for
criminal, civil and homeland security applications.

Mobile AFIS
Mobile AFIS — Global Identification Motorola Mobile Automated Fingerprint Identification
System (Mobile AFIS) for Law Enforcement Agencies; for Civil Agencies

Energy Systems, Portable


Motorola offers battery packs, chargers and accessories, as well as best-in-class components and
solutions.

Battery Packs
Motorola develops custom rechargeable battery packs that are used in any portable electronic
devices such as two-way radios, mobile phones, notebook, handheld computers, and medical
equipment. The company’s Battery Packs integrate various innovative features such as highly
accurate fuel gauging and communication architecture protocols, which facilitate the battery pack
and host to share the required information.

Lithium-ion
Lithium-ion is one of the leading energy storage technologies used in portable electronic devices.
Lithium-ion provides high energy density, and nominal cell voltage for a range of powering mobile
phones, notebook, and handheld computing devices. Internal lithium-ion battery packs encompass
features such as High energy density, Low self-discharge for higher voltage applications, and long
cycle life. Lithium-ion finds application in various Mobile phones, Handheld computing devices,
Portable communication devices, Portable data terminals, Digital cameras, Mobile medical devices,
Camcorders, Portable electronic accessories, and Wireless headsets.

Lithium-ion Polymer
Lithium-ion polymer is utilized in handheld computing devices that need high energy density
levels integrated in a physically thin device. Lithium-ion polymer is widely used in Handheld
computing devices, High-end 3G mobile phones, and Mobile Medical devices.

Nickel-Metal Hydride
External nickel-metal hydride battery pack is one of the most popular technologies used for
rechargeable batteries. Nickel-Metal Hydride is used in various Two-way radios, Commercial and
industrial portable products, Mobile phones, and Mobile Medical devices.

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Nickel-Cadmium
External nickel-cadmium battery pack features include- good performance in low temperature
environments, and provides a power punch with high rate discharge capabilities. Nickel-Cadmium
is widely used in Power tools, Two-way radios, Mobile Medical devices, Remote control toys, and
Commercial and industrial portable products.

External Battery Packs


External battery pack is interchangeable by any user, and finds application in Notebook computers,
Mobile phones, Commercial and industrial portable products, Portable data terminals, and Medical
devices.

Internal Battery Packs


Internal battery pack is incorporated into host device and is accessible through a battery door.
Internal Battery Packs are primarily used in Handheld computing devices, Portable data terminals,
Mobile phones, Digital cameras, Portable communication products, and Medical devices.

Embedded Battery Packs


Embedded Battery Packs are incorporated into host device and are not accessible to the end user.
Embedded Battery Packs are used in Handheld computing devices, and Remote server backup batteries.

Chargers
Motorola provides custom battery pack chargers that are used in a number of portable electronic
devices, as per the required chemical characteristics and specific energy storage technology. The
company also provides custom charging solutions for several rechargeable battery pack
technologies such as lithium-ion and nickel-based systems. The Chargers are widely used in
Mobile phones, Medical devices, Handheld computing devices, Notebook computers, Two-way
radios, and Commercial and industrial portable devices
The company’s wide range of Custom Chargers include Desktop Chargers, Vehicular Chargers /
Adapters, Emergency Chargers, Wall Mounted Adapters, and SMART Energy System Chargers.
The company’s Intelligent Motorola Portable Radio Energy System (impress™) incorporates a tri-
chemistry energy system with common rechargeable energy storage technologies such as nickel
cadmium, nickel metal hydride and lithium-ion. The custom chargers are mainly used in Two-way
radios, Commercial and industrial portable devices, and Medical devices.

Accessories
Custom accessories used for desktop or in-vehicle utilization of portable electronic devices,
including mobile phones or two-way radios. The company develops desktop chargers, which
facilitate speakerphone functionality in any non-speakerphone enabled mobile phone.

Portable Hands-Free Car Kit


The hands-free car kit with retractable microphone incorporates Bluetooth technology and is used
in various mobile communication devices.

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New Products
Good Mobile Messaging 5; MOTO Z8 kick-slider handset; LS3578-ER and LS3578-FZ cordless
Bluetooth scanners; TX32 module; AdvancedTCA® (ATCA®) blade; Automotive Music &
Hands-free System T605; MOTOTRBO™; MOTOFONE F3; Motorola W218, W360, W380 and
W395.; MOTOROKR™ Z6m,; MOTORAZR™ maxx Ve; Picocell M810; Motorola UBS;
MOTORIZR™ Z3; ML910 Rugged Notebook and MW810 Mobile Workstation; MC70 Enterprise
Digital Assistant Support for CDMA-EVDO Networks; LA-5127 Wireless Networker™;
Talkabout T9500 and T8500 radio models; MOTORIZR™ Z6; MOTOMING™; and MOTO Q
PRO.

SUBSIDIARIES
Indala Corporation
Motorola (China) Electronics, Ltd. (China (Peoples Rep. Of))
Motorola (India) Limited (India)
Motorola (Suisse) SA (Switzerland)
Motorola (Thailand), Ltd. (Thailand)
Motorola AE (Greece)
Motorola AO (Reunion)
Motorola Argentina SA (Argentina)
Motorola Asia Limited (Hong Kong)
Motorola Asia Treasury Pte. Ltd (Singapore)
Motorola Canada Limited (Canada)
Motorola Communications SRL (Romania)
Motorola Credit Corporation
Motorola de Bolivia SA (Bolivia)
Motorola de Colombia Limitada (Colombia)
Motorola de los Andes CA (Venezuela)
Motorola de Mexico SA (Mexico)
Motorola del Ecuador SA (Ecuador)
Motorola del Paraguay SA (Paraguay)
Motorola do Brasil Ltda. (Brazil)
Motorola Electronics Pte. Limited (Singapore)
Motorola Electronics Sdn. Bhd. (Malaysia)
Motorola Electronics Taiwan Limited (China (Rep. Of Taiwan))
Motorola Espana SA (Spain)
Motorola Finance BV (Netherlands)
Motorola Foreign Sales Corporation
Motorola Gesellschaft MBH (Austria)
Motorola GmbH (Germany)
Motorola Hungary Communications Limited Liability (Hungary)
Motorola International Capital Corporation
Motorola International Development Corporation
Motorola International Network Ventures
Motorola Ireland Limited (Ireland)
Motorola Israel Information Systems Limited (Israel)
Motorola Israel Limited (Israel)
Motorola Japan Limited (Japan)
Motorola Komunikasyson Ticaret Ve Servis Limited Sirketi (Turkey)
Motorola Korea Limited (Korea (South))
Motorola Lighting, Inc.

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SUBSIDIARIES
Motorola Limited (UK)
Motorola Malaysia Sdn. Bhd. (Malaysia)
Motorola Portugal Comunicacoes Lda (Portugal)
Motorola SA (France)
Motorola Semiconducteurs SA (France)
Motorola Semiconductor Israel Limited (Israel)
Motorola Semiconductor Sdn. Bhd. (Malaysia)
Motorola Semiconductors Hong Kong, Ltd. (Hong Kong)
Motorola South Asia Pte Limited (Singapore)
Motorola Southern Africa (Proprietary) Ltd. (South Africa)
Motorola SpA (Italy)
North African Cellular Investments, Ltd. (Morocco)
Starfish Software, Inc.
TCS Insurance Company of Ireland Limited (Ireland)
Telcel SA (Spain)

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NESTOR TRAFFIC SYSTEMS, INC.
42 Oriental Street, Providence, Rhode Island 02908-3238, USA
Phone: 401-274-5658, Fax: 401-274-5707

SOURCES: www.nestor.com/NTSFrameset.htm and other secondary online sources

BUSINESS PROFILE
Nestor Traffic Systems Inc., (Nestor) a subsidiary of Nestor Inc., is a leading provider of video
based traffic safety and enforcement systems to the state and local governments across the US.
The company is the only provider of the CrossingGuard(R) Automated Red Light Enforcement
System. The company’s lead product, CrossingGuard® combines advanced video-detection
technology with roadside video cameras to provide intersection monitoring for red light
violation enforcement and improved intersection safety and also provides automated
enforcement by capturing multiple high-resolution video clips of the red light violation. The
company also offers an advanced mobile speed enforcement products, including real-time
intersection monitoring and red light violation detection solution, real-time transmission of
violation video sequences.
Nestor is an exclusive North American distributor for the Vitronic PoliScanSpeed™ scanning
LiDAR, which is capable of tracking multiple vehicles in multiple lanes. The company offers
CrossingGuard® intersection systems for traffic safety and the automated enforcement of traffic
laws, and real-time solutions. The company also provides traffic management solutions such as
CrossingGuard® Automated Red Light Enforcement, ViDARTM Video-based Speed
Enforcement, PoliScanSpeed LiDAR-based Speed Enforcement, CollisionAvoidanceTM Accident
Prediction and Avoidance Solution, CrossingGuard® VIP Video Intersection Profiling, and Real-
time Traffic Monitoring. The company markets its products in various cities and states across the
US including Baltimore (Maryland); Costa Mesa, Cerritos, Fullerton, Fresno, Irvine, Long Beach,
Montclair, Pasadena and Rancho Cucamonga (California); Germantown (Tennessee); Falls
Church, Herndon and Vienna (Virginia); Overland Park (Kansas); and DuPage County (Illinois).
The company’s top competitors include Affiliated Computer, Services, Iteris and TransCore.
The company was established in 1997.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Contracts

Nestor Enters into a 2-year Contract with Diboll…


Nestor entered into a 2-year contract with Diboll, to employ Nestor’s CrossingGuard® red light
enforcement solution and all related services. Diboll represents Nestor's first CrossingGuard® red light
enforcement customer in Texas. With Nestor's advanced tracking technology and multiple synchronized
videos, Diboll would be utilizing the most complete evidence package anywhere in the state.

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Nestor Signs a Contract with the Cities of Hudson and Corrigan …
Cities of Hudson, Texas and Corrigan, Texas executed a 3-year contract with Nestor for the
provision of automated traffic enforcement services. As per the contract, Nestor would install,
maintain and operate CrossingGuard® at 2 approaches in the City of Corrigan, Texas and 3
approaches in the City of Hudson, Texas. The contract also includes the supply of one mobile
speed unit equipped with PoliScanSpeed™ scanning LiDAR technology.

Nestor Signs a Contract with the City of Huntington, Texas…


City of Huntington, Texas executed a contract with Nestor for the provision of automated traffic
enforcement services. As per the contract, Nestor would install, maintain and operate the
CrossingGuard® automated red light camera system at 3 approaches.

Nestor Enters into a 5-Year Contract with Cactus, Texas…


City of Cactus, Texas entered into a 5-year contract with Nestor for the provision of one mobile
speed enforcement unit for at least thirty hours per month and related services. The unit would
assist officers in identifying and obtaining supporting evidence on vehicles exceeding safe speed
thresholds in high-risk locations around the community. The contract also allows the City of
Cactus to use data from the speed system to issue citations for infractions other than speeding.

Year 2006 in Review…


Partnership
Nestor Partners with New Nlets, Inc …
Nestor partnered with New Nlets Inc., to expand its processing support services. Under the terms of
agreement, New Nlets would offer faster processing support services, to enhance Nestor’s
advanced automated CrossingGuard® red light and PoliScanSpeed™ turnkey enforcement
systems. In addition, Nestor would provide automated traffic enforcement solutions to the state and
municipal governments.

Contracts
Nestor Signs a Contract with City of Bonney Lake…
Nestor signed a contract with City of Bonney Lake, Washington for the provision of automated
traffic enforcement services. Under the terms of contract, Nestor would install, maintain and
operate the CrossingGuard® automated red light camera system at a minimum of 6 approaches and
also provides one PoliscanSpeed™ mobile speed enforcement unit.

Nestor Enters into a Contract with The City of Morrow, Georgia…


Nestor entered into a 5-year contract with The City of Morrow, Georgia for the installation,
maintenance, and operation of CrossingGuard®, a patented video based automated red light camera
system, at a minimum of 4 approaches across the City. CrossingGuard® uses patented multiple, time-
synchronized videos to capture comprehensive evidence of red light and speed violations.

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Product Launch

Nestor Launches New Video Product…


Nestor launched new product, VASCAR™ (Visual Average Speed Computation and Recording),
which records speeds of vehicles using various latest technologies. The VASCAR™ enables
authorities to easily identify drivers exceeding specified speed limits. The fact that recordings of
the particular device are even accepted as evidence in courts, with respect to concerned cases,
speaks volumes about efficiency of VASCAR.

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NISSAN MOTOR CO., LTD.
17-1, Ginza 6-Chome, Chuo-Ku, Tokyo 104-8023, Japan
Phone: +81-3-3543-5523, Fax: +81-3-5565-2228
SOURCES: www.nissan-global.com and other secondary online sources
2006 Sales: ¥ 9,428.3 billion
2005 Sales: ¥ 8,576.3 billion
(Fiscal Year Ends in March)

BUSINESS PROFILE
Nissan Motor Co. Ltd., (Nissan) a subsidiary of Renault, is the second largest auto manufacturer in
Japan. The company primarily produces forklifts, diesel trucks, station wagon, minivan, mini-hatch
back, sedan, sports utility vehicles, and marine engines. The company also offers a wide variety of
vehicles such as Environmental Friendly Vehicles, Fuel Cell Vehicle (FCV), Hybrid Vehicle, Low
Emission Vehicles, Altima and Infiniti upscale sedans, Frontier pickups, the 350Z sports car,
Xterra, Pathfinder SUVs, Compressed Natural Gas Vehicles, Electric Vehicles, and Hyper Mini.
Nissan also offers a wide range of vehicles in various models such as Maxima and Sentra cars,
Altima and Infiniti upscale sedans, Frontier pickups, the 350Z sports car, and Xterra and Pathfinder
SUVs. The company offers Minivan vehicles under Elgrand, Presage, Caravan Silkroad, Serena,
and Lafesta models. Nissan’s Sports Utility Vehicles models include Murano, Safari, and X-Trail.
Nissan’s Sedan car models include Cima, Fuga, Teana, Skyline Sedan, Bluebird Sylphy, and Latio. The
company offers Mini-Hatch Back vehicles under Tiida, Note, Cube3, Cube, March, Moco, Otti, and Pino
models. Nissan also develops and uses various technologies such as Compact Lithium-ion Battery, Active
Headrest, SRS Curtain Airbag System, X-Trail FCV, Xtronic CVT-M6, e·4WD, and Ultra-Low
Emission Vehicle Technologies. Nissan markets its products to over 191 countries worldwide. The
company operates through various plants such as Kyushu Plant, Oppama Plant, Tochigi Plant, Iwaki
Plant, and Yokohama Plant; as well as centers including Advanced Technology Center, Technical Center,
Zama Operations Center, Sagamihara Parts Center, Nissan Service Development Center, and others.
Nissan operates over twenty-one manufacturing facilities in 17 countries across the world. The company
operates its subsidiaries in the US, Japan, the UK, China, UAE, Ireland, Mexico, Italy, Denmark, Chile,
Australia, India, and Canada. The company’s major competitors are Honda, General Motors, and Toyota.
In 2007, the company changed the name of its Thailand-based affiliate, Nissan South East Asia Co., Ltd.
to Nissan Technical Center South East Asia Co., Ltd.
Nissan was established in 1933 as Jidosha-Seizo Kabushiki-Kaisha (Automobile Manufacturing
Co., Ltd.), and adopted the present name in 1934.

SALES DATA
Annual Sales Comparison: 2006 Vs. 2005 (In ¥ billion)

Year Sales % Change


2006 9,428.3 9.93
2005 8,576.3 -

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Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Japan, North America,
Europe, and Other Foreign Countries (In ¥ billion)

Region 2006 2005 % Change


Japan 4,869.0 4,537.8 7.30
North America 4,239.3 3,808.3 11.32
Europe 1,497.3 1,305.1 14.73
Other Foreign Countries 1,252.3 1,046.8 19.63
Eliminations (2,429.6) (2,121.6) 14.52
Total 9,428.3 8,576.3 9.93

Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Automobile,


and Sales Financing (In ¥ billion)

Segment 2006 2005 % Change


Automobile 8,923.8 8,201.6 8.81
Sales Financing 547.9 412.0 32.99
Eliminations (43.4) (37.3) 16.35
Total 9,428.3 8,576.3 9.93

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) In Review…

Collaboration

Nissan Expands a Collaboration Agreement with Mitsubishi…


Nissan expanded a collaboration agreement with Mitsubishi Motors Corp., (Mitsubishi) through
enhancing the OEM (Original Equipment Manufacturing) business. As per agreement, Mitsubishi
would supply Nissan with the Townbox minicar at a volume of 4,000 units per year. Nissan would
supply Mitsubishi with the AD and AD Expert light commercial vehicles (LCV), at a volume of
3,000 units per year. The agreement enables the two companies to improve productivity through
expanded economies of scale and offer a wider range of vehicles.

Agreements

Nissan and Renault Trucks Signs a Distribution Agreement for the Maxity…
Nissan and Renault Trucks signed a distribution agreement for the Renault Maxity light duty
vehicle. Nissan produced the Renault Maxity, a cab-over-engine light duty vehicle, in Avila, Spain.
Maxity is developed for Renault Trucks and marketed through the Renault Trucks network.

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Nissan Signs an Agreement with NEC and NEC Tokin to Establish New Joint Venture…
Nissan signed an agreement with NEC Corp., (NEC) and NEC Tokin Corp., (NEC Tokin), to
establish a joint-venture company, namely Automotive Energy Supply Corporation (AESC). AESC
would mainly focus on the development and marketing of advanced lithium-ion batteries, designed
to power future generations of electric-powered vehicles. NEC and NEC Tokin manufactures cell
technology and battery solutions, and Nissan would focus on the cell stack for real-world
application in electric-powered vehicles.

Memorandum of Understanding

Nissan, Mahindra, and Renault Signs a Memorandum of Understanding…


Nissan, Mahindra, and Renault signed a memorandum of understanding (MoU) to establish a
production facility in Chennai, Tamil Nadu. The new facility would become the largest automotive
production site in India, with an installed capacity of 400,000 units per year. The MoU would
support Nissan, Mahindra, and Renault to manufacture passenger cars and SUVs.

Business Expansion

Nissan and Dongfeng to Reinforce Light Commercial Vehicle Business…


Nissan and Dongfeng planned to reinforce the light commercial vehicle (LCV) business in the
Chinese market through the joint venture with Dongfeng Motor Company Limited (DFL). DFL
would expand Nissan-branded LCV business in China. Following the introduction and expansion
of Nissan-branded LCV, the two LCV brands (Dongfeng and Nissan) would support and mutually
complement each other.

New Facility

Nissan Opens Nissan Advanced Technology Center in Japan…


Nissan opened the Nissan Advanced Technology Center (NATC), the latest state-of-the-art R&D
facility, in Kanagawa prefecture, Japan. The new facility would feature an advanced vehicle lab
and electric powertrain lab. NATC would accelerate the research and advanced engineering of
breakthrough technologies for Nissan’s next generation products.

Product Launches
Nissan Unveils New Revised Lafesta Minivan in Japan…
Nissan unveiled new revised Lafesta minivan in Japan. The company modified Lafesta with seat
shape, seat fabric and gauge designs. The new Lafesta offers an easy-to-drive combination of agile
maneuverability and superior outward visibility, as well as excellent acceleration, quietness and
fuel economy. Lafesta offers a class-leading 5.1-meter minimum turning radius and large windows
that provide outstanding visibility to all corners of the vehicle. The new Lafesta is offered in a
selection of seven body colors including Champagne Topaz titanium metallic, Sapphire Blue pearl
metallic, Cerulean Blue metallic, and Blade Silver metallic.

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Nissan Launches Teana Luxury Sedan…
Nissan Motor India Private Limited, a subsidiary of Nissan, launched its luxury sedan, the Teana,
in India. The Teana’s powerful exterior styling starts with a front-end design that blends a
distinctive chrome grille, high quality headlamps, and integrated fog lamps. Teana offers a finely
crafted interior that is clean, modern yet luxurious.

Nissan Introduces New Innovative Engine Valve Control Technology…


Nissan introduced a new engine valve control technology that delivers a balance of responsiveness
and power, fuel efficiency, and low emissions. The new system combines the technologies of the
company’s newly developed variable valve event and lift (VVEL) and continuous valve timing
control (C-VTC) to deliver significantly enhanced performance. The advanced technology would
offer to customers worldwide through the Nissan and Infiniti product lines.

Nissan Releases New Atlas Light-Duty Truck…


Nissan released the new Atlas light-duty truck. The Atlas is offered in three cab configurations
such as a new Atlas Semi-Wide series, which is 75mm wider than the previous Atlas High Cab, an
Atlas Wide Cab and Atlas Standard Cab. The products offer significant enhancements to interior
comfort and driver ergonomics as well as new technologies designed to deliver improved
environmental and energy-saving performance. The new Atlas is equipped with a newly developed
small displacement turbo diesel engine that delivers enhanced performance and emission
efficiency.

Nissan Launches New Pino Minicar…


Nissan launched the new Pino minicar across Japan. The Pino is an economical, easy-to-drive
minicar, and is ideal for everyday driving. Pino’s 13-inch full wheel covers feature an exclusive
Nissan design that combines square and round relief elements inspired by snowflake crystals. The
car is fitted with 155/65R13 73S tires. The Pino is offered in a choice of nine body colors including
Lime Green Metallic.

Nissan Introduces New Nissan Frontier Navara…


Siam Nissan Automobile Co. Ltd., (SNA) a division of Nissan, introduced all-new pickup truck,
the Nissan Frontier Navara. The all-new Nissan Frontier Navara would expand the company’s
business operations in Thailand. The all-new Nissan Frontier Navara delivers a compelling
combination of powerful performance, bold styling, and new levels of innovation to the pickup
market. The Frontier Navara offers innovative features designed to enhance its flexible utility.
Frontier Navara combines the comfort and command seating of an SUV with technology more
associated with a luxury sedan.

Nissan Launches Revised Fairlady Z Product…


Nissan launched a new, revised Fairlady Z with a more powerful, next-generation engine, refined
hood, and new exterior and interior color availability. The company offers Fairlady Z coupe
version ST and Fairlady Z roadster version ST products. The new Fairlady Z is the company’s new
VQ35HR engine with nearly 80% of major parts redesigned, and provides improved acceleration

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and overall power for enhanced driving pleasure. Fairlady Z Roadsters offers a new gray top color
that accentuates the exterior.

Proposed Service Launch

Nissan to Introduce New Carwings Service…


Nissan plans to introduce a new Carwings service to promote eco-driving or more fuel-economical
driving habits amongst Japanese motorists. The service is mainly designed to educate and raise
awareness amongst drivers on the impact of day-to-day driving habits on the vehicle’s fuel
consumption average.

Other Development

Nissan to Test New ITS Technology


Nissan announced plans to test a new Intelligent Transportation System (ITS) for traffic
management. The new system is designed keeping in view the rising number of road accidents at
intersections and easing the traffic congestion. The development would witness Nissan installing
an advanced traffic signal infrastructure at the Nissan Technical Centre in Kanagawa Prefecture,
Japan and collect data from employee cars to practically test its efficiency and limitations.
The test would be carried out at select stretches of the road within the Nissan Technical Centre
where the company employees frequently drive. The ITS architecture includes standard traffic
lights as well as roadside optical beacons linked to an advanced traffic light system. The test would
involve employing vehicle-to-infrastructure communication, wherein the data from the vehicles
and the traffic lights would be computed by the advanced traffic light system. The test does not
entail any modifications to in-vehicle systems but the company has equipped cars of participating
employees with Vehicle Information and Communications System units for obtaining additional
data.

Year 2006 in Review…

Collaboration
Nissan Expands a Collaboration Agreement with Suzuki…
Nissan expanded a business collaboration agreement with Suzuki Motor Corp., (Suzuki). As per
the agreement, Nissan would supply a minivan to Suzuki on an OEM basis and Suzuki would
supply another Suzuki mini-vehicle to Nissan on an OEM basis. Nissan would supply a compact
pickup truck to Suzuki for sale mainly in North America. Suzuki would provide a new A-segment
vehicle for Nissan for sale mainly in Europe.

Agreements
Nissan and DFG Signs an Agreement…
Nissan and Dongfeng Motor Group Co. Ltd., (DFG) signed an agreement to establish an auto
finance company based in Shanghai. The new company, Dongfeng Nissan Auto Finance Co. Ltd.,

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(DNAF) would provide new car retail finance to Nissan and Infiniti customers and inventory
finance to dealers. DNAF would support Nissan’s growth in China through leveraging Nissan’s
expertise in global sales finance and DNAF’s experience and influence in China operations. The
new company would strengthen sales of locally built Nissan vehicles as well as imported Infiniti
brand cars.

Nissan and Mitsubishi Sign an Agreement for eK Wagon Vehicle…


Nissan and Mitsubishi Motors Corp., (Mitsubishi) signed an agreement, under which Mitsubishi
would supply Nissan with the next-generation eK Wagon mini-vehicle. Nissan receives 36,000
units a year from the Japanese automaker and markets under the Otti brand. Mitsubishi would also
supply Nissan with 20,000 Minicab light commercial vehicles a year, which Nissan markets under
the Clipper name.

Nissan Enters into an Agreement with Mazda…


Nissan entered into an agreement with Mazda Motor Corp., (Mazda) for the continuation of
supply of Nissan’s original equipment manufacturing (OEM) light commercial vehicles
(LCVs) to Mazda. As per the agreement, Nissan would supply next-generation AD Van to
Mazda.

Memorandum of Understanding
Nissan and Renault Trucks Sign a Memorandum of Understanding…
Nissan and Renault Trucks SAS (Renault Trucks), a unit of the Volvo Group, signed a
memorandum of understanding (MoU) to start Nissan’s original equipment manufacturing (OEM)
supply of light duty trucks (LDTs) to Renault Trucks. As per the MoU, Renault Trucks would
distribute Nissan’s OEM LDTs under its brand identity through its specialized truck dealer
network.

Capacity Expansion

Nissan Starts Crankshaft-Forging Production in Decherd…


Nissan North America Inc., (Nissan North America) a subsidiary of Nissan, started crankshaft-
forging production at the Decherd Powertrain Assembly Plant in Decherd, Tennessee. The
company expanded the plant to add cylinder block casting production.

New Facilities

Nissan Opens New Megastore for Used-Cars…


Nissan opened its latest megastore for used-cars, Carminal Tokyo, and a brand new dealership
facility named Tokyo Nissan, Shinsha no Hiroba in Murayama. Nissan Used-Car Center Co. Ltd., a
wholly owned subsidiary of Nissan, would operate Carminal Tokyo. Carminal Tokyo is designed
to offer a specialized environment for customers looking for a used-car. Carminal Tokyo would
provide a wide-ranging selection of used car models including non-Nissan brand vehicles. The
facility would offer a range of car accessories including navigation and audio systems.

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Nissan to Establish New Facility in Japan…
Nissan announced plans to establish a 40,000-square-meter superstore for both new and used cars
in Musashi Murayama City, Japan. Nissan Used Car Center Co. Ltd., a wholly owned subsidiary of
Nissan would operate new Carminal Tokyo facility that display all Nissan models in Japan.

Nissan Establishes New Auto Parts Export Facility in Thailand…


Nissan established a new auto parts export facility in Thailand, to supply parts to its manufacturing
plants across the world. The new facility would export about US $300 million worth of parts a year
and enable the company to increase efficiency and maintain cost competitiveness. The facility
would export body panels and roof assemblies for the Tiida compact car to build in Mexico and
other countries.

Nissan Establishes Nissan Network in Japan…


Nissan established Nissan Network Holdings Co. Ltd., to restructure its 52 consolidated dealers in
Japan. The new subsidiary would manage sales network in Japan. Through the new establishment,
Nissan would manage its operations more efficient and effectively and expand sales activities.

Nissan New Manufacturing Plant in Russia…


Nissan proposed to establish a new assembly and manufacturing plant in St. Petersburg, Russia.
The plant would produce a variety of vehicles specifically adapted for the Russian market and
produce up to 50,000 units per year.

Nissan Opens a New Technical Center…


Nissan’s joint venture Dongfeng Motor Co. Ltd., (DML) opened a new technical center for
passenger vehicles in the Huadu district of Guangzhou. The technical center includes an office
building, a separate cafeteria, and a laboratory with state-of-the-art equipment for vehicle
experiments, to become the largest development base in the southern area of China.

Nissan Opens New Light Commercial Vehicle Division…


Nissan, through its Nissan North America Inc., established a new light commercial vehicle
division. The division would be responsible for sales and marketing of light commercial vehicles
(LCV) and fleet sales in the United States.

Divestiture

Nissan Divests its Nissan Diesel to AB Volvo…


Nissan divested 6% stake in Nissan Diesel Motor Co. Ltd., (Nissan Diesel) to AB Volvo. Through
the divestiture, Nissan would focus on the profitable growth of core passenger vehicle and light
commercial vehicle business units. Nissan and Nissan Diesel would continue to work together in
several areas including contract production and joint development of light commercial vehicles and
engines.

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Corporate Restructuring

Nissan to Combine Branded Goods Business with Aftersales Division…


Nissan announced plans to combine its branded goods business with global aftersales division. The
goods business covers the planning, procurement, and marketing of branded goods in Japan and
overseas. The integration of the business unit would enable the company to better procure high-
quality products worldwide for its customers.

Product Launches

Nissan Introduces All-New Skyline…


Nissan introduced the 12th generation Skyline that features all-new exterior and interior
designs, the next generation FR-L platform and newly developed VQ35HR V6 engine. The
Skyline’s sport models feature exclusive front bumper and body-side sill spoiler. The new
product is offered in a choice of seven body colors including Stratosphere Blue, Blade Silver,
and Crimson Red.

Nissan Launches All-New Otti in Japan…


Nissan launched all-new minicar, Otti, in Japan nationwide. The new Otti features improved
visibility that provides the driver a more confident driving position. The new model is offered in
the S/E/M series or the sportier RS/RX series, as well as a choice of a non-turbo or an inter-cooled
turbo 0.66-liter powertrains.

Nissan Unveils New Sylphy in Beijing…


Dongfeng Nissan Passenger Vehicle Company (Dongfeng Nissan), a subsidiary of Nissan,
unveiled new Sylphy, a premium class sedan in Beijing. The Sylphy would provide Dongfeng
Nissan a more complete product lineup and strengthen its competitiveness in the growing Chinese
market.

Nissan Introduces New Presage in Japan…


Nissan introduced new Presage minivan in Japan. The new Presage car is offered with a 2.5- or
3.5-liter engine that features design changes to its grille, front and rear bumpers, headlamps, hood
panel, and front fender. The Presage also features a wood-grain trim on the instrument panel and an
illuminated vanity mirror. The Presage is offered in five additional new colors including Deep
Cassis, Lunar Blue, and Iron.

Nissan Releases New Teana in China…


Dongfeng Nissan Passenger Vehicle Company (Dongfeng Nissan), a subsidiary of Nissan, released
the new Teana luxury sedan for the Chinese market. The new Teana is equipped with Nissan’s
Xtronic CVT (continuously variable transmission). The interior is designed for more luxury and
comfort including the installation of an Ottoman in the front-passenger seat. The exterior features a
newly designed rear bumper and all-new LED rear-combination lamps.

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Nissan Unveils Pivo…
Nissan in association with Artist Murakami unveiled Pivo, its imaginative electric car concept. The
three-seater car comes with a number of user-friendly technologies, including Nissan’s Around
View Monitor which reduces blind spots by displaying the outside surroundings on screens
mounted on the inside of the car’s A-pillars located on either side of the windshield. The Pivo
features an innovative cabin that revolves 360 degrees, eliminating the need to reverse.

Nissan Introduces New Paint Coating System…


Nissan introduced new water-based paint coating system at its No.1 Kyushu Plant that boosts
production efficiency while reducing the impact on the environment. The painting line consists of
three lines, a primer line for the application of the anti-corrosion barrier, an intercoat line, and a
finish line to fine-tune the car's appearance with color and clearcoat.

Product Developments
Nissan Develops Natural Grape Seed Polyphenol Filter…
Nissan developed a new natural grape seed polyphenol filter for effective removal of allergens. The
new filter is significantly more efficient in eliminating allergens that are the cause of pollen allergy.
The company’s conventional filters are designed to block mainly dust and pollen particles with a
minimum size of 10 micron.
Nissan Develops New-Generation V6 Engines…
Nissan developed two new-generation six-cylinder V-type engines. The company offers engines
for front-engine, rear-wheel-drive vehicles that feature powerful performance and improved
environmental friendliness. The 3.5L VQ35HR and 2.5L VQ25HR engines would equip in the all-
new Skyline. The engines offer smooth transition to top-in-class level engine speed of 7,500
revolutions per minute drawing upon the smooth transition concept of the popular VQ engine.

Proposed Product Launches


Nissan to Introduce 1.5-Liter HR15DE Engine and Xtronic CVT Products…
Nissan planned to introduce its latest generation upgraded 1.5 liter HR15DE engine and Xtronic
CVT (continuously variable transmission) in six new compact cars. The new care would deliver
increased fuel efficiency, reduced CO2, and cleaner exhaust emissions. The six compacts include
Cube, Tiida, Cube Cubic, Tiida Latio, Note, and Wingroad. The new improved models feature the
latest fuel efficiency technologies such as neutral idle control and others.
Nissan to Launch Vehicle Navigation Service with Net Access…
Nissan proposed to introduce a Carwings navigation service that would enable drivers to hear
Internet information while driving, the world’s first such service. Carwings is the company’s
original telematics service and is exclusive to the Japanese market. Thee new Internet service
enables Carwings subscribers to retrieve information from a limited number of Internet sites
including Yahoo! Japan, Sony’s So-net lifestyle blog and Nissan Drive Navi, a Nissan travel guide
blog. The service automatically transforms information from the Internet (RSS format) into a user-
friendly format that views on a vehicle navigation monitor.

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SUBSIDIARIES
Nissan North America, Inc.
Nissan Forklift Corporation North America
Nissan Technical Center North America, Inc.
Nissan Motor India Private Ltd.
Nissan Network Holdings Co., Ltd.
Dongfeng Nissan Passenger Vehicle Company
Nissan Shatai Co., Ltd.
Aichi Machine Industry Co., Ltd.
Calsonic Kansei Corporation
Kinugawa Rubber Industrial Co., Ltd.
Jatco Ltd
Nissan Kohki Co., Ltd.
Nissan Finance Co., Ltd.
Nissan Financial Services Co., Ltd.
Nissan Motor Car Carrier Co., Ltd.
Autech Japan, Inc.
Creative Box Inc.
Nissan Arc Ltd.
Nissan Creative Services Co., Ltd.
Nissan Human Resources Development Center Inc.
Nissan Techno Co., Ltd.
Nissan Trading Co., Ltd.
Nissan Human Information Service Co., Ltd.
Nissan Motorsports International Co., Ltd.
Nissan Motor Light Truck Co., Ltd.
Yokohama Marinos Ltd.

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NOKIA CORPORATION
Keilalahdentie 2-4, P.O. Box 226, FIN-00045 Nokia Group, Finland
Phone: +358 7180 08000, Fax: +358-7180-38226

SOURCES: www.nokia.com and other secondary online sources

2007 Sales: € 22,443 million (H1)


2006 Sales: € 41,121 million
2005 Sales: € 34,191 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Nokia Corp., (Nokia) is a global leading manufacturer of a wide variety of mobile devices. The
company is a market leader in mobile network equipment, solutions and services. Nokia offers
mobile, fixed broadband and IP networks. The company’s major product line includes wireless
voice and data devices for personal and business uses, home satellite systems and mobile gaming
devices. The company offers innovative solutions for imaging, games, media, mobile network
operators and businesses. The company operates through various groups namely Mobile Phones,
Networks, Multimedia, Enterprise Solutions, Customer and Market Operations and Technology
Platforms. The company also provides content and entertainment services such as music, video
clips, games, ringtones, wallpapers and images.
The company’s products are classified into four categories such as mobile phones (wireless voice
and data devices for personal and business applications), multimedia (home satellite systems, and
mobile gaming devices), networks (wireless switching and transmission equipment used in carrier
networks), and enterprise solutions (wireless systems for businesses). Nokia’s products feature
GPRS, Java™, Bluetooth and Mobile Commerce Technologies. The company provides a range of
competitive, specifically targeted handsets, platforms and connectivity solutions. Nokia operates 15
production facilities in Brazil, China, Germany, Finland, India, Hungary, Mexico, South Korea and
the UK. The company markets its products in more than 130 countries across the world. The
company owns and manages Research and Development centers in 12 countries throughout the
world. The company’s major competitors include Ericsson, Samsung Electronics and Motorola.
Nokia was established in 1967.

BUSINESS OPERATIONS
Mobile Phones
Mobile Phones Group manufactures a wide variety of user-friendly mobile devices based on the
various global cellular technologies such as WCDMA, GSM / EDGE, CDMA and TDMA. The
group’s product portfolio provides the users with new features such as cameras, Java, MMS and
XHTML browsers. The group comprises six business units namely Broad Appeal, Focused Appeal,
Entry, CDMA, TDMA and Vertu.

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Multimedia
Nokia’s Multimedia business Group offers connected mobile multimedia to consumers in the form
of advanced mobile devices and solutions. The division also explores and develops business
models and systems for the growing mobile multimedia market. The group’s products include
Nokia 6670 imaging smartphone, the Nokia 6630 3G smartphone, the Nokia N-Gage QD mobile
game deck and the Nokia 7710 widescreen smartphone. The group comprises four units namely
Imaging, Entertainment, Enhancements and Convergence Products.

Imaging
The Imaging unit develops devices for capturing, sharing, storing and printing images. The group
offers Nokia 7610, Nokia 6630 imaging smart phone, the Nokia 6680 3G WCDMA mega pixel
smart phone and the Nokia 6681 mega pixel smart phone, the Nokia 6682.

Entertainment Products
The Entertainment Products unit develops devices and application platforms for music, mobile
games and rich media. The unit offers mobile Games such as Nokia N-Gage and N-Gage QD game
decksRich Media such as the Nokia 7710.

Convergence Products
Convergence Products unit develops technologies based on IP applications and multiple radio
connectivity.

Mobile Enhancements
Mobile Enhancements unit develops devices for customers, which are easy-to-use and productive.
Mobile Enhancements also offers Nokia Wireless Headsets, the Nokia Wireless Keyboard, the
Nokia Remote Camera and Nokia Automotive products.

Networks
Networks business Group is a leading provider of network infrastructure and communications and
networks service platforms and professional services to operators and service providers. The Group
focuses on developing GSM, EDGE and WCDMA networks, core networks with increasing IP and
multi-access capabilities and services. The group comprises five units namely Radio Networks,
Core Networks, Services, Customer and Market Operations and Delivery Operations.

Radio Networks
Radio Networks Unit develops GSM, EDGE and WCDMA radio access networks and cellular
transmission for operators and network providers. The segment offers Base stations, base station
controllers and cellular transmission equipment.

Core Networks
Core Networks unit develops core network solutions for operators. The segment offers switches
and different kinds of network servers.

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Services
The Services unit provides a range of services such as network planning and implementation,
network optimization and outsourcing of services and operations.

Customer and Market Operations


Customer and Market Operations unit manages the sales and marketing activities, maintains overall
customer relationships.

Delivery Operations
The Delivery Operations manages the sourcing, manufacturing and distribution of network
products, network delivery and services.

Enterprise Solutions
Enterprise Solutions Group enhances the performance of institutions and businesses. The group
extends the use of mobility from the basic mobile devices to secure mobile access. The group
provides solutions ranging from business-optimized mobile devices to mobile connectivity
offerings including mobile email and Internet, virtual private networks, or VPNs and firewalls. The
group comprises two business units namely Mobile Devices and Security and Mobile Connectivity.

Mobile Devices
Mobile Devices unit integrates mobile phone and network connectivity with a common set of
features. The unit offers Nokia 6800, Nokia 6820 and Nokia 6822 messaging devices, the Nokia
9500 Communicator and Nokia 9300 enterprise smart phone.

Security and Mobile Connectivity


Security and Mobile Connectivity unit provides a secure connection from the mobile devices to the
enterprise network. The products include IPSec VPN and Secure Socket Layer, or SSL, VPN
technologies, the Nokia IP 2250 and the Nokia IP 1220.

Customer and Market Operations


Customer and Market Operations group manage all the activities relating to sales, marketing,
manufacturing, logistics and sourcing to Mobile Phones, Multimedia and Enterprise Solutions
groups. The Networks business group conducts business through own dedicated sales and
marketing, logistics and sourcing activities. The Customer and Market Operations group manage
the production of Nokia’s mobile devices while the Network’s business group manages the
production of network infrastructure.

Technology Platforms
Technology Platforms group provides leading technologies and platforms to Nokia's mobile device
business groups and external customers. The group mainly focuses on cellular access technologies,
mobile software platforms, mobile device hardware platforms, components and modules and
mobile device architecture management.

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SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In € million)

Year Sales % Change


2007 22,443 16.16
2006 19,320 -

Annual Sales Comparison: 2006 Vs. 2005 (In € million)

Year Sales % Change


2006 41,121 20.27
2005 34,191 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Finland, China, USA,
Great Britain, India, Germany, and Others (In € million)

Region 2006 2005 % Change


Finland 387 331 16.92
China 4,913 3,403 044.37
USA 2,815 2,743 2.62
Great Britain 2,713 2,405 12.81
India 2,425 2,022 19.93
Germany 2,060 1,982 3.94
Other 25,808 21,305 21.14
Total 41,121 34,191 20.27

Percentage Breakdown of Annual Sales by Geographic Region: (2006 Vs. 2005) – Europe,
Asia-Pacific, China, North America, Latin America, Middle East and Africa

Region 2006 2005


Europe 38 42
Asia-Pacific 20 18
China 13 11
North America 7 8
Latin America 9 8
Middle East and Africa 13 13
Total 100 100

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Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Mobile Phones,
Multimedia, Enterprise Solutions, Networks and Others (In € million)

Segment 2006 2005 % Change


Mobile Phones 24,769 20,811 19.02
Multimedia 7,877 5,979 31.74
Enterprise Solutions 1,015 839 20.98
Networks 7,453 6,556 13.68
Others 7 6 16.67
Total 41,121 34,191 20.27

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Acquisition
Nokia Acquires Twango…
Nokia acquired substantially all assets of Twango, a provider of a comprehensive media sharing
solution for organizing and sharing photos, videos and other personal media. Following the
acquisition, Nokia would provide people an easy way to share multimedia content through the
desktop and mobile devices.

Collaborations

Nokia and Skype Enters into Collaboration…


Nokia and Skype entered into a collaboration agreement to develop a new mobile Skype™
experience on the Nokia N800 Internet Tablet. The Nokia N800’s small size and easy wireless
connectivity frees Skype users from the desktop, allowing Skype conversations to take place
anywhere, as long as wireless Internet connection is available. The Nokia N800 packed with
features such as Wi-Fi and Bluetooth phone connectivity, hands-free properties, webcam, media
support and messenger keyboard, makes Skype conversations captivating experience at home, at
work and on the move.
Skype is the world’s fastest-growing Internet communication provider.

Nokia and STM Expands Collaboration to Supply Integrated Circuit Designs…


Nokia and STMicroelectronics (STM) expanded a collaboration agreement to license and supply
the integrated circuit designs and modem technologies for 3G and its evolution. The two
companies plan to transfer a part of Nokia’s Integrated Circuit (IC) operations to
STMicroelectronics. The multifaceted agreement would enable STMicroelectronics to design and
manufacture 3G chipsets based on Nokia’s modem technologies, energy management and RF

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(radio frequency) technology and deliver complete solutions to Nokia and the open market. Nokia
would continue to develop its leading-edge modem technology, which includes protocol software
and related digital design for WCDMA / GSM and its evolution.

Nokia and Microsoft Extend Collaboration…


Nokia and Microsoft Corp., (Microsoft) extended a collaboration agreement to include support for
Microsoft® PlayReady(TM) technology into the Nokia S60 and series 40 mobile device platforms.
Microsoft’s PlayReady is a new content access technology that delivers virtually any type of digital
content in a flexible manner. As part of the agreement, Nokia and Microsoft would also collaborate
on expanding and simplifying consumer scenarios for accessing, experiencing and moving digital
content using mobile devices.

Partnership
Nokia and Yahoo! Extend Partnership to Bring Yahoo! Go for Mobile 2.0…
Nokia and Yahoo! expanded the partnership to make Yahoo! Go for Mobile 2.0 available on
Nokia’s wide range of mobile phones operating on the Series 40 platform, the software user
interface that powers Nokia’s broadest range of mobile devices. The partnership enables consumers
worldwide to download and enjoy Yahoo! Go for Mobile 2.0 on select Nokia devices including the
Nokia 6103, Nokia 6131 and Nokia 5300 Xpress Music phones.

Agreement
Nokia and AinaCom Signs an Agreement…
Nokia and AinaCom, a Finnish regional operator, signed an agreement to provide an operator
hosted solution for convergent business voice services. The Nokia Business Communication
solution enables AinaCom to offer enterprise users the same rich voice services on any device, over
any access. The Nokia Business Communication solution is designed to meet the strictest
requirements for business voice services.

New Facility

Nokia Opens Design Studio in India…


Nokia opened its first new satellite design studios in India to establish design hot spots around the
world. The studio would explore a range of design trends and themes including detailed research
into color and material trends in India.

Product/Service Launches

Nokia Introduces New Nokia 6555 Mobile Phone…


Nokia introduced a new 3G mobile phone that pairs original design and quality workmanship with
outstanding features. Nokia 6555 features original smooth-back design, elegant external analog
timepiece display, video sharing, and WCDMA and quadband GSM functionality. The Nokia 6555
also features a QVGA 16 million-color internal display and is suitable for viewing photos and videos.

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Nokia Unveils New Prism Collection…
Nokia unveiled new Prism collection, its latest range of mobile phones for style-conscious
consumers. The Prism collection consists of the Nokia 7900 Prism and the Nokia 7500 Prism
handsets that combine individual style and state-of-the-art technology. Nokia Prism collection
features sharp angled lines, geometric patterns and graphic light-refracting colors.

Nokia Launches Nokia 6131i NFC Phone in China…


Nokia launched Nokia 6131i NFC phone in China, to provide a range of services including buying
bus or metro tickets, shopping in a supermarket, or dinning at restaurants. The company provides
mobile payment service for various applications including transportation, grocery shopping and
public services such as public payphone and parking. The Nokia 6131i NFC handset is the world’s
first mobile phone to include Near Field Communications (NFC) technology for commercial roll
out to enable information sharing, service initiation and payment and ticketing capability with one
tap of the device.

Nokia Introduces Nokia N93i…


Nokia introduced Nokia N93i, a compact and stylish digital camcorder and multimedia computer.
Nokia N93i boasts a host of advanced features from DVD-like quality video capture to direct video
uploads and enables to record great quality video.

Nokia Launches Nokia N76…


Nokia launched the Nokia N76, trimmer fold model to its Nokia Nseries line up. Nokia N76 is a
new multimedia computer that brings the complete Nokia Nseries experience to a sleeker body.
With the Nokia N76 multimedia computer, technology and design come together to create a
revolution in design for a multimedia computer. Nokia N76 works with industry standard 3.5 mm
headphones and supports the popular Windows Media DRM for optimal use and consists 2.0
megapixel (1600 x 1200 pixels) camera

Year 2006 in Review…

Acquisition

Nokia to Acquire Loudeye…


Nokia and Loudeye Corp., a global leader of digital music platforms and digital media distribution
services, signed an agreement under which Nokia would acquire Loudeye for USD 60 million. The
acquisition would enable Nokia to offer consumers a comprehensive mobile music experience,
including devices, applications and the ability to purchase digital music.

Nokia Acquires Intellisync…


Nokia acquired Intellisync, a leader in platform-independent wireless messaging and applications
for mobile devices. The acquisition is a part of the company’s strategy to reinforce its position in
mobile business market.

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Joint Venture

Nokia Forms a Joint Venture with Siemens


Nokia formed a 50:50 Joint Venture with Siemens, a German-based technology company by
merging its Mobile Network business with Siemens Networks, a part of Siemens. The new joint
venture company would operate under the name Nokia Siemens Networks. Nokia Siemens
Networks would become the second largest company in mobile infrastructure, second in services,
third in fixed infrastructure and the third largest in the overall telecommunications infrastructure
market.

Alliance

Nokia Enters into an Alliance with Intel, Modeo, Motorola and TI…
Nokia entered into an alliance with Intel, Modeo Corporation, Motorola and Texas Instruments
(TI) to promote the growth of Mobile Digital TV and Accelerate DVB-H Deployment in North
America. The Mobile DTV Alliance provides an open ecosystem for the mobile digital TV
marketplace.

Collaborations
Nokia and Alcatel Collaborate to Extend Business Telephony…
Nokia and Alcatel entered into collaboration, which extends Alcatel’s business telephony offering
to the mobile workforce by way of the Nokia Eseries, a range of business class devices. The
Intellisync Call Connect for Alcatel, is a Nokia offering designed to integrate Nokia Eseries
devices into the Alcatel IP Communication server.

Nokia Teams Up with Sourcefire …


Nokia teamed with Sourcefre to offer Sourcefire’s Intrusion Prevention System (IPS) on its
portfolio of high-performance IP Security Platforms. Nokia Intrusion Prevention with Sourcefire
would provide enterprises with defense-in-depth by analyzing network traffic to discover risks,
determine business impact and take actions to defend the network. The complete network visibility
enables companies to address existing threats.

Nokia Enters into Collaboration with Telenor R&D…


Nokia entered into a collaboration agreement with Telenor R&D to provide trailing services for fixed
and mobile environments using Fixed-Mobile Convergence technologies. The collaboration agreement
enables to deliver IP Multimedia Subsystem (IMS) services over Nokia’s D500 DSLAM multiservice
broadband platform; VoIP calls between mobile and fixed SIP (Session Initiation Protocol) clients; and
establishing test capabilities for gaming and video sharing on a converged platform.

Nokia Enters into Collaboration with AIS…


Nokia entered into a collaboration agreement with Advanced Info Service PLC (AIS), a leading
mobile phone service operator, to expand AIS’ GSM network in the Northern, Central and

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Southern regions of Thailand. The expansion would improve network coverage and capacity and
ensure that AIS maintain a top-quality GSM network in the fiercely competitive Thailand market.
As per the agreement, Nokia would supply a GSM radio network, including base stations and base
station controllers; a core network, including the Nokia Mobile Switching Centre (MSC), the
Nokia Intelligent Content Delivery (ICD), the Nokia Online Service Controller (OSC) and the
Nokia Terminal Management Server (NTMS).

Nokia Enters into Collaboration with Baidu…


Nokia entered into collaboration with Baidu.com Inc., (Baidu) to make mobile search easier and
more convenient in Chinese-speaking markets, including Mainland China, Hong Kong and Taiwan.
The collaboration agreement enables to use Nokia Mobile Search Application on the high-end
Nokia N70, Nokia N90 and other select S60 Nokia devices and able to access Baidu wireless
search services via a user-friendly search icon on the screen interface. Baidu is a leading Chinese
language Internet search provider.

Nokia Teams Up with DCI…


Nokia teams up with Discovery Communications Inc., (DCI) to deliver content pre-loaded onto
Nokia’s newest and most sophisticated mobile devices and wireless personal devices. The
collaboration allows Nokia to continue its leadership in mobile communications and provides
smarter ways to connect people to partners' information and entertainment services.
DCI is the leading global real-world media company.

Nokia Enters into Collaboration with DTAC…


Nokia entered into a collaboration agreement with Total Access Communication PLC (DTAC) to
expand DTAC’s GSM / GPRS / EDGE network. Under the terms of the agreement, Nokia would
deliver a significant number of base stations and services that include project management,
implementation and operations support services. Nokia would also provide Smart Radio Concept
technology for the radio network to enhance the DTAC network coverage and improve quality.

Nokia Enters into Collaboration with Aina Group…


Nokia entered into a collaboration agreement with Aina Group to develop Aina Group’s unique
media-based mobile virtual network operator (MVNO) concept. The collaboration agreement
enables Nokia to supply Aina with a circuit switched core network, including the Nokia Mobile
Switching Center, Home Location Register, Intelligent Network and Nokia Number Portability
solutions. Nokia also provides Nokia NetAct™ Traffica for real-time network monitoring, plus
implementation, systems integration, start-up, care and training services. Aina Group is involved in
both the media and fixed and mobile operator businesses.

Nokia Enters into Collaboration with Abertis Telecom and Telefónica Móviles…
Nokia entered into a collaboration agreement with Abertis Telecom and Telefónica Móviles
(Abertis) to unveil the results of the first digital mobile TV (DVB-H) pilot in Spain at the 3GSM
World Congress in mobile devices.

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Abertis is a leading provider of analogue / digital radio and TV broadcasting, mobile radio
communications for phone operators.

Nokia Teams Up with Vodafone…


Nokia teamed up with Vodafone to strengthen the S60 software platform. As per the agreed terms,
Vodafone would offer new services to its customers by increasing the use of S60 as a standard
software platform for mobile handsets worldwide. The collaboration also includes the expansion of
the licensee base and increased portfolio penetration through open roadmap governance and
establishes a strong independent brand position for both the S60 software and the supporting
developer activities.

Nokia Enters into Collaboration with Freescale and Symbian


Nokia entered into a collaboration agreement with Freescale Semiconductor and Symbian Limited
(Symbian) to create the first 3G mobile phone reference design. The reference design provides
handset manufacturers and operators the first real solution to address the mid-tier 3G-market
segment and to reduce device development time by up to 50 percent. Freescale Semiconductor Inc.,
is a global leading designer and manufacturer of embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Symbian develops and licenses Symbian OS, the market leading open operating system for
advanced, data-enabled mobile phones also known as smartphones.

Nokia Enters into Collaboration with Alcatel, Ericsson, Motorola, NEC and Siemens…
Nokia entered into a collaboration agreement with Alcatel, Ericsson, Motorola, NEC and Siemens
to launch SCOPE, an industry alliance to accelerate the deployment of carrier grade base platforms
for service provider applications. Alcatel is a leading provider of communications solutions to
telecommunication carriers, Internet service providers and enterprises for delivery of voice, data
and video applications.

Agreements

Nokia and China Mobile Sign a Frame Agreement…


Nokia and China Mobile Communications Corporation (China Mobile), the world’s largest GSM
operator, signed a frame agreement for the purchase of Nokia GSM / GPRS network system
equipment. Under the frame agreement, Nokia would supply China Mobile GSM / GPRS radio and
core network equipment, including base stations and Nokia MSC Server mobile softswitch, for
network expansions in China. Nokia would also provide professional services, including network
planning, implementation and care services for the network expansion.

Nokia and Wind Telecomunicazioni Enter into an Agreement…


Nokia and Italian operator Wind Telecomunicazioni SpA (Wind) signed a three-year frame
agreement for the turnkey supply of Nokia’s WCDMA 3G radio network solution, including Nokia
Flexi WCDMA Base Station, Nokia NetAct™ and a range of services. The modular, high capacity

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Nokia Flexi WCDMA Base Station would enable Wind to make more efficient use of its existing
base station sites, leading to significant site cost savings through reduced site construction work,
quick base station installation and decreased power consumption.

Nokia Signs an Agreement with U.S. Army…


Nokia entered into a cooperative research and development agreement (CRADA) with the U.S.
Army to evaluate Nokia technology in the areas of PCS, WCDMA 3G, GSM, WiMAX and
advanced wireless networking protocols for potential military and defense applications. The project
consists of a series of tests, demonstrations, experiments and exploratory exchange efforts. The
devices and systems evaluated would be potentially meet the requirements for deployed forces to
gain access to high-capacity throughput to support Command, Control, Communications and
Intelligence information flow.

Nokia Enters into an Agreement with Sichuan Unicom…


Nokia entered into an agreement with Sichuan Unicom, a subsidiary of China Unicom. Under the
terms of the agreement, Nokia would deploy its GSM radio and core networks, including the Nokia
MSC Server mobile softswitch, in 4 cities in the Sichuan Province. Nokia would also provide an
extensive range of services, including network planning, optimization and rollout services.

Nokia Signs an Agreement with Radioframe Networks…


Nokia signed a reseller and distribution agreement with RadioFrame Networks to deploy Picocell
Base Station Solutions. Under the terms of agreement, Nokia would sell, distribute and support
RadioFrame Networks' picocell solutions to mobile network operators. RadioFrame Networks'
software-controlled S-Series solution integrates mobile voice and data services for GSM / GPRS
and EDGE networks for consumer applications in homes as well as small-to-medium enterprises.

Nokia Enters into an Agreement with Hutchison…


Nokia entered into a managed service agreement with Hutchison Essar Ltd., (Hutchison) to operate
Hutchison’s network business in 9 circles in India. As per the agreement, Nokia would provide an
array of solutions from its extensive services portfolio, including network planning, project
management, configuration and optimization, network operations and maintenance and the
administration of third party vendor contract management.

Nokia and Astelit Enter into an Agreement…


Nokia and Ukrainian mobile services operator Astelit entered into an agreement to supply network
equipment and services. Under the terms of agreement, Nokia would deploy GSM / EDGE radio
network equipment, including base stations, base station controllers and transmission. Additionally,
Nokia provides network optimization, consultancy and maintenance services to support fast
network rollout. Astelit is a Turkey’s leading GSM operator.

Nokia Signs an Agreement with Henan MCC…


Nokia signed an agreement with Henan Mobile Communications Corp. Ltd., (Henan MCC) in
China for GSM / GPRS network expansion. Through the expansion, company would continue to

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offer high-quality mobile services in Henan market. The agreement also enables Nokia to provide
GSM / GPRS radio and core network equipment, including the Nokia MSC Server System and an
extensive range of services, including network planning, optimization and rollout services.

Nokia Enters into an Agreement with SMART…


Nokia entered into an agreement with wireless service provider Smart Communications Inc.,
(SMART) to supply WCDMA 3G network technology. As per the agreement, Nokia would deliver
a WCDMA 3G radio network including the Nokia High Speed Downlink Packet Access (HSDPA)
solution, a 3G upgrade to the existing circuit and packet switched networks and related services.

Nokia Signs an Agreement with Cosmote…


Nokia inked an agreement with Greek mobile operator Cosmote to supply WCDMA 3G radio
network. As per the agreement, Nokia would deliver WCDMA 3G radio access network
infrastructure and an extensive range of services including delivery, implementation, project
management and care, as well as other support services.

Nokia Enters into an Agreement with Kyocera...


Nokia entered into a patent license agreement with Kyocera Wireless Corp., (Kyocera). Under the
terms of the agreement, Kyocera would license under Nokia’s essential patents and some additional
patents, related to CDMA mobile phone, module and infrastructure products.
Kyocera is a leading supplier of semiconductor packages, electronic components, industrial
ceramics, telecommunications equipment, optical instruments, laser printers, copiers and solar
energy systems.

Nokia and BAE Systems Enter into an Agreement…


Nokia and BAE Systems, the premier trans-Atlantic defense and aerospace company enterd
into an agrement where by Nokia would provide GSM / EDGE network to support operations
at Merrimack, N.H., facilities. Under the contract, Nokia would supply a GSM / GPRS /
EDGE network of equipment and services, including a mobile softswitch solution (MSC
Server System), a packet core network solution, radio network equipment and the Nokia
NetAct™ network and service management system in a self-contained, deployable unit
configuration.

Contracts

Nokia Signs an Integration and Hosting Contract with France Telecom…


Nokia and France Telecom signed a contract under which, Nokia would integrate a customized
remote content service and related platforms into the France Telecom’s network. Nokia would also
host the commercial service, thus enabling France Telecom to roll out the solution more quickly
and efficiently. The service, developed by Nokia would enable France Telecom’s Orange mobile
customers to remotely access personal photos, videos and music stored on PC at home, as well as
to watch, view and listen from anywhere on Orange mobile device.

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Nokia and Eastern Telecom Sign a Contract…
Nokia and Philippine fixed network operator, Eastern Telecom signed a contract for the
deployment of a Next Generation Network (NGN) core as part of the network modernization
initiative. As per the contract Nokia would renew Eastern Telecom’s fixed network with a VoIP-
capable NGN and fixed / broadband access system. Nokia would supply Eastern Telecom with
both ADSL2+ and PSTN lines using the D500 access node as well as Broadband Wireless Access
(BWA) capabilities using the Nokia High Speed Packet Access (HSPA) technology. In addition to
the Nokia MSS and the Nokia VoIP Server, Nokia would supply other solutions from its Unified
Core Network offering, including the Nokia Flexi Intelligent Service Node (ISN) that would enable
Eastern Telecom to offer and manage a wide range of advanced IP-based multimedia services in a
cost-efficient way and inline with end-users' expectations.

Nokia Receives a Contract from Indosat…


Nokia and Indosat, Indonesia’s largest operator, extended the cooperation through signing a
WCDMA 3G / HSPA network and managed services contract that enables Indosat to offer 3G and
wireless broadband services. As per the contract, Nokia would provide Indosat with turnkey
services, including civil works, network planning, implementation and integration of a WCDMA
3G / HSPA network.

Nokia and Telkomsel Sign WCDMA / HSPA Contract…


Nokia and Indonesian operator Telkomsel signed a new three-year WCDMA 3G / HSPA radio and
core network and managed services contract. As per the contract, Nokia would support Telkomsel
in strengthening its business and introducing 3G services, such as streaming video, to its
customers.

Nokia Signs a Contract with Telenor…


Nokia signed a contract with Telenor for cellular transmission solutions and services. As per the
contract, Nokia would supply Telenor with Nokia Hopper microwave radios to be used for
transmission from both base stations and fixed applications when new sites are deployed, or an
increase in capacity is needed. The agreement covers all regions where Telenor and its affiliated
companies own operations.

Nokia Bags a Contract from Warid…


Nokia bagged a radio network contract from Telecom (Warid) for the Greenfield operations in
Bangladesh. As part of the contract, Nokia would supply its UltraSite base station solution. Nokia’s
extensive services offerings are also part of the contract, including Nokia’s NetAct network and
service management solution and installation, planning and project management services. Warid is
a provider of oil and gas exploration, hospitality services, telecommunications, banking and
financial services, automobile industries and property development.

Nokia Bags a Contract from Hutchison…


Nokia bagged a convergent charging solution contract from Indonesian operator PT Hutchison CP
Telecommunications (Hutchison Telecom Indonesia), a joint venture between Hong Kong-based

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Hutchison Telecommunications International Limited ('Hutchison Telecom') and the CP Group of
Indonesia. As per the contract, the company provides, integrates and manages an innovative
network solution for Hutchison. The solution would cover key call control functions and integrate
with the company’s other business systems for pre- and post-paid customers.

Nokia Bags a Contract from Cable and Wireless in the Channel Islands…
Nokia bagged a contract from Cable and Wireless in the Channel Islands. As per the contract,
Nokia supply Cable & Wireless with GSM and WCDMA 3G radio networks, including HSDPA
and core networks and Nokia MSC Server mobile softswitches. The contract agreement also
provides a range of services such as network planning, implementation, commissioning, network
optimization and multimedia services to its mobile customers.

Nokia Bags a Contract from DU…


Nokia bagged a managed services contract from DU. Under the terms of contract agreement, Nokia
would establish DU’s network operations that include 3GPP Release 4 Nokia MSC Server System
(MSS), Nokia IP Multimedia Subsystem (IMS) solution, and latest value added services platforms
such as Nokia Push to talk over Cellular (PoC), Presence, Multimedia Messaging Service Center
(MSSC) and Intelligent Service Node (ISN); and the unique multi-technology and multivendor
Nokia NetAct™ network and service management system.

Nokia Receives a Contract from Telefónica Móviles Ecuador…


Nokia received a new MSC Server System (MSS) contract from Telefónica Móviles Ecuador to
provide cost efficient voice service. As per the contract, Nokia would offer mobile softswitch
solution, the MSC Server System, which is compliant with the 3GPP Release 4 standard. The
contract also enables the company to provide planning, implementation, optimization and training
services.
Telefónica Móviles is the world’s largest mobile operator and a leader in the Spanish- and
Portuguese-speaking markets.

Nokia and Henan MCC Sign a Contract for the Expansion of GSM and GPRS Networks…
Nokia and Henan Mobile Communication Co. Ltd., (Henan MCC), a wholly owned subsidiary of
China Mobile (HK) Limited, signed a contract for the expansion of GSM and GPRS networks in
the Henan province in the central part of China. The GSM expansion of Henan MCC and would
significantly enhance network coverage and capacity in the province, especially in the rural area.

Memorandum of Understanding

Nokia and Telecom Italia Sign Memorandum of Understanding…


Nokia and Telecom Italia signed a Memorandum of Understanding (MoU) for wider cooperation in
the area of WCDMA 3G terminal cooperation and supply of a WCDMA radio access network in
Italy. The company provides services for end-to-end optimization, from terminals through service
platforms, middleware and across the telecommunications network.

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Capacity Expansion

Nokia Expands Mobile-Device Production…


Nokia expanded mobile-device production in Reynosa, Tamaulipas plant. The expansion provides
greater capacity and flexibility to meet the requirements of Nokia’s customers in Mexico, Latin and
North America.

New Establishments

Nokia Establishes Research Center in Palo Alto, California…


Nokia expanded its global research activities with the establishment of new research center in Palo
Alto, California. Nokia Research Center Palo Alto would initially focus on four core areas such as
Context-aware content and communities, Wireless grids, advanced user interfaces and visual media
and Innovation radio and sensor networks, offering novel applications of emerging short-range
radio technologies.

Nokia Starts Asia’s First Flagship Store in Hong Kong…


Nokia established first Nokia Flagship Store in Asia in Hong Kong. The Flagship Store enables
customers to fully experience cutting-edge mobile technology in a comfortable, stylish and
interactive environment.

Product Launches
Nokia Launches New GPS Module…
Nokia launched Nokia GPS Module LD-3W with a wide selection of Nokia’s Bluetooth enabled
handsets.

Nokia Launches New Enterprise Device Management Offering for Mobile Carriers...
Nokia launched a new Intellisync Device Management for Mobile Carrries. Nokia’s new
Intellisync Device Management for Carriers provides all the major functions that customers
associate with wireless device management, including device backup and restore, device
provisioning and configuration, software updating, security and policy management and diagnostic
and repair services.

Nokia Unveils Three New Handsets…


Nokia unveiled three new handsets that bring new features to devices across Nokia’s growing
CDMA portfolio. The three hands sets include Nokia 2365i phone, a value priced fold-style
handset, the Nokia 2865 / 2865i phone, an eye-catching monoblock design and the Nokia 6175i
phone, a sleekly designed mid-tier fold-style device.

Nokia Launches Three Great Bluetooth Headsets…


Nokia launched three new Bluetooth Headsets such as the tiny and stylish Nokia Bluetooth Headset
BH-800, the powerful Nokia Bluetooth Headset BH-900 and the sleek Nokia Bluetooth Headset

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BH-200. Nokia Bluetooth Headset BH-800 provides a hassle-free and long-lasting
communications. Nokia Bluetooth Headset BH-900 is an elegant headset with a comfortable and
ergonomic earhook that could easily be switched from one ear to the other.

Nokia Launches Nokia 6125 Fold Phone…


Nokia launched Nokia 6125 fold phone to expand its portfolio of highly popular mid-range mobile
phones. The Nokia 6125 offers a range of connectivity options, including Bluetooth wireless
technology, infrared and USB, making communication with other devices quick and easy.

Nokia Launches Three Mobile Phones…


Nokia launched three new mobile phones, namely Nokia 1112, Nokia 2310 and Nokia 2610, to
expand Nokia’s portfolio of easy-to-use, reliable and affordable mobile phones. The Nokia 2610
phone offers an iconic design and a strong range of features for business-minded consumers. The
Nokia 2310 phone offers a compact design matched with an equally outstanding array of color
covers.

Nokia Releases Unlicensed Mobile Access (UMA) Solution…


Nokia released unlicensed Mobile Access (UMA) network solution, along with a variety of other
solutions for operators and service providers to enhance network operation. UMA technology
enables the use of broadband and unlicensed access technologies, such as WLAN (WiFi) to offer
and expand mobility to users of voice and data services. The company also launched UMA capable
phone, Nokia IP Multimedia Subsystem (IMS).

Nokia Unveils Nokia 6131 and Nokia 6070 Camera Phones…


Nokia unveiled the new Nokia 6131 and Nokia 6070 camera phones. The stylish Nokia 6131 phone
presents an innovative folding design and an extensive feature set, including a 1.3 megapixel
camera and high-quality display offering up to 16 million colors. Nokia 6070 offers basic camera
phone capabilities and stereo FM radio and provides solid range of functions for easy messaging,
including SMS, MMS, Nokia Xpress audio messaging, email and instant messaging.

Nokia Launches UMA-Enabled Nokia 6136 Handset…


Nokia launched UMA-enabled Nokia 6136 handset that provides seamless voice and data mobility
across GSM and WLAN networks. The new Nokia 6136 phone integrates UMA (Unlicensed Mobile
Access) technology to allow for seamless handover of voice and data connections between GSM
cellular and WLAN networks. The Nokia 6136 also includes a new DARP (Downlink Advanced
Receiver Performance) radio receiver, which enhances the radio performance of the device.

Nokia Introduces Nokia Lifeblog 2.0…


Nokia introduced Nokia Lifeblog 2.0, a unique collection and storage solution for personal
multimedia content that enables to maintain a photo album. The product is designed exclusively for
Nokia Nseries multimedia computers. Nokia Lifeblog also provides audio notes as well as other
valuable context information, such as calendar entries and location information, to the diary.

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PRODUCT/SERVICE ANALYSIS
Phones for Business
Nokia offers a range of phones optimized for business use that are specially designed to meet
different user groups. The company offers various models of mobile phones such as Nokia 9500,
Nokia 9300,Nokia 6822, Nokia 6670, Nokia 6630, Nokia 6610i, Nokia 6600, Nokia 6260, Nokia
6230i, Nokia 6170, Nokia 6021.

Enhancements
Nokia provides various enhancements that accompany the product. The various types of
enhancements are Audio, Nokia Wireless Headset, Nokia Wireless Boom Headset, Nokia Wireless
Clip-on Headset, Hands Free and Nokia Radio Headset.

Mobile Email
Nokia offers many mobile email options for business enabling employees to save time and stay up
to date. The two basic options available are Nokia One Business Server and Blackberry Email.

Mobile Connectivity
Nokia Mobile Connectivity solutions enable rapid return on investment and maintain a competitive
advantage. Nokia enhances remote access to business applications by three major solutions namely
Nokia SSL VPN, Nokia IP VPN and Nokia Wireless Accelerator.

Channel Program
The Nokia Channel Accreditation Program provides certified solutions to help develop and support
a reliable, growing customer base.

Network Security
Nokia Network Security solutions provide secure, reliable, manageable connections that allow any
device access while protecting the business assets. The solutions offered by the company are

Firewalls
The Nokia Firewall / VPN appliance offers a supreme combination of providing Checkpoint
firewall / VPN technology on a hardened Nokia platform with a security specific operating system.
Intrusion Protection
Nokia offers an automated, real-time intrusion protection solution that builds a reliable network
environment for companies and service providers.
Internet Traffic Management
Nokia ensures network reliability by providing integrated products and support services.
Platform Management
Nokia’s secure network systems management tools facilitate easy, remote, secure rapid deployment
and image management of network devices.

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Machine-To-Machine
M2M devices provide a link between systems and machines controlling them remotely and
wirelessly, for greater independence of time and place.

M2M Products
The M2M products include Nokia 12, Nokia 30 and Nokia 31.

Professional Mobile Radio


Nokia TETRA offers excellent communication tools for experts in different fields, including
industry, utilities, public transport and more. The major areas that use the tools are

Airports
Nokia TETRA System provides users with private network. A busy airport features separate
communications groups for each flight and automatic vehicle location for service vehicles.

Transportation
Nokia TETRA System is used in buses, trains, underground systems and trams as an effective
communication tool. The transport companies offers services such as group communication, data
messaging and location applications.

Technologies
Nokia offers solutions through various technologies. The technologies are subdivided into the
following Network, Network Enhancement, Messaging and Presence, Service and Data Management,
Content Access and Download, Web Services and Security Technologies. The most frequently used
technologies used in mobile devices are GSM, GPRS, EDGE, WCDMA, Wireless LAN and TETRA.

Home Products
Nokia offers home products apart from manufacturing mobile devices. The company offers Digital
TV in various models.

Phones
The latest phone models that the company introduced are Nokia N-Gage™ game deck, N-Gage™ QD
game deck, Nokia 6630 Smartphone, Nokia 6260, Nokia 6170, Nokia 2650, Nokia 2600, Nokia 3220,
Nokia 9500 communicator, Nokia 7700 media device, Nokia 8910i, Nokia 8890, Nokia 8850.
Imaging Solutions
Nokia imaging phones give advanced imaging features such as larger screens, increased memory,
video capability and a number of image sharing options and applications. The range of Imaging
phones, Nokia offers are Nokia 6630, Nokia 6260, Nokia 7610, Nokia 6600, Nokia 7600, Nokia
3660, Nokia 6650, Nokia 3650, Nokia 7650.
Technologies
Bluetooth, GPRS, Instant Messaging, Java, MMS, Mobile Commerce, Mobile Video, Series 60 Platform,
Symbian, SyncML, WAP, Wireless LAN, XHTML are the technologies used in the mobile phones.

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Solutions for Operators
Nokia offers solutions for operators in three categories namely Mobile Operators and Service
Providers, Broadband Operators and Government Technologies.

Mobile Operators and Service Providers


Nokia provides various solutions to Mobile Operators and Service Providers in the areas such as Mobile
Entry, Mobile Networks, Service Enablers, Operations Solutions and Services for Operators.

Mobile Entry
Nokia provides solutions mainly to Multistream Business Strategy, Low ARPU Business Enablers
and in providing universal Access.

Mobile Networks
Nokia provides infrastructure systems, terminals, services and support systems that enable the
operators to start with minimum investment. The list of mobile networks is GSM, GPRS, EDGE,
WCDMA, Intelligent Edge, Transport, Operations Support System, Wireless LAN, All-IP Vision
and TETRA.

Service Enablers
MMS, XHTML, location and presence intelligence, service activation are the major service
enablers for a variety of mobile services.

Broadband Operators
Nokia encompasses a well-known record in broadband and narrowband products, offering a wide
range of solutions and services for multiservice networks. The company provides solutions mainly
to the following:
Broadband All-IP
The solutions comprise of legacy telecom networks; high reliability and availability and the latest
technological advances in new packet networks.
Broadband Access
Nokia provides a clear, cost-efficient upgrade vision to help operators evolve toward All-IP
networks. Nokia assists network operators to manage the network efficiently, allowing operators to
concentrate on developing core business.

Intelligent Edge
The intelligent edge router provides higher layer functionalities and helps in altering the current
network connectivity model into a service creation platform network model.

Narrowband Access
Nokia encourages broadband operators to provide heritage network services such as voice services,
enabling the operators to maintain a competitive position.

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Government Technologies
Nokia offers solutions in the following areas: Police and Security Services, Fire and Rescue
Services, Border Authorities, Defence Forces, Operators, Policy Makers, Procurement Process and
Applications and Solutions.

Others
Nokia offers fixed-mobile convergence solutions for network operators. The company offers MSC
server (MSS) system and mobile business voice (MBV) solutions for voice services, voice over IP
server, IP multimedia solutions - IMS (IP multimedia subsystem), and others. The company’s
MMS and SMS solutions for messaging applications include Nokia switching solution, Nokia
MSC server system, Nokia IP multimedia subsystem, Nokia push to talk solution, Nokia presence
solution, Nokia list management server, Nokia SMS center, and Nokia multimedia messaging
solutions.
Nokia offers Narrowband Products for Operators and Resellers. The company supplies flexible,
modular options for narrowband DSL access, including access nodes and narrowband modems.
Nokia broadband access systems value-added reseller channel is an indirect sales channel for
broadband systems, which includes broadband and services (BBAS) and narrowband (NBA).
Nokia offers wireless transmission (microwave radios), operation solutions (network management)
and enterprise solutions, as well as the SDH access solution products. The company also provides
business value consulting, service management, managed services and hosting, systems integration,
deployment, and other services.

SUBSIDIARIES
Nokia Siemens Networks
Symbian Ltd.
Meridea Financial Software Oy (Finland)
Nokia (Suzhou) Telecommunications Co., Ltd. (China)
Nokia Neu Comm Tech Company Ltd. (China)
Nokia Citic Digital Technology Co., (Beijing) Ltd. (China)
Symbian Limited (UK)
ChongQing Nokia Telecommunications Co., Ltd. (China)
Fujian Nokia Mobile Telecommunications Ltd. (China)
Nemo Technologies Ltd. (Finland)
Dongguan Nokia Mobile Phones Co., Ltd. (China)
Beijing Capitel Nokia Mobile Telecommunications Co., Ltd. (China)
Beijing Nokia Hangxing Telecommunications Systems Co., Ltd. (China)
Sapura-Nokia Telecommunications Sdn Bhd (Malaysia)
Nokia, Inc. (USA)
Nokia GmbH (Germany)
Nokia UK Limited (England and Wales)
Nokia TMC Limited (South Korea)
Nokia Finance International BV (The Netherlands)
Nokia KomA Arom Kft. (Hungary)
Nokia do Brazil Technologia Ltda. (Brazil)
Nokia Italia SpA (Italy)
Nokia France SA (France)

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NORTHROP GRUMMAN INFORMATION TECHNOLOGY (IT)
7575 Colshire Drive, McLean, Virginia 22102, USA
Phone: 703-713-4000, Fax: 703-713-4127

SOURCES: www.it.northropgrumman.com and other secondary online sources


BUSINESS PROFILE
Northrop Grumman Information Technology (IT) (NGIT), a division of Northrop Grumman, is one
of the world’s premier providers of information management and systems engineering solutions for
government and industry. The company is No.1 provider of security solutions to the federal
government. The company is also a leader in public safety systems and one of the world’s largest
suppliers of 911 First Responder Computer-Aided Dispatch systems. The company’s major product
line includes license plate readers, and automated container identification and inspection systems.
The company’s offerings include managed IT services, network design, asset management,
infrastructure management, systems integration and modernization, data center management,
hardware and software maintenance, and help desk support. The company provides expertise in
communications networks, data processing and security, and enterprise information systems.
NGIT’s major customers include Internal Revenue Service, Department of Homeland Security,
Federal Aviation Administration, Department of Justice, Fortune 500 companies, IT outsourcing
providers and many others. The company’s products are used in various areas including Defense,
Federal Civilian Agencies, National Intelligence, Homeland Security, State & Local, Health,
Commercial, and International. The company’s key competitors include Lockheed Martin
Information & Technology, Computer Sciences Corp., and SAIC.
The company was established in 1939.

SUBSIDIARIES
Integic Corporation
Northrop Grumman IT TASC Inc.

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OBJECTVIDEO, INC.
11600 Sunrise Valley Drive, Suite 290, Reston, Virginia 20191, USA
Phone: 703.654.9300, Fax: 703.654.9399

SOURCES: www.objectvideo.com and other secondary online sources

BUSINESS PROFILE
ObjectVideo Inc., (OVI) is a leading provider of intelligent video software for security, public
safety, business intelligence gathering, process improvement and other applications. The
company’s product line comprises ObjectVideo Forensics, ObjectVideo OnBoard™, ObjectVideo
VEW and other accessories. The company’s software are used by government agencies and private
sector clients (including airports, refineries, and chemical and nuclear plants) to detect, analyze,
classify, and track security threats.
The company’s software is primarily available to the market through original equipment
manufacturers (OEMs) that embed ObjectVideo® OnBoard™ - digital signal processor-based
technology - into a variety of devices. The company also provides services such as consulting,
support, and training. The company’s world-wide partner network includes industry leading
manufacturing and technology partners.
OVI was established in 1998.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review
Partnership
OVI and Texas Instruments Enters into a Strategic Partnership with Hangzhou Hikvision
Digital Technology…
OVI and Texas Instruments Inc., announced a strategic partnership with Hangzhou Hikvision
Digital Technology, the leading provider of video surveillance products in China. Through the
partnership, Hikvision would incorporate OVI’s award-winning smart analytics technology running
on a TI digital signal processor-based (DSP) platform into its video products. The technology is
licensed through WPG System, the ObjectVideo OEM distribution partner for the Asia Pacific
region.
OVI’s software provides intelligent capabilities for video products by automatically monitoring
video 24/7. Hikvision, utilizing OVI’s software would introduce a new suite of intelligent video
products for new markets and further extend their leadership position in existing markets.
Year 2006 in Review…
Partnerships
OVI Enters into Partnership with Western DataCom…
OVI entered into partnership with Western DataCom to launch IVS PC/104 Intelligent Video
Server Card, incorporating OV OnBoard™ intelligent analytic software and designed specifically

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for the Cisco Systems 3200 Series Wireless Mobile Router. Western DataCom's IVS PC/104 card,
is powered by a Mango DSP multimedia platform and fully supports all intelligent functionality of
OVI’s OnBoard, which detects, classifies and tracks objects in a video surveillance application, and
generates real time alerts if any object violates rules established by the end user.

OVI Enters into Partnership with Video Convergence…


ObjectVideo® entered into a partnership with Video Convergence (VC) for enabling the
installation of ObjectVideo’s Object Video OnBoard® (intelligence video surveillance) into VC’s
Intelligent Transportation and Surveillance (ITS) solutions. VC’s partnership with Object Video is
in order to focus primarily on waxing the companies’ product range with the integration of
Intelligent Analysis to companies’ surveillance and interactive video security solutions.
ObjectVideo’s intelligent video surveillance software offers automated, identification, real-time
detection, safety incidents and issues, analysis and tracking of potential threats.
Video Convergence, the video surveillance products and integration services division of Cornet
Technology, Inc.

OVI Partners with Avant Technologies…


OVI partnered with Avant Technologies. OVI’s OnBoard® is embedded in Avant’s security
solutions package. Avant’s Video Sentinel™ product offers customers the best in intelligent video
with the integration of OV OnBoard capabilities.

Product Launches
OVI Launches Four New Industry Software Packages…
OVI launched four new industry software packages, which are offered only on chip-based
software. The packages are applied in the following OV Banking, OV Education, OV
Transportation and OV Homeland Security. OV Banking comprises ATM Monitoring and Safety,
Asset Monitoring, Bank Operations Improvement and Property Security. OV Education includes
School Grounds Monitoring, Facility Security and Access Control and In-School Security. OV
Transportation offers Commuter and Pedestrian Safety, Station/Platform/Terminal Protection,
Bridge and Tunnel Monitoring, On-board Operational Monitoring and Operational Protection and
Performance. OV Homeland Security includes Perimeter Intrusion Detection, Mobile Asset and
Operation Security, Safety and Operations, Threat Verification and Situational Awareness.

OVI Launches ObjectiveVideo Products…


OVI launched ObjectiveVideo Products such as ObjectVideo VEW® 3.0, ObjectVideo OnBoard™ 3.0
and ObjectVideo Forensics™ 3.0. The products offer simple installation and integration for OEM and
integrator partners, and expanded flexibility in the implementation of intelligent video solutions.

PRODUCT ANALYSIS
ObjectVideo VEW
ObjectVideo VEW is a powerful software tool that significantly improves the effectiveness of
conventional video surveillance. ObjectVideo VEW detects, identifies, classifies and tracks objects

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and immediately generates alerts or sounds, through email, cell phone, PDA, or to an alert console
to designated individuals/groups while pre-defined security rules are violated-or the potential threat
is occurring.

ObjectVideo Forensics
ObjectVideo Forensics is a powerful software tool that allows security professionals to collect
critical intelligence about their security environment based on past events. ObjectVideo Forensics
users determines, tests and fine-tune rules and filters by analyzing previous security scenarios. The
software enables security professionals to optimize their current surveillance settings to set rules
for the future with more accuracy.

ObjectVideo OnBoard
ObjectVideo OnBoard product devices proactively analyze video and produce alerts and other
actionable information on the basis of user-defined rules.

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OKI ELECTRIC INDUSTRY CO., LTD.
7-12, Toranomon 1-chome, Minato-ku, Tokyo, 105-8460, Japan
Phone: +81-3-3501-3111, Fax: +81-3-3581-5522
SOURCES: www.oki.com and other secondary online sources
Sales
725
2007 Sales: ¥ 718.8 billion
715
2006 Sales: ¥ 680.5 billion 705
695
2005 Sales: ¥ 688.5 billion 685
675
(Fiscal Year Ends in March)
2005 2006 2007

BUSINESS PROFILE
Oki Electric Industry Co. Ltd., (OEI) formerly Meikosha Ltd., is the largest manufacturer of
information systems, telecommunication systems, semiconductors and printers in Japan. The
company produces and markets electronic devices such as integrated circuits, microprocessors, and
audiovisual products. OEI provides solutions such as Customer Contact solution, e-banking
solutions, web site construction and solutions, and Network transaction-processing solutions for
individuals, enterprises, carriers, and ISPs (Internet service providers). The company’s information
system product line includes facsimile machines, automated teller machines, terminals, banking
systems, and security systems.
OEI's telecom products include network equipment, switching systems, and computer telephony
integration systems. The company provides high quality products and multimedia messaging
services for customers throughout the world. The company’s major competitors include Canon,
Fujitsu, and Hitachi. The company operates through three subsidiaries namely Oki Data, Oki Micro
Engineering Co. Ltd., and OKI Software Technology Co., Ltd.
The company was established in 1881.

SALES DATA

Annual Sales Comparison: 2005-2007


(In ¥ billion)

Year Sales % Change


2007 718.8 5.6
2006 680.5 (1.2)
2005 688.5 -

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Annual Sales Comparison by Business Segment (2007 Vs. 2006) - Info-Telecom Systems,
Semiconductors, Printers and Others (In ¥ billion)

Segment 2007 2006 % Change


Info-Telecom Systems 352.7 338.0 4.35
Semiconductors 145.5 150.7 (3.45)
Printers 187.2 160.5 16.64
Other 33.4 31.3 6.71
Total 718.8 680.5 5.63

Annual Sales Comparison by Geographic Region (2007 Vs. 2006) – Japan,


North America, Europe, Asia (In ¥ billion)

Region 2007 2006 % Change


Japan 503.9 494.5 1.90
North America 65.3 65.7 (0.61)
Europe 105.0 84.8 23.82
Asia 44.6 35.5 25.63
Total 718.8 680.5 5.63

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Alliance
OEI and Takasago TTE Forms an Alliance…

OEI and Takasago Thermal Engineering Co., Ltd. (TTE), Japan's largest company specializing in
heating, ventilation and air conditioning (HVAC), entered into an agreement to form an alliance in
information and telecommunication equipment. Leveraging the strengths, the two companies
would jointly provide solutions to the building equipment market in Japan, which is advancing and
becoming more diverse.

Partnerships
OEI and Avaya GlobalConnect Enter into Partnership…
OEI and Avaya GlobalConnect, one of India's leading providers of business communications
applications, systems and services, announced a strategic partnership in India. The partnership enables
to develop IP enabled 'value for money' voice solutions for Small and Medium enterprises, would
define a new era in digital communications and convergence. The two companies jointly launched a
product called "IPstage® EX100" that provides all the basic PBX features and network interfaces.

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OEI, Faraday Technology, and UMC/UMCJ Enters into Partnership…
OEI, UMC's Japan based subsidiary, and Faraday Technology Corporation, a world leading fabless
ASIC design service and silicon IP provider, announced a partnership to offer streamlined design-
to-manufacture services to target the global consumer market. The three-way partnership would
allow customers to leverage the synergies of Faraday's extensive IP selection, OEI's front-end
design expertise, and pervasive sales channels, and UMC/UMCJ's manufacturing excellence.

Agreements

OEI Signs an Agreement with TCBT…


OEI signed an agreement with TCB Technologies Corp., (TCBT) to acquire TCBT's "Visual
Nexus®" business, a software-based video conferencing system. OEI would add Visual Nexus to
its IP solutions product lineup to offer to enterprise users in Japan, and over time, to the global
market. The agreement would enable OEI to continue to provide IP solutions that contribute to the
success of enterprises, seeking to reduce costs, improve productivity and enhance competitive edge.

OEI Signs Partnership Agreement with Opsware…


OEI and Opsware Inc., the leading provider of Data Center Automation software, signed a
partnership agreement in which OEI would resell Opsware's Network Automation System (NAS)
and Server Automation System (SAS) to the Japanese market. Through Oki Consulting Solutions
Co., Ltd., OEI would provide the Opsware products as a distributor of Opsware Japan Co., Ltd.

OEI and ZyCube Signs an Agreement…


OEI and ZyCube Co. Ltd., (ZyCube) announced the agreement to cooperate in commercializing
ZyCSP™, an image sensor LSI with buried interconnects (also called TSV (Through Silicon Via))
that is equivalent in size to a wafer level chip size package (CSP). Compared to current C-MOS
and CCD sensor packages, the ZyCSP™ achieves thinner, smaller, lighter and highly reliable
characteristics. ZyCSP™ is the CSP for image sensors with buried interconnect technology
developed by ZyCube.

Production Expansion
OEI Expands Production Capacity…
OEI would enhance production at its Thailand plant of driver LSIs for LCD panels. To respond to
the rapidly expanding demand of full high-definition LCD TVs, OEI would expand its production
of driver LSIs from 10 million per month to 15 million. The expansion enables OEI to achieve
coherently development and manufacturing of driver LSI products at Oki Thailand, enabling OEI
to start up volume production in a short period of time.

Product Developments

OEI Develops Safety Mobile Phone…


OEI succeeded in developing the world's first ultra small DSRC (Dedicated Short Range
Communication) wireless module for embedding in mobile phones to be used for DSRC inter-

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vehicle communication systems. The Safety Mobile Phone notifies vehicles in the surrounding area
of its location and retrieves the location information of vehicles in the surrounding area that are
equipped with the DSRC inter-vehicle communication system.

OEI Develops CenterStage® NX3200…


OEI developed a session border controller for next generation networks (NGN). OEI's
"CenterStage® NX3200" would be available in Japan.

OEI Develops World's First Gain-Coupled DFB Lasers…


OEI announced the development of a gain-coupled (GC-) DFB laser that is tolerant of optical
reflection. By employing the GC-DFB laser, OEI succeeded in becoming the world's first to
develop optical isolator-free optical transmitter modules for practical applications, enabling lower
cost, smaller size optical modules for use in long distance networks, such as FTTH.

OEI Develops FTTH Laser…


OEI announced the development of a 1490nm wavelength semiconductor laser (OL4636L-ET) that
could transmit up to 2.5Gbps at an output level of 15mW, the industry's highest level over a
temperature range of -40 to 85°C. The semiconductor laser is suitable for use in outdoor FTTH
(Fiber-to-the-home) GPON equipment.

OEI Develops Micro Controller Equipped with Voice Synthesis LSI…


OEI developed a single chip micro controller equipped with a high performance 8bit CPU core and
a voice synthesis LSI.

Product Launches
OEI Launches Small-Size ATMs…
OEI added ATM21SX to ATM product lineup for China. The ATM21SX adopts the cash recycling
method. The method enables the deposited cash to be reused as withdrawal cash, improving
efficiency in cash operations in a compact chassis.

OEI Releases EML Driver IC…


OEI launches KGL5115KD, a 10Gbps EML driver IC for optical communication. The new IC
contains one of the world's smallest footprints and achieves the world's lowest power consumption
at just 0.45W (at 2.3Vpp amplitude). The KGL5115KD is a 10Gbps EML driver IC for 10Gbps
optical communication that operates on a power supply of 3.3V.

OEI Unveils Com@WILL® Series Release 7…


OEI unveiled "Com@WILL® Series Release 7" for the Japanese market with enhanced office
communication functions for customer response. OEI's Com@WILL Series is a software
application that connects with OEI's IP telephony products such as its IP CONVERGENCE®
Server SS9100 and IPstage® Family. OEI's Com@WILL family includes products such as
"Com@WILL Softphone" that enable phone calls with a PC, "Com@WILL Mobile," a wireless IP
phone, and "Com@WILL Assistant," for web browsing.

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OEI Releases IP CONVERGENCE® Server SS9100 Release 7 with Enhanced IP Centrex
Functions…
OEI released its "IP CONVERGENCE® SS9100 Release 7 (SS9100 R7)," the latest model of IP
CONVERGENCE Server SS9100, OEI's IP telephony server with enhanced IP Centrex functions.
With the increase in use of IP telephony systems, many companies with multiple branch offices are
replacing their PBX systems with IP telephony systems that include Private IP Centrex function.

OEI Releases Voice Synthesis LSI Equipped with OTP Memory…


OEI released the OTP (One Time Programmable) memory-equipped voice synthesis LSI,
"ML22P80X Series," which enables customers to write voice data directly to the chip through a
specific tool, and to develop various industrial-use devices where only a few units are required of
each of numerous different types.

OEI Unveiled the ML7257…


OEI unveiled the ML7257, its base band LSI for personal handyphone systems (PHS). The LSI is
compliant with W-OAM, the Advanced PHS communications standard that enables a
communication speed of 204kbps, which is 1.6 times faster than the conventional speed of
128kbps. The LSI would be used in three PHS devices by WILLCOM,Inc., the sole provider of
PHS services in Japan.

Year 2006 in Review…

Collaborations

OEI and Huawei Enters into Collaboration…


OEI and Huawei Technologies Co. Ltd. (Huawei), announced an agreement to collaborate in the
mobile WiMAX business to the telecom carriers in Japan. OEI would provide Huawei's mobile
WiMAX Series products to telecom carriers in Japan. OEI would also provide its products globally
with the support of Huawei.

OEI Enters into Collaboration with Kawasaki Microelectronics…


OEI and Kawasaki Microelectronics Inc., entered into collaboration to provide LCD timing
controllers (T-CON) with FP-LVDS (flat panel low voltage differential signaling), OEI's original
high-speed data transferring method is used in the 13bit source driver (MT3100). The collaboration
enables the two companies to provide interconnecting FP-LVDS-based source drivers and T-CONs
to support hyper color managing LCD modules such as LCD TVs and monitors.

Joint Venture

OEI and Aruba Networks to Join Forces In Network Security…


OEI and Aruba Networks, the Mobile Edge Company, announced that they would join efforts to
deliver network security for Next-Generation Networks (NGN). The relationship leverages Aruba's
strengths in secure mobility technology and OEI's strengths in QoS (Quality of Service) control

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technology for VoIP. The companies would work together to develop new solutions, perform systems
integration and conduct joint marketing activities globally. The two companies would develop highly
secure and reliable products in several areas including small- to large-scale secure wireless LAN
(WLAN), Voice over Wireless LAN (VoWLAN) and Fixed-Mobile Convergence (FMC) solutions.

Access, OEI, and OEI ACCESS Technologies Jointly Develop Industry's First Commercial IMS
Solution…
Access Co. Ltd., (Access), OEI and OKI ACCESS Technologies Co. Ltd., announced the joint
development of NetFront IMS Client Package, an advanced IP Multimedia Subsystem (IMS)
solution designed to support multimedia services including browsing, messaging, voice and video.
The solution, which features technologies from ACCESS (NetFront), OEI (eSound™(*2),
eVideo™(*3)), and OKI ACCESS Technologies (IMS IP multimedia subsystem), would also be
available as part of ACCESS' NetFront Mobile Client Suite, a software suite solution for 3G
mobile handsets. Access recently announced that SoftBank Mobile Corporation selected the
NetFront IMS Client Package solution for deployment in its mobile handsets.

Agreements
OEI Signs Global Alliance Agreement with Nautilus Hyosung…
OEI signed global alliance agreement with Nautilus Hyosung Inc., the top ATM (Automated Teller
Machine) manufacturer in Korea, for the global deployment of financial systems. OEI and Nautilus
Hyosung would develop and manufacture financial systems including ATMs and cash processing
equipment, which would be sold in Korea, China and other overseas markets. The strategic collaboration
with Nautilus Hyosung would enable OEI to enhance its technologies, effectively manufacture financial
systems including high-quality multifunction ATMs, and provide the ATMs to overseas markets.

OEI and Tyco Electronics Sign an Agreement…


OEI signed an agreement with Tyco Electronics Corporation (Tyco Electronics) to transfer Tyco
Electronics' technology of USB power protection switch IC's to OEI. The technology being
transferred is a protection switch IC that is inserted in the power supply line for USB terminals.

New Establishment
OEI and OKI Printing Solutions Establish Sales Office in Beijing
OEI and OKI Printing Solutions, a subsidiary of OEI expanded the Asian operations with the
establishment of a sales office in Beijing. The new office, Oki Trading (Beijing) Co., Ltd., begun
operations to meet growing demand in the printer market, and been earmarked to provide a wider
range of OEI products in the future.
Product Development
OEI Develops Next Generation Hybrid STB…
OEI would develop a next generation hybrid set top box (STB) equipped with Intel's high
performance media processor. The processor would provide processing power and headroom for
computationally intensive applications and services. The newly developed Next Generation Hybrid

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STB would be based on OEI's marketing research of the Chinese market. By combining Intel's
high-performance media processor with OEI's latest video processing technology and advanced
VoIP technologies.

OEI Develops MPEG-4 Encoder LSI…


OEI developed a single chip LSI, ML86410 that enables real-time encoding of MPEG-4 data. By
using OEI's proprietary algorithm and developing an accelerator designed for the chip, OEI
succeeded in developing low cost, high-quality video compression.

OEI Develops World's Smallest 10G Optical Modulator Driver IC…


OEI developed KGL4166, a 10Gbps Mach-Zehnder modulator driver IC for high-speed optical
communication. The IC comes in the world's smallest package for a device equipped with bias-T.
The product also features an output voltage of 9Vpp, which is a 1.5 fold increase from
conventional chips, achieving the largest output voltage in the industry.

OEI Develops Single Chip ZigBee™ Compliant Solution…


OEI and Oki Semiconductor Company, a wholly owned subsidiary of Oki Electric, today
announced the development of ML7222, a ZigBee™ compliant single chip solution, which is the
next generation in low data rate wireless network technology for sensor networks. By integrating
the functions into a single chip, Oki succeeds in enabling lower cost, lower power consumption and
smaller ZigBee based devices. The chip includes the CompXs ZigBee Stack™, a software
developed by Integration Associates, Inc.

Product Expansion

OEI Enhances Product Lineup for Carrier-grade Communication Server…


OEI announced the addition of three new models to its telecom-carrier-grade communication
server CenterStage® NX5000 Series. The server is known for its world-class performance of 1
million BHCA per server that suits the NGN, its large capacity holding 800 thousand subscribers
on a single server, and its high reliability offering a level equivalent to central office switching
systems. The new models in the CenterStage NX5000 Series exceed the functionality of previous
models and include new capability compliant with the IMS standards.

Product Launches

OEI Launches VisualCast® VBOX-S/500…


OEI added "VisualCast® VBOX-S/500" to its remote video surveillance system, the "VisualCast"
product line up. The VisualCast VBOX-S/500 is a digital video recorder for network applications
that enables connection of up to 16 surveillance cameras, including network cameras. The recorder
achieves intelligence by automating surveillance operation with added functions including digital
recording functions, network functions for concentrated surveillance at centers, and video analysis
function for automatic detection of suspicious behaviors from the captured video.

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OEI Unveils CTstage® 5i…
OEI unveiled its CTstage® 5i that converges OEI's CTI and IP-PBX technologies. The
combination enhances durability and expandability while maintaining the flexibility and usability
of the previous model.

OEI Launches Face Sensing Engine™ Ver3.0 for Embedded Systems…


OEI announced the development of "Face Sensing Engine™ (FSE) Ver3.0," a middleware for
embedded systems. OEI adds a new function that detects several faces from a data of a single photo
and may verify specific faces, providing industry-leading processing performance.

OEI Unveils H.264…


OEI unveiled OKI MediaServer V6, an integrated video delivery platform compliant with H.264, a
video compression standard. The latest model, targeting the Japanese market, enables users to
access video delivery using half or less bandwidth than conventional systems.

OEI Introduces Japan's First Iris Recognition for Camera-equipped Mobile Phones and
PDAs…
OEI succeeded in developing Iris Recognition Technology for Mobile Terminals. The new
technology is based on OEI's original iris recognition algorithm using standard optical cameras that
are equipped in mobile terminals.

OEI Launches New Key Telephone System…


OEI released two new key telephone systems with full scale IP telephony and mobile functions.
The new business phones, IPstage® MX and IPstage SX, which are best for offices under 100
people, would be offered in Japan, and would sequentially be offered in various overseas markets
such as China and Oceania.

OEI Launches Voice Synthesis LSI Equipped with P2ROM™…


OEI announced the launch of ML2280X Series, a voice synthesis LSI equipped with P2ROM™
(Production Programmed ROM) that may be delivered in volume in a minimum of two weeks after
order. OEI succeeded in reducing the packaging size to half compared to the previous product,
ML2216.

OEI Unveils Com@WILL® Series Release 6…


OEI unveiled its new lineup for Com@WILL® Series, application software that connects business
applications and communication equipment through OEI's IP telephony server, IP
CONVERGENCE® Server SS9100. The company is releasing the new version as "Com@WILL
Series Release 6," which includes Com@WILL Softphone, which is equipped with OEI's high-
quality video codec, eVideo, thus offering high-definition video in addition to high voice quality.
The codec significantly improves video quality when communicating via video phone and video
conferencing.

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OEI Releases World's Lowest Power Consumption Sound Chip for Mobile Phones, Equipped
with 64 Polyphonic…
OEI released its ML2841, a sound chip equipped with a 64 polyphonic sound generator and an
MP3 decoder. OEI succeeded in reducing the power consumption of long-period MP3 playback on
mobile phones down to 32mW, a decrease of approximately 80% compared to previous products.

OEI Unveils IP Telephony Server with Enhanced IP Centrex Functions…


OEI unveiled its "IP CONVERGENCE® Server SS9100 Release 6"(SS9100 R6),the latest model
in its IP telephony server "IP CONVERGENCE Server SS9100" lineup with enhanced IP Centrex
functions. In addition, OEI adds "Com@WILL® Attendant," a PC-based attendant console to its
product line. The newly released SS9100 R6 includes enhanced functions for IP Centrex systems,
enabling companies to build IP Centrex systems more easily and at lower costs.
OEI Unveils 3D Noise Reduction LSI with built-in FIFO Memory for Imaging Equipment…
OEI announced the launch of two types of 3D noise reduction, high quality image processing LSIs,
the ML87V2107 and ML87V21071, that operate on a 3.3V single power supply. OEI succeeded in
integrating its original FIFO (First-In First-Out) memory and image processing circuit into a single
chip and significantly reducing CCD camera noise in dim light.
OEI Launches CenterStage® NX5000…
OEI launched CenterStage® NX5000, a carrier-grade communication server. The CenterStage
NX5000 provides a world-class IP-based communication server for telecom carriers based on a
general server that would also add various applications for NGN. The new carrier-grade
communication server guarantees high availability and performance suitable for next generation
networks (NGN).
OEI Introduces ARM-Based Microcontroller…
OEI introduced ARM-Based Microcontroller. The controller is an application specific LSI (ASSP),
which integrates all functions necessary in IC card terminals into a single chip. The chip is
equipped with a Modulo Calculation Accelerator necessary in RSA cryptography, and significantly
reduces the encryption/decryption time compared to the conventional method using software.

OEI Unveils Two High-Quality Voice and Video Software Engines…


OEI unveiled two High-Quality Voice and Video Software Engines namely"eSound™" and
"eVideo™." The software engines support triple play communication, delivering excellent video
and voice quality for conversations over full IP broadband networks. OEI would provide the
engines to the telecommunications, digital home appliance, in-vehicle system, and security system
markets, which are increasing their use of IP.

OEI Launches IP CONVERGENCE® Server SS9100…


OEI launched "IP CONVERGENCE® Server SS9100. The server is the latest model in IP
telephony server product line up. The SS9100 R5 increases line capacity up to 20 thousand lines,
and available in the Japanese market. SS9100 is the first IP telephony server that seamlessly links
IP-PBX functions and business applications on Microsoft.NET.

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OEI introduces Display Controllers…
OEI introduced ML86V8208, new Display Controllers. The chip integrates all necessary video
signals into a single chip and conforms to the three world standards for video signals. The chip
includes a video decoder, scaling(*1) functions for small and mid-sized LCDs, and various video
control functions, which are integrated into a single chip that helps to lower the costs for middle
and small size LCDs.

OEI Launches IRISPASS®-M…


OEI launched new IRISPASS®-M, a systems integrator. IRISPASS-M maintains the fully
automatic nature of the previous model while reducing recognition times in half, reducing the false
rejection rate (FRR) and enhancing overall user experience by providing a more intuitive user
interface with built-in voice guidance.

OEI Introduces new 40Gb/s Electro Absorption Modulated Laser…


OEI introduced new OL5157M, a 40Gb/s Electro Absorption Modulated Laser (EML). The
solution reduces the time and cost of customers spending in testing the combination of EA
modulators and amplifiers to convert electric signals into optical signals. Thus, provides an
optimum solution in building a 40Gb/s VSR transmitter for high capacity networks.

OEI Unveils World's First CDM-on-Fiber…


OEI unveiled world's first next generation broadband access network solution. The solution is
developed using OEI’s Code Division Multiplexing on Fiber (CDM-on-Fiber; COF-PON(*1)),
offering bidirectional (on same wavelength) data transmission over 100km Single Mode Fiber
without an optical amplifier.
OEI Launches 32 Polyphonic Sound Generator Chip…
OEI launched world’s first new 32 Polyphonic Sound Generator Chip. The chip is equipped with
prosodies(*2) to play unique traditional instruments widely known in the rapidly growing BRIC
countries. The increasing number of mobile phone subscribers in the BRIC markets, the mobile
phones for these areas is being equipped with sound generator chips for polyphonic ringers

OEI Introduces World's Smallest Low-cost µBOSA chips…


OEI introduced World's Smallest Low-cost µBOSA chips. The company’s silicon lens, a bi-
directional optical communication function is achieved in chip just 2mm square. The chip is used
in the µBOSA module, which is a compact, low-cost, two-way optical subassembly for FTTH,
developed jointly by OEI and Sigma-Links Inc.

OEI Launches Voice Synthesis Chip…


OEI launched new ML2216, a voice synthesis LSI with P2ROM™ (Production Programmed
ROM). Compared to the conventional mask-ROM voice synthesis, programming, delivery time
is reduced to one-third. The company provides chip to manufacturers with consumer and
industry equipment applications such as home digital appliances that require voice guidance
functions.

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OEI Unveils Chinese-Japanese version of Yakushite.Net…
OEI unveiled Chinese-Japanese version of Yakushite.Net., a web-based machine translation system
that enables increased translation precision by letting users register their own dictionary data.
Yakushite.Net is OEI’s web-based machine translation system that creates and manages
dictionaries for each field of interest.

PRODUCT PORTFOLIO

Info-Telecom Systems

Information System
Airport check-in systems; Reservation and ticketing systems for travel agencies, and electronic
government solutions; intelligent transport systems (ITSs); telemetry and telecontrol systems;
underwater acoustic systems; multipoint conference systems; Banking branch systems; integrated
image processing systems; call center systems; automated teller machines (ATMs); remote
branch terminals; cash handling systems; iris recognition systems; Internet payment; Internet
transaction consulting; web site transaction middleware; electronic statement presentment
systems; Enterprise resource planning (ERP); supply chain management (SCM); infrastructure
management (IM); product life-cycle management (PLM); customer relationship management
(CRM); Light-emitting diode (LED) color/monochrome printers; serial impact dot matrix
printers; and LED facsimiles.

Telecommunications Systems
Asynchronous transfer mode switching systems, passive optical network (PON) systems, optical
fiber network equipment, Voice over Internet Protocol (VoIP) systems, private branch exchanges
(PBXs), key telephones, visual communication systems, intra-office asymmetric digital subscriber
line (ADSL) systems, and media convertors.

Computer Telephony Integration (CTI) Systems


Video-on-demand (VOD) servers, personal computer (PC) conference systems, monitoring systems

Electronic Devices
Large-scale integration (LSI) used in mobile communication and other communication devices,
microcontrollers, Bluetooth, production programmed read-only memory (P2ROM), application-
specific memory (ASM) and 4M, 16M and 64M dynamic random-access memory (DRAM),
Optical transceiver modules, gallium arsenide (GaAs) devices, electroabsorption (EA) modulators,
optical communication/transmission modules, high-powered laser modules for measurement, and
laser modules for monitoring light sources.

CTI and VoIP


CTI (Computer Telephony Integration), Ctstage, VoIP (Voice over IP), and Internet Voice
Gateway.

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Telecommunications
IPGW, IPGW Series RPR Switch, and ATN (Aeronautical Telecommunication Network). The
other products offered by the company include Face Communicator, FSE (Face Sensing Engine),
Iris Recognition System Irispass, ITS (Road/Air), Text-To-Speech Synthesis Software, Smarttalk,
and Smarttalk Dll products.

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ONSTAR
400 Renaissance Center, Detroit, Michigan 48265, USA
Phone: 1.888.466.7827
SOURCES: www.onstar.com and other secondary online sources

BUSINESS PROFILE
OnStar, a subsidiary of General Motors Corp., is a leader in providing telematics services. The
company, through over more than five million subscribers, provides in-vehicle safety, security and
information services using Global Positioning System (GPS) satellite and cellular technology, and
wireless technology. The company delivers high-value services that leverage the wireless
vehicle/customer connection to help automotive OEMs, dealers and other partners improves
business performance. OnStar provides a diverse range of services such as remote diagnostic
services; virtual advisor services; wireless service and GPS satellite signals, in-vehicle safety,
security and communication services; emergency services; hands-free calling, and advanced
automatic crash notification service. OnStar’s safety, security, and convenience services include
automatic air bag notification, emergency services, roadside assistance, remote vehicle diagnostics,
remote door unlock, routing, and GM goodwrench remote vehicle diagnostics, point-of-interest
location, stolen vehicle location assistance and hands-free personal calling.OnStar markets its
products in more than 50 GM models, under various brands such as Chevrolet®, Pontiac®,
Buick®, Cadillac®, GMC®, Saturn®, Hummer®, Saab®, Oldsmobile®, Acura®, and Isuzu®.
The company provides a wide range of services throughout the US and Canada. OnStar maintains
partnership with leading public safety and emergency medical organizations including the
Association of Public Safety Communications Officials (APCO); the National Emergency Number
Association (NENA) and the National Association of EMS Physicians.
General Motors Corp., is the world’s largest automaker. General Motors markets its cars and trucks
under various brands such as Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer,
Opel, Pontiac, Saab, Saturn and Vauxhall in 33 countries worldwide.
OnStar was established in 1995 as a merger of GM, EDS and Hughes Electronics Corp.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Partnerships

OnStar Teams Up with American Red Cross…


OnStar teamed up with American Red Cross to provide disaster relief information and assistance to
OnStar subscribers in or near disaster-affected areas. OnStar would also be able to quickly access
the Red Cross online crisis services information to direct OnStar subscribers to open shelters,
feeding sites, and other disaster services. The partnership would allow OnStar to route subscribers
to the nearest shelter with available space; and would also provide more up-to-date crisis response
information to its subscribers.

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OnStar Enters into Partnership with MapQuest…
OnStar entered into partnership with MapQuest, to expand its navigation service. The partnership
would allow OnStar subscribers to plan their driving route on MapQuest.com and send their
destination right to OnStar’s easy to use turn-by-turn navigation service. The new turn-by-turn
service enhancement, OnStar Web Destination Entry, would allow subscribers to conveniently use
MapQuest.com to research and plan their driving destinations with more than 15 million points-of-
interest available through the number one mapping Web site.

Year 2006 in Review…


Product/Service Launches
OnStar Unveils New TTY Compatible In-Vehicle Device…
OnStar unveiled a new TTY compatible in-vehicle device, which would improve accessibility of
OnStar services for deaf, hard of hearing and speech impaired subscribers. The OnStar TTY hardware
is offered at little or no additional cost through the GM Mobility Reimbursement Program for eligible
subscribers. Through OnStar TTY, most in-vehicle services are available including a link to emergency
services, roadside assistance and access to OnStar’s hands-free calling capability.
OnStar Introduces Turn-by-Turn Navigation Service…
OnStar introduced turn-by-turn navigation service, to strengthen its position in Mass market. The
company’s turn-by-turn navigation services include safe, simple interactions; smart, intuitive
system; accessible and affordable navigation; access to OnStar services. The company’s turn-by-
turn navigation service also helps the set of GM cars and trucks in-vehicle telematics areas.

PRODUCT PORTFOLIO
OnStar-Equipped Vehicles
Chevrolet
Avalanche, Cobalt, Colorado, Corvette, Equinox, HHR, Impala, Malibu, Uplander, TrailBlazer
EXT, TrailBlazer, Tahoe, Suburban, Silverado, Monte Carlo, and Malibu Maxx

Pontiac
G6 Solstice, G5 Torrent, Grand Prix Vibe, and Montana SV6

Buick
LaCrosse, Rendezvous, Lucerne, Terraza, and Rainier

Cadillac
CTS, Escalade EXT, CTS-V, SRX V6, DTS, SRX V8, Escalade, STS, Escalade ESV, and XLR

GMC
Canyon, Sierra 1500, Envoy, Sierra Denali, Envoy XL, Yukon, Envoy Denali, and Yukon XL

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Saturn
ION Sedan, AURA, ION Coupe, Outlook, Relay, Sky, and VUE

Hummer
H2 SUV, H3, and H2 SUT

Saab
9-5, 9-3, and 9-7X

Acura
RL, and MDX

Isuzu
Ascender

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ORBITAL - TRANSPORTATION MANAGEMENT SYSTEMS
7160 Riverwood Drive, Columbia, Maryland 21046-1245, USA
Phone: 443-259-7400, Fax: 443-259-7255
SOURCES: www.orbitaltms.com/www.tms-online.com and other secondary online sources

BUSINESS PROFILE
Orbital - Transportation Management Systems (Orbital TMS), a subsidiary of Orbital Sciences Corp., is
a leading provider of satellite-based fleet management and passenger information equipment for the
Intelligent Transportation Systems (ITS) market. The company provides integrated Computer Aided
Dispatch/ Automated Vehicle Location (CAD/AVL) solutions for fixed-route transit as well as non-
revenue vehicle location applications using radio, cellular, and satellite-based communications
networks. The company’s Transit products include Advanced Traveler Information Systems (ATIS),
CAD / AVL, OrbStar Mobile Data Terminal, Public Works and Extended Warranties.
As a world leader in integrated Computer Aided Dispatch/Automated Vehicle Location (CAD/AVL)
solutions, Orbital TMS’ systems are used by more than 60 transportation systems and 27,500 vehicles
throughout the world. Orbital develops and manufactures small space and rocket systems, satellites and
launch vehicles for commercial, military and civil government customers. The company’s products
include satellites and launch vehicles, including low-orbit, geosynchronous-orbit and planetary
spacecraft; remote sensing, scientific and defense missions; ground- and air-launched rockets; and
missile defense systems. The company’s key customers include Capital Metropolitan Transportation
Authority (Austin, TX); Culver CityBus (Culver City, CA); Foothill Transit (West Covina, CA);
Hillsborough Area Transit Authority (Tampa, Fl); Intercity Transit (Olympia, WA); Maryland Transit
Administration (Baltimore, MD); and Pierce Transit (Tacoma, WA).

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Contract
Orbital TMS Signs a $6.2 Million Contract with Pierce Transit…
Orbital TMS signed a $6.2 million contract with Pierce Transit in Tacoma, WA, to provide its
OrbCAD XP Computer Aided Dispatch (CAD) and Automatic Vehicle Location (AVL) system.
Orbital TMS would supply a suite of real-time information and analytical tools to Pierce Transit to
assist the day-to-day management of the 391-vehicle fleet of local, paratransit and demand
responsive bus services. Orbital TMS would integrate wireless Internet connections to more than
forty mobile workstations in the vehicles of Pierce Transit’s supervisors.
Year 2006 in Review…
Contracts
Orbital TMS Receives a $12.5 Million Contract from Capital Metropolitan Transportation Authority…
Orbital TMS received a $12.5 million contract from Capital Metropolitan Transportation
Authority(Capital Metro) in Austin, Texas. Under the contract, Capital Metro utilize Orbital TMS’

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Vehicle Location and Passenger Information Technologies for management of bus, paratransit and
rail fleets. The contract would provide Computer Aided Dispatch (CAD) and Automatic Vehicle
Location (AVL) system known as OrbCAD XP to Capital Metro. The company would also supply
a suite of real-time and analytical tools to Capital Metro to assist in the day-to-day management of
the 526-vehicle fleet of local, express and paratransit bus services, as well as its forthcoming
commuter rail service.

Orbital TMS Receives a $9.7 Million Contract from Westchester County Department of
Transportation (WCDOT)…
Orbital TMS received a $9.7 million contract from Westchester County Department of
Transportation (WCDOT) in cooperation with the Federal Transit Administration and the New
York State Department of Transportation. Under the contract, Orbital TMS would provide its
Computer Aided Dispatch (CAD) and Automatic Vehicle Location (AVL) system, known as
OrbCAD XP. The system would use real-time satellite-based Global Positioning System (GPS)
information to manage WCDOT’s fleet of over 400 fixed-route and support vehicles.

Orbital TMS Receives a $9.2 Million Contract from the Hillsborough Area Regional Transit
Authority…
Orbital TMS received a $9.2 million contract from the Hillsborough Area Regional Transit
Authority(HART) in Tampa, Florida. Under the contract, Orbital TMS would provide its latest
Computer Aided Dispatch (CAD) and Automatic Vehicle Location (AVL) system, known as
OrbCAD XP. The new system is designed to enable HART to operate more efficiently, cost-
effectively and safely, using real-time satellite-based Global Positioning System (GPS) information
to manage its fleet of over 300 fixed route, paratransit and support vehicles.

Orbital TMS Receives a Contract from the Montgomery County Ride On…
Orbital TMS received a contract from the Montgomery County Ride On (Ride On), Montgomery
County, Maryland, to upgrade its current fleet management system. Under the new contract, Ride
On would upgrade its current Computer Aided Dispatch (CAD) and GPS-based Automatic Vehicle
Location (AVL) system to enhance system performance and increase functionality.

Orbital TMS Bags a Contract from Maryland Transit Administration…


Orbital TMS bagged a contract from Maryland Transit Administration (MTA). Under the terms of
the contract, Orbital TMS would provide a Next Vehicle Arrival system for 200 bus stops and
upgrade the MTA’s existing Computer Aided Dispatch and Automated Vehicle Location
(CAD/AVL) for its fleet of 800 vehicles.

PRODUCT ANALYSIS

SmartTraveler Advanced Traveler Information System


SmartTraveler Advanced Traveler Information System (ATIS) provides the traveling public with
accurate, real-time information on a variety of transportation modes. Schedule status and

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transportation related information is displayed on message signs, monitors, kiosks and Internet
devices. The system delivers available schedules; transit information; traffic information; real time
status of buses; trip planning; service changes; special announcements; and points of interest.

OrbCAD
OrbCad is a Computer Aided Dispatch and Automatic Vehicle Location System that allows for a
quicker response time to service disruptions, increased safety and operational efficiency and also
provides guesswork out of scheduling and resource allocation.

Bus Rapid Transit (BRT) solutions


BRT services uses Intelligent Transportation Systems (ITS) technologies to provide a premium
level of service for the public transit system’s customers. The company offers various innovative
solutions for BRT such as traffic signal priority and several types of web-based and stop-based real
time passenger information systems.

OrbStar Mobile Data Terminal


Orbital TMS offers a new mobile data terminal (MDT) features a color screen in addition to touch-
screen functionality and audio turn-by-turn navigational technology. The MDT is ideal for fixed-
route and paratransit vehicle operations.

Products for Public Works


Orbital TMS offers OrbTRAC, AVL product for fleets of public works and service vehicles.
OrbTRAC provides a state-of-the-art, browser-based tracking and management system for state
and local government vehicle fleets. OrbTRAC system tracks the location and status of vehicles
and identifies sections of roadways; and captures and stores data for post-service analysis.

SmartMDT
Smart Mobile Data Terminal (SmartMDT) provides control and logic functions of
communications, manifest scheduling, and data collection.

SmartCount
Orbital TMS offers SmartCount that provides end-to-end transit integration and simplifies the
function of rider ship determination.

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OSI SYSTEMS, INC.
12525 Chadron Avenue, Hawthorne, California 90250, USA
Phone: 310-978-0516, Fax: 310-644-7213

SOURCES: www.osi-systems.com and other secondary online sources Sales


545
2007 Sales: US$ 532.1 million 510
475
2006 Sales: US$ 452.7 million
440
2005 Sales: US$ 385.0 million 405
370
(Fiscal Year Ends in June)
2005 2006 2007

BUSINESS PROFILE
OSI Systems Inc., (OSI) is a global developer, manufacturer and marketer of medical monitoring
and anesthesia systems, security and inspection systems, optoelectronic devices and value-added
subsystems, sub-assemblies and OEM manufacturing services. The company is a vertically-
integrated provider of specialized electronic products for critical applications in the security and
healthcare industries. OSI manufactures X-ray inspection equipment for use in airport screening,
cargo inspection and other scanning applications. OSI manufactures optoelectronic devices to
utilize in a range of aerospace and office products such as printers, weapons sighting systems,
security x-ray scanners and detection / measurement applications.
OSI operates through three business segments namely Security, Healthcare and
Optoelectronics & Manufacturing. OSI's medical unit makes patient monitors, sensors, and
clinical data information systems. The company’s Optoelectronics and Manufacturing
provides specialized electronic components for affiliated end-products divisions, as well as
for applications in the defense and aerospace markets. The company’s key customers include
the Transportation Security Administration, Lockheed Martin, and Honeywell. The company
faces stiff competition from American Science and Engineering, L-3 Communications and
PerkinElmer.
OSI was established in 1987 as Opto Sensors, and acquired the present name in 1997.

DIVISIONAL ANALYSIS

Security
OSI’s Security division designs, manufactures and markets security and inspection systems
worldwide to end users under Rapiscan Systems trade name. The division’s Rapiscan Systems are
used to inspect baggage, cargo, vehicles and other objects for weapons, explosives, drugs and other
contraband, and to screen people. Security Division’s products are also used for the safe, accurate
and efficient verification of cargo manifests for the purpose of assessing duties and monitoring the
export and import of controlled materials. The division offers Rapiscan Systems under four
categories such as baggage and parcel inspection, cargo and vehicle inspection, hold (checked)
baggage screening and people screening.

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Healthcare
OSI’s Healthcare division designs, manufactures and sells medical monitoring and anesthesia
systems worldwide under several brand names. The division markets medical monitoring systems,
network and connectivity solutions, ambulatory blood pressure monitors and related services under
Spacelabs Medical trade name. Healthcare division supplies anesthesia systems and components
under the Blease trade name. The division’s arterial hemoglobin saturation monitors and sensors,
including hand-held and wireless monitoring tools, are marketed under Dolphin brand name and
peripheral bone densitometers and ultrasound bone sonometers are sold under Osteometer brand
name.

Optoelectronics and Manufacturing


OSI’s Optoelectronics and Manufacturing division is involved in designing, manufacturing and
distribution of optoelectronic devices and value-added manufacturing services worldwide. The
division’s products are used in a broad range of applications including aerospace and defense
electronics, security and inspection systems, medical imaging and diagnostics, computed
tomography (CT), fiber optics, telecommunications, gaming, office automation, computer
peripherals and industrial automation. Optoelectronics and Manufacturing division also designs,
manufactures and markets weapons simulation systems under OSI Defense Systems trade name
and toll and traffic management systems under the OSI LaserScan trade name. The division
provides optoelectronic devices and value-added manufacturing services to original equipment
manufacturers, as well as to the company’s Security and Healthcare divisions.

SALES DATA

Annual Sales Comparison: 2005-2007 (In US$ million)

Year Sales % Change


2007 532.1 17.54
2006 452.7 17.58
2005 385.0 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Quarter 2006 2005 % Change


Q4 125.6 100.7 24.73
Q3 108.1 94.2 14.76
Q2 117.1 102.5 14.24
Q1 101.9 87.6 16.32
Total 452.7 385.0 17.58

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Annual Sales Comparison by Business Segment (2007 Vs. 2006) - Security Group,
Healthcare Group, Optoelectronics and Manufacturing Group (In US$ million)

Segment 2007 2006 % Change


Security Group 186.4 135.1 37.97
Healthcare Group 233.2 220.6 5.71
Optoelectronics and Manufacturing Group 150.5 125.9 19.54
Elimination (38.0) (28.9) 31.49
Total 532.1 452.7 17.54

Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Security Group,
Healthcare Group, Optoelectronics and Manufacturing Group (In US$ million)

Segment 2006 2005 % Change


Security Group 135.1 123.2 9.66
Healthcare Group 220.6 195.7 12.72
Optoelectronics and Manufacturing Group 125.9 84.6 48.82
Elimination (28.9) (18.5) 56.22
Total 452.7 385.0 17.58

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – North America, Europe,
And Asia (In US$ million)

Region 2006 2005 % Change


North America 340.5 301.6 12.90
Europe 105.6 69.6 51.72
Asia 35.5 32.3 9.91
Elimination (28.9) (18.5) 56.22
Total 452.7 385.0 17.58

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Contracts

OSI Receives TSA Contract for Testing of Passenger Imaging System…


OSI’s Security division, Rapiscan Systems received an initial delivery order for Passenger Imaging
systems at respective pilot locations and an Indefinite Delivery Indefinite Quantity Contract (IDIQ)
from Transportation Security Administration (TSA). Under the terms of the agreement, Rapiscan

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Systems' Secure 1000 Body Scanner would be deployed at a number of airport pilot locations. The
division would also provide new 620AT X-ray system for the Advanced Technology (AT)
Passenger Carry-On Bag Screening Program.

OSI Receives Orders From U.S. Government…


OSI, through its Security division, Rapiscan Systems received orders from two US Government
Agencies for its Eagle Gantry, Gamma Radiographic Detection Systems (GaRDS) Gantry and
Secure 1000 systems.

OSI Wins Mobile Cargo and Vehicle Inspection Systems Contract…


OSI’s Security division, Rapiscan Systems won a contract from the Hungarian Customs and the
Central Finance Control Unit of the Hungarian Ministry of Finance for providing multiple mobile
Cargo and Vehicle Inspection systems. Rapiscan Systems provides mobile Cargo and Vehicle
Inspection systems utilizing either Gamma Technology or High Energy X-ray. The Rapiscan
Gamma product line provides approximately 170mm - 190mm of steel penetration enabling to
detect hidden contraband, including weapons, explosives, drugs, undeclared goods and weapons of
mass destruction.

Order

OSI Bags Largest International Order of 17 Cargo & Vehicle Inspection Systems…
OSI, through its subsidiary Rapiscan Systems bagged an order from an international customer for
17 Cargo & Vehicle Inspection systems. Rapiscan Systems provides a broad range of scanning
technologies allowing its customers either stand-alone systems or customized hybrid solutions to
optimize scanning performance.

New Facility

Rapiscan Systems Establishes New Headquarters…


OSI’s Security division, Rapiscan Systems established new headquarters in Torrance, California.
The facility represents a 400 percent increase in Rapiscan's U.S. production floor space and enables
the company to more efficiently meet increased market demands for its products and services both
domestically and abroad.

Product Launch
OSI Introduces Two Diagnostic Cardiology Products…
OSI’s Healthcare Division, Spacelabs Healthcare introduced evo Digital Holter Recorder and
Voyager 12-Lead Electrocardiogram (ECG) system. The evo Digital Holter recorder features a
unique Dynamic Energy SourceTM technology that ensures, evo is ready for use on the next
patient, immediately following data download. The recorder also eliminates the need for disposable
batteries. The Voyager 12Ci high-end ECG system supports optimal workflow in high volume
ECG environments.

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FDA Approval
OSI Receives FDA Approval for Diagnostic Cardiology Data Management System…
OSI, through its Healthcare Division, Spacelabs Healthcare received 510(k) clearance from the US
Food and Drug Administration (FDA) for Cardiology Data Management system, Sentinel to
distribute in the US. Sentinel integrates the entire range of non-invasive diagnostic cardiology
solutions including ECG Exercise Testing, 12-Lead ECG, Holter Monitoring, ECG Event
Recording and Ambulatory Blood Pressure Monitoring into one central data management system.
Year 2006 in Review…
Acquisition
OSI Completes Acquisition Of Del Mar Reynolds Cardiology Business…
OSI’s healthcare subsidiary, Spacelabs Healthcare, completed the acquisition of Del Mar Reynolds
Limited and Del Mar Reynolds Medical Inc., (collectively, DMR) representing the Cardiac
Division of Ferraris Group Plc (Ferraris).

Contracts
OSI Secures Contracts for its Multi-View X-Ray System…
OSI’s subsidiary Rapiscan Systems secured multiple contracts from several major undisclosed
international airports. The contract enables Rapiscan Systems to provide Rapiscan MVXR5000
Inline Automated Hold Baggage Screening System (HBS) for the inspection of checked baggage.
The Rapiscan MVXR5000 is designed specifically for the aviation industry for the inspection of
checked baggage. The system provides automated explosive detection with low false alarm rates by
utilizing multi-view (5-view) high quality dual-energy X-ray images with high-class image quality.
OSI Receives a Contract from an International Fortune 500 Medical Equipment Company…
OSI’s Optoelectronics and Manufacturing division, OSI Optoelectronics received a contract from
an international Fortune 500 medical equipment company for the supply of proprietary detector
electronic sub-assemblies for use in an advanced medical CT machine. Under the terms of the
contract, OSI Optoelectronics would manufacture semiconductor photodiodes at its Wafer
Processing Center in Hawthorne, CA, with the final subsystem detector electronic module being
produced through its Norwegian subsidiary, Advanced Micro Electronics AS.
OSI’s Subsidiary Rapiscan Systems Receives Contract from TSA…
OSI’s Security division, Rapiscan Systems, received a contract from the Transportation Security
Administration (TSA). The contract includes TSAs Security Technology Integrated Program (STIP),
orders for Threat Image Projection Ready X-Ray (TRX) systems and peripheral equipment orders.
OSI Receives a Contract from EMSD…
OSI’s subsidiary Rapiscan Systems received a contract from EMSD (Electrical and Mechanical
Services Department), a Hong Kong government agency. The contract includes service and
maintenance of the Dual 9MeV High Energy X-ray Fixed Site system installed at the Lok Ma Chau
border crossing between Hong Kong and China.

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OSI Bags Contract from the US Government Agency…
OSI’s subsidiary Rapiscan Systems bagged a contract from the U.S. Government agency for
providing multiple systems including the relocatable Rapiscan Eagle Gantry and Rapiscan 536
mobile X-ray systems. The systems are to be deployed at multiple border crossings internationally
to provide mobile inspection of baggage, parcels and vehicles for contraband and threat items.

OSI’s Subsidiary Bags a Contract from the U.S. Government Agency…


OSI’s subsidiary Rapiscan Systems bagged a contract from undisclosed US Government Agency to
provide multiple mobile cargo inspection systems. The self-contained, mobile inspection systems
would deploy internationally and utilized to screen trucks, cargo containers and passenger vehicles
for explosive materials and other contraband. Rapiscan Systems deployed numerous Rapiscan
Gamma units to other parts of the United States Government and other government customers
around the world. The Eagle Mobile is a high-performance 4.5 MV X-ray inspection system that
provides approximately 280mm - 300mm of steel penetration to rapidly and accurately inspects
containers and trucks at seaports and land border crossings.

Rapiscan Systems Bags a Contract from MAG…


OSI’s subsidiary Rapiscan Systems bagged a contract from Manchester Airport Group (MAG) for
multiple units of the Rapiscan RTT120 CT system for high speed hold baggage screening (HBS).
As per the contract, Rapiscan Systems would offer the Rapiscan RTT120 CT system that is
designed to screen up to 1,500 bags per hour, or up to 4 times the speed of the currently deployed
certified CT systems in the U.S. airports. The Rapiscan RTT120 utilizes a patented solid-state
design that eliminates the need for a rotating mechanical gantry.

Product Launches
OSI Launches the MCare 300 Low Acuity Patient Monitor…
OSI launched The MCare 300, a stand alone low acuity patient monitor compared to the company’s
successful UltraviewSL patient monitor product line which is fully networked within the hospitals’ IT
infrastructure. The MCare 300 is customized to meet the customer’s specifications for patient
parameters to be monitored. Standard configuration includes 3 and 5 lead electrocardiogram (ECG),
respiration, SPO2, temperature and non-invasive blood pressure monitoring. The monitor utilizes the
same touch screen interface as the UltraviewSL product line and is equipped with internal default
alarms that may be configured for adult, pediatric and neonatal patients.
The product is ideally suited for day surgery centers and also traditional hospitals where the
product could be used as a step down unit bridging the gap between their high-end networked
monitoring systems and stand-alone monitoring.

OSI Launches Advanced Anesthesia System…


OSI’s subsidiary Spacelabs Healthcare Inc., (Spacelabs Healthcare) launched its advanced
anesthesia system, BleaseSirius and UltraviewSL Perioperative Monitoring Suite in the North
American market. The advanced BleaseSirius anesthesia system features advanced ventilation,
enabling clinicians to arrange the ventilator to match both clinical and patient needs with the high

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degree of precision usually associated with Intensive Care. The launch enables Spacelabs
Healthcare to introduce the UltraviewSL Perioperative Monitoring Suite, consisting of a Multigas
Analyzer, Perioperative software and BISx module.
Spacelabs Healthcare is an international developer, manufacturer and distributor of medical
equipment and services including patient monitoring solutions, anesthesia delivery and ventilation
systems, diagnostic cardiology solutions and supplies and accessories selling to hospitals, clinics
and physicians offices.

OSI’s Subsidiary Introduces New Wireless Networking Option…


OSI’s subsidiary Spacelabs Healthcare introduced new wireless networking option for its
UltraviewSL 2400 compact monitors. The new product is designed for various customer
requirements for their ease of use and compatibility with global standards.

PRODUCT PORTFOLIO
Security and Inspection Systems
Security and Inspection Systems are used for the safe, accurate and efficient verification of cargo
manifests for the purpose of assessing duties and monitoring the export and import of controlled
materials. The range includes Baggage and Parcel Inspection Systems, Cargo and Vehicle
Inspection Systems, Hold Baggage Screening Systems, and People Screening Systems.

Medical Monitoring and Anesthesia Systems


The company offers Anesthesia Delivery Systems Vaporizers and Ventilators, Bone Densitometers
and Sonometers, Patient Data and Information Systems, Patient Monitors, Pulse Oximeters and
Sensors, and Stress Testing Systems.

SUBSIDIARIES
Advanced Research and Application Corporation (ARACOR)
Advance MicroEletronic AS (Norway)
Dolphin Medical, Inc.
Ferson Optics (Mississippi)
OSI Defense Systems
OSI Electronics, Inc. (USA)
OSI Fibercomm, Inc. (USA)
OSI Medical, Inc. (USA)
Osteometer Ameritech A/S (USA)
Metorex Security Products
Psychometrics, Inc.
Rapiscan Systems, Inc.
Rapiscan Asia Pvt., Ltd. (Singapore)
Rapiscan Security Products, Inc. (USA)
RapiTec
Spacelabs Medical, Inc.
Silicon Microstructures, Inc.
UDT Sensors, Inc. (USA)
Weapons Systems

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OSI SYSTEMS, INC.'S SUBSIDIARY

RAPISCAN SYSTEMS
3232 W. El Segundo Boulevard, Hawthorne, California 90250, USA
Phone: 310-978-1457, Fax: 310-349-2491

SOURCES: www.rapiscansystems.com and other secondary online sources

BUSINESS PROFILE
Rapiscan Systems (Rapiscan), a subsidiary of OSI Systems Inc., is a leader in security products market. The company
is also a leading supplier of high quality security inspection solutions utilizing X-ray and gamma-ray imaging, and
advanced threat identification techniques such as neutron and diffraction analysis. The company produces security
inspection equipment used in baggage handling operations, cargo inspection, and for screening people at airports,
government buildings, and sea ports. The company’s product line includes metal detectors, explosive detection
systems, and x-ray and gamma-ray imaging systems.
Rapiscan provides X-ray solutions, high energy X-ray systems, GaRDS™ Gamma-ray systems, neutron scanning
technologies, and Metor metal detectors. The company installed over 60,000 products in more than 50 countries.
Rapiscan operates support centers to provide quick responses to new information requests, project management,
systems installation and maintenance, training, and government regulatory support. The company’s top competitors
include Allen-Vanguard, American Science and Engineering, and GE Security.
Rapiscan was established in 1963.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Contracts/Order

Rapiscan Systems Awarded TSA Contract for Passenger Imaging System…


Rapiscan received a contract for Passenger Imaging systems at respective pilot locations and an Indefinite Delivery
Indefinite Quantity Contract (IDIQ) from the Transportation Security Administration (TSA). Under the terms of the
contract, Rapiscan’ Secure 1000 Body Scanner would be deployed at a number of airport pilot locations.

Rapiscan Receives TSA Contract for Passenger Carry-On Bag Screening Program…
Rapiscan received a contract for Passenger Carry-On Bag Screening deliveries at airport pilot locations and an
Indefinite Delivery Indefinite Quantity Contract (IDIQ) from the Transportation Security Administration (TSA). Under
the terms of the contract, the company would provide its new 620AT X-ray system for the Advanced Technology (AT)
Passenger Carry-On Bag Screening Program. Rapiscan 620AT system is designed specifically to detect aviation-based
threats while improving checkpoint operations. The 620AT represents one of the most advanced checkpoint inspection
systems in the world with multiple views and dual energy X-ray sources for material discrimination.

Rapiscan Bags Contract…


Rapiscan bagged contract orders from two undisclosed U.S. Government Agencies for its Eagle Gantry, Gamma
Radiographic Detection Systems (GaRDS) Gantry and Secure 1000 systems. Rapiscan’ Eagle is a high-performance 6
MeV X-ray inspection system that rapidly and accurately inspects containers and trucks at seaports and land border
crossings. The Eagle's high-energy X-ray imaging system produces a high-resolution image of a 20-foot container in
less than 30 seconds. Rapiscan Gamma product line detects hidden contraband, including weapons, explosives,
weapons of mass destruction, drugs and undeclared goods.

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Rapiscan Receives Contract From DHS…
Rapiscan received $3.6 million Phase II contract from the Department of Homeland Security (DHS) for the
development and testing of a next generation system for the screening of cargo and vehicles. The next generation
system utilizes a unique technology to automatically detect and actively identify materials associated with weapons of
mass destruction, such as nuclear weapons and radiological disposal devices (dirty bombs).

Rapiscan Bags a Contract from Hungarian Ministry…


Rapiscan bagged $4.3 million contract for multiple mobile Cargo and Vehicle Inspection systems from the Hungarian
Customs and the Central Finance Control Unit of the Hungarian Ministry of Finance. As per the terms of contract,
Rapiscan provides mobile Cargo and Vehicle Inspection systems utilizing either Gamma Technology or High Energy
X-ray.

Rapiscan Receives Order…


Rapiscan received an order from an undisclosed international customer to provide 17 Cargo & Vehicle Inspection
systems. Rapiscan would also provide a broad range of scanning technologies allowing its customers either stand-alone
systems or customized hybrid solutions to optimize scanning performance.

New Facility

Rapiscan Systems Opens New Headquarters…


Rapiscan opened its new 95,000 square foot headquarters in Torrance, California. The new facility represents a 400
percent increase in Rapiscan's U.S. production floor space. The new facility enables the company to efficiently meet
increased market demands for its products and services both domestically and abroad.

Year 2006 in Review…

Contracts

Rapiscan Receives Contract for Multi-View X-Ray System…


Rapiscan received multiple contracts for its recently introduced Rapiscan MVXR5000 Inline Automated Hold Baggage
Screening System (HBS) for checked baggage. The Rapiscan MVXR5000 is designed specifically for the aviation
industry for the inspection of checked baggage. The system provides automated explosive detection with low false
alarm rates by utilizing multi-view (5-view) high quality dual-energy X-ray images with high-class image quality.

Rapiscan Receives Contract from EMSD…


Rapiscan received a $3.2 million multi-year service contract from EMSD (Electrical and Mechanical Services
Department), a Hong Kong government agency. The contract covers service and maintenance of the Dual 9MeV High
Energy X-ray Fixed Site system installed at the Lok Ma Chau border crossing between Hong Kong and China.

New Facility

Rapiscan Opens Mississippi Manufacturing Facility…


Rapiscan opened a new 10,000 square-foot factory. The new facility would manufacture multiple Rapiscan Secure
1000 and Rapiscan Gamma Radiographic Detection Systems. The Rapiscan Secure 1000 is a non-intrusive personnel
screening system designed to detect metallic and nonmetallic threat objects using Rapiscan backscatter X-Ray
technology.

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PEEK TRAFFIC BV
Basicweg 16, 3821 BR Amersfoort, The Netherlands
Phone: 033 454 1777, Fax: 033 454 1740

SOURCES: www.peektraffic.nl and other secondary online sources

BUSINESS PROFILE
Peek Traffic BV (Peek Traffic), a subsidiary of Peek Traffic Holding BV, specializes in the
development, supply and maintenance of high-quality electronic and software solutions for traffic
and transport problems. The company develops, produces, supplies and maintains innovative
systems for traffic management and mobility stimulation. The company’s product list includes
MVS On-Board Computer; VECOM Compact, Intelligent Bus/Tram Stop System, Intelligent
Roadside System. The company provides standard mobility information services, and Extended
mobility information services.
Peek Traffic also provides reports about the systems' performance, up-to-date traffic data, and the
current status of the road network both in towns and in regions. Peek Traffic’s products and
systems provide solutions for problems with regard to motorways, urban traffic, public transport
and parking. The company’s projects include Traffic Management in Tunnels, DRIS Amersfoort,
DRIS Amstelveen, DRIS Arnhem, DRIS Den Bosch, DRIS Eindhoven, DRIS Hilversum, Croydon
Tramlink, Sacramento, California, USA, and Bucharest Line 41. The company’s subsidiary
includes Peek Traffic Sp. Z o.o (Poland).

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Contract

Peek Traffic Bags Maintenance Contract…


Peek Traffic’s subsidiary Peek Poland bagged four new maintenance contracts for complete
intersections including traffic controllers and signal heads in the area around Cracow. The new
contracts include Myslenice - covering 10 intersections; Jakubowice maintaining 12 intersections;
Bochnia - maintaining 23 traffic lights; and Knurow - a single intersection which was recently
installed by Peek.

Year 2006 in Review…


Agreement

Peek Traffic and PSI Transportation Signs Agreement…


Peek Traffic and PSI Transportation (PSI) signed an agreement to cooperate in the International
Public Transport Market. The cooperation combines the extensive knowledge of PSI and Peek
Traffic to offer the best solutions for public transport in the European market. The cooperation
between PSI and Peek Traffic also offers the opportunity to join forces in the European market.

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Product Launch

Peek Traffic Launches The Utopia…


Peek Traffic launched the new Utopia, an urban traffic control system that balances the needs of
various traffic flows in an objective way.

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PRECO ELECTRONICS, INC.
415 N. Maple Grove Road, Boise, Idaho 83704-8241, USA
Phone: 208-323-1000, Fax: 208-323-1034

SOURCES: www.preco.com and other secondary online sources

BUSINESS PROFILE
Preco Electronics Inc., (Preco) is a global leader in commercial vehicle communications systems.
The company manufactures radar detection systems (PreView), reverse alarms (Bac-A-Larm),
safety lighting (PreMier), and wireless job management systems (PreCise). The company also
designs and manufactures rugged electronic controls, including display technologies for major
OEMs. The company offers a diverse range of products and services including Back-Up Alarms,
Safety Lights, Collision Warning and Information Management. The company’s products are used
in various sectors such as computer, industrial, instrumentation, construction, mining, utility
municipality and transportation markets. The company’s radar detection system, PreView, is the
only detection system in the world. Preco maintains relationship both at the OEM and aftermarket
levels. Preco is the patent holder for the reverse motion alarm, known as the Bac-A-Larm in the
industry. The company’s clients include FedEx and BellSouth.
Preco was established in 1947.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 in Review…


Product Launch
Preco Launches 3000 Series BAC-A-LARM…
Preco launched the small, accurate and reliable 3000 Series BAC-A-LARM ®. The 3000 Series
back-up alarm employs the best technology and design to increase safety, reduce excessive work
place noise, lower cost, and improve quality & reliability. Preco minimizes component movement
and produce a very specific (accurate) decibel level by using acoustic horn amplification in the
sound chamber design. The 3000 Series is available in two models, one with 8-32 UNC terminal
studs and the other with 18 gauge wires.

PRODUCT PORTFOLIO

Back-Up Alarms
Preco BAC-A-LARM, 3000 Series NEW, 6000 Series NEW, 100 Series, 200 Series, 300 Series,
LDA 50, 40 Series, 45 Series, Forward Horns

Safety Lights
LED Lights Direct Replacements, Mini-Bars, Strobe Lights such as Specialty Strobes, 12-24 Volt-
Double Flash - Flush Mount Tail Strobe, 12 Volt - Incandescent Flasher

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Information Management
PreCise Wireless Information Management systems, PreCise product line

Hardware Configurations
Cellular System, IC-101 Module, Wi-Fi SYSTEM, IG-101 Module, GR-100 Transceiver,
Combined Wi-Fi & Cellular System

Other Products
Rotator Lights, Directional Light Bar, Preview Collision Warning, Standard Preview System,
Heavy-Duty Preview, Cellular System, Wi-Fi SYSTEM, PreCise terminals, SAS, PreView
Collision Avoidance System and PreMier safety lighting.

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PROMON SA
Av Pres Juscelino Kubitschek, 1830,CEP 04543-900 São Paulo SP, Brazil
Phone: 55 11 5213 4410, Fax: 55 11 5213 4275

SOURCES: www.promon.com.br and other secondary online sources

2006 Sales: R$ 464.13 thousands


2005 Sales: R$ 438.23 thousands
(Fiscal Year Ends in December)

BUSINESS PROFILE
Promon SA (Promon) is one of the largest systems integrators in Brazil. The company designs,
integrates and implements complex infrastructure solutions for sectors such as oil & gas, power,
process industries, mining, metallurgy, chemical, petrochemical, civil works, telecommunications
and information technology. Promon provides consultant engineering services for infrastructure
projects, primarily focusing on the oil and petrochemical industries. The company specializes in
designing and implementing complex solutions in which engineering accounts for a substantial
proportion of the total content, intense customization is required for each client, and the creation,
consolidation and efficient management of a large supplier network is essential.
Promon provides services encompassing implementation, operation, support and maintenance for
fixed and mobile networks in telecommunication sector. The company develops integrated
solutions for sectors such as telecommunications, banking, energy, and oil & gas. The company’s
portfolio of achievements include an impressive number of major infrastructure projects, from
transportation systems and public works to oil refineries, petrochemical plants, steel mills,
metallurgical factories, manufacturing plants, hydroelectric, thermal and nuclear power plants,
power transmission systems, and landline and mobile telephone networks.
Promon in the electric power sector, completed engineering projects such as a thermal cogeneration
plant implemented under a turnkey contract in consortium with Siemens for Suzano Papel e
Celulose in Mucuri, Bahia. The company operates wholly owned subsidiaries such as Promon
Engenharia, and Promon Tecnologia; and also operates a joint venture with Fundação CPqD and
Cisco Systems, namely Trópico. The company also comprises Fundação Promon de Previdência
Social, Instituto Razão Social and Instituto de Tecnologia Promon.
Promon was established in 1960 as a joint venture between Procon, Inc., and Montreal
Engenharia SA.

BUSINESS OPERATIONS

Promon Engenharia
Promon Engenharia is a leader in the design engineering industry, with a significant presence in
many of the most important Brazilian projects. Promon Engenharia provides value-added solutions
for clients in oil & gas, electricity, mining, metallurgy, steel, chemicals, petrochemicals and civil

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works. Promon Engenharia’s branded products are used in oil refineries, offshore platforms,
thermal, hydroelectric and nuclear power plants, pipelines, electricity transmission systems, steel
mills, chemical and petrochemical plants, traffic systems, and urban transit infrastructure.

Promon Tecnologia
Promon Tecnologia is a leading integrator of telecommunications and information technology
systems. Promon Tecnologia delivered projects to practically all of Brazil’s telecommunications
operators and some of its largest corporations. In telecommunications sector, Promon Tecnologia
provides landline, mobile and cable companies as well as large corporations with services across
the entire operating chain encompassing all stages of a project from planning, conception and
implementation of solutions to operation and maintenance of the infrastructure implemented. In
information technology, Promon Tecnologia assists clients with the integration of multiple systems
and platforms, and with the development of custom software for applications of all types including
systems for operations and business support (OSS/BSS), information security, and storage.

Trópico
Trópico SA, a joint venture between Promon, Fundação CPqD and Cisco Systems. Trópico’s
Vectura product line for voice and data network convergence offers integrated applications in
access infrastructure, call control and advanced service platforms using voice-over-IP technology
(VoIP).

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In R$ thousands)

Year Sales % Change


2006 464.13 5.91
2005 438.23 -

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
New Facility
Promon Opens Technology Institute…
Promon opened a Promon Institute of Technology. Promon Institute of Technology would be
aligned with one of the company’s principal aims, which is to encourage the development of new
technologies for application to value chains in Brazil. The Institute’s core activity would be
discussing and analyzing of emerging technologies and business models, with particular emphasis
on impact and feasibility in three priority areas such as energy, information & communications
technology (ICT), and sustainable development. The Institute also planned to disseminate
knowledge by holding seminars and other events to discuss emerging technologies with an impact
on the future in its priority areas.

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Product Launch

Promon Introduces First Digital Patient Record System…


Promon introduced LifeSensor, the first digital patient record system. LifeSensor® is a web-based
health record system that enables patients to store, manage and view medical history. LifeSensor
could be accessed through a mobile phone or computer with Internet access, viewing and updating
PHR at any time. LifeSensor could be used to organize all medical information and clinical data, as
well as treatments, appointments and test results, in digital format and at a single secure location,
along with any other notes or documents deemed relevant to the patient’s health record.

Year 2006 in Review…

Partnership

Promon and Alvarion Enters into Partnership…


Promon and Alvarion, a global leading provider of wireless broadband solutions, entered into
partnership. Through the partnership, Promon would market wireless broadband solutions with
Alvarion’s WiMAX technology in the Latin American market. WiMAX provides fixed, nomadic,
portable and mobile wireless broadband connectivity without the need for direct line-of-sight to a
base station, let alone a wired connection.

Promon and Openet Forms Partnership…


Promon and Openet Telecom, a leading provider of active mediation, charging and rating solutions
formed partnership. Under the deal, Promon would distribute revenue generating solutions to
wireless, wireline, and cable operators in Latin America.

PT NAVINDO GEOSAT
Menara Sudirman 8th floor, Jl. Jend Sudirman Kav, 60, Jakarta-12190, Indonesia
Phone: +6221 5226528, Fax: +6221 5226517

SOURCES: www.navindo.com and other secondary online sources

BUSINESS PROFILE
PT Navindo Geosat (Navindo) is the leader in GPS based system technology in Indonesia. The
company provides solution for tracking system and GIS (Geographic Information System) based
on GPS technology. The company’s satellite-based navigation system made up of a network of
satellites that accurately determine location anywhere in the world. The company’s technologies
include Navtrac, Navmonitor and Navweb. The company provides vehicle / fleet tracking
solutions, automotive vehicle location (AVL) solutions, heavy equipment tracking solutions and
train tracking solutions including GIS service and asset management services.

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QINETIQ GROUP PLC
Cody Technology Park, Ively Road, Farnborough, Hampshire GU14 0LX, UK
Phone: +44-8700-100-942, Fax: +44-1252-393-399

SOURCES: www.qinetiq.com and other secondary online sources Sales


1175
2007 Sales: £ 1,149.5 million 1100
2006 Sales: £ 1,051.7 million 1025
950
2005 Sales: £ 855.9 million
875
(Fiscal Year Ends in March) 800
2005 2006 2007
BUSINESS PROFILE
QinetiQ Group PLC (QinetiQ) is a leading international defence and security technology company. The
company is a leading provider of research and engineering services in the UK, and the US. The
company develops innovative technology-based solutions and products and provide technology-rich
support services for major government organisations, such as the UK MOD and the US DoD,and for
commercial customers around the world. QinetiQ provides defence, NEC, network interoperability, svg
mapping, ETPS, nanopowders, nanomaterials, GPS, Penetration Testing, computer forensics,
information security training, Digital Investigation, Tarsier runway solution, cerberus, airport security,
s-cat, Integrated Air Command Systems, calibration, and Clinical Trials Services.
QinetiQ is a well-known leader in providing innovative engineering solutions in fields such as
robotics, advanced materials technology and medical devices. The company’s product line includes
integrated legacy weapons systems, advanced robotic systems, port security products, advanced
security systems, and computer systems. The company develops and manufactures defense
technologies in various fields such as aviation, defense, energy, information technology, and space
exploration. The company’s products find applications in various sectors such as military and
aerospace, defense, and other various industrial sectors. In addition to providing security and
technical services, the company licenses some of its technologies to manufacturers. The company
operates manufacturing facilities in Europe and North America. The company’s subsidiaries
include Apogen Technologies, Inc.; Foster-Miller, Inc.; Westar Aerospace Inc.; and Ocean Systems
Engineering Corporation. QinetiQ’s major competitors include BAE Systems, EDS, and Thales.
The company was established in 2001.

BUSINESS OPERATIONS

Defense and Technology


QinetiQ’s Defense and Technology (D&T) provides solutions for the UK defense business. D&T
also provides technology and managed services for supporting armed forces of the UK.

Security and Dual use


QinetiQ’s Security and Dual use (S&DU) specializes in research and development of consultancy
services, technology licensing, specialized products, and support services. S&DU maintains a

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strong relationship with traditional defense and government security customers. S&DU’s major
business fields include Security and intelligence, space, technology and products, managed services
and Ventures.

North America Business Unit


QinetiQ’s North America business unit focuses on the development of defense and security
services in the US sector. The unit offers services with the U.S. Air Force, House Permanent Select
Committee on Intelligence, and as Assistant Secretary of Defense for Command, Control,
Communications and Intelligence (C3I).

ASAP Calibration Services


ASAP provides high-quality, high value for money calibration and equipment support service
throughout the UK.

Graphics Research Corporation Ltd. (GRCL)


GRCL is a provider of naval architecture software, consultancy and research to the UK MoD, MoD
Contractors and Overseas Governments for concepts, design, analysis, simulation and virtual
prototyping.

HVR Consulting Services


HVR provides technical and management consultancy services for the Defence Sector.

Verhaert Design & Development


Verhaert develops advanced small space systems for agencies, large systems integrators and
governments. The unit provides advanced small satellites, advanced space mechanisms and
structures, and instruments and facilities for micro gravity research in manned and unmanned
missions.

QinetiQ Nanomaterials Ltd.


QinetiQ supplies metals, oxides, and other specialist materials.

SALES DATA

Annual Sales Comparison: 2005-2007


(In £ million)

Year Sales % Change


2007 1,149.5 9.30
2006 1,051.7 22.88
2005 855.9 -

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Annual Sales Comparison by Business Segment (2007 Vs. 2006) - Defense and technology,
Security and Dual use, North America and Ventures (In £ million)

Segment 2007 2006 % Change


Defense and technology 657.9 669.6 (1.75)
Security and Dual use 121.4 127.6 (4.86)
North America 358.2 248.4 44.20
Ventures 12.0 6.1 96.72
Total 1,149.5 1,051.7 9.30

Annual Sales Comparison by Geographic Region (2007 Vs. 2006) – UK, North America,
and Continental Europe (In £ million)

Region 2007 2006 % Change


UK 729.9 733.9 (.55)
North America 385.7 268.7 43.54
Continental Europe 33.9 49.1 (30.96)
Total 1,149.5 1051.7 9.30

Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Defense and technology,
Security and Dual use, North America, and Ventures (In £ million)

Segment 2006 2005 % Change


Defense and technology 669.6 664.9 0.71
Security and Dual use 127.6 115.9 10.09
North America 248.4 70.1 254.35
Ventures 6.1 5.0 22.00
Total 1051.7 855.9 22.88

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – UK, North America,
and Continental Europe (In £ million)

Region 2006 2005 % Change


UK 733.9 732.5 .19
North America 268.7 86.9 209.21
Continental Europe 49.1 36.5 34.52
Total 1051.7 855.9 22.88

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STRATEGIC CORPORATE DEVELOPMENTS
Year (2007) in Review…
Joint Venture
QinetiQ Join Forces with Advantage West Midlands…
QinetiQ joined forces with West Midlands to provide access to sensor technology and funding to
develop new commercial opportunities. Sensors are used to detect motion, light, temperature,
pressure, flow and a variety of other properties. The sensors play a vital role in a wide range of
industries including household smoke detectors, vehicle-reversing aids and for ingredients
monitoring in the food processing industry.

Contract

QinetiQ Receives Contract to Supply Mine Counter Measures (MCM)…


QinetiQ, The Atlas-QED consortium, comprising Atlas Elektronik UK, and EDO Corporation
received the MOD research contract to supply a mine counter measures (MCM) flexible agile
sweeping technology (FAST) technology readiness demonstrator (TRD), which would enable
MOD to put a combined influence sweep (CIS) replacement into service using FAST Technology.
Atlas Elektronik UK Ltd., a joint venture between Thyssenkrupp & EADS Defence & Security.

QinetiQ Receives Future Electronic Surveillance Programme Contract…


QinetiQ secured a five-year £9.3 million contract from the MOD's Research Acquisition
Organisation programme to engage with industry and academia and focus on de-risking future
procurement and raising technology readiness levels (TRLs) for the development and exploitation
of advanced Electronic Surveillance (ES) technology.

QinetiQ Gains Contract to use Tornado F3…


QinetiQ gained a £5.5 million contract from the UK MOD to use the Tornado F3 as the alternative
test platform to the Typhoon to support trials for the Beyond Visual Range Air-Air Missile
(BVRAAM – Meteor). As per the contract, the company would provide capability support and
undertake the conversion of two Tornado F3 aircraft to a standard that would ensure the safe
carriage, control and release of the Meteor missile.
Other sub contractors involved in delivering the Meteor development trials programme comprise
BAE Systems Insyte which would handle software modifications to the main computer;
modifications to the AI-24 Foxhunter radar would be implemented by SELEX Sensors and
Airborne Systems; and Flight Refuelling Limited would modify the Tornado eject launcher to
integrate the Meteor missile to the Tornado aircraft systems.

QinetiQ Obtains PECOC Defence Clothing Assessment Contract…


QinetiQ competed and won a 16-month contract, valued at over £3.5m, for the Ministry of
Defence's PECOC (Personal Equipment and Common Operational Clothing) Assessment Phase.

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


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5645 Silver Creek Valley Road, San Jose, California 95138, USA
QinetiQ and a team from MOD group would gain better understanding of possible future
requirements with complete range of fit-for-purpose clothing, load carriage and protective
equipment, including helmets and body armour, across the armed services.

New Facility…
QinetiQ Establishes The Portal…
QinetiQ, in association with The Boeing Company established The Portal, a new decision-support
capability at QinetiQ’s Cody Technology Park site in Farnborough, UK. The state-of-the-art centre
would allow customers to explore and understand implications of proposed network-enabled
systems in a real time, dynamic environment using the latest in modelling, simulation, analysis and
experimentation.
The Portal is a jointly owned asset of Boeing Defence UK Ltd., a wholly owned subsidiary of The
Boeing Company, and QinetiQ.

Product Launch
QinetiQ Launches High Sensitivity Gps Surveillance And Tracking Device…
QinetiQ launched high sensitivity GPS remote surveillance and tracking device, the Ocellus S100.
The S100 is used to monitor the location of vehicles, assets and cargo anywhere in the world and is
able to operate in environments where traditional GPS struggles, such as urban canyons, under
heavy foliage and even indoors, and permits installation in locations where a direct sky view is not
available.
Ocellus is also used for asset and cargo tracking, placed in boxes, on pallets and in trucks.

Year 2006 in Review…

Acquisition
QinetiQ Acquires Hampshire-based Graphics Research Corporation Ltd…
QinetiQ acquired Hampshire-based Graphics Research Corporation Ltd. (GRC). Following the
acquisition, QinetiQ would continue to sell the Paramarine product and associated consulting
services. The acquisition of GRC would enable, QinetiQ to augment its existing base of naval
architecture services.

Collaboration
QinetiQ Enters into Collaboration with Boeing Research and Technology Europe…
QinetiQ’s Air Traffic Management (ATM) team entered into collaboration with Boeing Research
and Technology (BR&TE) Europe to receive a contract from the EUROCONTROL Agency in
Brussels. Under the terms of the collaboration, QinetiQ and BR&TE would review existing and
planned aircraft arrival management tools for air traffic controllers in order to develop concepts for
increasing capacity at European airports.
EUROCONTROL is the European Organization for the Safety of Air Navigation.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Agreement
QinetiQ to Acquire San Diego-based Ocean Systems Engineering Corp…
QinetiQ’s subsidiary, Apogen Technologies signed an agreement to acquire San Diego-based
Ocean Systems Engineering Corp. (OSEC). Under the terms of the agreement, OSEC's custom
software applications, engineering services, and hardware products, combined with Apogen's IT
integration and management expertise, to create a strong, diversified company capable of
enterprise-wide projects. In addition, OSEC would provide software and engineering services to
several US Department of Defense (DoD) customers. San Diego-based Ocean Systems
Engineering Corp. (OSEC), a leading provider of research, design, development, and integration of
advanced information technology systems to major defence agencies.

Contracts

QinetiQ Bags a Contract from MOD…


QinetiQ and Thales UK bagged an initial £1.7m research phase of the decision support system
contract from MOD to investigate and demonstrate innovative ways to assist the operators of
Tactical Air Battlespace Management Systems in identifying, classifying and tracking a variety of
targets. The programme is designed to rapidly assess new technology implementations and
establish an exploitation route to baseline, assess, implement and quantify Decision Support
Systems for existing and future C4ISTAR assets. The main aim of the program is to reduce
operator workload and improve the detection and track capability of airborne C4ISTAR assets.

QinetiQ Wins a Contract from the UK MOD…


QinetiQ, Thales UK, and SELEX Sensors and Airborne Systems (S&AS) won a contract from the
UK MOD to develop world class high performance Thermal Imaging (TI) technology for a wide
variety of military applications. Under the terms of the contract, the new ALBION program would
develop the next generation thermal imaging technology, which offers high resolution, greater
sensitivity, and lower cost than the current second generation technologies. In addition, the ALBION
programme would focuses on providing affordable solutions for advanced military applications.

SERVICE PORTFOLIO
Defense Services
Improving Cabin interiors, Calibrations services, Putting test pilots to the test, Sustainable aviation
for 2020, Automatic Landing for JSF, Future generation of air traffic management, Innovative
materials and systems for modern land operations, Interoperability & Network Enabled Capability,
Communications, Command and Intelligence, Military Radar & Electronic warfare Systems,
Advanced Signal & Image Processing, SeaPort-e, DSEi 2007.

Security Services
Contingency planning, Scenario planning and computer modeling, Information and network
security, Information security training, Asset protection, Secure products, Secure wireless access to
RESTRICTED Networks. National Security & Law Enforcement, Interpreting scans, selecting and

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
training personnel, OptaSecurity intruder detection solutions, CCTV Video Stabilization, High
Sensitivity GPS Tracking, Securing national borders - Borderwatch, X-Net Vehicle Arresting
System, Information Security & Systems Assurance, Transport Security.

Commercial Services
Public Sector
Managed Web Mapping Services, S-Cat, Risk Management, Information Security - Research
Services, Environmental Services, Mobile Information Solutions, 1901 Census.

Transport
Aviation
Runway solutions, Avionics, Cabin systems, Design for manufacture, En route solutions, Facilities,
Identification and tracking, Landing gear, Materials and structures, Material health and condition
monitoring, Passenger and cargo screening, Perimeter security, Propulsion and power, Recruitment
and training, Wireless Communications, Aircraft Engine Exhaust Emissions Databank.

SUBSIDIARIES
QinetiQ Technology Extension Corporation
Foster-Miller, Inc
Westar Aerospace Inc
HVR Consulting Services
QinetiQ Nanomaterials Ltd
CueSim - Simulation and Training
Aurix
Graphics Research Corporation Ltd
ASAP Calibration Services
Verhaert Design & Development
ITS Corporation
3H Technology L.L.C.
Analex Corporation
ComGlobal Systems, Inc.
Apogen Technologies, Inc.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
QUIXOTE TRAFFIC CORPORATION
1637 Kinsmon Lane, Marietta, Georgia 30062, USA
Phone: +1 (770) 649-1940, Fax: +1 (770) 649-1941

SOURCES: www.ustraffic.net/www.quixtraffic.com and other secondary online sources

BUSINESS PROFILE
Quixote Traffic Corp., (QTC) a subsidiary of Quixote Corp., is a leading developer of highly
practical and innovative traffic control products. The company’s product line consists of
Controllers, Cabinets and Accessories, Detection products, Signals, UPS systems, Data Collection,
Tooling, VMS, Signage, Software, Lighting, PCMS, Video, Automated Enforcement and Tech
Tips & Updates.

PRODUCT PORTFOLIO

Controllers
IQ Advance Traffic Controllers

Peek
3000E Series NEMA Traffic Signal Controllers, LMD9200 Series Menu Drive Actuated
Controller, M3000E Series NEMA Traffic Signal Controller System Master

Multisonics
820A OSAM Traffic Controller, OSAM 32 On-Street Arterial Master, 820A VMS Traffic
Controller

Traconex
390CJ Menu-Driven Traffic Controller, TMM-500 Traconex MicroMaster, 170E Microcomputer
Traffic Controller, Matrix 2070 controllers, 170E-SC Microcomputer Traffic Controller, 170E-SC-
HC11 Microcomputer Traffic Controller, 179 Microcomputer Traffic Controller, 412C PROM
Module,

Cabinets And Accessories


Cabinets
Nema, 170 Traffic, CBD, UPS Cabinets

Conflict Monitors
NEMA, 170 and Test Equipment

Modems
LPM-33-E (Low Power Modem)

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Cabinet Power Supply
PS100 Nema TS2 Cabinet Power Supply

Load Switches, Flashers, Relays


200 Load Switch and DVLS Diagnostic Vehicle Load Switch

Detection Products

Shelf Mount Traffic


535B-535T Single Channel Shelf Mount Detector with Optional Timers, 910A/A-SS, 913A/A-SS
Single Channel Detector, 919A/A-SS One Channel w/Timing Functions and AccuCount™Outputs,
921-2/2SS, 921-2T/TSS 2 Channel Detector and 800 Series Detector Harnesses

Rack Mount Traffic


222N-TS2-GP7 2 Channel Detector, 222NT-TS2-GP7 2 Channel Detector with Optional Timers,
224N-TS2-GP7 4 Channel Detector, 224NT-TS2-GP7 4 Channel Detector with Optional Timers,
222/222R 2 Channel Detector, 224CA/CB, 724CA/CB 4 Channel Detector, 224DA/DB,
724DA/DB 4 Channel Detector w/failsafe output, 262C/CR 2 Channel Digital Detector w/timing
functions, 262FC/FCR, 272/R 2 Channel w/Timing Functions, AccuCount™ and Fail Outputs,
262T/TR 2 Channel w/Timing Functions. 272M 2 Channel with Multiplexed AccuCount™ Output,
283LA Dual Channel with Automatic Vehicle Detection on both channels, 292 2 Channel (NEMA
TS-2), 292AC General Purpose Dual Channel - Exceeds NEMA TS-2 specs, 292CC-D 2 Channel
LCD Detector, 292T Feature Enhanced 2 Channel w/Timing - Exceeds NEMA TS-2 Specs and
294T 4 Channel w/Timing - Exceeds NEMA TS-2 Specs

Card Racks/Power Supplies


Custom & Standard Card Racks for Plug-In Modules, Model 201 Regulated Voltage High Current
Power Supply and Models 202/203/204/205 Two & Four Channel Power Supplies
Preformed Loops
Loop Wire, Feeder Cable, Backer Rod, Vehicle Detector Loops and Metal Installation Rollers

AVI
600A LoopComm™ Vehicle Transmitter For Automatic Vehicle ID, 613C/C-SS Single Channel
Digital Loop Detector w/Timing Functions and Multi-Code Automatic Vehicle ID Receiver,
613D/D-SS Single Channel Digital Inductive Loop Vehicle Detector w/Timing Functions and
Single Code Automatic Vehicle ID Receiver and 283LA Dual Channel with Automatic Vehicle
Detection on both channels

Access Control
IQ Access Single Channel Digital Inductive Loop Vehicle Detector With Front Panel Control, 326
Series Single Channel Digital Inductive Loop Vehicle Detector, 625X Single Channel Digital

INTELLIGENT TRANSPORTATION SYSTEMS - A GLOBAL STRATEGIC BUSINESS REPORT 05/08


© Global Industry Analysts, Inc., Phone: 408-528-9966, Fax: 408-528-9977 Page IV-428
5645 Silver Creek Valley Road, San Jose, California 95138, USA
Inductive Loop Vehicle Detector, 436 Series Single Channel Digital Inductive Loop Vehicle
Detector, 919/919A One Channel Digital Inductive Loop Vehicle Detectors With Timing
Functions And AccuCount™ Outputs and 927/929 Single Channel Digital Inductive Loop Vehicle
Detector.

Video Detection
UniTrak (tm) System, VideoTrak (R) Plus System and VDS Camera for VideoTrak and UniTrak
Systems

Test Equipment
ILA-550 Inductive Loop Analyzer and 500 Series Test Equipment

Signals
Model 4094 Solid State Neon Modular Ped Signal, Model 7037 Incandescent Ped Signal
(Walk/Don’t Walk), Model 7090 Incandescent Ped Signal (Hand/Man)m Model 9098 LED Ped
Signalm LED Energy Consumption Data m Model 4102 Z-Crate Series Visors/Door, Clamshell
Mount Ped Signal Hardware, Model LEDP-HMM-001 LED Ped Hand/Man Module, Model
LEDP-HMM-002 LED Ped Hand/Man Module, Model LEDP-HMC-001 LED Countdown Ped
Module, APS-10 Audible Ped Signalm Polycarbonate Pedestrian Signals , Aluminum Pedestrian
Signals, Replacement Parts for Aluminum 8 & 12 inch Signals and Beacons, Replacement Parts for
Aluminum 9in & 12in Ped and Lane Control Signals, Replacement Parts for Polycarbonate 12in
Pedestrian and Lane Control, Signals Replacement Parts for Polycarbonate 8 & 12 inch Signals and
Beacons, Signal Ordering Information, Vehicle Signals and Visors and Lenses

UPS Systems

PowerBack™ Systems
PBM-ITS and PBM Standard Series UPS

Pedestals & Cabinets


BC Series Battery Cabinet For PowerBack UPS, Custom UPS Cabinets and Pedestals, MEUG24-
PB Electric Service Pedestal w/UPS, MEUG24-PB-D Electric Service Pedestal, w/UPS, MEUG35-
PB Electric Service Pedestal w/UPS, MEUG35-PB-D Electric Service Pedestal w/UPS, Power
Transfer Switch Assembly for PowerBack, Manual Bypass Assembly for PowerBack and Type
170/332 and NEMA Installations

Data Collection
ADR-WIM (Weigh-In-Motion), ADR JR Road Tube, ADR1000 Plus (Portable Traffic Counter
Classifier), ADR2000 Plus (Portable Traffic Counter Classifier), ADR3000 Plus (Permanent
Traffic Counter Classifier), ADR6000 (Automatic Data Recorder), Counter Classifier Road Tube
Tester, JR Traficounter, LPM-33-E (Low Power Modem), StopWatch Plus (Real Time Evacuation
Counter Classifier) and Traffic Operations Planning Software (TOPS)

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Tooling
SmartToll (Automatic Vehicle Classification System)

VMS
Variable Message Signs, DMCS Dynamic Message Center System, LED-500-CMS LED Sign
Module - approved by Caltrans and Radar Speed Display Sign

Signage
Street Name Signage, Regulatory Signage

Software
IQ Central, TOPS and CLMATS

Lighting

Tunnel Lighting
Low Profile Tunnel Light – Fl, HID Tunnel Light, and Pedestrian Tunnel Light - Fl and Tunnel
Light w/ wire way – Fl

Area Lighting
Low Pressure Sodium (LPS) Flood Lights and HID Flood Light - 400 watt max.

Specialty Lighting
HID Wall Mtd. Up - Up/Dn - Dn light, Underpass S/S Light – HID, Pedestrian Over-Cross Fixture,
Undertruck Inspection Light – Fl, Linear Featherweight Fluorescent, Linear Weather tight
Fluorescent, Lay-In Mounting, High Humidity Areas – Fluorescent, High Humidity Areas - S/S -
Fl and BET Series

PCMS
Sunray Changeable Message Signs, VuPointe Changeable Message Signs, ER200 Changeable
Message Signs, Arrow Boards & Panels and Radar Trailers

Specialty Lighting
HID Wall Mtd. Up - Up/Dn - Dn light, Underpass S/S Light – HID, Pedestrian Over-Cross Fixture,
Undertruck Inspection Light – Fl, Linear Featherweight Fluorescent, Linear Weather tight
Fluorescent, Lay-In Mounting, High Humidity Areas – Fluorescent, High Humidity Areas - S/S -
Fl and BET Series

Video
UniTrak (tm) System, VideoTrak (R) Plus System and VDS Camera for VideoTrak and UniTrak
Systems

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Automated Enforcement
Automated Red Light Enforcement, Automated Speed Enforcement, Safe Street Camera

Tech Tips & Updates


Vehicle Detector Loop Installation Guide, Installation Instructions for 1700 Series Preformed
Loops, Using HyperTerminal to View and Print MT-180 Test Results, MT-180 Cable Update,
Openers-a reference guide to inductive vehicle loop detection, Battery Options and Run Time
Calculations for PowerBack™ Systems and Battery Maintenance Tips for PowerBack™ Systems.

RAYMAR INFORMATION TECHNOLOGY, INC.


7325 Roseville Road, Sacramento, California 95842, USA
Phone: 916-783-1951, Fax: 916-783-1952

SOURCES: www.raymarinc.com and other secondary online sources

BUSINESS PROFILE
Raymar Information Technology Inc., (Raymar) provides business solutions for all network and
office system needs including servers, PC's, mobile data solutions, printers, terminals, peripherals,
upgrades, support services, and consumables. The company’s product line includes ATL/Routers,
Penril/Analog communication and digital voice and data communications devices for corporate
users, Telcom 21, systems & networks, printers, used equipment, and presentation devices.
Raymar’s data services include desktops and servers, firewalls/gateways, intrusion detection
systems, virtual private networks, virus protection, web content filters, quality of service, server
installations/upgrades, thin client installations, web application acceleration, application execution
control, email/web servers, network consulting/design, network installation, network optimization,
network discovery, network troubleshooting, hardware/software compatibility, remote/on-site
support, help desk contracts, disaster recovery planning, redundant/backup systems, voice/data
circuit sales and rugged mobile data solutions. Raymar provides various services including
installation, network operating system support, network support, hardware maintenance, and
maintenance services contracts.

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RAYTHEON COMPANY
870 Winter Street, Waltham, Massachusetts 02451-1449, USA
Phone: (781) 522-3000, Fax: (781) 522-3001

SOURCES: www.raytheon.com and other secondary online sources

2007 Sales: US$ 10,347 million (H1) Sales


20500
2006 Sales: US$ 20,291 million 19900
19300
2005 Sales: US$ 19,038 million
18700
2004 Sales: US$ 17,825 million 18100
17500
(Fiscal Year Ends in December) 2004 2005 2006

BUSINESS PROFILE
Raytheon Company (Raytheon) is a technology leader specializing in defense, homeland security,
and other government markets throughout the world. Raytheon is one of the world’s largest
providers of Communication, Navigation, and Surveillance/Air Traffic Management (CNS/ATM)
solutions to the military and civil organizations. The company designs, develops, manufactures,
integrates, supports and provides a wide range of technologically advanced products, services and
soultions for governmental and commercial customers across the US and abroad. The company’s
major defense offerings include missile systems (Patriot, Sidewinder, and Tomahawk), radars, and
reconnaissance, targeting, and navigation systems.
Raytheon provides state-of-the-art electronics, mission system integration, and other capabilities in
the areas of sensing; effects; command, control, communications and intelligence systems, as well
as a broad range of mission support services. The company also makes radios, air traffic control
systems and radars, and satellite communication systems. The company also offers commercial
electronics products and services. The company’s products are primarily utilized in the aerospace,
electronics, and various other industries.
Raytheon operates through six principal business segments namely Network Centric Systems
(NCS), Missile Systems (MS), Integrated Defense Systems (IDS), Intelligence and Information
Systems (IIS), Space and Airborne Systems (SAS), and Technical Services (TS). The company’s
strategic business areas are homeland security, precision engagement, missile defense, and
intelligence surveillance reconnaissance.
Raytheon also concentrates on government, commercial electronics, business aviation, and special
mission aircrafts. The company acts as a prime contractor or major subcontractor on numerous
defense and related programs for the U.S. government, which accounted for 84% of its sales in
2006. The company supplies a wide range of automation and surveillance systems to more than 50
countries across the world. Raytheon’s major competitors include Boeing, Lockheed Martin, and
Northrop Grumman.
The company was established in 1922 as The American Appliance Company.

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BUSINESS OPERATIONS
Network Centric Systems (NCS)
Raytheon’s segment, Network Centric Systems, headquartered in McKinney, Texas, develops and
produces mission solutions for networking, command and control, battlespace awareness, and air
traffic management. NCS’ programs include civilian applications, command and control systems,
integrated communications systems, and netted sensor systems. The segment serves all branches of
the United States military, the National Guard, the Department of Homeland Security, the Federal
Aviation Administration, and other U.S. national security agencies, as well as international
customers. NCS serves to provide its customers with unprecedented accuracy, speed, and Common
Decision Engagement Capability.
NCS’ major business areas include Airspace Management and Homeland Security (AMHS),
Command and Control Systems (C2S), Combat Systems (CS), Integrated Communications
Systems (ICS), Precision Technologies and Components (PTC), Raytheon Systems Limited (RSL),
Raytheon Vision Systems (RVS), Thales-Raytheon Systems, LLC (TRS), and JPS
Communications, Inc.

Missile Systems (MS)


Raytheon’s segment, Missile Systems is the world leader in design, development and
production of missile systems. The segment, headquartered in Tucson, Arizona, provides
missile systems for critical requirements, including air-to-air, strike, surface Navy air defense,
land combat missiles, guided projectiles, exoatmospheric kill vehicles, and directed energy
weapons. The core products provided by the segment include AMRAAM, AIM-9X,
Centurion, ESSM, Javelin, ERGM, Excalibur, TOW, SeaRAM, Phalanx, Standard Missile,
EKV, Tomahawk, Paveway, Maverick, HARM, and JSOW.
MS’ business areas include Naval Weapon Systems (NWS), Strike, Land Combat, Exoatmospheric
Kill Vehicle (EKV), and Other (Kinetic Energy Interceptors (KEI), Advanced Missile
Defense/Directed Energy Weapons (AMD/DEW) and Advanced Programs).

Integrated Defense Systems (IDS)


Raytheon’s segment, Integrated Defense Systems is a leader in Joint Battlespace Integration
providing affordable, integrated solutions to a strong international and domestic customer base,
including the U.S. Missile Defense Agency, the U.S. Armed Forces and the Department of
Homeland Security. IDS’ business areas include Future Naval Capability; DDG 1000 Program;
International Operations; Japan Operations; Raytheon Anschütz; Raytheon Australia; Saudi
Arabian Programs; Civil Security and Response Programs; Maritime Mission Systems; National &
Theater Security Programs; and Raytheon Solipsys. IDS’ products find applications in terrestrial,
marine, aerial and spatial systems. The systems are used for the purposes of surveillance,
monitoring, targeting, navigation, commercial and scientific applications.

Intelligence and Information Systems (IIS)


Raytheon’s segment, Intelligence and Information Systems is a leader in technology solutions
drawing on capabilities in signals, imaging weather and environmental data management. IIS,

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
headquartered in Garland, Texas, is a leading provider of intelligence and information solutions
that provide right knowledge at the right time, enabling its customers to make timely and accurate
decisions to achieve mission goals of national significance.
IIS’ solutions include DCGS 10.2; GBS; NPOESS; ARL; Global Hawk Ground; and U-2. IIS
delivers proven intelligence and information solutions to customers in four primary markets:
Intelligence, Surveillance and Reconnaissance (ISR); DoD and Civil Space Systems; Federal IT;
and Homeland Security. The company’s solutions allow customers to achieve mission goals
successfully by transforming data into knowledge.
IIS’ business areas include Strategic Intelligence Systems (SIS), National Systems (NS), Space
Systems (SS), Operational Technologies and Solutions (OTS), Raytheon Information Solutions
(RIS), and Tactical Intelligence Systems (TIS).

Technical Services (TS)


Raytheon’s Technical Services segment, headquartered in Reston, Virginia, provides technology
solutions for defense, federal government and commercial customers worldwide, specializing in
Mission Support—total life-cycle support that predicts customer needs, senses potential problems and
responds proactively with appropriate solutions, as well as homeland security, customized engineering
and manufacturing services and base and range operations. TS also provide lifecycle logistic support to
Raytheon products and systems in the field. TS’ business areas include System and Product Support
Solutions (SSPS), Logistics and Training Systems (LTS), Engineering & Production Support (EPS),
Deport Operations (DO), and Other (Raytheon Australia and Raytheon Polar Services (Raytheon
Polar)). TS’ customers include all branches of the U.S. Armed Forces, NASA, the FAA, the U.S.
National Science Foundation, Department of Energy, the Transportation Security Administration and
other agencies of the Department of Homeland Security, and certain international governments.

Space and Airborne Systems (SAS)


Raytheon’s Space and Airborne Systems segment is a leader in designing and developing
integrated systems for crucial missions. The segment, headquartered in El Segundo, California, is
involved in supporting military and civil customers with focused, forward-looking technology.
SAS’ key capabilities include Airborne radars and processors; Electro-optic/infrared (EO/IR)
sensors; Electronic warfare and precision guidance systems; Active electronically scanned array
(AESA) radars; Space and missile defense technology; and Intelligence, surveillance and
reconnaissance (ISR) systems. SAS’ business areas include Air Combat Avionics (ACA), Strategic
Systems (SS), Precision Attack and Surveillance Systems (PASS), Integrated Airborne Systems
(IAS), Electronic Warfare Systems (EWS), and Other (Advanced Products Center (APC),
Advanced Concepts and Technologies (ACT) and Integrated Technology Programs (ITP)).

Other Businesses
Flight Options LLC (FO)
Flight Options LLC (FO) offers services in the fractional and membership segment in the for hire
jet industry, including programs for ownership shares of new and used aircraft, aircraft leasing and
prepaid hourly membership programs.

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Raytheon Airline Aviation Services LLC
Raytheon Airline Aviation Services LLC (RAAS) manages the long-term orderly wind-down of
Raytheon’s commuter aircraft business, which includes aircraft in inventory, leased aircraft and
notes receivable for financed aircraft.

Raytheon Professional Services LLC


Raytheon Professional Services LLC (RPS) provides integrated learning solutions to commercial
and government organizations worldwide.

Raytheon Technical Services Company LLC


Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC), headquartered in
Reston, Virginia, provides technical, scientific and professional services for defense, federal and
commercial customers worldwide. RTSC specializes in Mission Support, counter-proliferation and
counter-terrorism, base and range operations and customized engineering services.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006


(In US$ million)

Year Sales % Change


2007 10,347 7.41
2006 9,633 -

Half Yearly Sales Comaprison by Business Segment (2007 Vs. 2006) - Integrated Defense
Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems,
Space and Airborne Systems, Technical Services and Others
(In US$ million)

Segment 2007 2006 % Change


Integrated Defense Systems 2,258 2,001 12.84
Intelligence and Information Systems 1,254 1,244 0.80
Missile Systems 2,384 2,106 13.20
Network Centric Systems 1,981 1,671 18.55
Space and Airborne Systems 2,029 2,075 (2.22)
Technical Services 899 916 (1.86)
Other 398 392 1.53
Corporate and Eliminations (856) (772) 10.88
Total 10,347 9,633 7.41

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Annual Sales Comparison: 2004-2006 (In US$ million)

Year Sales %Change


2006 20,291 6.58
2005 19,038 6.81
2004 17,825 -

Annual Sales Comparison by Business Segment (2006 Vs. 2005) - Integrated Defense Systems,
Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space
and Airborne Systems, Technical Services and Others (In US$ million)

Segment 2006 2005 % Change


Integrated Defense Systems 4,220 3,807 10.85
Intelligence and Information Systems 2,560 2,509 2.03
Missile Systems 4,503 4,124 9.19
Network Centric Systems 3,561 3,205 11.11
Space and Airborne Systems 4,319 4,175 3.45
Technical Services 2,049 1,980 3.48
Other 828 781 6.02
Corporate and Eliminations (1,749) (1,543) 13.35
Total 20,291 19,038 6.58

Annual Sales Comparison by Business Segment (2005 Vs. 2004) - Integrated Defense Systems,
Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space
and Airborne Systems, Technical Services and Others (In US$ million)

Segment 2005 2004 % Change


Integrated Defense Systems 3,807 3,456 10.16
Intelligence and Information Systems 2,509 2,334 7.50
Missile Systems 4,124 3,884 6.18
Network Centric Systems 3,205 3,050 5.08
Space and Airborne Systems 4,175 4,068 2.63
Technical Services 1,980 1,987 (.35)
Other 781 675 15.70
Corporate and Eliminations (1,543) (1,589) (2.89)
Total 19,038 17,825 6.81

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STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review

Divestiture
Raytheon Offloads Raytheon Aircraft Company…
Raytheon completed the sale of its wholly owned subsidiary aytheon Aircraft Company (RAC) to
Hawker Beechcraft Inc., a new company formed by GS Capital Partners, an affiliate of Goldman
Sachs, and Onex Partners for approximately $3.3 billion in cash. The sale was first announced on
December 21, 2006. The transaction includes Raytheon Aircraft facilities and other assets in
Wichita and Salina, Kansas; Little Rock, Arkansas; Dallas, Texas; as well as its Fixed Based
Operations (FBO) network across the United States, the United Kingdom and Mexico.
Completing the sale of Raytheon Aircraft Company gives Raytheon further opportunity to invest in
and grow its government and defense business and to deliver value to its shareholders.

Contracts
Raytheon Bags a Contract from the U.S. GSA…
Raytheon bagged an Alliant indefinite delivery-indefinite quantity acquisition contract from the
U.S. General Services Administration’s (GSA) to provide enhanced information technology
solutions and services. Under Alliant, Raytheon would provide infrastructure, application services
and IT management services to support federal agencies. The GSA Alliant contract would be an
essential vehicle for leveraging domain expertise across all Raytheon’s businesses. The Alliant
contract would be managed through the Raytheon IDIQ Service Center, ensuring contract
optimization and efficiency.

Raytheon Wins $75 Million Contract…


Raytheon received a $75 million indefinite delivery-indefinite quantity contract to modify data link
equipment for F-15 fighter aircraft. e Raytheon Technical Services Company LLC would modify
the weapons data link associated with the GBU-15 and AGM-130 weapons programs for frequency
utilization to support the Commercial Spectrum Enhancement Act, which reallocates spectrum
from governmental to commercial users. Under the contract, RTSC would develop, prototype,
qualify, and modify weapons data link equipment at its Indianapolis facility. Hill Air Force Base,
Ogden, Utah, is the contracting activity for the U.S. Air Force Training Frequency Relocation
program.

Raytheon Secures Contract to Equip Australian F/A-18F Super Hornets…


Raytheon received a $24.4 million U.S. Navy contract to equip Royal Australian Air Force F/A-
18F Super Hornets with the ALR-67(V)3 digital radar warning receiver. The contract, representing
the first international sale of the ALR-67(V)3 for the Super Hornet, calls for the delivery of 24
radar warning receivers to the RAAF. Raytheon was recently awarded a contract to provide 55
radar warning receivers plus spares for RAAF F/A-18A+ aircraft as part of the Australia Hornet
upgrade program.

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The ALR-67(V)3 and its new digital technology provide critical capabilities for self-protection of
the F/A-18. The award, a foreign military sale, originated with the Naval Air Systems Command,
Patuxent River, Md. Deliveries under the contract would begin in October 2009 and are expected
to be complete by September 2010.

Raytheon Receives $23.2 Million Contract from the Naval Sea Systems Command…
Raytheon received a $23.2 million contract from the Naval Sea Systems Command to provide
AN/AQS-20A mine hunting sonar engineering services and support. The award exercises an option
on an existing 2005 contract, bringing the total contract value to $139 million. IDS' engineering
services and support would advance the design, development and production of the system's
acoustic and optical sensors through the implementation of pre-planned product improvements and
whole life services and support.

Raytheon Receives $18.5 Million Contract from the U.S. Navy…


Raytheon received an $18.5 million contract modification from the U.S. Navy to provide an infrared
marker upgrade on Hornet and Super Hornet targeting pods, which would enhance F/A-18 ground
operations support. The upgrade would affect Lots 4 and 5 of the Advanced Targeting Forward-
Looking Infrared program. The work would be performed by Raytheon Space and Airborne Systems in
El Segundo, California, and McKinney, Texas. The marker supports ground operations and air-to-
ground missions, allowing F/A-18 pilots to illuminate targets of interest with an infrared designator.

Raytheon Bags $304 Million Contract from the Missile Defense Agency…
Raytheon received a $304 million contract from the Missile Defense Agency to develop advanced
tracking and discrimination capabilities for the Ballistic Missile Defense System (BMDS) forward
based AN/TPY-2 radar. Under the contract, Raytheon is responsible for the development and test
of radar software, various engineering tasks, maintenance and support, infrastructure upgrades and
deployment mission planning. Work would be performed at the company's Missile Defense Center,
Woburn, Massachusetts, and the Warfighter Protection Center, Huntsville, Alabama.

Raytheon Receives $22 Million U.S. Army Contract…


Raytheon received a $22 million U.S. Army contract option to provide 41 Rapid Aerostat Initial
Deployment (RAID) tower systems with remote ground stations to protect U.S. Marine Corps
forces in Iraq. These tower systems are in support of the U.S. Marine Corps Persistent Surveillance
System initiative.
The contract calls for 41 elevated sensor systems, including remote operation capability, with deliveries
beginning in September 2007. Work would be performed at Raytheon Integrated Defense Systems'
Integrated Air Defense Center, Andover, Massachusetts, and at the Warfighter Protection Center,
Huntsville, Alabama. Raytheon Technical Services Company LLC would provide field support.

Raytheon Receives a Contract from the U.S. Air Force to Evolve the DCGS…
Raytheon received a U.S. Air Force contract to develop the next generation of the Distributed
Common Ground System (DCGS) Integration Backbone (DIB). The DIB is an architecture through

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which military analysts and the intelligence communities could collaborate globally, regardless of
their military service affiliation, enabling joint interoperability. The architecture connects disparate
locations and allows users with the appropriate security clearance to access a host of intelligence
sources.
Raytheon first developed the DIB under the DCGS 10.2 contract for the Air Force and delivered
more than 110 units of the software to integrate into their existing and emerging systems. The DIB
delivered to the military services and intelligence community and would soon be fielded at all Air
Force DCGS sites.
The DIB 1.2 updates would extend the baseline architecture to address new requirements for more
widespread sharing of data across enterprise firewalls. The updates would provide expanded event
delivery and notification capabilities using mechanisms such as real simple syndication, or RSS,
and E-mail, with additional enhancements for data retrieval and presentation of results to the user.

Raytheon Secures a Contract from the U.S. Army to Provide Improved AN/PAS-13…
Raytheon secured a 60-month contract from the U.S. Army. Raytheon would begin supplying
improved AN/PAS-13 thermal weapon sights in December 2007, as part of the U.S. Army's
Thermal Weapon Sight II Bridge program. The contact is with the U.S. Army’s Research,
Development and Engineering Command Acquisition Center and covers thermal weapon sights for
the Army and other services.
Initially, Raytheon Network Centric Systems would supply approximately 5,000 systems valued at
more than $60 million. The indefinite delivery-indefinite quantity program is potentially worth
$2.6 billion and could result in the delivery of up to 150,000 improved AN/PAS-13 thermal
weapon sights during the 5-year, firm-fixed-price contract.
The Army's thermal weapon sight program consists of a family of advanced thermal imaging
sensors that perform surveillance and targeting while improving combat effectiveness during day
or night, in zero illumination, or in fog, smoke, dust and sand.

Raytheon Secures $146 Million Contract from the U.S. Navy


Raytheon secured $145.4 million contract from the U.S. Navy for production and enhancement of
its Rolling Airframe Missile program. Nearly $105.5 million would go to the development of
Rolling Airframe Missile Block 2, a kinematic and sensor upgrade to the company's Rolling
Airframe Missile Block 1.
Rolling Airframe Missile Block 2 significantly increases the effective range and maneuverability
through a larger dual-thrust rocket motor and independent four-canard control actuator system. The
Block upgrade program would yield a new level in ship self-protection for the U.S. warfighter as
well as navies throughout the world. Rolling Airframe Missile Block 2 would be compatible with
existing Rolling Airframe Missile launching systems and the SeaRAM Anti-Ship Missile Defense
System.
Rolling Airframe Missile is a joint cooperative program between the United States and Germany.
Rolling Airframe Missile is one of the world's most modern ship self-defense weapons, designed to
provide exceptional protection for ships of all sizes.

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Raytheon Receives $10 Million Contract from the U.S. Army…
Raytheon received a $10.4 million U.S. Army contract modification to provide whole-life
engineering support for the Rapid Aerostat Initial Deployment (RAID) systems protecting U.S. and
coalition forces in Afghanistan and Iraq. Raytheon first developed RAID to meet the Army's
increasing needs for persistent surveillance in Operation Enduring Freedom and Operation Iraqi
Freedom. RAID consists of infrared sensor systems elevated on a stationary platform capable of
detecting hostile troop and/or equipment movement at great distances. The capability enables U.S.
forces to respond rapidly to threatening situations.
The contract calls for total life-cycle support and management for more than 150 elevated sensor
systems, including remote operation capability, through March 2008. By providing whole-life
engineering support, Raytheon ensures that these systems work the first time, every time for the
soldiers deployed in Operation Enduring Freedom and Operation Iraqi Freedom. Work would be
performed at Raytheon Integrated Defense Systems' Integrated Air Defense Center, Andover,
Massachusetts, and Warfighter Protection Center, Huntsville, Alabama.

Raytheon Receives $16.3 Million Contract…


Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC) received a contract
valued up to $16.3 million to provide passenger and baggage screening services at two Florida
commercial airports, Key West International Airport and the Florida Keys Marathon Airport, under
the Transportation Security Administration’s (TSA) Screening Partnership Program (SPP).
RTSC teamed with McNeil Security Inc., a wholly-owned subsidiary of McNeil Technologies, and
the current SPP contractor at the Greater Rochester International Airport, to offer the TSA a
comprehensive screening operations plan. The plan complies with TSA airport security standard
operating procedures and would address the recruiting and retention challenges in the Florida Keys.
The contract would help solidify RTSC's position as a strategic partner and allow the company to
provide Mission Support solutions that enhance homeland security.

Raytheon Receives $93.7 Million Contract from NAVAIR…


Raytheon received a $93.7 million Naval Air Systems Command (NAVAIR) contract to develop
the Joint Standoff Weapon (JSOW) AGM-154C1 (formerly JSOW Block III). The new JSOW
variant -- scheduled to be produced in 2009 -- would provide U.S. Navy warfighters with a
capability against moving maritime targets.
The contract award represents a major step forward in providing the Navy fleet pilots with much-
needed capability against moving ship targets. The new JSOW variant includes updated seeker
algorithms designed to hit moving targets.
JSOW, a joint Navy and Air Force program, is a family of low-cost, air-to-ground weapons that
employs an integrated GPS/Inertial Navigation System that guides the weapon to the target.

Raytheon Receives $10.1 Million U.S Army Contract…


Raytheon received a $10.1 million U.S. Army contract option to provide 16 Rapid Aerostat Initial
Deployment (RAID) Tower Systems with Base Defense Operation Centers to help protect U.S. and

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coalition forces in Afghanistan and Iraq. The contract calls for 16 elevated sensor systems,
including remote operation capability, with deliveries beginning in June and ending in September
2007.

Raytheon Receives $59 Million Contract for CEC Program…


Raytheon received a $59 million contract for work on the Cooperative Engagement Capability
(CEC) program. The Naval Inventory Control Point contract provides logistics support for CEC
USG-2 shipboard equipment sets to include supply, repair and life cycle support.
CEC provides robust capability to naval air and missile defenses by distributing force level sensor
and weapons data in a new and significantly different manner. CEC pools high quality tracking
data from participating sensors and distributes the data to all others in a filtered and shared state.
The result is a powerful and detailed air picture based on all sensor data available that provides
early detection and more consistent tracking of air contacts.

Raytheon Receives $14.5 Million Contract for Global Broadcast Service…


Raytheon received a $14.5 million contract for the Global Broadcasting Service (GBS) from the
U.S. Air Force's Electronic System Center, Hanscom Air Force Base, Massachusetts. Raytheon
would build 59 Army receive suites and 69 Air Force Internet protocol receiver suites that would
provide theater commanders the ability to receive theater-specific command and control
information in a timely manner.
GBS is a high bandwidth data broadcast system designed to carry heavy multimedia files to users
worldwide, freeing up local networks from bandwidth intensive files. GBS is a proven
communications tool for the military, providing key technology expertise to the Air Force. The
system provides the warfighter an operational picture in near real-time.

Raytheon Bags a Contract from DARPA…


Raytheon bagged a two-year, $7.5 million contract from the Defense Advanced Research Projects
Agency (DARPA) to develop an improved composite material for infrared windows and missile domes.
The Phase 1 contract is being performed for the Office of Naval Research as part of DARPA's
Nano-Composite Optical Ceramics program. The objective is to develop a processing method for
the manufacture of infrared transparent missile domes capable of higher speed operation and
greater particle impact resistance than sapphire, the current material.

Raytheon Secures $144 Million Contract for Patriot Engineering Services…


Raytheon secured a $144 million contract modification from the U.S. Army Aviation and Missile
Command to provide engineering services for the Patriot Air and Missile Defense program. The
contract embodies the U.S. Army’s Air and Missile Defense visionary commitment for a cost-
effective approach to systems enhancements and capabilities.
Raytheon Integrated Defense Systems (IDS), prime contractor for Patriot, manages the contract.
Patriot engineering services provide both the U.S. Army and its international partners with
revolutionary improvements to the Patriot system.

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Raytheon Bags $38 Million Contract for EIS in Iraq…
Raytheon bagged a $38 million option year U.S. Army contract for its ongoing efforts in the
design, development, installation and maintenance of state-of-the-art command and control,
communications and computing (C4) facilities in Iraq. The contract is awarded primarily for the
operation and maintenance of existing facilities, engineering and installation of new services,
network information assurance, and logistics support services.
The award is the fifth contract awarded to Raytheon for communications and information systems
infrastructure. The contract is also the first option exercised to Raytheon for its communications
technology solutions that include classified and unclassified network data, network management,
information assurance, communications security management, system administration, video
teleconferencing, and help desk/customer support.
Raytheon, teamed with the Maryland-based DRS Technical and Management Service Corporation,
recently received top marks on an Army performance assessment report. The essential C4
capabilities provided under the contract range from the MNF headquarters location to the zone
around the U.S. Embassy and enclaves throughout the International Zone, as well as outlying bases
throughout Iraq and elsewhere in the field.
Raytheon Wins $14 Million Award for Radio Communications System…
Raytheon won an initial $14 million contract through the U.S. government to supply 650 Enhanced
Position Location Reporting System or EPLRS, networked data radios to the Department of
National Defense of Canada. With EPLRS, military forces could leverage extensive on-the-move
networking capabilities for enhancing situational awareness and command and control capabilities
when supporting joint missions with U.S. forces. With more than 16,000 radios currently fielded
across all four U.S. Armed Services, EPLRS provides the largest integrated tactical data network
for today's highly mobile fighting force.
The Canadian version of EPLRS is fully interoperable with U.S. systems. The Canadian version of
EPLRS also offers extended networking capabilities from a wider range of frequency channels,
providing additional situational awareness to soldiers. EPLRS systems are deployed on a variety of
vehicular and airborne platforms.

Raytheon Wins a $84.6 Million to Upgrade Satellite Communication Terminals…


Raytheon won an $84.6 million contract to produce upgrade kits for its Secure Mobile Anti-jam
Reliable Tactical Terminal, or SMART-T, for the U.S. Army and Marine Corps, and Canada and
the Netherlands. The Advanced Extremely High Frequency (AEHF) kits expand by a factor of four
times the data rate of existing SMART-T systems.
The Army's SMART-T is the first AEHF system to go into production with the proven capability
to communicate with the next generation of AEHF communications satellites. AEHF is the
Department of Defense's primary system to provide highly protected satellite communications
through 2020.
The AEHF upgrade incorporates Raytheon's eXtended Data Rate (XDR) waveform hardware and
software modifications, a technological breakthrough in protected communications. The new XDR

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waveform provides users with increased bandwidth, enabling tactical military communications
such as real-time video, battlefield mapping and targeting data.

Raytheon Receives $1.9 Million Contract for Research on Advanced RF…


Raytheon received a $1.9 million option to develop a low-cost receiver-on-a-chip as an add-on to a
two-year, $4.1 million contract with the Office of Naval Research (ONR). The purpose of the
research contract is to develop affordable, advanced multifunction radio frequency components
using low-cost silicon technology.
Raytheon's work on low-cost, advanced multifunction radio frequency components is being
performed at IDS centers in Tewksbury and Sudbury, both in Massachusetts, and at Raytheon's
Space and Airborne Systems Advanced Product Center, Dallas, Texas.

Raytheon Bags a Contract to Produce Missile Launchers for U.S. Navy…


Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC) bagged a $10.7
million contract to produce missile launchers in support of the U.S. Navy's F/A-18 E/F and EA-
18G aircraft. The LAU-115 and LAU-116 launchers provide the structural and electrical interfaces
that allow the aircraft to carry and launch missiles such as Sparrow, Sidewinder and AMRAAM.
Under the contract, RTSC would produce, assemble and test the launchers at its Indianapolis
facility. The award follows similar production awards in 2004 through 2006. The Naval Air
Systems Command, Patuxent River, Maryland is the contracting activity.

Raytheon Wins a 10-Yr Logistics Contract for Improved Target Acquisition System…
Raytheon received an initial contract funding of $11.7 million from the U.S. Army Aviation and
Missile Systems Command, Huntsville, Alabama, for contractor logistics support for the Improved
Target Acquisition System, or ITAS. The ten-year firm-fixed-price contract, valued at more than
$300 million, continues contractor logistics support for the Army and marks the start for the
Marine Corps.
The contract requires Raytheon's Network Centric Systems (NCS) business to provide worldwide
logistics support to Army and Marine Corps TOW (tube- launched, optically-tracked, wire-guided)
weapon system operations at garrison locations, training centers, and in combat operations. The
contact also includes performance-based financial incentives that require Raytheon to maintain
system operational readiness rates at or above 90 percent. The ITAS contractor logistics support
program is managed out of Raytheon's McKinney, Texas, facility with field service representatives
provided at customer-specified locations around the world, including Iraq and Afghanistan.

Raytheon Receives a Contract for Terminal High Altitude Area Defense Radar…
Raytheon received a $212 million contract from the Missile Defense Agency for the manufacture,
delivery and integration support of one Terminal High Altitude Area Defense radar, also called
the AN/TPY-2 radar. The AN/TPY-2 radar, a high-power, transportable X-Band radar designed
to detect, track and discriminate ballistic missile threats, plays a vital role in the Ballistic
Missile Defense System, protecting the U.S., deployed forces and allies from ballistic missile
threats.

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The award underscores the Missile Defense Agency's confidence in Raytheon's ability to deliver
affordable, advanced sensor capabilities to meet the Ballistic Missile Defense System mission. Under the
terms of the contract, Raytheon Integrated Defense Systems would manufacture one AN/TPY-2 radar.
Raytheon Bags $41.4 Million Contract for LPD 25…
Raytheon received a $41.1 million contract to provide the initial planning and acquisition of
electronic systems onboard LPD 25, the ninth ship in the LPD 17 class. The LPD 17 class of the
U.S. Navy's amphibious ships is designed as an expeditionary warfare support platform and serves
as an operations base for elements of the Marine expeditionary forces, including troops,
helicopters, vertical takeoff and landing aircraft, advanced amphibious assault vehicles, air-
cushioned landing craft, and support equipment.
The award by Northrop Grumman, the LPD 25 ship builder, is an option from an existing
subcontract that was awarded to Raytheon in June 2006. The latest option enhances Raytheon's
ability to execute the planning and delivery of multiple ship systems, enabling Raytheon to
continue to provide reliable solutions for the LPD 17 class of ships.
Under the option, Raytheon would perform up-front system design, hardware and software
development, engineering, and test and evaluation to support total ship electronics systems
integration. Raytheon is also the prime contractor for life-cycle engineering and support of
Raytheon-designed and developed equipment for the LPD 17 class of ships. LPD 25 would include
Raytheon's Ship Self Defense System Mk 2 open architecture combat management system, which
incorporates total ship computing engineering infrastructure developed for DDG 1000.

Raytheon Receives $60 Million Contracts for Standard Missile-1 Support Services…
Raytheon received two contracts to perform support services for the Standard Missile-1 (SM-1)
program for international customers. The most recent contract, valued at $29 million, includes
missile assembly, testing and delivery for the governments of Spain and Egypt. The countries
serviced under the contract are France, Japan, Turkey, Bahrain, Poland, Italy and Chile. SM-1
support work would be performed in Tucson, Arizona, Camden, Arkansas, and Sacramento,
California. These contracts demonstrate Raytheon’s continued commitment to provide its
customers with lifetime mission support.
Year 2006 in Review
Acquisition
Raytheon Acquires Virtual Technology Corporation…
Raytheon acquired Virtual Technology Corporation (VTC), a leading developer of joint, net-enabled
command and control and modeling and simulation solutions (M&S). The acquisition would enable the
company to expand its position in net-centric operations and mission system integration.

Contracts
Raytheon Signs a Contract with Turnpike Enterprise…
Raytheon secured a contract, valued at about $230 million, for supply of electronic toll collection
systems to the State of Florida. The contract is slated for a period of ten years, and for execution of

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the same, Raytheon would be partnering with Florida’s Turnpike Enterprise (FTE). The contract
entails presence of open road tolling technology, central processing and audit system, and 835
lanes of toll equipment, which would all be supplied by Raytheon.

Raytheon Bags a Contract for Multi-Function Color Display Systems…


Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC) received a $16
million contract under the Advanced Technology Support Program III for the development and
limited production of 85 Multi-Function Color Display (MFCD) systems. These units would
upgrade A-10A aircraft used by the U.S. Air Force Reserve and Air National Guard, providing
aircraft with enhanced situational awareness capability and network connectivity. Work would be
performed at RTSC's Indianapolis facility.
As a form-fit replacement for the current television monitor, the MFCD provides pilots with
additional situational awareness and improved control of the A-10A targeting pod along with
improving the image quality from the pod. The Multi-Function Color Display provides the
battlefield networking capability that enables the pilots to identify friendly locations more readily,
reducing the potential of fratricide incidents. By displaying sensor imagery at the maximum
recognition range, the MFCD also allows the A-10s to operate effectively from a safer distance,
contributing to increased aircraft survivability.

Raytheon Receives $12.5 Million U.S. Navy Contract for Torpedo Services and Support…
Raytheon received a $12.5 million contract from Naval Sea Systems Command for technical
engineering, repair and maintenance services in support of the MK48 Advanced Capability
(ADCAP) heavyweight torpedo. Raytheon Integrated Defense Systems (IDS) is the U.S. Navy's
prime production supplier of light and heavyweight torpedoes and leads operations of the
company's Heavyweight Torpedo Intermediate Maintenance Activity (IMA) in Pearl Harbor,
Hawaii, a facility dedicated to torpedo evaluation, test and maintenance.
With the contract, Raytheon continues to demonstrate its ability to work synergistically with the
Navy torpedo to efficiently and cost effectively support its domestic and international torpedo
programs. Raytheon continues to build on its strong partnership with the U.S. Navy, working
together to develop and produce the world's most affordable and reliable torpedoes for U.S. and
allied fleets.
The award is a contract modification reflecting an exercised one-year option that was included in
the original technical services contract awarded in April 2006. Under the contract, IDS would
perform intermediate-level maintenance, repair and refurbishment of MK48 ADCAP torpedoes
currently in the U.S. Navy's fleet inventory of training and warshot torpedoes. Work on the contract
would be performed in Pearl Harbor, Hawaii, Yorktown, Virginia, and Poulsbo, Washington.

Raytheon Receives $2.5 Million to Develop Training Course for U.S. Navy Submarine Learning
Center…
Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC) received a $2.5
million task order under an existing U.S. Navy contract to develop curriculum for the Submarine

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Learning Center (SLC). Raytheon would produce web-based courseware for journeyman and
master fire control technician training. The materials would be designed for self-paced delivery in
an integrated learning environment.
Under the task order, which would bring the total value awarded to Raytheon on the contract
vehicle to more than $10 million, Raytheon would produce more than 180 hours of scenario-based,
interactive multimedia instruction. The curriculum would provide enhanced training for personnel
assigned to fleet and ashore units consistent with the Navy’s Sea Warrior human capital
development strategy, a key pillar of its Sea Power 21 initiative.

Raytheon Receives $161.8 Million Contract for Production of TOW ITAS Precision Guidance
Systems
Raytheon extended its production and delivery of Improved Target Acquisition Systems (ITAS)
under a $161.8 million contract from the U.S. Army Aviation and Missile Command, Huntsville,
Alabama. The order marks the second major ITAS contract award in 2006 and continues U.S.
Marine Corps and U.S. Army procurement of the systems.
ITAS is the advanced Electro-Optic Target Acquisition Fire Control System. ITAS guides the
TOW (Tube-Launched, Optically Tracked, Wire-Guided) weapon systems to their targets with
surgical precision.

Raytheon Receives Homeland Security Contract to Produce Aviation Risk Analysis System…
Raytheon bagged a contract from the Department of Homeland Security (DHS) to produce the
Advanced Route Evaluation System (ARES) that would perform risk analysis on aviation routes to
help planners determine the best routes for aircraft to use during an emergency. The ARES
contract, awarded under the Rapid Technology Application program (RTAP), is valued at $1.9
million.
ARES would help DHS and other government users better align and deploy critical resources and
manpower to protect national assets.

Raytheon Wins a $12.8 Million Contract for Missile Launcher Production…


Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC) bagged a $12.8
million contract to produce LAU-115 and LAU-116 missile launchers in support of the U.S. Navy's
F/A-18 E/F aircraft. The launchers provide the structural and electrical interfaces that allow the
aircraft to carry and launch missiles such as Sparrow, Sidewinder and AMRAAM. Under the
contract, RTSC would produce, assemble and test the launchers at its Indianapolis facility. The
Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Raytheon Receives $36 Million Contract for Radio Communication Systems…


Raytheon received a $36 million firm-fixed price contract to supply the Army with 746 multi-band,
multi-mission radios. The radio is used as a satellite communications system that provides
warfighters with enhanced voice and data capabilities for long distance (beyond line of site)
communications. Designated the AN/PSC-5D, the radios meet the increasingly important need for

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mobility, flexibility and connectivity in a single system. The contract includes 432 vehicular
satellite communications-on-the-move kits to transition the radios from manpack to vehicular
configurations.

Raytheon Secures $26.7 Million Life Cycle Engineering and Support Contract…
Raytheon secured a $26.7 million contract modification from Naval Sea Systems Command
exercising an option for life cycle engineering and support on the LPD 17 class, the U.S. Navy’s
next generation of amphibious warfare ships. The contract reinforces Raytheon's commitment as a
full service provider to its U.S. Navy customer.
Under the contract, Raytheon would establish integrated support services for sustainment of the
complete shipboard mission systems suite that the company delivers to the class of ships.

Raytheon Wins a $3.7 Million Contact from the TSA…


Raytheon won a $3.7 million contract from the Transportation Security Administration (TSA) to
develop an aviation security enterprise management solution. RTSC would manage Phase 1 of the
TSA's Security Technology Integrated Program (STIP) initiative, to include developing, integrating
and testing commercial off-the-shelf and custom software used to exchange data with the Threat
Image Projection (TIP) Ready X-ray (TRX) systems. The enterprise management solution would
communicate data and images to approximately 1,200 TRX systems fielded at 80 airports across
the country. RTSC would also be responsible for training and support.

Raytheon Receives $112.9 Million Production Contract for AMRAAM…


Raytheon received its first production award in the amount of $112.9 million for the AIM-120D
configuration of the Advanced Medium-Range Air-to-Air Missile (AMRAAM). The contract
supplements the Lot 20A effort awarded in February 2006 and, in addition to funding AIM-120C7
missiles, the contract includes the first production deliveries of AIM-120D missiles from
December 2007 through January 2009. The two Lot 20 contracts combined total $168 million.
Production and delivery would support the U.S. Air Force, Navy and Army.
AIM-120D is an enhanced capability missile that includes enhanced data link, improved
kinematics and GPS Inertial Measurement Unit capability, developed to meet the changing
technology and battlespace requirements of the warfighter.

Raytheon Bags a $16 Million Contract for Multi-Function Color Display System…
Raytheon’s subsidiary, Raytheon Technical Services Company LLC (RTSC) bagged a $16 million
contract under the Advanced Technology Support Program III for the development and limited
production of 85 Multi-Function Color Display (MFCD) systems. These units would upgrade A-
10A aircraft used by the U.S. Air Force Reserve and Air National Guard, providing them with
enhanced situational awareness capability and network connectivity.

Raytheon Receives $20.7 Million Contract for Towed-Decoy Production…


Raytheon received a $20.7 million contract for continued production of its ALE-50 line of towed
decoys. The award represents the 10th production lot of ALE-50 equipment ordered for the U.S.

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Air Force and U.S. Navy as part of an original contract that began in December 1996. The Lot 10
contract calls for 862 decoys for the Air Force and was awarded by the 542nd Combat Sustainment
Group, Warner Robins Air Logistics Center, Ga. Equipment acquired by the Lot 10 award would
be delivered through September 2008. Towed decoy systems provide enhanced aircraft
survivability by acting as a preferential target for many types of missile threats.

Raytheon Bags $200 Million U.S. Army Contract for Air Traffic Management Systems…
Raytheon received a U.S. Army contract to provide the U.S. Army and U.S. Marine Corps with an
immediate forward deployed tactical air traffic control capability that would allow for faster
deployment to any location at any time. The Army exercised the first production option for $36
million, which includes the manufacture, test, and delivery of four ATNAVICS and technology
refresh of key system components.

Raytheon Receives a Contract from the DHS….


Raytheon received a contract from the Department of Homeland Security (DHS) to develop, and
produce the advanced Spectroscopic Portal (ASP) nuclear detection capability. Under the contract,
the company would provide prime program management, engineering, development,
manufacturing, field support and research and development for future systems improvements.
ASP’s are panel-like devices that contain detectors used to screen people, cars, trucks and
containers for illicit radioactive materials at over 600 ports of entry into the US.

Raytheon Bags a Contract from the Global Positioning System (GPS)…


Raytheon bagged a contract from the Global Positioning System (GPS) Joint Program Office at the
US Air Force Space and Missile Systems Center to design advanced global positioning receivers.
The company also received an additional contract to complete development and fabricate pre-
production receiver cards for test and integration in host systems.

Raytheon Receives Satellite Communications Contract for Mission Support Services…


Raytheon received a five-year, contract for ongoing mission support for over 300 systems. As part
the contract, the company would maintain and upgrade the SATCOM terminals, and keep the
terminals in service throughout the life. The company's mission support services include
maintaining and upgrading software and hardware components, providing technology upgrades,
and delivering filed support.
Raytheon Bags a Radar Equipment Contract for Australia's Air Warfare Destroyer…
Raytheon bagged a US Navy contract for the advanced procurement of radar equipment for the
Royal Australian Navy's Air Warfare Destroyer (AWD). Under the contract, Raytheon Integrated
Defense Systems (IDS) would provide system transmitters, associated hardware and spares for
AN/SPY-1D (V) radar for the first three Australian ships.
Raytheon Receives a Contract from the DHS…
Raytheon received an indefinite-delivery, indefinite-quantity contract to provide IT services to
Department of Homeland Security (DHS) under EAGLE, the Enterprise Acquisition Gateway for
Leading Edge Solutions.

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Raytheon Signs an Outsourced Learning Services Contract with Isuzu Motors…
Raytheon’s subsidiary Raytheon Professional Services LLC (RPS) and Isuzu Motors America Inc.,
(Isuzu Motors) signed a contract for outsourced learning services. Under the contract, RPS would
design, develop and deliver technical and fixed-operations training to Isuzu Motors’ service
personnel at SUV dealerships throughout the US. The company would also implement a
certification program with Web-based assessments for fixed operations personnel.

Raytheon Receives a Contract to Support the U.S. Navy Satellite Communications System…
Raytheon’s subsidiary Raytheon Technical Services Company LLC (RTSC), received a contract to
provide logistics support for the USC-38 satellite communications system. Under the five-year
performance based logistics (PBL) contract, RTSC would provide Mission Support to the Navy's
Extremely High Frequency Satellite Program (NESP) AN/USC-38 (V) equipment, including
engineering and maintenance; materials and services to evaluate, test, repair, modify, package and
ship systems assets; and spares and repairs support. RTSC provides technology solutions for
defense, federal and commercial customers throughout the world.

Raytheon Receives Contract to Manufacture Radar Warning Receivers


Raytheon received a contract from Warner Robins Air Logistics Center to manufacture ten ALR-
69A(V) radar warning receiver systems, an upgraded system of the company’s ALR-69(V) systems
installed on MH-53, A-10, F-16 and C-130 aircraft of the US Air Force. The new systems
delivered by the contract would be installed and tested on selected airborne platforms.

PRODUCT PORTFOLIO

Integrated Defense Systems (IDS)


IDS’ product and service portfolio includes Advanced Spectroscopic Portal (ASP); AEGIS
Programs; AirWatch; Air and Missile Defense (AMD) Family of Fire Distribution Centers (FDC);
Advanced Infrared Tracking Adjunct System (AIRTAS); AN/AQS-20 Minehunting Sonar System;
AN/AQS-22 ALFS (Airborne Low Frequency Sonar); AN/BYG-1(V) Submarine Combat System;
AN/SPS-49 Series Very Long Range Air Surveillance Radar; AN/SPS-73 Surface Search Radar;
AN/SQQ-32 Minehunting Sonar System; Army Air and Missile Defense: Enabling Full Spectrum
Dominance for the Objective Force; Athena Multi-Domain Awareness System; DDG 1000 Dual
Band Radar (DBR); DDG 1000 MK 57 Vertical Launching System; First Responder's Airborne
Command Element (ACE); Forward-Based X-Band Radar-Transportable (FBX-T); Ground Based
Air Defense Operation Center (GBADOC); Ground Based X-Band Radar (GBR-X); Hawk XXI;
HAWK-AMRAAM Air Defense System; HUMRAAM; Improved DE1160 Series Sonars; Joint
Land Attack Cruise Missile Defense Elevated Netted Sensor (JLENS) System; LPD-17
Amphibious Ship; Mk 30 Mod 2 ATS Anti-Submarine Warfare Training Target System; Mk 46
Mod 5A(SW) Torpedo; Mk 46 Mod 5A(SW) Torpedo Upgrade; Mk 48 ADCAP Mod 6 Advanced
Technology; Mk 48/Mk 56 NATO Seasparrow Vertical Launch Systems (VLS); Mk 54; MK 56
Guided Missile Vertical Launching System (GMVLS) for the Evolved SEASPARROW Missile;
Mk 74 Tartar Missile Fire Control System; Patriot - Combat Proven Air & Missile Defense; Patriot
Guidance Enhanced Missile Plus (GEM+); Patriot Hit-to-Kill; Patriot Service Life Extension

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(SLEP) A Recapitalization Program; Project Athena Multi-Domain Awareness System; Radio
Frequency/Critical Fluid Oil Extraction Technology; RAID System - Mobile High Ground for the
Warfighter; Raytheon 2100 Series Radar Processor; SABRE System "Mobile High Ground for the
Warfighter"; Sea-Based X-Band Radar (SBX) for Missile Defense; Ship Self-Defense System
(SSDS); Surface Launched AMRAAM; SLAMRAAM - Family of Launchers; Terminal High
Altitude Area Defense (THAAD); and Whole Life Services & Support (WLSS).

Space and Airborne Systems (SAS)


SAS’ products and services include Active Electronically Scanned Array Radar Technology
(AESA), Advanced GPS Inertial Navigation Technology, Advanced Infrared Satellite System
(AIRSS), Advanced Land Imager Focal Plane System (ALIFPS), Advanced Multilayer
Interconnect, Advanced Responsive Tactically Effective Military Imaging Spectrometer
(ARTEMIS), Advanced Self-Protection Integrated Suite (ASPIS), Advanced Synthetic Aperture
Radar System (ASARS) 2, AESA Radar Communications, AESA Technology, Airborne
Reconnaissance Low-Multifunction (ARL-M) Crazy Hawk, Airborne Standoff Radar (ASTOR),
Airborne Vision Enhanced System (AVES EO/OR), AN/AAQ-26 Infrared Detecting Set,
AN/AAQ-27A MWIR Staring Sensor, AN/AAS-44(V) Infrared Laser Detecting-Ranging-Tracking
Set, AN/AAS-52 Multi-Spectral Targeting System (MTS), AN/ALE-50 Towed Decoy System,
AN/ALQ-184 ECM Pod, AN/ALQ-184(V)9 ECM Pod with Towed Decoy, AN/ALR-67(V)3
Radar Warning Receiver, AN/ALR-69A(V) Radar Warning Receiver, AN/APG-63 Radar,
AN/APG-63 (V)1 Radar, AN/APG-63 (V)2 AESA Radar, AN/APG-63 (V)3 AESA Radar,
AN/APG-65 Radar, AN/APG-70 Radar, AN/APG-73 Radar, AN/APG-79 AESA Radar, AN/APQ-
174/186 Multi-Mode Radar, AN/APQ-180 Radar, AN/APQ-181 Radar System, AN/APS-
137B(V5) Radar System, AN/ASQ-228 Advanced Targeting Forward-Looking Infrared (ATFLIR),
AN/SLQ-32 (V) Shipboard EW System, Antenna Test Facility, Anti-jam GPS Receiver , ASTOR,
ATFLIR, Comet Infrared Countermeasure Pod, Digital Anti-jam Receiver (DAR), Electronic
Warfare Systems, Enhanced Thematic Mapper Plus (ETM+), EW Systems Performance Based
Logistics, F-15 Operational Flight Program Software and Engineering Services, F-15 Radar and
Electronic Warfare Engineering Services, F-15 Reliability and Maintainability Engineering
Services, F-16 Modular Mission Computer (MMC), F/A-18 E/F Super Hornet Integrated Fighter
Jet, F/A-22 Common Integrated Processor (CIP), Global Hawk Integrated Sensor Suite, GPS &
Navigation Systems (GNS), GPS Aided Inertial Navigation System (GAINS), HISAR, Infrared
Acquisition and Designation System (IRADS), Integrated Test Facility, Japanese Advanced
Meterological Imager (JAMI), Joint Cargo Aircraft - Team JCA, Maritime and Littoral
Surveillance Solution (MLS), Miniature Airborne GPS Receiver (MAGR) 2000 and MAGR 2000
SAASM, Miniature Thermal Emission Spectrometer (Mini-TES), Moderate Resolution Imaging
Spectroradiometer (MODIS), Modernized User Equipment, MTS-B Multi-Spectral Targeting
System, MTS EO/IR Tracking System, Nanoelectronics, Passive Airborne Warning System
(PAWS-2), Performance Based Logistics, Raytheon Advanced Protection Technology Receiver
(RAPToR), RT Secure, Sea-Viewing Wide-Field-of-View Sensor (SeaWiFS), Sea Vue
Surveillance Radar, Space and Missile Defense Technology, Space Tracking and Surveillance
System (STSS), Team JCA (Joint Cargo Aircraft), Thermal Emission Imaging System (THEMIS),
Thermal Emission Spectrometer (TES), Visible/Infrared Imager Radiometer Suite (VIIRS), and
Visible/Infrared Spin Scan-Radiometer (VISSR).

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SUBSIDIARIES
Advanced Electronics Systems International
Advanced Toll Management Corp.
Advanced Toll Management Corp. (Canada)
Amber Engineering, Inc.
Anschutz Japan Co. Ltd. (Japan) (80%)
Arbeitsmedizinische Betreuungsgesellschaft Kieler Betriebe GmbH (Germany) (39%)
Arkansas Aerospace, Inc.
Beech Aircraft Leasing, Inc.

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REDFLEX TRAFFIC SYSTEMS, INC.
15020 North 74th Street, Scottsdale, Arizona 85260, USA
Phone: +1 (480) 607-0705, Fax: +1 (480) 607-0752

SOURCES: www.redflex.com.au and other secondary online sources

BUSINESS PROFILE
Redflex Traffic Systems Inc., provides innovative public safety solutions to local and state
governments across the US and overseas. The company also provides a wide spectrum of public
safety solutions, smart cam® digital imaging solutions, speed enforcement solutions, rail grade
crossing solutions, and traffic citation processing solutions. The company provides digital red light
and speed enforcement services in North America. The company offers various public safety
solutions including hardware, software, and support services for a world-class public safety
program.
The company was established in 1986.

PRODUCT ANALYSIS

Public Safety Solutions


The company provides public safety solutions for government entities.

Smartcam® Digital Imaging Solutions


The company provides digital traffic cameras for red light, speed and toll violation enforcement.

Speed Enforcement Solutions


The company provides Speed Enforcement Solutions for freeways, in construction zones, in
neighborhoods and in school zones.

Rail Grade Crossing Solutions


Rail grade crossing solutions delivers a cost effective and proven enforcement of vehicles that
illegally cross railway crossings.

Proprietary Violation Processing System


Proprietary violation processing system provides cities with a full services citation management
system, that offers fully web-based capabilities for citation viewing, authorization, issuance and
tracking.

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ROBERT BOSCH GmbH
Postfach106050, D-70049 Stuttgart, Germany
Phone: (07 11) 811-0, Fax: +49-711-811-6630

SOURCES: www.bosch.de and other secondary online sources


2005 Sales: € 41.5 billion
(Fiscal Year Ends in December)

BUSINESS PROFILE
Robert Bosch GmbH (Bosch) is one of the world's top makers of automobile components. The
company is a leading global supplier of technology and services. The company also manufactures
industrial machinery and hand tools. The company’s automotive products include antilock braking
and fuel injection systems, auto electronics, starters, spark plugs, and alternators. The company
provides automotive and industrial technology, consumer goods, and building technology
solutions.
Bosch owns 50% of Bosch-Siemens Hausgerate, a European manufacturer of appliances. The
company’s Blaupunkt unit is a leading manufacturer of car audio equipment. The company’s
subsidiary Bosch Rexroth manufactures electric, hydraulic, and pneumatic machinery for
applications ranging from automotive to mining. Bosch comprises a manufacturing, sales, and
after-sales service network of more than 280 subsidiaries and 12,000 Bosch service centers in over
140 countries. The company’s key competitors are Delphi, Denso, and Siemens VDO Automotive.
Bosch was established in 1886.

DIVISIONAL ANALYSIS

Automotive Technology Division


Automotive Technology is the largest corporate division that operates through various business
segments such as gasoline systems, diesel systems, chassis systems brakes, chassis systems control,
energy and body systems, car multimedia, automotive electronic, ZF Lenksysteme, and automotive
aftermarket.

Gasoline Systems Division


The gasoline systems division develops and manufactures modern gasoline-engine systems that
make vehicles more dynamic, cleaner, and more economical. The division’s key operations include
engine management, modules and engine components, fuel supply, sensors, ignition, electronic
throttle control (ETC), and Plug-in connections.

Diesel Systems Division


The company’s Diesel systems division develops and manufactures diesel systems for EDC –
electronic diesel control, air management, injection management, and exhaust-gas management
applications.

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Chassis Systems Control Division
Chassis systems control division develops braking-system technology. The division’s innovative
solutions provide active driving safety to the customers. The division offers products for various
applications such as antilock braking systems (ABS), traction control systems (TCS), electronic
stability program (ESP), electrohydraulic brake, and brake assistant systems. The division also
offers wheel modules, sensors, and others.

Chassis Systems Brakes Division


Chassis Systems Brakes division develops braking systems for the vehicles of the future for
customers in the automotive industry. The division offers products ranging from individual
components to complete braking systems. The division also offers hydraulic braking systems and
components including brake boosters, master cylinders, disc brakes, drum brakes, corner modules.
The division also offers automated parking brake (APB) and brake-assistance systems.

Energy and Body Systems Division


The Energy and Body Systems division of Bosch, develops, manufactures, and distributes starters,
alternators, ECUs for body electronics, and components based on mechatronic drives. The
division’s product line includes alternators, starters, technical solutions for commercial vehicles,
software and electronics, components for engine thermal management, climate-control
components, seating-comfort systems and actuator technology for assemblies of equipment,
mechatronics for side doors and roof, and windshield and rear-window cleaning systems. The
division offers a complete range of equipment for the vehicle’s onboard electrical system. The
division also develops and produces the electronics and software to utilize in Bosch’s equipment
and systems.

Car Multimedia Division


Car multimedia division operates in various fields including indicating and display instruments, car
radios, cockpit electronics, human machine interface, and navigation and driver information
systems. Bosch’s subsidiary Blaupunkt launched a new radio navigation system.

Automotive Electronics Division


Automotive Electronics division develops, produces, and markets microelectronic products for
automotive applications. The division offers components including semiconductors, sensors, and
relays. The division also offers ECUs for transmission control and for occupant protection systems
and driver-assistance systems. The division’s product line includes electronic occupant-protection
systems, transmission control systems, driver-assistance systems, semiconductors, sensors, relays,
and link belts for automatic transmissions.

Automotive Aftermarket
Automotive Aftermarket division supplies and markets a wide array of automotive parts for
service at the vehicle. The division offers diagnostics including workshop equipment such as
testers, technical information, training, and consulting services. Automotive Aftermarket division

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also supplies and markets replacement parts, workshop and vehicle accessories, and others
throughout the world. In addition, the division also provides worldwide customer service for
Bosch products.

ZF Steering Systems
ZF Steering Systems GmbH (ZFLS), a joint venture of Bosch and ZF Friedrichshafen AG
develops, produces, and markets steering technology for passenger cars and commercial vehicles.
The segment offers complete steering systems including steering columns and steering pumps as
well as components such as valves, outer ball joints, and steering shafts. ZF Steering Systems is a
leader in technology and innovation in the steering gear field, and an important partner for
automotive manufacturers across the world.

Industrial Technology Division

Bosch Rexroth AG
Bosch Rexroth AG, a subsidiary of Bosch, is a leading supplier of drive, control, and linear motion
solutions. Bosch Rexroth develops, produces, and markets components and systems for industrial
and factory automation as well as for mobile applications in more than 80 countries. The segment
offers all leading drive and control technologies under Rexroth brand name. The segment also
offers individual and combined technologies, customer-specific systems, and complete solutions.

Metals Technology
Metals technology division operates through Buderus castings and special steel business units. The
castings segment provides car brake disks and cast iron pipe systems for drinking water supplies.
The division’s products find applications in the automotive industry, in the construction of plant
and equipment, and in tool manufacture, and mold making.

Packaging Technology Division


Packaging Technology division develops, designs, manufactures, and installs complete packaging
solutions for the manufacturers of food, confectionery, drink, and tobacco industries and for the
pharmaceutical, chemical technology, and cosmetics industries. Packaging technology division is
the world’s leading supplier of packaging technology.

Consumer Goods and Building Technology Division


Consumer goods and building technology division is Europe’s leading marketer of heating
technology solutions.

Power Tools Division


Power tools division is the world’s largest manufacturer of a wide range of power tools for the
building trade, industry. The division offers more than 1,000 different products for all sectors of
trade and industry. The division markets products under Bosch, Skil, and Dremel brand names. The
division’s product range also includes accessories such as drill bits and saw blades as well as

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gardening appliances. Power tools division develops and manufactures power tools, accessories,
and gardening appliances in 35 plants throughout the world. The division extended its leading
position in lithium-ion technology with the introduction of new professional hammer drill,
equipped with a 36-volt rechargeable battery.

Thermotechnology
The division develops high-quality heating, hot water and ventilation systems. The division’s
product line includes heating / warm water systems, gas and oil boilers, solar water heating and hot
water storage, gas water heaters, and heating control and house ventilation products.

Household Appliances Division


Household Appliances division is an international full-range supplier and a market leader in the
European household appliances market. The division offers fully automatic dishwashers, light
wave ovens, fridges with AntiBacteria finish or the wall-mounted LiftMatic oven. Robert Bosch
Hausgeräte GmbH is part of BSH Bosch und Siemens Hausgeräte GmbH, which is a leading
domestic appliance manufacturer and market leader in Germany and West Europe.

Security Technology Division


Security Technology division is the leading producer and developer of wide a range of security and
communications systems. The division’s building integration system monitors building automation
systems in addition to alarm, access control, video surveillance, and fire alarm systems. Bosch
offers new Easy Series intruder alarm system for private homes and small businesses. The
company also provides a one-stop solution for security systems through installation business in
Germany along with the operations in the Netherlands and Hungary. The company provides
property-specific complete solutions for various customer requirements. The communication center
provides customer care solutions in all the key European languages. Bosch communication center
is the largest private monitoring center organization in Germany. The company’s security systems
include video surveillance systems, fire alarm systems, evacuation systems, intrusion systems,
building management systems, access control and time management systems, and social alarm
systems. The company also provides a range of communication systems such as PA systems,
congress systems, and personal paging systems.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Acquisition
Bosch to Acquire Pharmatec…
Bosch announced plans to acquire Pharmatec GmbH from Fresenius ProServe GmbH. The
transaction also includes the acquisition of the Pharmatec subsidiary Schoeller-Bleckmann
Medizintechnik Ges.m.b.H.
Pharmatec is a leading company in the construction of systems and lines for the pharmaceutical
industry.

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Joint Venture
Bosch Teams Up with Denso Corporation…
Bosch teamed up with Denso Corporation (Denso) to establish a fifty-fifty joint venture company,
Advanced Diesel Particulate Filters Sp.zo.o. (ADIF) for developing and manufacturing diesel
particulate filters in Wroclaw, Poland. Bosch and Denso intend to manufacture highly efficient and
cost-effective diesel particulate filters using Cordierite ceramics.

New Facility
Bosch Opens Technical Center in Michigan…
Bosch opened a new technical center in Plymouth Township, Michigan with a total floor space of
roughly 21,000 square meters. The new facility focuses on developing driver assistance and safety
systems – such as ACC, the adaptive cruise control system – for the North American automotive
market. The new building provides jobs for more than 400 researchers and developers.

Product Launches

Bosch Launches New Handy Cordless Universal Cutter…


Bosch launched new handy cordless universal cutter, Xeo. The new product quickly and
effortlessly cuts through different materials such as thin decoration materials and stronger materials
including cardboard or carpet up to six millimeters thick. The new cordless cutter is so handy and
powerful and utilizes a lithium-ion battery.

Bosch Introduces New Dremel Tool with Lithium-Ion Battery…


Bosch introduced Dremel Stylus, a cordless, small and extremely lightweight multi-tool. The new
product is designed for maximum maneuverability and ease of handling. The tool is an ideal
assistant for model making, creative decorations or engraving. The Dremel Stylus features a
separate on/off switch, which enables pre-set speed settings to retain between working sessions.

Bosch Introduces New 2900 Multi Cutter…


Bosch introduced the new model 2900 Multi Cutter under Skil brand name. The new product cuts
almost all kinds of materials quickly, effortlessly, and safely. The product is offered for cutting
cardboard, fabrics, plastics, carpets, leather, wallpaper, vinyl, cork or tin sheet. The multi cutter
allows accurate cutting in both straight and curved lines, with comfortable handling to the
ergonomic design and soft grip handle. With its 4.8 V rechargeable NiMH battery pack, the multi
cutter offers full cordless freedom of movement. The new product is the ideal tool to keep in a
kitchen drawer or toolbox.

Bosch Launches New Heatgun Skil 8005…


Bosch launched new heatgun Skil 8005 with LCD temperature display that combines 2000 watts of
heating power with easy, fingertip control. The new heatgun is ideal for all jobs in and around the
home requiring controlled heating.

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Bosch Launches New Skil Reciprocating Saw…
Bosch’s Skil launched a new reciprocating saw for quick, easy sawing of various jobs. The 1050-
watt power and the speed dial wheel ensure the best sawing results, also with delicate materials.
Skil adds three saw blades that handle all materials such as metal, wood or tree branches. With the
new reciprocating saw, Skil meets the requirements of demanding users for a comfortable tool that
handles a wide range of sawing jobs in and around homes.

Bosch Introduces New Skil Random Orbit Sanders…


Bosch’s Skil introduced an all-new range of Random Orbit Sanders with a standout design and
excellent sanding performance. The Random Orbit Sanders are ideal for both fast material removal
and fine finishing, on flat and curved surfaces. The product features include Skil’s pressure control
and variable speed selector for more convenience while sanding.

Bosch Launches New Skil Cordless Tacker 2100…


Bosch’ Skil launched the new cordless tacker 2100 for fast, easy stapling of all kinds of materials
such as insulating materials, foils, textile wallpapers, light wall panels or upholstery. The cordless
tackers – model 2100 with high-power 7.2 V battery voltages is used to apply both staples and nails
with a length of up to 14 mm.

Bosch Launches New Leveling Laser Model…


Bosch launched the new leveling laser model 510 under Skil brand name. Through automatically
projecting perfectly vertical and horizontal laser lines on walls and other surfaces, the new product
provides convenient guidance for numerous tasks such as installing shelves, cabinets and worktops,
hanging pictures or decorating.

Bosch Launches New 5155 Circular Saw…


Bosch’s Skil launched a powerful new model as the addition of a range of circular saws. The
company offers new model 5155 is offered with 1150-watt motor and is ideal circular saw for all
kinds of cutting jobs in and around the home. The new product is offered, as an optional extra is a
finer 24-tooth carbide-tipped saw blade.

Bosch Launches New Saw Blades for Jigsaws and Saber Saws…
Bosch launched new saber saw blades of the type, heavy for Metal in the market. The new blades
are offered with large (CHF series) and small tooth pitch (BEF series). The specially strengthened
tooth of the new saw blades provides a lifetime that is 50 to 100 percent longer than bi-metal
blades with standard toothing. The new blades are ideal for precise, accurate angle cuts in metal
profiles. The blade with the fine tooth pitch (BEF series) is designed for thin-walled metal profiles.

Bosch Introduces Four New DIY Rotary Hammers…


Bosch introduced four new DIY rotary hammers with high drilling rate in the PBH 3000 series. The
new products are ideal for drilling in hard materials, and also for various applications. The company’s
PBH 3000-2 FRE is the first two-speed rotary hammer for DIY-enthusiasts that provide speeds of 0 to
1,450 revolutions per minute in first gear and 0 to 3,000 revolutions per minute in second gear.

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Bosch Releases PST 650 and PST 670L Jigsaws…
Bosch released new PST 650 and PST 670L tools that enable particularly convenient and precise
work. The new design also features the best possible ergonomics, guaranteeing precise cuts and
fatigue-free working. The jigsaws also provide a great deal of convenience in other areas. The tool
quick-change system SDS also saves time to change the saw blade, simply press a button upwards
and insert or remove the saw blade. The powerful 500-watt motor ensures fast sawing progress in
all materials, on straight lines and in curves as well as for plunge cuts and miter cuts.

Bosch Releases New PDO 6 Detector…


Bosch released new PDO 6 detector that finds iron pipes, rods or girders situated up to six
centimeters deep in walls, floors or ceilings. The new products also locate non-ferrous metals such
as copper and live cables. With its dimensions of 140 x 85 x 35 millimeters, the PDO 6 fits in any
jacket or trouser pocket.

Bosch Launches New PMF 180 E Multi Tool…


Bosch launched new PMF 180 E multi, a multifunctional power tool. The PMF 180 E Multi set
contains a delta sander attachment with six sanding sheets as well as a segment saw blade and a
plunge saw blade with an embossed depth scale (0 to 3.5 centimeters). The scaled plunge saw blade
is offered for plunge cuts up to 35 millimeters in depth. The company also offers other useful
special accessories such as a fluted segment saw blade for cutting joints as well as four mini plunge
saw blades for wood and metal.

Bosch Introduces New GKS 36 V-LI Professional and GSA 36 V-LI Professional Cordless
Saws…
Bosch introduced the new GKS 36 V-LI Professional and GSA 36 V-LI Professional cordless
saws. The new cordless saws offer significantly higher power than comparable cordless tools with
NiCd or NiMH battery. The saws features include the handle with soft-grip and the foldout hook
for easy storage of the saws on building sites. Bosch also offers an additional solution with two
36V batteries. The handheld circular saw GKS 36 V-LI professional with 165 millimeter saw blade
and a cutting depth of 54 millimeters is designed for the hard demands of skilled construction site
workers such as carpenters, masons or roofers, and also for exhibition fitters.

Bosch Launches New Heavy-Duty Cordless Drill / Drivers…


Bosch launched the new heavy-duty cordless drill / drivers, GSR 12/14.4/18 VE-2 Professional
with NiMH batteries. The new products are designed for screws and drill holes of medium to large
diameters. The cordless screwdrivers features include the inclusion of progressively increasing
torque-settings. The first 20 torque settings are ideal for sensitive tightening or loosening of smaller
screws. Bosch also offers three combination-drills such as GSB 12/14.4/18 VE-2 Professional.

Bosch Unveils Rotary Hammer GBH 2-23 RE Professional…


Bosch unveiled the new Rotary Hammer GBH 2-23 RE Professional. The Rotary Hammer GBH 2-
23 RE Professional is ideal for professionals regularly using a small rotary hammer for drilling
dowel holes with a diameter of up to twelve millimeters in concrete.

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Bosch Introduces New GDR 10.8 V-LI Professional…
Bosch introduced the new GDR 10.8 V-LI Professional, the world’s most compact cordless
impact-driver. The company offers professional impact-driver, an addition to the newly established
10.8 Volt Lithium Ion system that previously comprised the highly successful GSR 10.8 V-LI
Professional cordless screwdriver and the GWI 10.8 V-LI Professional cordless angle-driver.

Bosch Introduces New 2-Speed Machines…


Bosch introduced the new 2-speed machines PSR 12-2, PSR 14.4-2, and PSR 18-2 for DIY
enthusiasts. The company offers new cordless drill / drivers for particularly convenient working.
With the trendy slim design, narrow handle, and two-part softgrip, the new cordless drill /drivers fit
comfortably in customers’ hand. The integrated Powerlight LED provides a bright light when
working in dark corners.

Bosch Introduces New Dremel Engraver…


Bosch introduced new Dremel Engraver– a light and compact specialist engraver equipped with a
carbide-engraving tip. The tool could be used to engrave personal details such as postal codes,
names and telephone numbers onto items of value such as laptops, bicycles and mobile phones.
Dremel Engraver is the perfect tool for hobbyists including glass engravers and woodworkers alike.

Bosch Expands Dremel Product Line…


Bosch expanded the Dremel product line with the launch of new Dremel Engraver. The company’s
Dremel Engraver is a light and compact specialist engraver that delivers the optimum results on a
range of materials. The new product is ideal for creative applications and personalizing
possessions. The Dremel Engraver is also an ideal tool for hobbyists including glass engravers and
woodworkers.

Bosch Expands a Range of Intelligent Measuring Tools…


Bosch’s Skil expanded a range of intelligent measuring tools with the compact new model 530
Xact digital laser distance measure. The Xact offers high-precision measurements with a typical
accuracy of within 3 mm. The new Xact is offered for pragmatic users. Model 530 is as small as a
mobile phone that offers powerful, precise measurements. Model 530 is ideal for indoor and
outdoor applications.

Year 2006 in Review…

Acquisition
Bosch Acquires TeleAlarm Group…
Bosch acquired the TeleAlarm Group (TeleAlarm) in La Chaux-de-Fonds, Switzerland. The
acquisition of TeleAlarm enables Bosch to strengthen its product range of social alarm systems.
The TeleAlarm Group is a leading European provider of social alarm and nurse call systems. The
TeleAlarm Group operates production facilities in La Chaux-de-Fonds in Switzerland and sales
facilities in Germany, Switzerland, the UK, the Netherlands, and Sweden.

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Agreement
Bosh Signs an Agreement with Avtovaz…
Bosh signed an agreement with Avtovaz to provide technical assistance for a period of 4 years
from 2006. The two companies would develop new 1.4-liter and 1.6-liter engines and on installing
anti-lock braking system. Bosch would assist Avtovaz in implementation of its every project.

Capacity Expansion
Bosch Starts Production of New Rear-Axle Brake Caliper…
Bosch started production of a new rear-axle brake caliper for light commercial vehicles. The new
BIRplus brake caliper is compact and represents an innovation for light commercial vehicles. The
company also plans to start production of ABS and electronic control units in India.

Product Launches
Bosch Launches New GKS 160 Professional Circular Saw…
Bosch launched GKS 160 Professional, the first, entry-level hand-held circular saw for the
professional user. The GKS 160 Professional is the ideal hand-held circular saw for skilled
construction site workers, such as carpenters, roofers, exhibition fitters, and shop fitters.

Bosch Introduces New Visual Notification Appliances…


Bosch’s Security Systems division introduced new visual notification appliances. The company
offers series 200 sounders that are easily upgraded to combine visual and audible notification
appliances. The series 200 and the new visual notification appliance represent a versatile solution
for a wide variety of different applications.

Bosch Launches New Wireless Local SecurityNetwork…


Bosch’s Security Systems division launched new wireless Local SecurityNetwork (wLSN) as the
addition of acclaimed easy series intrusion control panels. The company’s new product is a
revolutionary two-way wireless communications technology that adds greater security, reliability,
and convenience. The company offers wLSN for private homes and small businesses. The
complete wLSN system comprises a highly sensitive hub remotely mounted from the easy series
intrusion control panel, and the specially developed wireless detection devices.

Bosch Introduces Diesel Engine Control…


Bosch introduced a new generation of diesel engine control units with the EDC17. The Electronic
Diesel Control (EDC) controls every parameter that is ideal for effective, low-emission
combustion. The EDC17 offers a large number of options such as the control of particulate filters
or systems for reducing nitrogen oxides.

Bosch Unveils Praesideo Version 3.0…


Bosch unveiled the new Praesideo Version 3.0. Praesideo version includes new additional
hardware such as an updated Network Controller, a Multi Channel Interface and Basic Amplifiers.

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Praesideo Version 3.0 is ideal for a wide range of medium size and large size applications
including shopping centers, educational establishments, offices, multi-purpose sports stadiums and
airports.

Bosch Releases New Intelligent Video Motion Detection Product…


Bosch’s Security Systems division released new intelligent video motion detection (IVMD) into its IP
network video products. The company offers new product to significantly increase the possibilities for
fully automated CCTV surveillance and to reduce demands on bandwidth and storage capacity.

Bosch Introduces Access Easy Control System for Easy Online Connection…
Bosch introduced access easy control system, plug-and-play for easy online connection. The
company offers an ideal, cost-efficient entry-level solution for small- to medium-size businesses.
The access easy control system is a powerful, web-based access control system for small- and
medium-sized premises such as shops, warehouses, offices, and sports facilities. The system
comprises a single-location access easy controller for up to 16 doors, or an access easy master
controller for larger buildings or complexes.

Bosch Releases New IP Video Security Solution…


Bosch released a unique enterprise IP video security solution that provides seamless management
of digital video, audio, and data across any IP network. The company’s new Bosch video
management system (Bosch VMS) enables customers to integrate the existing components into
one, easy-to-manage set-up. The new product is designed to work with Bosch CCTV products as
part of a total video security solution. The company offers a complete range of IP network video
products including single and multi-channel MPEG-4 encoders, decoders, IP cameras, and domes.
The company also offers a complete range of industry-leading analog cameras, AutoDomes, mini-
domes, DVRs, and matrix switches, and accessory products.

Bosch Launches New Smoke Detector…


Bosch’s Security Systems division launched new 500 series smoke detector. The company offers
new product to utilize in areas with a high contamination level such as collieries or waste
management areas. The 500 series smoke detectors are also offered for conventional fire detection
systems in conventional technology.

Bosch Introduces New Heavy-Duty (HD) Alternators for Commercial Vehicles…


Bosch introduced a complete range of heavy-duty (HD) alternators for commercial vehicles rated
at 14 or 28 volts. The various models in the HD series supply energy economically and reliably to a
wide variety of applications on and off the highway.

Bosch Launches New SmartWallet Solution…


Bosch Packaging Technology, a division of Bosch, launched SmartWallet, a new and easy to
manufacture wallet style package for solid pharmaceuticals. SmartWallet offers pharmaceutical
manufacturers a wallet solution that is convenient, easy to use, tamper evident, reclosable and cost-
effective.

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Bosch Unveils Next Generation of Control Platforms…
Tevopharm B.V, a division of Bosch unveiled a new state of the art control platform on its Pack-
2000 (BM) flow-wrapping machine. The Pack 2000 is ideal for wrapping products such as bottles,
syringes, vials, blisters, and inhalers.

Product Line Expansion


Bosch Expands Product Portfolio for Public Address and Voice Alarm Systems…
Bosch’s Security Systems division expanded its public address and voice alarm product portfolio
with a new range of UHF wireless microphone products and accessories. The new range includes a
true diversity wireless microphone receiver, a handheld wireless microphone, and a wireless belt-
pack transmitter. The new wireless microphone products are optimized for speech and offer 193
selectable UHF channels. The products are ideal for a wide range of applications such as
conferences, press events, and sales and marketing demonstrations. The microphone receiver offers
a single channel for 1 transmitter and features a pilot tone signal and audio squelch. The robust
belt-pack transmitter features a spring-loaded belt clip.

Product Developments
Bosch Develops New HX(F)95 Starter for Commercial Vehicles…
Bosch developed the heavy-duty starters in the HX(F)95 range for diesel engines with up to 13
liters engine displacement and a starter power requirement of between 2.4 and 6.5 kilowatts. The
new products are ideal for all on-highway and off-highway applications. The starters are offered
with a free-engaging pinion construction for 12 and 24-volt vehicle power supplies.

Bosch Develops New Parallel Starting System for IC Engines…


Bosch developed a new parallel starting system for 24 V on-board vehicle electrical systems for
internal-combustion engines with a starting power requirement of more than 15 kilowatts. The
system is designed for diesel engines up to 72 liters and gasoline engines up to 144 liters
displacement. The new parallel starting system requires significantly less installation space than
conventional direct starters.

Bosch Develops New SMD500 Pressure Sensor for Consumer Electronics…


Bosch Sensortec GmbH (Bosch Sensortec), a subsidiary of Bosch, developed a new SMD500, the
smallest pressure sensor for consumer electronics. The SMD500 is a new product of a wide range
of micro machined pressure sensors that is used as both altimeter and barometer. The company
offers piezo-resitive pressure sensor with a monocrystalline membrane in a ceramic package. The
SMD500 is designed to connect directly to a micro controller of a mobile device through the I2C
bus. Bosch Sensortec is a global leading marketer of micro mechanical sensors, application, and
foundry services for consumer electronics, medical technology, security systems, and logistics.

Bosch Develops New Triaxial Accelerometer…


Bosch Sensortec, a subsidiary of Bosch, developed a new triaxial accelerometer, the SMB365. The
new sensor is mainly designed for consumer electronics applications. The SMB365 is offered for

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all-important requirements of components for consumer electronics such as small packaging and
very low power consumption.

Bosch Develops New Packaging Solution for Birth Control Pills…


Sigpack Systems, a subsidiary of Bosch Packaging Technology, along with Warner Chilcott
developed a specific packaging solution for birth control pills. Bosch developed integrated
packaging system for blister, case, and package inserts.

Bosch Develops New Stick Pack System…


Sigpack Systems, a subsidiary of Bosch Packaging Technology, developed an efficient and cost-
effective system solution for the rapidly growing market of stick pack applications. The company
offers compact, high-speed solution with a maximum output of 1,000 stick packs and 100 cartons
per minute that offers a range of applications in the pharmaceutical and food industry.

SUBSIDIARIES
BBT Thermotechnik GmbH
Bosch Rexroth AG
Bosch Rexroth Corporation
Bosch Security Systems, Inc.
BSH Bosch und Siemens Hausgeräte GmbH
BSH Home Appliances Corporation
Robert Bosch Corp.
Bosch-Siemens Hausgerate (Europe)

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ROUTEMATCH SOFTWARE, INC.
1349 West Peachtree Street, Suite 1200, Atlanta, Georgia 30309, USA
Phone: (404) 876-5160, Fax: (404) 898-1145
SOURCES: www.routematch.com and other secondary online sources

BUSINESS PROFILE
RouteMatch Software Inc., (RSI) is a leading provider of paratransit and demand response
scheduling software and solutions. The company provides transportation and logistics technology
and services for various applications. The company’s products are used for routing, dispatching,
scheduling, reporting, billing, fixed route integration, and transportation coordination. The
company’s technology components include geographic information systems, RouteMatch TS™
(paratransit software), RouteMatch Scheduling Engine™ (RSE), mobile data / wireless
communications, automated vehicle location, and relational database management systems.
RSI produces accurate vehicle schedules and routes through taking into account vital information
such as speed limits, one-way streets, traffic congestion, and travel times by utilizing the real-world
street network. RSE allows users to simultaneously increase daily transportation capacity and
reduce operating costs per vehicle. The company offers application-hosting services through
utilizing the latest thin-client web technologies. The company maintains partnership with leading
mobile device manufacturers and wireless providers to offer a seamless and plug-and-play
solutions for quick and efficient implementations. RSI’s partners include various wireless providers
and device manufacturers such as Digital Dispatch Systems, LogicTree, Mentor Engineering,
Ontira Communications, Orbital, Siemens, Tele Atlas and Navtrak, Inc. The company operates six
additional facilities across the US.
RSI was established in 1999.

STRATEGIC CORPORATE DEVELOPMENTS


Year 2006 in Review…
Contract
RSI Bags a Contract from the City of Corona…
RouteMatch bagged an ITS (intelligent transportation systems) technology solution contract. As
per the contract RouteMatch would provide its RouteMatch TS™ paratransit software to the City
of Corona situated in California. The RouteMatch TS™ software is a computer aided dispatching
and passenger registration system comprising of highly advanced vehicle mapping and geographic
information system. RouteMatch also united with Safety Vision for the provision of on board
digital video recording and surveillance systems for City’s transit and transportation services.

Product Launch
RSI Introduces ITS Solution for Urban Transportation Providers…
RSI introduced RouteMatch ITS product collection, that includes varied ITS solutions, specifically
developed for the public transportation providers. The company’s ITS solutions simplify the

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complications related to ITS, by offering a fully integrated solution that is ready for
implementation, and is guided by support staff.

PRODUCT/SERVICE PORTFOLIO

Route Match XP
RSI offers customer management; schedule management; vehicle management; manual scheduling
and routing; driver management; dispatching; trip request management; reporting; verification; ad-
hoc query; and billing solutions.

Route Match PM
RSI offers schedule management; customer management; scheduling and routing optimization;
vehicle management; trip request management; ad-hoc query; dispatching; billing; verification;
computer-assisted scheduling; reporting; GIS mapping capabilities; and driver management
solutions.

Route Match TS
RSI offers customer management; scheduling and routing optimization; verification; trip request
management; reporting; driver management; dispatching; schedule management; billing; ad-hoc
query; GIS mapping capabilities; computer-assisted scheduling; fully automated scheduling with
RSE; and vehicle management solutions.
The company also provides RouteMatch CA™ Software tools, RouteMatch AVL™, Mobile Data
Computers (MDCs), RouteMatch Web Portal™ and others.

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SAAB SYSTEMS
21 Third Avenue, Technology Park, Mawson Lakes, South Australia 5095, Australia
Phone: [08] 8343 3800, Fax: [08] 8343 3778

SOURCES: www.saabsystems.com.au and other secondary online sources

BUSINESS PROFILE
Saab Systems (SBS), a subsidiary of the Saab Corporation, develops, integrates, and supports
advanced operational software intensive systems for defense and professional applications. The
company offers high technology military systems and solutions for defense and commercial
applications. SBS offers real-time command and control systems, information and message based
command support systems. SBS also provides various technologies such as safety engineering,
modeling and analysis, interoperability, human machine interface, data fusion, commercial-off-the-
shelf technology, and technology platforms. The company’s modern systems are designed to
receive more and more data from an increasing number of sources as demand for faster decisions
increases. SBS also provides an automatic identification system for surveillance and control of
shipping (commercial, chartered and private) for avoidance of collisions of vessels at sea.
SBS develops information systems for the knowledge edge standards of the Australian Department
of Defense. The company offers combat system integration and integrated ship control,
management, and monitoring systems to the Royal Australian Navy and Royal New Zealand Navy
ANZAC ship project. The company provides in-service support for the ANZAC ship combat
system. Saab Corporation is a global leading provider of high technology solutions for defense,
aviation, and space.
SBS was established in 1988.

PRODUCT ANALYSIS

Air / Land Systems


SBS offers air / land systems such as soldier combat system, battlefield command support system,
combat force preparedness, army communications support, and battle management systems. The
battlefield command support system (BCS) provides the commander with situational awareness and
tools to plan, monitor, and control the battlefield. BCS is designed and developed for the Australian
Army. The company’s battle management systems (BMS) are ongoing research and development
solutions that are offered to identify appropriate functionality and implementation of effective tactical
support solutions for the mobile war fighter. The BMS system provides the tactical commander with
appropriate functionality to deal with the current operational situation. SBS is working with defense
to establish a Combat Force Preparedness Model (CFP). CFP enable defense to establish awareness
and better plan the deployment of combat forces for large operations.

Naval Systems
SBS manufactures and supports advanced naval operational systems. The company offers combat
management, ship control, and command support systems. The company also offers mine warfare,

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ship modeling and simulation, and commercial maritime safety systems. The company develops an
automatic identification system for surveillance and control of commercial, chartered and private
shipping for avoidance of collisions of vessels at sea. The company’s Mine Warfare Data Centre
stores and analyses data for mine warfare operations combined with other intelligence sources to
provide a comprehensive mine counter measure coordination capability.

SCHAIM CURY
Brazil

SOURCES: Company related secondary online sources

BUSINESS PROFILE
Schaim Cury is involved in the development of ITS systems and products.

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SIEMENS AG
Wittelsbacherplatz 2, D-80333 Munchen, Germany
Phone: +49-89-636-00, Fax: +49-89-636-52-000

SOURCES: www.siemens.com and other secondary online sources


2007 Sales: € 39,694 million (H1)
2006 Sales: € 87,325 million
2005 Sales: € 75,445 million
(Fiscal Year Ends in September)

BUSINESS PROFILE
Siemens AG (Siemens) is one of the world’s largest electronics and electrical engineering
companies. The company is a global leading manufacturer of telecom network equipment. The
company offers leading-edge solutions in information & communications, automation & control,
power, transportation, medical and lighting. Siemens offers a wide range of Automation systems
such as CNC-Automation Systems Sinumerik; Control Systems; Human Machine Interface;
Identification Systems Moby; Industrial Microcomputers; Industrial PCs; Manufacturing Execution
Systems; PC-based Automation; Placement Systems; Process Automation; and System
cabling/Control cubicles. Siemens operates in various fields such as industrial automation and
control, information and communications, lighting, medical, power transmission, semiconductor
and transportation sectors.
Siemens also provides a range of services such as Business Services, Energy Services, Financial
Services, Training, and Industrial Services. The company mainly operates through financial
services unit, which provides corporate financing, fund management, insurance, and risk
management services. The company provides innovative technologies and comprehensive know-
how to customers in over 190 countries worldwide. Siemens’ customers include BMW,
DaimlerChrysler, Deutsche Bank, Ford, IBM, Kodak, SAP, BP and Volvo. The company operates
through partnership with Fujitsu Siemens, to supply a wide range of computer products. In
addition, Siemens markets its carrier-grade gear through its joint venture, Nokia Siemens
Networks. The company’s major competitors are Alcatel-Lucent, GE, and Hitachi.
Siemens was established in 1847.

BUSINESS OPERATIONS
Information and Communications
Information and Communications business comprises Communications Group and the Siemens
Business Services Group (SBS). The segment provides a comprehensive spectrum of information and
communications solutions. The Communications Group provides a comprehensive range of
innovative solutions for voice and data communications from communications devices and network
infrastructures to services for enterprise customers, as well as mobile and fixed network operators.
SBS offers a broad portfolio of multi-vendor solutions and services for the private and public sectors.

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Automation and Control
Automation and Control business includes the Automation and Drives Group, the Industrial
Solutions and Services Group (I&S), and the Siemens Building Technologies Group. The
company’s Automation & Control operations supplies products, systems, solutions, and
services for industrial and building automation and for airport and postal logistics. I&S
combines Siemens' products and know-how to develop and build systems for industry and
infrastructure applications.

Power
Siemens is a leader in the global power plant industry. Siemens’ Power business encompasses of
the Power Generation (PG) Group and the Power Transmission and Distribution Group, provides a
complete range of energy solutions, ranging from electricity generation to the transport of electrical
energy from power plant to consumer. PG develops and builds components and systems for fossil
fuel power plants, wind power systems, and mechanical drives and compressors for industrial
applications.

Transportation
Transportation business comprises Transportation Systems (rail systems) and Siemens VDO
Automotive (automotive systems). The company’s Transportation operations’ products and
solutions are designed to provide mobility, and to meet growing demands for environmental
compatibility and improved performance. Transportation Systems (TS) supplies vehicles, signaling
and control technologies, automation systems, electrification and telecommunications for the
railway industry.

Medical
Medical business comprises the Medical Solutions Group, a major provider of innovative products,
complete solutions, services and consulting for the healthcare community. The segment’s
management consulting ranges from imaging systems, therapy equipment, molecular diagnostics
and hearing instruments to clinical and administrative IT solutions.

Lighting
Lighting business is operated through a subsidiary Osram. Osram specializes in offering lighting
sources, electronic control gear and light management systems. Osram’s product portfolio
comprises lamps and optoelectronic semiconductors such as light-emitting diodes (LEDs), electric
control gear and light management systems.

Financing and Real Estate


Siemens Financial Services (SFS) and Siemens Real Estate (SRE) operate Siemens’ Financing and
Real Estate business. SFS offers a broad array of financial solutions in the areas of sales and
investment financing, treasury services, fund management and insurance. SRE manages, develops,
buys, and sells real estate, and also provides consulting and other services.

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SALES DATA
Half Yearly Sales Comparison: 2007 Vs. 2006
(In € million)

Year Sales % Change


2007 39,694 7.86
2006 36,800 -

Half Yearly Sales Comparison by Business Segment (2007 Vs. 2006)- Siemens Business
Services (SBS), Automation and Drives (A&D), Industrial Solutions and Services (I&S),
Siemens Building Technologies (SBT), Power Generation (PG), cn (PTD), Transportation
Systems (TS), Siemens VDO Automotive (SV), Medical Solutions (Med), Osram, Financing
and Real Estate, and Other Operation (In € million)

Segment 2007 2006 %Change


Siemens Business Services (SBS) 2,386 2,799 (14.76)
Automation and Drives (A&D) 7,101 6,173 15.03
Industrial Solutions and Services (I&S) 4,245 4,110 3.28
Siemens Building Technologies (SBT) 2,548 2,271 12.2
Power Generation (PG) 5,798 4,527 28.08
cn (PTD) 3,484 2,952 18.02
Transportation Systems (TS) 2,234 2,061 8.39
Siemens VDO Automotive (SV) 5,105 5,063 0.83
Medical Solutions (Med) 4,572 4,031 13.42
Osram 2,363 2,364 (0.04)
Financing and Real Estate 1,182 1,143 3.41
Other Operations 2,007 2,365 (15.14)
Eliminations (3,331) (3,059) 8.89
Total 39,694 36,800 7.86

Annual Sales Comparison: 2006 Vs. 2005


(In € million)

Year Sales % Change


2006 87,325 15.75
2005 75,445 -

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Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Germany, Europe
(Except Germany), US, Americas (Except US), Asia- Pacific, Africa, Middle East,
C.I.S (In € million)

Region 2006 2005 % Change


Germany 27,656 24,798 11.53
Europe (Except Germany) 26,755 23,684 12.97
US 17,233 14,806 16.39
Americas (Except US) 4,523 3,651 23.88
Asia-Pacific 8,645 6,612 30.75
Africa, Middle East, C.I.S 2,513 1,894 32.68
Total 87,325 75,445 15.75

Percentage Breakdown of Annual Sales (Value) by Geographic Region (2005) – Germany,


Europe (Except Germany), The Americas, Asia- Pacific, Africa, Middle East and C.I.S

Segment 2005
Germany 21
Europe (excluding Germany) 33
The Americas 25
Asia-Pacific 13
Africa, Middle East, C.I.S. 8
Total 100

Percentage Breakdown of Annual Sales (Value) By Business Segments (2005) - Automation


and Control, Information and Communications, Transportation, Power, Medical and Lighting

Segment 2005
Automation and Control 26
Information and Communications 23
Transportation 19
Power 16
Medical 10
Lighting 6
Total 100

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STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Acquisitions

Siemens to Acquire Dade Behring…


Siemens signed a merger agreement with US-based Dade Behring Inc. (Dade Behring), a leading
clinical laboratory diagnostics company. Siemens intends to acquire all outstanding shares of Dade
Behring by submitting a cash offer to the Dade Behring shareholders of US$77 per common share.
The planned acquisition includes a total transaction volume of approximately US$7 billion
(approximately €5 billion). The planned acquisition of Dade Behring complements Siemens’
current capabilities and provides the company with the unique opportunity to create an unparalleled
portfolio of products and services, and become world market leader in comprehensive clinical
laboratory diagnostics.
Dade Behring provides clinical laboratory equipment and integrated solutions for routine chemistry
testing, immunodiagnostics (including infectious disease testing), hemostasis testing and
microbiology.

Siemens’ Division Acquires UGS Corp…


Siemens’ division Siemens Automation and Drives (A&D) Group acquired a software producer
UGS Corp., of Plano, Texas. Following the acquisition, Siemens A&D would expand its product
spectrum in automation technology to include industrial software for planning, design and
simulation in Product Lifecycle Management (PLM). The acquisition also enables Siemens A&D
to offer its customers worldwide solutions for creating digital factories.
UGS Corp., is one of the global leaders for Product Lifecycle Management (PLM), a critical part of
industrial manufacturing that allows the digital control of product development and manufacture.

Siemens’ Division Takes Over Gesellschaft für Systemforschung und Dienstleistungen im


Gesundheitswesen mbH…
Siemens’ division Siemens Medical Solutions took over Gesellschaft für Systemforschung und
Dienstleistungen im Gesundheitswesen mbH (GSD), a market leader in the field of health
information systems (HIS). The takeover of GSD strengthened Siemens’ leading position in the
healthcare information technology sector in German and other European countries. The acquisition
also enables Siemens to become as a leading provider of HIS.

Siemens’ Subsidiary Acquires 77% Stake in iMetrex Technologies Ltd…


Siemens’ subsidiary Siemens India acquired 77% stake in iMetrex Technologies Ltd. (iMetrex).
Following the acqusition, IMetrex would operate as a subsidiary of Siemens India under the name
Siemens Building Technologies (SBT) Ltd., and would strengthen the leading position of Siemens
India in the building technologies sector. Siemens India also announced plans to purchase the
remaining 23% of iMetrex within the next five years.

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iMetrex is one of India’s leading suppliers of products and solutions for electronic security, fire
protection and building automation.

Siemens Completes the Acquisition of Bayer’s Diagnostic Division…


Siemens completed the acquisition of Bayer’s Diagnostic and Diagnostic Products Corporation
(DPC). Following the acquisition, the business merged into a single business unit renamed as
Siemens Medical Solutions Diagnostics and would be operated as a wholly owned subsidiary of
Siemens Medical Solutions USA, Inc. Siemens Medical Solutions Diagnostics develops solutions
for the rapidly growing markets of molecular diagnostics and gene analysis with the focus on
personalized medicine and would also offer a comprehensive portfolio for the diagnosis and
treatment of a wide array of illnesses such as adrenal/pituitary dysfunction, anemia, allergy,
diabetes and reproductive and thyroid disorders, infectious diseases, kidney ailments, cardiology,
oncology, diabetes and virolog.

Siemens to Acquire Stake in the OEZ Company…


Siemens’ division Siemens Automation and Drives (A&D) Group signed an agreement to acquire
majority shares in the OEZ Company in Letohrad, Czech Republic. Following the acquisition,
Siemens would extend its low-voltage controls and distribution as well as electrical installation
technology in the Eastern European markets. The acquisition would also enable Siemens to become
a market leader in the Czech Republic and Slovakia. OEZ is a market leader in the Czech Republic
and Slovakia for low-voltage controls and distribution and electrical installation technology.

Siemens’ Division Takes Over Envirotrol, CEC, Pure Water Solutions and Sunlight Systems…
Siemens’ division Siemens Water Technologies took over four companies Envirotrol, CEC, Pure
Water Solutions and Sunlight Systems in the US. The acquisition enables Siemens Water
Technologies to expand and supplement its service business and product portfolio for disinfection
and ultra-pure water solutions.

Siemens Acquires Novotec Engineering…


Siemens’ subsidiary Siemens Building Technologies Group acquired Novotec Engineering to
reinforce its position in the growing building security market. Following the purchase of Novotec,
Siemens would occupy a leading position in the field of emergency operations control centers.
Novotec is a leader in the development of software for emergency control systems for securing
public premises, traffic systems and critical infrastructure facilities.

Joint Ventures
Siemens, Tongji University, and Asklepios Kliniken form Joint Venture…
Siemens, Tongji University, and Asklepios Kliniken entered into partnership to establish Sino-
German Friendship Hospital. The hospital would be launched before the World Expo 2010
and could be expanded to a capacity of over 500 beds thereafter. More than EUR 100 mn
(CNY 1 bn) would be invested in the hospital which would be located in the Shanghai
International Medical Zone.

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Siemens’ Division Establishes Joint Venture with Russian Electrical Company…
Siemens’ division Siemens Power Transmission and Distribution (PTD) set up a joint venture
with Elektrozavod, one of the leading electrical engineering companies in Russia. Elektrozavod
is the largest manufacturer of transformers in Russia. Siemens and Elektrozavod would own 51
percent and 49 percent respectively of the joint company Siemens Elektrozavod
Hochspannungsengineering GmbH, which would be headquartered in Moscow. The Joint
Venture would improve the market position of both partners and develop business for
engineering and implementing high-voltage switchgear projects in Russia. The jointly owned
company would give preference to products and systems from the two partners for integration in
its future projects, such as high-voltage switchgear from Siemens and transformers from
Elektrozavod.

Partnerships

Siemens’ Division and BT Enter into Partnership…


Siemens’ division Siemens Medical Solutions (Siemens Med) and BT (British
Telecommunications) signed a worldwide value-added reseller agreement for the provision of
identity and access management services to global clients. BT would use Siemens DirX products in
client projects, which would benefit from BT’s long-standing practical experience and international
expertise in the consultancy, designing and integration of complex identity and access management
(IAM) solutions.
The partnership provides the customers with the immediate access to excellent consulting and
managed services, and to a comprehensive, integrated identity and access management suite all
from under one roof and backed up by worldwide support.

Siemens and Shanghai Electric Strengthens Partnership…


Siemens and Shanghai Electric are further expanding their strategic partnership in the Chinese
power plant market. The two companies signed a general agreement to official open a new
manufacturing plant in Lingang, which is located in the vicinity of the city of Shanghai. The total
investment in the manufacturing plant amounts to more than EUR120 million. The two companies
also announced the founding of the new joint venture Shanghai Electric Power Generation
Equipment Co. Ltd. (SEPG). With the new manufacturing capacity, the company would be in a
better position to meet China’s increasing demand for advanced steam power plants in the capacity
class above 1000 megawatts.

Siemens Networks Enters into a Partnership with Infoblox…


Siemens Networks and Infoblox in Santa Clara, California (USA), entered into a partnership
covering services for internet addresses that allow mobile and fixed-network operators to
securely and reliably resolve domain names into IP addresses. Following the partnership,
Siemens would extend its product portfolio to include so-called domain name resolution (DNS)
products from Infoblox and provide the accompanying consulting, integration and maintenance
services.

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Agreements

Siemens’ Susidiary and Hydro Enter into Agreement…


Siemens’ subsidiary Siemens Power Generation (PG) and The Norwegian energy company Hydro
entered into an agreement to cooperate on technology to develop floating wind turbines based on
Hydro’s Hywind concept. Siemens would deliver the first wind turbine for the demonstration unit,
which would be positioned off the coast of Norway.

Siemens Reaches an Agreement with BenQ Corp…


Siemens and BenQ Corp., reached an agreement on the continuation of warranty services for
mobile phones sold under the brand names “Siemens” and “BenQ Siemens.” Under the terms of
the agreement, B2X would take over the warranty services for sales partners and end customers in
Europe, Russia and Latin America.

Contracts/Orders

Siemens’ Division Receives Order from the Maghreb Steel Company…


Siemens’ division Siemens Industrial Solutions and Services Group (I&S) received an order from
the Maghreb Steel Company in Morocco to equip a new Steckel mill with drive systems. The
project volume is around 16 million euros. The drive systems would be delivered, installed and
commissioned at the end of 2008.

Siemens’ Division Receives an Order from Minmetals Steel…


Siemens’ division Siemens Metals Technologies received an order from Minmetals Steel Co. Ltd.,
Beijing, for the engineering and supply of key equipment and technological packages of a 2-strand
slab caster which would be built at Tiantie Hot Rolling Mill Co. Ltd, Shexian, Hebei Province,
China. The caster would be capable of casting two million tons of steel per year and is scheduled to
start-up in July 2008.

Siemens Receives Contract from Brazil…


Siemens’ division Siemens Power Generation (PG) awarded two contracts from Brazil for a total of
17 compressor trains. Each train consists of a compressor and a mechanical-drive gas turbine. Total
order value, including erection & commissioning, spare parts and service contracts is
approximately EUR75 million. Customers are the oil & gas major Petrobras and the Brazilian
company Transportadora Gasene S.A.

Siemens Bags an Order from Rotem…


Siemens’ division Siemens Metals Technologies received an order from Rotem, a company of
the Hyundai Motor Group, for the supply of three 2-strand slab casters for the new integrated
iron and steel works project of the Korean steel producer Hyundai Steel Company. The three
casters would be installed at the steel producer's Dangjin Works and are scheduled for start-up in
late 2009.

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Siemens Receives Order for Offshore Wind Farm in Great Britain…
Siemens’ received Siemens Power Generation (PG) would supply 25 offshore wind turbines with a
combined capacity of 90 megawatts (MW) to the Rhyl Flats Offshore Wind Farm off the Wales
coast. Purchaser is RWE npower PLC, the UK arm of RWE AG. The construction of the Rhyl Flats
Offshore Wind Farm is scheduled to be completed by mid 2009.

Siemens Receives Contract from Nucor Steel for New Temper Mill…
Siemens awarded a contract by Nucor Steel Tuscaloosa, to add a new wide Temper Mill to its
existing Cut-to-Length Line. Nucor Steel Tuscaloosa produces a wide range of carbon, high
strength low alloy, hot rolled coil, cut-to-length and discrete plate utilizing state-of-the-art Steckel
Mill Technology for structural and pressure vessel applications. The 4-high Temper Mill would be
equipped with hydraulic gap cylinders and an electrical and automation package, consisting of
drives, high speed stand controller, laser speed sensors for automatic elongation control and an
adaptive temper rolling model.

Siemens’ Division Bags an Order from China Southern Power Grid Company…
Siemens’ division Siemens Power Transmission and Distribution (PTD) won an order from China
Southern Power Grid Company, Guangzhou, to construct a high-voltage DC transmission (HVDC)
system between the province of Yunnan in the southwest corner of China and the province of
Guangdong on the south coast of the country together with Chinese partners. With this technology,
Siemens ventures into a new dimension of HVDC technology. The system would be the first in the
world to transmit electricity at a DC voltage of +/- 800 kV.

Siemens Grabs Contract from the Northrop Grumman Corporation…


Siemens received a $217.5 million (161 million euros) fixed-price contract from the Northrop
Grumman Corporation to provide key technologies of the Flats Sequencing Systems (FSS)
contract. Northrop Grumman is contracted by the U.S. Postal Service to provide 100 FSS to further
automate its flats mail stream, which includes large envelopes, catalogs and magazines.

Siemens’ Division Receives an order from Dunaferr…


Siemens’ division Metals Technologies (MT) received an order from Dunaferr, Hungary owned by
the Industrial Union of Donbass (IUD), Ukraine to supply a new reversing cold mill and a pickling
line including acid regeneration plant for Dunaferr, Hungary. The investment is part of IUD's
strategy development program for Dunaferr, to become the centre of gravity for flat production by
increasing the capacities as well as by attaining an improved and more homogeneous quality of the
finished products. The new plant is scheduled to start production in mid of 2008.

Siemens’ Division Receives Contract from Gerdau Açominas…


Siemens’ division Metals Technologies (MT) received a 100-million-dollar order from the
Brazilian steel producer Gerdau Açominas for the supply of a continuous slab caster and an RH
degassing plant. Gerdau would be able to produce 1.5 million tons of high-quality steel for the flat-
product market.

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Siemens Receives an Order from Kuwait…
Siemens’ division Siemens Power Generation (PG) received an order from Kuwait to extend the
Az Zour gas turbine power plant to form a combined cycle station. Purchaser is the Kuwaiti
Ministry of Energy. The order is worth a total of approximately EUR600 million, with
approximately EUR350 million secured by Siemens PG. The plant would be extended in two
phases such as Unit 1 is scheduled to start commercial operation in March 2010, with Unit 2
coming on line in June 2010.

Siemens Receives a Contract from PJSC Grodno Azot…


Siemens’ subsidiary Power Generation (PG) received an order for the supply of gas-fired
Combined Heat and Power (CHP) Plant to PJSC Grodno Azot in Belarus. The SSC-300 Cogen
plant is a modularized small CHP plant that is capable of delivering about 7.5 MW of electrical
power output and 19 tons/h of steam. As per the deal, PG’s supply includes a complete compact
power plant comprising two SGT-300 gas turbines, two heat-recovery boilers, low voltage system,
medium voltage system and an automatic control system. PJSC Grodno Azot, the largest
manufacturer of chemical in Belarus, and one of the largest in Europe, through the plant would
generate steam and electricity for its own production and export of fertilizers, chemicals and
consumer goods.

Siemens Wins a Contract from Shenhua Ningxia Coal Industry Group…


Siemens’ subsidiary Power Generation (PG) won a follow-up contract from Shenhua Ningxia Coal
Industry Group (SNCG), a subsidiary of the Shenhua Group, the largest Chinese coal producer. As
per the contract, Power Generation would supply three entrained-flow gasifiers with a thermal
capacity of 500 MW each to SNCG in China. Siemens would supply gasifiers and technology for the
SNCG’s largest project in Lingwu City in Ningxia for the production of polypropylene from coal.

Siemens’ Division Receives Traffic Control System Contract…


Siemens’ division Siemens Industrial Solutions and Services Group (I&S) received an order for the
supply of traffic control systems worth € 5.7 million for the canton of St. Gallen in Switzerland.
Under the contract, Siemens would supply, install and commission the traffic management systems
on the A1 freeway. The supply encompasses a system with a central computer and eight distributed
computers for traffic data acquisition and overall traffic control as well as for local control of
traffic in five tunnels and 96 all-lane display panels on the public freeway.

Siemens’ Division Secures an Order from Shougang Jingtang United Iron and Steel Co…
Siemens’ division Metals Technologies (MT) secured an order from Shougang Jingtang United
Iron and Steel Co. (Shougang Jingtang), a joint-venture between Shougang Corp. and Tangshan
Iron & Steel Co., for the supply of electrical engineering equipment for three new strip-treatment
lines. As per the contract, Siemens would supply all of the drive systems as well as the basic and
process automation, including the technological controllers for the built-in sizing stand and the
stretcher levelers of the galvanizing lines. Altogether, the company would install about 750 main
and auxiliary drives based on three-phase technology, whereby Sinamics drive systems would be
used for the first time in a Chinese steel works.

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Siemens’ Division Bags an Order from Parkering København…
Siemens’ division Siemens Industrial Solutions and Services Group (I&S) bagged an order from
Parkering København, the municipal operating company to install around 1500 new pay and
display machines in the Danish capital. The machines are part of a comprehensive parking-space
management concept which is intended to reduce car traffic and congestion in the inner city.
Siemens would deliver about 1500 pay and display machines based on the Sity type of machine.
The machines accept credit cards, the Dankort national debit card as well as coins. In addition,
Siemens would install a back-office system for monitoring and operating the pay and display
machines.

Siemens Receives an Order for the Supply of Electric Drive System for the Gas Compressor…
Siemens’ division Industrial Solutions and Services Group (I&S) received an order from Rolls-
Royce Power Generation plc, London, Great Britain for the supply of direct drive for a gas
compressor in Felindre, South Wales. As per deal, Siemens’ I&S would supply electric drive
system to the British gas supplier, National Grid (NG), London. The low-maintenance electric
drive could be adjustable as per requirements with the help of a variable speed controller. As part
of the contract, Siemens would focuses on the design, manufacture and supply of the complete
drive system, including transformer, line filter, frequency converter, synchronous motor and
cooling system.

Siemens Secures an Order from the Danish Company…


Siemens’ division Power Generation Group (PG) secured an order from the Danish company,
DONG Energy A/S, the world’s leading operator of offshore wind farms, to build a further
offshore wind farm in Britain. As per the contract, Siemens would supply 30 wind power systems
with a combined capacity of 108 megawatts (MW) for the Gunfleet Sands project off the east coast
of England. Gunfleet Sands would be the third British offshore project to be deployed with
Siemens’ wind turbine with a capacity of 3.6 MW.

Siemens Receives an Order from Wasserwerke Dinslaken GmbH…


Siemens’ division Water Technologies received an order worth € 3.1 million from Wasserwerke
Dinslaken GmbH to equip the Wasserwerke Dinslaken’s waterworks in Voerde-Löhnen, Germany,
with electrical and automation systems and instrumentation for a nanofiltration plant. As part of the
contract, Siemens I&S would install the electrical equipment and instrumentation for the new
filtration plant. The order includes installation of the power supply and distribution systems as well
as erection of a stand-by generating unit for maximum fail-safety.
Wasserwerke Dinslaken GmbH and its waterworks in Voerde-Löhnen are part of municipal
utilities group of Dinslaken.

Siemens’ Division and Russian Railways Signs a Maintenance Contract…


Siemens’ division Siemens Transportation Systems (TS) and Russian Railways (RZD), Vladimir
Jakunin signed a maintenance contract worth more than € 300 million for eight Velaro RUS high-
speed trains. Under the terms of the contract, Siemens would focuses on the maintenance of the

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Velaro RUS high-speed trains for a period of 30 years. Earlier, Siemens and Russian Railways
signed a € 276 million contract during the first half of 2006 for the delivery of 8 high-speed trains.
The service and maintenance contract for the Velaro RUS trains reinforces the global presence of
Siemens TS in the service business.

Siemens Receives an Order from MAN TURBO AG…


Siemens’ division Industrial Solutions and Services (I&S) Group received an order from MAN
TURBO AG, Switzerland, for the supply of five variable-speed electric drive systems for the
Zuidwending underground natural-gas storage facility in the Netherlands. Two companies namely
N.V. Nederlandse Gasunie and Nuon BV are jointly building a natural-gas storage facility in
underground salt caverns near Zuidwending in the Groningen province. The gas storage facility
with a capacity of about 180 million cubic meters is mainly intended to operate as a buffer and
compensate for peaks in demand. As part of the contract, Siemens would supply five variable-
speed drive systems of the type “Sisog Comp D”, each with an output of 12 megawatts for the
operation of the gas compressors.
Nuon is a leading energy supply company with customers in the Netherlands, Belgium and
Germany, while Nederlandse Gasunie is involved in buying, transporting and selling of natural gas.
Siemens Receives an Order for Power Plant in South Korea…
Siemens’ Power Generation Group (PG) secured an order from Korea Midland Power Co. Ltd.
(KOMIPO), to supply key components for a combined cycle power plant in Incheon in the vicinity
of the capital Seoul. As per the terms of the contract, Siemens’ PG would build the Incheon II
power plant in the immediate vicinity of Incheon I, currently South Korea’s most efficient power
plant. As part of the contract, Siemens’ PG would supply the Power Island comprising two gas
turbines, one steam turbine and three generators as well as the entire electrical and instrumentation
and control equipment for Incheon II. The plant would begin its operation in the first half of 2009.

Siemens Bags an Order from Chinese Steel Producer…


Siemens’ division Industrial Solutions and Services (I&S) Group bagged an order worth US$ 11
million from the Chinese steel producer Jiuquan Iron & Steel Group (Jisco), to build a new four-
high skin-pass mill. As per the contract, Siemens would be responsible for planning the skin-pass
mill and would supply key components of the mechanical equipment as well as all of the electrical,
automation and processing systems. Jisco, through its four-high skin pass mill would produce CQ,
DQ, DDQ, HSLA and EDDQ steel grades.
Jisco operates three production facilities: Jiayuguan/Gansu Province, Hongyang/Shangxi Province
and Yuzhong—near Lanchow/Gansu Province.

Siemens Receives an Order from Konkola Copper Mines PLC…


Siemens’ division Industrial Solutions and Services Group (I&S) received an order from Konkola
Copper Mines Plc (KCM), Zambia, to equip a new smelting facility with a power system including
the plant electrics. As per the deal, Siemens would provide the copper smelting plant with the new
power supply equipment. KCM to expand its operations intents to build a new smelting facility
with capacity of 300,000 metric tons of copper per annum.

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Siemens and Koninklijke Vopak NV Enter into a Contract…
Siemens’ division Industrial Solutions and Services (I&S) Group entered into a contract with
Koninklijke Vopak NV (Vopak). As per the contract, Vopak would supply complete turnkey
electrical equipment and instrumentation for Vopak’s new tank farm in the port of Antwerp.
Siemens and the Belgian companies Ivens and Cordeel would built the tank farm in the framework
of an EPC (engineering, procurement, construction) contract. As part of the contract, Siemens
would supply the medium-voltage transformers, the low-voltage distribution system, the
instrumentation, a Simatic PCS7 automation solution, the lighting systems and a CCTV (closed
circuit television) system for the tank farm. Whereas, Ivens NV would supply mechanical
equipment and the Belgian Cordeel group would focuses on the construction work.
Vopak is the world's largest independent tank farm operator and specializes in storage and transport
logistics for liquid and gaseous chemicals and petrochemical products. The company operates
about 75 tank farms with a storage capacity of over 20 million cubic meters.

Siemens Wins a Contract from Expressway & Rapid Transit Authority of Thailand…
Siemens’ division Industrial Solutions & Services Group (I&S) won a contract worth around €
6.3 million from the Expressway & Rapid Transit Authority of Thailand (ETA). As per the
contract, Siemens’ I&S would install toll collection, traffic control, and communication systems,
to improve the flow of traffic and to reduce traffic congestion, for the ETA’s Ramindra Outer
Ring Project in Bangkok, Thailand. The contract also includes a traffic computer, variable
message signs and CCTV video camera system (closed circuit television) in addition with
associated infrastructure such as an emergency telephone system and fiber optic communication.
However, the Ramindra Outer Ring project would expand ETA’s network in the northeast of
Bangkok and its vicinity.

Siemens’ Division Receives an Order from the Chengde Iron and Steel Group…
Siemens’ division Metals Technologies (MT) received an order from the Chinese company,
Chengde Iron and Steel Group. Under the contract, MT would supply the automation system
including all of the basic and process automation as well as the visualization system for a new hot-
strip mill in Chengde. Moreover, MT also equip the 1700-millimeter hot-strip rolling mill with the
new strip-cooling model. The new hot-rolling mill to be installed is designed for the production of
high-quality steel strip in widths up to 1700 millimeters and would produce over 4 million metric
tons of hot strip per year upon completion.
Metals Technologies is one of the world's leading engineering and plant-building companies for the
iron and steel industry as well as for the flat-rolling sector of the aluminum industry and for open-
cast mining.

Siemens Bags an Order from Mondi Packaging Frantschach GmbH…


Siemens’ division Industrial Solutions and Services Group (I&S) bagged an order worth € 1.2
million from Mondi Packaging Frantschach GmbH (MPF), St. Gertraud, Austria. The contract
enables Siemens to equip MPF’s PM8 paper machine with new drive technology. Siemens would
supply about 25 drives based on three-phase technology with a total output of 4100 kilowatts.

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Mondi Packaging group, a part of Anglo American PLC, is a leading international manufacturer of
packaging materials, as well as one of the largest producers of kraft paper.

Siemens Signs a Contract with Oceaneering Advanced Technologies…


Siemens signed a contract with Oceaneering Advanced Technologies, a division of Oceaneering
International, Inc (OII). As per the contract, Siemens would supply an electric winch motor control
system and an energy storage system for a crane that is designed to move large containers on U.S.
Navy ships at sea shore. The contract includes the delivery of a drive system, programmable logic
controller, and an energy storage system. Siemens would also provide the motors, brakes and
gearboxes and would be responsible for the mechanical integration of the system.

Siemens Bags Cycle Power Plant Contract in the Netherlands…


Siemens’ division Power Generation (PG) bagged a turnkey contract to build a combined cycle
power plant in the Netherlands. The new plant to be built would be operated by a joint venture of
the Dutch DELTA Energy and Électricité de France International (EDFI), Paris. As part of the
contract, Siemens’ PG would supply two SGT5-4000F gas turbines, two SST5-5000 steam
turbines, two water-cooled generators, and the entire electrical and I&C equipment. The company
would also focuses on the maintenance of plant for a period of about 15 years.

Siemens Receives an Order from Modern Karton Sanayi Ticaret AS…


Siemens’ Industrial Solutions and Services Group (I&S) received an order from Modern Karton
Sanayi Ticaret AS, Corlu. Under the contract, Siemens would supply and install the electrical drive
equipment for the new PM5 cardboard line. As part of the contract, Siemens would supply
multiple-motor drives for the paper machine and the winder machines, the single drives for the
paper machine and the stock preparation as well as 450 low-voltage motors for the new production
line. The contract also includes 10 medium-voltage motors for the vacuum blowers, refiner and
dispersers.

Siemens Secures an Order from the Slovenian Mining Company…


Siemens’ Industrial Solutions and Services (I&S) Group secured an order from the Slovenian
mining company, Premogovnik Velenje d.d., to modernize the winder system of a coal mine. The
contract enables Siemens’ I&S to supply a new winder controller, a converter, control desks and a
data recording system.

Siemens Receives Orders from Equinox Minerals Limited…


Siemens’ Industrial Solutions and Services Group (I&S) received orders from Equinox Minerals
Limited, Canada, for the supply of electrical equipment and systems for Open-Cast mine haulage
trucks, Grinding Mills and “In-Pit” electrical infrastructure, for the development of its new
Lumwana Copper Mine in Zambia. The Lumwana mine located in the North Western Province of
the Republic contains resources of Gold, Cobalt and Uranium and would be the single largest
copper mine on the African continent.

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Siemens Wins a Contract from Doppelmayr Cable Car GmbH…
Siemens’ Industrial Solutions and Services Group (I&S) won a contract from Doppelmayr Cable
Car GmbH, Wolfurt, Austria. As per the contract, Siemens’ I&S would supply electrical equipment
for a new Cable Liner Shuttle in Las Vegas, a joint development of Doppelmayr and Siemens.
Cable Liner Shuttle is a fully automated, cable-hauled rapid transit passenger system.

Siemens Enters into a Contract with Pöyry Empreendimentos…


Siemens’ Power Generation (PG) entered into a contract with the Brazilian company Pöyry
Empreendimentos, a part of VCP (Votorantim Celulose e Papel), one of the biggest cellulose
producers in the Americas. As per the terms of the contract, Siemens’ PG would supply two SST-
PAC 800 steam turbine generator sets, each comprising one steam turbine and one generator to a
biomass-fired plant in Três Lagoas, 600 kilometers northwest of São Paulo. The biomass-fired
plant would supply sufficient energy for the production of one million tonnes of pulp per year.

Siemens Signs a Contract with Telekomunikacja Kolejowa…


Siemens’ Siemens Networks business signed a contract with Telekomunikacja Kolejowa (Warsaw)
for the supply and implementation of the modern optical transport platform Surpass hiT 7300 and
the TNMS management system. SURPASS hiT 7300 is a flexible 40-channel DWDM transport
platform that is optimized for high-capacity transport and ranges from 200 to 2000km links. The
contract also covers the construction of transmission links in the Berlin-Warsaw, Warsaw-Krakow
and Krakow-Bielsko-Biala sections. The contract allows Telekomunikacja Kolejowa to extend the
market share of the innovation IP services for business, operators and administration.

Siemens Secures Orders for Compressors…


Siemens’ Power Generation Group (PG) secured numerous orders from Yisheng Dahua
Petrochemical, Linde Engineering, and Huainan Chemical Group for compressors and compressor
trains in China. Under the contract with Yisheng Dahua Petrochemical, Siemens’ PG would supply
two compressor trains for a PTA (pure terephtalic acid) production plant in Dalian, which is
located in Liaonin Province in northeast China. The Dalian plant produces 1.2 million tonnes of
PTA per annum.
In contract with Linde Engineering, Siemens’ PG would supply two identical high-pressure air
compressors and two nitrogen product compressors for the new Shougang Jingtang iron and steel
mill in Caofeidian, located about 220 kilometers northeast of Beijing, In addition, Siemens would
supply a compressor train comprising an STC-SH radial single-shaft compressor and an STC-GV
high-pressure integrally geared compressor to the Huainan Chemical Group’s chemical plant.

Siemens Receives an Order from Algérie Télécom…


Siemens received an order from Algérie Télécom, the largest telecommunications provider in
Algeria. Under the contract, Siemens would supply Algérie Télécom with 12,000 WLAN access
points, WLAN end-user devices and WiMax base stations and modems to set up Wireless Local
Access Networks (WLANs) for business customers. Algérie Télécom utilizing Siemens’
infrastructure, WLAN-capable end-user devices and tariffication system would offer business

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customers in the Algiers area with Wireless Local Access Networks (WLANs). As part of the
contract, Siemens would also maintain two pilot networks and train local technicians to service the
networks.

Siemens Secures Contracts from South Africa’s Network Operator, Neotel…


Siemens’ Siemens Networks business secured contracts from Neotel, South Africa’s Second
Network Operator (SNO). As per the contract, Siemens Networks would build nationwide IP core
network and a DWDM (Dense Wavelength Division Multiplexing) transport network for Neotel.
The contract enables Neotel to offer residential and business customers multimedia
communications services

Siemens Bags a Contract from Turkish Steel Producer…


Siemens’ division Metals Technologies (MT) bagged a contract from the Turkish steel producer
,Borçelik Çelik Sanayii Ticaret AŞ (BCST). As per the contract, Siemens’ MT would supply a new
reversing mill and galvanizing line as well as the upgrading of the existing pickle line. The contract
enables BCST to increase the rolling and processing capacity of its cold-rolling mill complex
located at Gemlik.

Siemens’ Joint Venture Enters into a Contract with Technická Správa Komunikací Praha…
Siemens’ Joint Venture Eltodo dopravní systémy Sro (EDS) signed a contract with Technická
správa komunikací (TSK) to modernize the traffic infrastructure in Prague to improve the flow of
traffic in the capital of the Czech Republic. As per the deal, EDS would supply complete traffic
computer systems and traffic lights to TSK for a period of 15 years.

Siemens Receives an Order for the Supply of Two High-Performance Mine Winder Systems…
Siemens’ division Industrial Solutions and Services Group (I&S) received an order for the supply
of two high-performance mine winder systems for the main production shaft of a new coalmine of
Shanxi Gaohe Energy Co. Ltd. (Shanxi Gaohe), China. As per the contract, Siemens would equip
the facility with electrical components, while Siemag would supply the mechanical components.
Shanxi Gaohe equipping the shaft with production winders would produce about 6 million metric
tons of coal per annum.

Siemens Receives a Contract to Build Turnkey Substation…


Siemens’ Power Transmission and Distribution (PTD) received a contract from the power supply
company TRANSCO (Abu Dhabi Transmission & Dispatch Company) for the construction of a
turnkey substation (400/132 kV/22 kV) for the power supply on Saadiyat Island, which is situated
500 meters off the coast of Abu Dhabi. In addition to construction of the substation, the contract
also comprises engineering and commissioning.

Siemens’ division Siemens Networks Receives an Order from Telenor Pakistan…


Siemens’ division Siemens Networks received an order from Telenor Pakistan, the second largest
network operator in Pakistan to expand and manage its GSM network. Following the terms of the

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contract, Siemens would plan, supply and implement technologies for the radio and transmission in
the south of Pakistan, expand and upgrade the core network nationwide, and operate the GSM
network after the setup phase, providing Managed Services. The expansion also includes the
rollout of more than 2000 base stations and core network-related entities.

Siemens Receives an Order from the Belgian National Railway Company SNCB…
Siemens’ division Siemens Transportation Systems received an order from the Belgian National
Railway Company SNCB, or Société Nationale des Chemins de Fer Belges for the supply of 60
electric multi-system locomotives. The company’s locomotives are also suitable for operation on
Belgium's high-speed line linking Brussels and Liege.

Siemens Receives a Contract from Tangshan Stainless Co. Ltd…


Siemens’ Industrial Solutions and Services (I&S) division received a contract from the Chinese
steel producer Tangshan Stainless Co. Ltd., for the supply of the automation for a new hot-strip
mill. Siemens would supply the basis and process automation after reheating furnace for the
reversing roughing mill with hydraulic edger, a coil box, the 6-stand finishing mill, the laminar
cooling section, and the coiler as well as for the coil transport system. Technological control
systems as well as the process models for the individual mill sections are also included in the scope
of supply for the production of high-quality steel grades.

Siemens’ division Siemens Networks Enters into a Contract with Crossbeam Systems Inc…
Siemens’ division Siemens Networks and Crossbeam Systems Inc. of Boxborough, Massachusetts
(USA), entered into a partnership contract for the delivery and maintenance of Crossbeam's Unified
Threat Management (UTM) platforms. UTM platforms are used in the security solutions of mobile
and fixed carriers’ networks. Following the terms of the cooperation contract, Siemens would
expand its product portfolio with the so-called multi-application security switches and provide the
accompanying consulting, integration and maintenance services. The cooperation also enables
Siemens to provide the design know-how for security solutions and network integration, as well as
sales and technical support to Crossbeam Systems.

Siemens’ I&S Wins an Order from Royal Mail…


Siemens’ division Siemens Industrial Solutions and Services Group (I&S) won an order from
Royal Mail, the British postal service provider, to upgrade its Integrated Mail Processor Systems
(IMP) for standard letter sorting. As per the contract, the systems would be fitted with new letter
flow and reading equipment, which would increase throughput by up to 20 percent.

Memorandum Of Understanding (MOU)


Siemens and Nokia Signs a Memorandum Of Understanding…
Siemens’ Siemens Networks business and Nokia signed a memorandum of understanding (MOU)
with NEC Corporation (NEC) for the co-operation in the area of WCDMA radio networks.
Following the deal, the companies would jointly support and develop the installed base of Siemens
Networks and NEC WCDMA base stations and radio networks controllers. In addition to the

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support and development for WCDMA radio access network installed base, NEC, Nokia and
Siemens Networks would cooperate in further enhancing 3G/WCDMA businesses.
NEC, Nokia and Siemens Networks formed the co-operation to further strengthen their WCDMA
product offering, and to provide mobile operators with the highest quality, best performance and
most cost-efficient networks. However, the agreement would reinforce the companies’ competitive
position in the WCDMA market.

New Establishment

Siemens and Galon New Systems Ltd. to Establish a New Joint Venture company…
Siemens’ division Automation and Drives (A&D) and Galon New Systems Ltd. (GNS) signed a
contract to establish a joint venture, Siemens Wiring Accessories Shandong Ltd. (SWAS) in Zibo,
China. The new joint venture entity, SWAS would manufacture switch and socket systems.

New Plant

Siemens to Build Combined Cycle Power Plant in the UK…


Siemens’ division Power Generation Group (PG) announced plans to build a turnkey combined cycle
power plant in the UK. After the completion Marchwood Power Ltd., a 50/50 joint venture of ESBI
and Scottish & Southern Energy Plc, would operate the plant. The Marchwood Power plant, with a
capacity of more than 6000 MW, would be the eighth turnkey power station constructed by Siemens
in the UK. Siemens also announced plans to build the gas-fired combined cycle power plant with a
capacity of 840 megawatts (MW) in the vicinity of Southampton on the English south coast.

Divestiture
Siemens’ Division Divests its Medical Monitor Business…
Siemens’ division Siemens Automation and Drives (A&D) entered into a definitive agreement with
Eizo Nanao Corporation to divest Siemens’ medical monitor business to Eizo.

Siemens to Divests its Automobile Supplier Business…


Siemens signed an agreement with Continental AG, Hanover, Germany, to sell its entire stake in
Siemens VDO Automotive AG (SV) for €11.4 billion. The sale of SV supports the goals set in the
company’s Fit for 2010 program. These goals include a focused further development of the
business portfolio in the three application fields of Energy and Environmental Care, Automation
and Control/Industrial and Public Infrastructures, and Healthcare.

Siemens’ division Siemens VDO to Divest Air Intake Module and Air Filtration Business
Division…
Siemens’ division Siemens VDO Automotive intend to divest its air intake module and air filtration
business segment for combustion engines to Mahle Group. The transaction would expand Mahle’s
market presence in North America and Asia and would also complement the technology portfolio
in the product division.

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Siemens VDO develops, produces and markets air management systems in the UK, Canada,
Mexico, and China

Product/Service Launches

Siemens Launches Sitrans LR460 Continuous Radar Level Measurement Transmitter…


Siemens’ Automation and Drives (A&D) launched new Sitrans LR460 continuous radar level
measurement transmitter. The new product features 24 gigahertz frequency-modulated continuous
wave technology and Process Intelligence echo processing. Sitrans LR460 includes a new antenna
for low loss of signal and improved gain of signal reception, increasing the signal-to-noise ratio.
The Sitrans LR460 continuous radar level measurement transmitter also allows the detection of
very low dielectric constant materials over long ranges.

Siemens’ Automation and Drives Introduces DIN-Rail-Mounted Supply Unit…


Siemens’ Automation and Drives (A&D) introduced a new DIN-rail-mounted supply unit for
connection to the 3-phase 400/500 volt AC power supply. The DIN-rail-mounted unit featured with
new functions is capable of supplying 50 per cent additional power for five seconds. The unit
provides complete all-round protection against mains failure or selective protection against short-
circuit or overload in the 24 volt output circuit.

Siemens Launches New Siplace OS Inline Inspection System…


Siemens Automation and Drives (A&D) expanded its Siplace SMT solutions’ product line with the
launch of new Siplace OS inline inspection system. The Siplace OS is the world’s first inspection
system that is featured with two-dimensional and three-dimensional inspection technologies. The
new Siplace OS is a fully automated high-speed machine for automated optical inspection (AOI).
Siplace OS helps manufacturers to execute their process control and automatic inspection activities
on the factory floor quickly and with exceptional precision.

Siemens Unveils Siplace D2 and D1 Machines…


Siemens Automation and Drives (A&D) unveiled Siplace D1 and D2 machines in its Siplace D
platform. The new D1 and D2 models features proven Siplace technology such as technically
updated 12-nozzle or 6-nozzle Collect & Place heads, Siplace S feeders that are compatible with
legacy platforms, and robust direct drives for the Y-axes. The new machines are used by
electronics manufacturers with medium-sized placement volumes and high quality and flexibility
requirements.

Siemens Introduces New S3 System Technology…


Siemens’ division Siemens Water Technologies introduced new S3 System Technology. The new
S3 System is an innovative proprietary process that reduces the amount of energy and water
consumed, and the wastewater generated by a pharmaceutical water purification system. The S3
System design eliminates an otherwise necessary break tank and booster pump, reducing the
required system footprint and streamlining system validation.

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Siemens Launches Milltronics MBS Belt Scale…
Siemens’ division Siemens Automation and Drives (A&D) launched the basic, modular, medium-
duty Milltronics MBS belt scale. The product is well is suited for applications involving
aggregates, sand, gravel, or crushed stone. Featuring an accuracy of ±1.0%, Milltronics MBS
provides dynamic weighing information for process indication.

Siemens Introduces an Advanced Ultrasonic Level Controller…


Siemens’ division Automation and Drives (A&D) introduced an advanced ultrasonic level controller,
Sitrans LUC500. The device improves efficiency, reduces energy consumption and maintenance
costs by decreasing pump failures and site visits. Sitrans LUC500 combines non-contacting
ultrasonic technology, echo-processing techniques and proven application software to provide
accurate level control of liquids in wet wells up to 15 meters (50 feet) deep. The device also monitors
flow in flumes, weirs, and other open channels. Sitrans LUC500 features fault monitoring and data
logging for trend analysis, logging time, date, volume or any other application event.

Siemens Launches Healthcare Project in China…


Siemens launched a healthcare project to improve the quality of life in rural areas of China. The
company would invest about US$10 million in the project over the next five years. Siemens,
through its projects intent to provide access to high-quality healthcare to the people in rural regions
of China. Siemens would also focus on developing tailored solutions to meet the specific needs of
local healthcare organizations. Initially, Siemens would outfit a number of pilot hospitals with
diagnostic equipment, beginning with the first facility in Luochuan County in Yan’an, in the
Shaanxi Province. The equipment includes ultrasound and x-ray systems as well as computed
tomography imaging systems. In addition, Siemens would also equip six urban health centers with
x-ray and ultrasound systems

Siemens Introduces New Industrial LCD Monitors…


Siemens’ division Automation and Drives (A&D) introduced a new industrial LCD monitors that
are used to supplement any Simatic PC from a distance of up to 30 meters. The new Simatic flat-
panel monitors are ideal for installation in consoles or housings. The devices are available in
display sizes of 12”, 15”, 17”, and 19" with a screen resolution of up to 1280 x 1024 pixels
(SXGA) either as a display-only unit or with touch functionality.
Siemens Unveils a New Airport Management and Operation System…
Siemens’ divsion Industrial Solutions and Services Group (I&S) unviled Siamos (Siemens airport
management and operation system), a new control station software. The software provides airport
operators with an integration platform which collects and displays operational airport data. The
Siamos also allows airport operators to analyze their entire operation constantly and
contemporaneously, and to take action to match operations optimally and flexibly to their
commercial objectives.
Siemens Launches Sibag Smart Solution…
Siemens’ division Industrial Solutions and Services (I&S) Group launched Sibag Smart solution, a
modular, pre-installed baggage handling system for use in airports. The new Sibag Smart baggage

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handling system is designed specifically to meet the demands of smaller airports. The baggage
handling system possess a modern visualization system based on Siemens WinCC which facilitates
user-friendly operation of the system.

Siemens Introduces Sinamics G120 Series Inverters…


Siemens’ Automation and Drives (A&D) introduced Sinamics G120 series of inverters that are
ideal for conveyor system applications encountered in the automotive industry. Featuring with
metal housing and degree of protection IP65, the frequency inverter is well suitable for rough
environments.

Siemens Introduces Inveon for Preclinical Imaging…

Siemens’ Siemens Medical Solutions introduced Inveon, a new preclinical, multimodality imaging
solution, which enhances research and drug discovery. Inveon would assist in facilitating the basic
research and drug development process, empowering researchers to identify specific biological
processes, monitor the efficacy of compounds, and measure the effects of disease progression over
time. The innovative solution offers a versatile and upgradeable platform as well as a
comprehensive suite of preclinical analysis applications.

Product Developments
Siemens Develops Siplace Maintenance Manager…
Siemens’ Siemens Automation and Drives (A&D) developed a new software system, Siplace
Maintenance Manager for electronics manufacturers. The new Siplace Maintenance Manager
allows electronics manufacturers to plan, coordinate and log their maintenance work with
exceptional efficiency. The Siplace Maintenance Manager also controls the maintenance of the
entire production line, including non-Siplace components such as screen printers and reflow ovens.
The software that starts with a simple mouse click, presents the line manager with an overview of
all pending and/or scheduled maintenance activities. Additionally, different color codes indicates
the various conditions: Green: no maintenance needed; Yellow: Maintenance required; and Red:
Maintenance overdue.

Siemens Develops HTS Propulsion Motor…


Siemens’ Industrial Solution and Services (I&S) Marine Solutions and Automation and Drives
(A&D) Large Drives divisions in association with Siemens Corporate Technology developed a new
HTS (high temperature superconducting) propulsion motor for all-electric ships (AES). The HTS is
the world’s first generator that generates four megawatts of power at a torque of over 300
kilonewton meters.

Siemens Develops New Siflow FC070 Coriolis Flowmeter…


Siemens’ Automation and Drives (A&D) developed a new Siflow FC070 Coriolis flowmeter for
direct integration into Simatic systems, enabling multiple parameters to be measured in gases and
liquids. Siflow FC070 covers a broad spectrum of flow applications for the majority of gases and
liquids – from simple fabrication to complex requirements in the chemical industry. The device

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monitors the flow, the measuring substance temperature, the density, the volumetric flow as well as
the fractional flow with an accuracy of at least 0.1%.

Siemens Develops a New Procedure…


Siemens developed a new procedure that enables magnetic resonance tomography (MRT) systems
to produce sharp images even when a patient moves during an examination. The technology is
especially beneficial for children to keep them still during MRT examinations. The new
technology, which functions only with MRT devices is used for examining a wide range of organs
including the head, joints, the spine, the stomach and the chest. The new systesm also enables
doctors to make whole-body images in one step without moving the patient from one room to
another.

Year 2006 in Review…

Acquisitions
Siemens to Acquire Electric Drive Business of Ballard Power Systems…
Siemens’ Siemens VDO Automotive Corp., signed an agreement to acquire Ballard Power Systems
Inc.'s (Ballard) Electric Drive Business located in Dearborn. The acquisition includes Ballard
Power Systems Corp.'s research, development and manufacturing operation in Dearborn, impacting
approximately 80 highly specialized personnel. Ballard Power Systems Corp., is a subsidiary of
Ballard, which develops and manufactures electric drive technology for fuel cell vehicles.

Siemens’ division Siemens VDO Purchases Majority Shares in Russian Supplier AVTEL…
Siemens’ Siemens VDO Automotive purchased 51 percent shares of the automotive supplier
AVTEL, a joint venture of the Russian companies Avtoelectronica and NPP Elcar. Following the
acquisition, Siemens VDO Automotive would become the leading partner in the joint venture. The
company would operate as Avtel–a joint venture between Siemens VDO, Elcar and Avtoelectronica.

Siemens Acquires Berwanger Inc…


Siemens’ subsidiary Siemens Energy and Automation Inc., completed the acquisition of Berwanger
Inc. (Berwanger). Following the acquisition, Berwanger would operate as a part of the oil and gas
business of the Siemens Industrial Solutions and Services Group (I&S). The acquisition of
Berwanger would allow Siemens to expand its international reach in the oil, gas and petrochemical
industries.
Berwanger is a global market leader in front-end engineering, plant services and software for the
international oil, gas and petrochemical market.

Siemens Purchases Advanced Burner Technologies…


Siemens’ subsidiary Power Generation (PG) purchased Advanced Burner Technologies Inc.
(ABBOTT), which is known globally for its highly effective low NOx burners and combustion
modifications for pulverized coal fired steam generator. The acquisition would enable PG to
provide innovative technologies, solutions and services to meet the needs of the customers.

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Siemens Takes Over Coal Gasification Business of the Swiss Sustec-Group…
Siemens’ subsidiary Power Generation Group (PG) took over Coal Gasification Business of the
Swiss Sustec-Group. The acquisition would enable PG to expand its power plant business with
products and solutions for conversion of coal to electricity by acquiring the technology and
engineering activities of the Sustec-Group.

Merger
Siemens Enters into Merger with Nokia…
Siemens’ Siemens Networks business entered into merger with Nokia Networks Business Group, a
part of Nokia, to form a joint venture company. The new company would operate under the name
Nokia Siemens Networks. Globally, the joint venture would be the second largest company in
mobile infrastructure, second in services, third in fixed infrastructure, and the third largest in the
overall telecommunications infrastructure market.
Nokia is a Finnish telecom equipment giant.

Joint Ventures
Siemens’ Subsidiary and WKN Windkraft Nord AG Establishes a Joint Venture…
Siemens’ subsidiary Siemens Project Ventures GmbH (SPV), and WKN Windkraft Nord AG
established a joint venture firm namely Innovative Wind Concepts GmbH (IWC). IWC would
develop and realize wind-energy projects in central and eastern Europe. As per the deal, both the
companies would hold 50 percent of the shares. The new company would be based in the House of
Future Energies (Haus der Zukunftsenergien) in Husum, northern Germany.

Siemens Enters into Joint Venture with EnBW Energie Baden-Württemberg AG…
Siemens’ subsidiary Siemens Power Generation (PG) entered into joint venture with EnBW
Energie Baden-Wurttemberg AG, to establish a highly efficient fuel cell hybrid power plant. The
project involve intensive background research to optimize operation of stationary fuel cells in
conjunction with gas turbines making hybrid SOFC’s a viable alternative for commercial plants. In
solid oxide fuel cells (SOFC), an electrochemical reaction converts fuel energy directly and very
efficiently into electricity and heat.
Collaborations
Siemens Enters into Collaboration with Intel Corporation…
Siemens entered into collaboration with Intel Corp., to provide open unified communications
solutions based on Voice over Internet Protocol (VoIP). Under the terms of the collaboration, both
the companies would jointly fund and conduct research focused on secure wireless networks and
real-time open unified communications to drive business process optimization for key market
segments such as telecommunications service providers, financial services and digital healthcare.
As per the collaboration, the Intel lab would also act as a center for the optimization and integration
of products from independent software vendors (ISVs) and other third party systems to work with
the new open unified communication VoIP technologies.

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Siemens and DOCexpert Computer GmbH Team Up…
Siemens and DOCexpert Computer GmbH teamed up to develop joint concepts for the rollout of
the German electronic health card. As part of collaboration, both the companies would provide an
all-inclusive package that ensures secure a link of the DOCexpert medical practice software to the
telematics infrastructure. In addition, Soarian Integrated Care, the electronic patient file developed
by Siemens Medical Solutions, would be integrated in the DOCexpert Group’s health professional
systems and solutions for medical care centers.

Siemens Extends its Collaboration with Bucyrus International Inc…


Siemens extended its collaboration for a period of another ten years with Bucyrus International
Inc., a leading manufacturer of surface mining machines, to supply excavators for the surface
mining. Under the terms of the collaboration, both the companies would develop and supply
shovels and draglines excavators with electric drives and control technology.

Agreements

Siemens Signs a Cooperation Agreement with Canon Deutschland GmbH…


Siemens’ subsidiary Siemens Finance & Leasing GmbH, signed a cooperation agreement with
Canon Deutschland GmbH (Canon), for covering commercial sales financing. As per the
agreement, both the companies would develop a financing program to meet the needs of Canon
reseller partners. The agreement includes both the supply of the equipment, as well as maintenance
and repair services by the dealer.
Canon Deutschland GmbH is a global market leader in the field of digital photography and desktop
color printers.

Siemens Enters into an Agreement with Retelit…


Siemens entered into an agreement with Retelit, a provider of Italian telecommunications to expand
the company’s optical wide area telecommunications network. The optical wide area
telecommunications network would enhance with the new Siemens platform Surpass hiT 7300
based on DWDM (Dense Wavelength Division Multiplexing) technology.
Under the terms of the agreement, Siemens would deliver Retelit’s DWDM-based fiber optic
transmission network as a turnkey solution. The project would include deployment of Surpass hiT
7300, the new optical DWDM transport platform from Siemens.

Contracts

Siemens’ Business Services Bags a Major Contract from Deutsche Bank…


Siemens’ Business Services bagged a major contract from Deutsche Bank, to support large portions
of Deutsche Bank’s information technology, managing the IT infrastructure in all German
branches, corporate departments and additional locations in Italy and Spain.

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Siemens and Fujian Telecom Sign a Contract…
Siemens and Fujian Telecom, a subsidiary of China's biggest telco China Telecom, signed a
contract to implement and support an IP-based multimedia subsystem (IMS). The IMS enables
Fujian Telecom to offer a broad array of multimedia applications and services to both fixed and
mobile subscribers.

Siemens Receives Major Contracts to Build Two Power Plants in Argentina…


Siemens’ Siemens Power Generation (PG) received major contracts in Argentina, for the
turnkey construction of two combined cycle power plants. As per the contract, PG would build
the power plants in Campana in the province of Buenos Aires and in Timbues near the city of
Rosario in the province Santa Fe. Both projects are constructed and operated by the Independent
Power Producers Termoelectrica Manuel Belgrano S.A. (TMB) and Termoelectrica Jose de San
Martín S.A.

Siemens Bags a Contract from Posco…


Siemens and Hyundai Heavy Industries (HHI) bagged a contract from Posco, a Korean steel
producer, for a new Roughing Mill stand for the No. 3 Hot Strip Mill at its Gwangyang Works.
Under the terms of the contract, Siemens would design and supply key equipment and automation
systems for the Roughing Mill stand. As per the contract, HHI is responsible for mechanical
equipment manufacture. HHI is the biggest steel plant supplier in Korea. The Roughing Mill
project is the latest of a series of contracts awarded by Posco to VAI, which include the supply of a
Finex hot-metal production plant, slab caster modernizations, plate mill cooling systems and
process lines.

Siemens Receives a Contract for The Largest European Wind Farm…


Siemens’ subsidiary Siemens Power Generation (PG) received a contract from the utility Scottish
Power for the delivery of 140 wind turbines for the Whitelee Wind Farm in Scotland, UK. Under
the terms of the contract, Siemens would provide 140 wind turbines with a capacity of 2.3 MW
each. Siemens PG’s supply includes the delivery of wind turbines, installation, commissioning and
a service and maintenance agreement.

Siemens Bags a Contract from United States Postal Service…


Siemens bagged a contract from the United States Postal Service (USPS), to update its existing
video processing system for letter mail. The new Remote Encoding System (RES) would integrate
the video and image processing of different USPS systems that support the automatic interpretation
of the addresses on letters. As per the contract, RES would establish the infrastructure for the future
integration of letters, flats and package image processing.

Siemens Receives Supply and Maintenance Contracts from Russian Railways…


Siemens’ Transportation Systems Group (TS) received supply and maintenance contracts from
Russian Railways. As per the contract, TS would supply eight Velaro type high-speed trains to
Russian Railways (RZD).

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Siemens Wins a Contract from Telenor Cinclus AS…
Siemens’ Communications Group won a wireless modules contract from Telenor Cinclus AS for
the delivery of 680.000 wireless modules. The wireless modules would enable Telenor Cinclus’
energy companies to read electric meter automatically.

Siemens Bags a Supply Contract from Shougang Co. Ltd…


Siemens’ Siemens Industrial Solutions and Services Group (I&S) bagged a contract from
Shougang Co. Ltd., to supply the electrical equipment for an annealing line and for two hot-dip
galvanizing lines. The supply contract also includes drive systems and the basic and process
automation, including the technological control systems for the built-in skin-pass mill stand and the
stretch leveler.

Siemens Enters into a Multi-Year Contract with Talecris Biotherapeutics…


Siemens’ Business Services entered into a multi-year contract with the US based Talecris
Biotherapeutics (Talecris). Under the terms of the contract, Siemens’ Business Services would
operate the entire IT infrastructure in all locations for Talecris Biotherapeutics. In addition,
Siemens’ Business Services would also provide application management services for Talecris.
Talecris Biotherapeutics (Talecris) a global biotherapeutic and biotechnology company, discovers,
develops and produces critical care treatments for people with life-threatening disorders in a
variety of therapeutic areas including immunology, pulmonology, and hemostasis.

Memorandum of Understandings (MoU)

Siemens Signs MoU with PUB…


Siemens signed MoU with PUB, Singapore's national water agency for collaboration in R&D
projects in water and used water treatment. The expansion of Siemens Singapore into a technology
hub for innovative water and wastewater treatment for Asia-Pacific would be backed up by a
research, development and engineering center that would be set up to work together with
universities, the PUB and environmental authorities.

Siemens and Bharat Heavy Electricals Ltd. Enter into MoU…


Siemens’ Siemens Power Generation Group (PG) and Bharat Heavy Electricals Ltd. (BHEL) of India,
entered into Memorandum of Understanding (MoU) to cooperate in advanced power plant technology
for clean conversion of coal to electricity. The agreement would enable BHEL and Siemens to jointly
offer and execute power plant projects in India that involve supercritical steam conditions.

New Establishment
Siemens to Establish Siemens Center Shanghai…
Siemens intend to establish Siemens Center Shanghai (SCS), to provide services to the customers
in the eastern region of China. The center with 35,000 square meters of office space would
consolidate all the Shanghai-based business areas and functions of Siemens.

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Product Launches

Siemens Unveils Generation NeXt - New Class of Ultrasound Systems…


Siemens’ Siemens Medical Solutions unveiled ultrasound systems Acuson X300 and Acuson
Antares under generation NeXt banner. The ultrasound systems Acuson X300 and Acuson Antares
would provide outstanding performance through advanced offline and online applications such as
the syngo Arterial Health Package and syngo Mitral Valve Assessment.

Siemens Launches Universal Color LCD displays…


Siemens’ Siemens Automation and Drives (A&D) added a 1-MP (mega-pixel) and 2-MP flat
screen monitor to its existing range of high-resolution color displays for medical applications. The
new SCD 19100 (19" diagonal) 1-MP color display and the SHD 21205 (21" diagonal) 2-MP color
display feature the latest viewing angle technology and CCFL backlighting (cold cathode
fluorescent lamp). The 2-MP display with high luminance up to 450 cd/m2 (candelas per square
meter) would ensure long service life.

Siemens Water Technologies Introduces Vantage M83 Reverse Osmosis…


Siemens Water Technologies, a division of Siemens Group Industrial Solutions and services (I&S),
introduced the Vantage M83 packaged 8-inch reverse osmosis system for producing high purity
more water. The system is designed for a variety of industrial applications that require high quality
equipment with nearly delivery.

PRODUCT/SERVICE PORTFOLIO
Automation And Control
Automation Systems
CNC-Automation Systems Sinumerik; Control Systems; Human Machine Interface; Identification
Systems Moby; Industrial Automation Systems Simatic; Industrial Communication; Industrial
Microcomputers; Industrial PCs; Manufacturing Execution Systems; Monitors, Printers, Input
devices; Motion Control System Simotion; PC-based Automation; Placement Systems; Process
Automation; and System cabling/Control cubicles.

Automotive
Automation; Original Equipment OEM; and Trading & Aftermarket

Building Security and Automation


Building Automation; Electrical Installation Technology; Fire & Security Products; Fire Safety;
HVAC Products; and Security Systems

Drives, Motors
AC Motors; AC Converters; Decentralized Drives; DC Motores; DC Converters; Engineering
Software; and Components.

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Electrical Installation Technology
Building Management System GAMMA; Built-in Devices BETA; Switches and Sockets DELTA;
and Distribution Boards ALPHA.

Logistics Systems
Automated Guided Systems; Baggage Handling Systems; Cargo Handling Systems; Conveyors,
heavy; Conveyors, light; Electric Suspension Monrail Systems; High Bay Warehouses; Letter
Sorting Systems; Logistics IT; Modular Assembly Conveyor System; Modular Assembly Profile
System; Order Picking Systems; Parcel Reader Systems; Parcel Sorting Systems; Postal
Automation Systems; Reading Coding Systems and Solutions; Sorters; and Stacker Cranes.

Low-Voltage Controls and Distribution


Industrial Controls; Low-Voltage Power Distribution; and Systems.

Process Automation
Field and Panel Instrumentation; Process Analytics; Process visualization; SIMATIC IT; SIMATIC
PCS 7 Process Control System; Software; TELEPERM M Process Control System; and Weighing
Systems.

Sensors and Measuring Systems


Field and Panel Instrumentation; Intelligent Sensor System IQ-Sense; Machine Vision; Measuring
Systems SIMODRIVE Sensor; Process Analytics; Proximity Switches Bero; RF Identification
Systems MOBY; and Weighing Technology.

Information and Communications


Communication Networks
Access Networks; Carrier Service; IP Convergence; Industrial Networks; Network Management;
Optical Networks; and Switching

Information Technology
E-Business; IP Convergence; Information Management; Lifecycle Services (in German); Managed
Services (in German); Network Security; and Solutions and Applications.

Mobile Communication
Core Network; Enabling Services and Applications; Gigaset; IMS Products; Industrial Mobile
Communication; Microwave Solutions; Mobile Phones; Professional Services; Radio Network; and
Wireless Modules.

Telephone and Communication Systems


The company offers a complete range of telephone and communication systems for medium-sized
and large enterprises and for small up to medium sized businesses.

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Medical

Hearing Solutions
Digital, digitally programmable and conventional hearing aids

OEM Solutions
Medical Solutions Components

Products and Systems


Accessories & Supplies; Angiography; Computed Tomography; Fluoroscopy; IT Solutions &
Consulting; Magnetic Resonance; Mammography; Nuclear Medicine/PET; Oncology Care; Patient
Monitoring; Radiography; Surgery; Ultrasound; Urology; and Ventilation & Anesthesia products
and systems

Services
Consulting Services; DICOM; FAQs; and Technical Services

Power and Infrastructure

Power Generation
Compressors, Trains & Systems; Fossil Power Generation; Fuel Cells; Hydro Power Plants-Voith
Siemens Hydro Power Generation; IT Power Solutions; Instrumentation & Controls; Nuclear Power
Generation-Framatome ANP; Photovoltaic Inverters; Service Solutions; Training; and Wind energy.

Power Supply
Power Supply SITOP

Power Transmission and Distribution


Arresters (Surge Arresters and Limiters); Energy Management & Information Systems (Power
Systems Control); Power Network Communication; Power Quality; Power Transmission Systems;
Protection and Substation Control; Service; Switchgear Systems; Telecontrol Systems; and
Transformers

Rail Transportation

Rail Automation and Electrification


Rail Automation; and Rail Electrification

Rolling Stock
Light Rail Vehicles and Tramcars; Locomotives; Metros; Multiple Unit Trains and High Speed
Trains

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Services

Business Services
Application Management; Consulting; Customer Centric Processes; Customer Interaction Center
Services; Enterprise Centric Processes; IT Infrastructure Services; Operation Related Services;
Security & Availability; Supplier Centric Processes; and Systems Integration

Energy Services
Power Generation; and Power Transmission and Distribution

Financial Services
E-Finance; Equity; Factoring; Forfaiting; Institutional Asset Management; Insurance Broker;
Leasing; Mutual Funds; Pension Advisory; Project & Export Finance; Treasury & Financing
Services; Treasury Consulting & Applications; and Venture Capital

Industrial Services
IT Solutions; Plant Services; and Product Services

Training
Consulting and Career Development; Online Booking; Product Training; Retraining; and Standard
Trainings

SUBSIDIARIES
Areva NP
Acuson Corporation
Broadcastle PLC
BSH Bosch und Siemens Hausgeräte GmbH
BSH Home Appliances Corporation
Framatome ANP
Fujitsu Siemens Computers (Holding) BV
Myrio Corporation, Inc.
Osram GmbH
Siemens & Halske
Siemens Business Services
Siemens Dispolok GmbH
Siemens Financial Services GmbH
Siemens Hausgerate GmbH
Siemens Project Ventures GmbH
Siemens Transit Telematic Systems AG
Siemens Treasury Consulting & Applications GmbH
Siemens Venture Capital GmbH
SRI Radio Systems GmbH

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SIEMENS AG’S SUBSIDIARIES

SIEMENS VDO AUTOMOTIVE AG


Siemensstraße 12, 93055 Regensburg, Germany
Phone: +49-941-790-02

SOURCES: www.siemensvdo.com and other secondary online sources

BUSINESS PROFILE
Siemens VDO Automotive AG (Siemens VDO), an automotive component division of Siemens AG (Germany), is a
global leading supplier of automotive electronics and mechatronics. The company manufactures a wide range of
electronics systems, chassis systems, driver information systems, electric motor drives, powertrain components, safety
systems, engine management electronics, drivetrain, and fuel injection products. Siemens VDO also offers instruments
for sailing yachts, sports boats and small professional craft. The company’s product line includes theft security
systems, climate control electronics, electromechanical brakes, ABS components, sliding-roof and power-window
motors, air fuel modules, smart air bags and others. The company also supplies fractional-horsepower DC motors for
use in heavy- to light-duty trucks, cars, and agricultural and construction equipment.
Siemens VDO operates various business segments namely Chassis and Carbody, Powertrain, Interior and Infotainment,
and Service and Special Solutions. Siemens VDO offers a range of accelerator pedals consists of a base module, an
operating lever, and a pedal plate, as well as the appropriate return springs to the manufacturers of commercial vehicles
and construction and working machinery. The company’s products are used in the areas of chassis and carbody, fleet
management, infotainment, interior, marine, powertrain, public transport, replacement, commercial vehicles, and
others. The company’s major competitors include Delphi, Robert Bosch, and Valeo.
In 2007, MAHLE Group announced plans to purchase Siemens VDO’s air intake module and air filtration business
segment. Siemens VDO develops and produces air management systems in Canada, Mexico, the UK, and China.
Siemens VDO was established in 2001 through the merger between Siemens Automotive and Mannesmann VDO.

STRATEGIC CORPORTARE DEVELOPMENTS

Year (2007) in Review…

Partnership

Siemens VDO Partners with Mobileye NV…


Siemens VDO entered into partnership with Mobileye NV (Mobileye), a world leader in the development of vision-
based driver assistance systems, to provide Lane Departure Warning (LDW) technology to BMW’s new 5-Series
advanced driver assistance systems.
Siemens VDO already entered into collaboration with Mobileye for the development and testing of the LDW system
on a wide range of weather conditions, road types and lane markings. The system consists of a high dynamic range
digital CMOS camera and a high performance electronic control unit with advanced algorithm technology for video
based lane marking recognition.

Joint Venture

Siemens VDO and Ashok Leyland Establish Joint Venture in India


Siemens VDO and Ashok Leyland, commercial vehicle manufacturer established a joint venture for the development
of electronics and software. The joint venture develops electronic components and software, such as instrument cluster
applications, cockpit electronics and various control units for both commercial vehicles and passenger cars.

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Business Expansion

Siemens VDO Expands Business in China


Siemens VDO is further expanding its activities in the Chinese automotive market. The expansion of the location at
Wuhu includes a new logistics building, a test laboratory and a new manufacturing plant for instrument clusters. The
production facilities for fuel supply systems and engine actuators as well as the administrative offices are also being
expanded.

Product Development

Siemens VDO Developed Locking System for Volvo Cars


Siemens VDO developed an innovative locking system for Volvo Cars. The new system informs drivers of Volvo S80,
V70 and XC70 models without a doubt whether the car is locked or not. Volvo Cars awarded Siemens VDO with the
development of the new electronic system called the Personal Car Communicator (PCC), which is already in series
production in Volvo cars.

Product/Service Launches

Siemens VDO to Introduce the Viewline Series Instruments…


Siemens VDO announced plans to introduce new generation instruments, the Viewline series for boat builders, marine
outfitters and engine manufacturers. The company supplies its instruments in a wide range of designs as per the needs
of the customer. The series offers a range of space-saving clusters and multi-function instruments to boat builders and
engine manufacturers. Viewline series also includes a wide range of instruments with a diameter of 52 millimeters and
display angles of 90 or 240 degrees for standard readings such as temperatures, pressures, levels or revs, which are also
equipped with LED warning and indicator lamps.

Siemens VDO Introduces Navigation Processing Unit…


Siemens VDO introduced navigation processing unit to serve as a universal element in a freely configurable fleet
management program. The unit in contact with the fleet management software allows key fleet management functions
such as messaging, tracking and tracing. The unit is much cheaper compared to DVD or CD systems and occupies a lot
less space.

Year 2006 in Review…

Acquisitions

Siemens VDO to Purchase Ballard Power Systems' Electric Drive Business…


Siemens VDO signed an agreement to acquire Electric Drive Business from Ballard Power Systems, Inc. The
acquisition to be completed in 2007 also includes Ballard Power Systems Corp.'s research, development and
manufacturing operation in Dearborn. The acquisition would elevate Siemens VDO's hybrid business to a new heights
as well as enables the company to capitalize on new business opportunities.
Ballard Power Systems Corp., a subsidiary of Ballard Power Systems Inc., develops and manufactures electric drive
technology for fuel cell vehicles.

Siemens VDO to Purchase 51% Shares of AVTEL…


Siemens VDO signed a contract to purchase 51% shares of the automotive supplier AVTEL, a joint venture of the
Russian companies Avtoelectronica and NPP ELCAR. Following the acquisition, Siemens VDO would become the
leading partner in the joint venture, AVTEL.
AVTEL is a developer and manufacturer of automotive components, such as engine controls, sensors, and injectors.

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Siemens VDO to Acquire Volkswagen Mechatronic GmbH and Co., KG…
Siemens VDO announced plans to acquire 100% of the shares in Volkswagen Mechatronic GmbH and Co. KG., in
Stollberg/Saxony. Mechatronic GmbH and Co. KG., a 50:50 joint venture between Siemens VDO and Volkswagen
manufactures piezo unit injectors. Subsequent to the acquisition, Siemens VDO and Volkswagen would continue their
diesel partnership.

Contract
Siemens VDO Receives an Order for the Supply of Tolling Systems…
Siemens VDO received an order from Swiss Customs Administration for the supply of 70,000 toll collection devices
for use in Switzerland. The toll systems, operated by the Swiss Federal Customs Administration, are designed for a
service life of seven years for the Onboard Units (OBU).

Product/Service Launches

Siemens VDO Launches Adaptive Cruise Control System


Siemens VDO launched a latest adaptive cruise control (ACC) system that successfully tackles the problems caused on
account of poor visibility while driving, which is caused due to fog and rain. The sophisticated technologies present in
the system, warn the drivers about the distance at which the vehicle ahead is present, based on which they could decide
about braking or decelerating.
Siemens VDO Introduces Control Center for Vehicles and Fleets…
Siemens VDO introduced Vehicle Control Center (VCC) for vehicles and fleets in Germany. VCC is an open and
scalable hardware and software platform that bundles complex functions within the commercial vehicle and provides
an external interface. Siemens VDO’s VCC enables fleet operators to carry out a number of improved or new
functions, such as navigation.
Siemens VDO Unveils Piezo Common Rail Diesel Injection Systems…
Siemens VDO unveiled piezo common rail diesel injection systems for light commercial vehicles such as small
delivery vans and American pick-ups with weights of up to 6 tons and engines with up to 6.5 liters of cylinder capacity.
Piezo injection technology sets standards for the reduction of emissions in diesel and four-stroke gasoline engines. In
addition, Siemens VDO offers numerous sensors and actuators that carry out operation and measurement tasks along
the air and exhaust gas conduits.
Siemens VDO Launches Tire Pressure Monitoring System Sensors…
Siemens VDO announced the launch of Tire Pressure Monitoring System Sensors. The sensors automatically detect the
changes in tire pressure and immediately alert the driver.
In addition, Siemens VDO offers complete, ready-to-install spare parts kits for the tire aftermarket to match the
sensors, consisting of valve cap, valve core, screw fastener, sealing ring and washer.
Siemens VDO Introduces New Solutions for Buses and Trams…
Siemens VDO introduced new, modern, powerful range of solutions for local public transport operations. The solutions
include the VICOS-LIO control system and its mobile components as well as the two solutions of “controlled entry”
and “presence detection”. The VICOS-LIO system solution integrates all components of an automatic vehicle location
and control system and assists the transport authority to use its existing vehicle fleet more efficiently.
Siemens VDO in cooperation with its partner, Systemtechnik GmbH offers a powerful system solution for “controlled
front entry”, which consists of a mobile unit in the vehicle and a background system.

Siemens VDO Launches FT iCom…


Siemens VDO launched FT iCom, a simple telematics unit for the fleet management. FT iCom is a compact unit
consisting of a mobile radio module with a GPS sensor for use in all vehicles, from messenger delivery vans and

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customer service vehicles to furniture trucks. FT iCom transmits the vehicles’ current position to the fleet’s control
center via an SMS or GPRS link and also records data such as date and time, distance, speed, and time driven.

Product Upgradation

Siemens VDO Upgrades its Chart Plotters…


Siemens VDO upgraded its chart plotters with Automatic Identification System (AIS) data for greater safety and
comfort on yachts and powerboats. AIS is an identification system used in commercial shipping that serves for the
automatic communication of information between vessels so as to prevent hazardous situations or even collisions.

PRODUCT PORTFOLIO

Powertrain
Gasoline Systems, Diesel Systems, Electronics & Drivetrain, Air Fuel Modules, Engine Actuators & Emission
Management, Fuel Supply Systems, Sensors

Fleet Management
Fleet Telematics, Tachographs, Toll Systems

Chassis & Carbody


Restraint Systems/Safety Electronics, Body & Chassis Electronics, Electric Motor Drives

Interior & Infotainment


Information Systems, Passenger Cars, Cockpit Modules & Systems, Infotainment Solutions

Fleet Solutions
Fleet Telematics, Fleet Navigation, Digital Tachograph, Instrumentation & Comfort, Service Diagnostic Systems,
Order Tachograph Charts Online, Fleet Services

Industrial & Marine Solutions


Control Systems, Instrumentation/Panel Solutions, Sensor Technology, Fuel Level Measurement, Screen Washer
Systems, Maritime Applications, Audio & Sound

Marine Instruments
Ocean Line Instruments, Chart Plotters, Audio & Sound

Interior
Information Systems, Cockpit Modules

Special OEM Solutions


Multiplex Solutions, Mechatronics, Sensors, Instrumentation, Fuel Management, Audio & Sound, Screen Washer System

Public Transport Solutions


Dynamic Passenger Information, Control Technology, Fare Management

Replacement Parts
Actuators, Engine Actuators, Sensors, Screen and Headlight Washer Systems, HVAC Blower and Fan Systems, Fuel
Supply Systems

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SIEMENS INTELLIGENT TRAFFIC SYSTEMS
Hofmannstrasse 51, D-81359 Munich, Germany
Phone: +49 89 722 266 06, Fax: +49 89 722 37432

SOURCES: Company related secondary online sources

BUSINESS PROFILE
Siemens Intelligent Traffic Systems (SITS) is a provider of efficient and intelligent traffic management systems. The
company’s products and systems are marketed under the brand name “SITRAFFIC”.
SITS provides a diverse range of services such as Consultancy, Research and Planning, Emergency Systems, Fare and
Toll Systems, Organizations, Associations and Magazines, Parking, Public Transport, Road Construction and
Maintenance, Road Safety and Guidance, Traffic Control, Traffic Detection and Monitoring, Traffic Information and
Communication, Traffic Management, Traffic Signals, Traffic Signs and Vehicle Equipment.

SIEMENS INDUSTRIAL SOLUTIONS AND SERVICES GROUP (I&S)


2, Kukush street, 1309 Sofia, Bulgaria
Phone: +359 2 8115255, Fax: +359 2 8115343

SOURCES:
ehttp://www.siemens.bg/index.jsp?sdc_p=ft15mls2uo2000001508876i2000001506942pc26z3&sdc_bcpath=20000015
02417.s_2,&sdc_sid=27517269947& and other secondary online sources

BUSINESS PROFILE
Siemens Industrial Solutions and Services Group (I&S) is the integrator of systems and solutions for industrial and
infrastructure facilities and also global service provider for the plant and projects business covering planning,
installation, operation and the entire life cycle. The company uses the electrical and technical products of other
Siemens Groups to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water
treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, airport logistics, postal automation,
intelligent traffic systems and industrial services.

STRATEGIC CORPORATE DEVELOPMENT

Year (2007) in Review

Contract

Siemens Secures Traffic Management System Contract in Bangkok


Siemens Industrial Solutions & Services Group (I&S) secured an installation, supply and maintenance contract for Toll
Collection, Traffic Control and Communication Systems in Bangkok from Thailand’s Expressway & Rapid Transit
Authority. The project worth € 6.3 million is scheduled for completion by the year 2008, and would reduce traffic
congestion and enhance traffic flow. As part of the project, the company would supply, install and maintain CCTV
video camera system, emergency telephone system, fiber optic communications network, traffic computer and variable
message signs on the expressway.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
SIEMENS INTERNATIONAL TRADING CO., LTD. (SITL)
11/F, China Marine Tower, No.1 Pudong Ave. Shanghai 200120, China
Phone: (021) 58882000, Fax: (021) 58795752

SOURCES:
http://www.siemens.com/index.jsp?sdc_p=c34d1311782fi1291007lmn1311781o1311781ps5t4uz2
&sdc_sid=2988027260&#top and other secondary online sources

BUSINESS PROFILE
Siemens International Trading Co., Ltd. Shanghai (SITL) is involved in providing warehousing,
distribution (including providing agency services for Siemens electric, electronic, medical and
telecom products).

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
SIGTEC PTY., LTD.
107 Seaford Place Seaford, Melbourne, Victoria, 3198, Australia
Phone: +61 (3) 9786 0077, Fax: +61 (3) 9786 0063

SOURCES: www.sigtec.com.au and other secondary online sources


2005 Sales: A$ 4.351 million
(Fiscal Year Ends in June)

BUSINESS PROFILE
Sigtec Pty. Ltd., (Sigtec) is a leading integrator and developer of software. The company specializes
in computer-aided dispatch, event notification and GPS location-based solutions. The company
designs and implements a broad range of client solutions including Field Data Collection, Fleet
Management, Job Dispatch, Vehicle Tracking and Asset Monitoring. The company’s key solutions
include T6iTrackIT, Track Smarter, T6Map, T6Gateway, T8 Taxi, Telebook Module, Permbook
Module, Supervisor Module, Reports Module, Performance Analyser Module, Dispatch Module,
Allocate Module, Channel Management Engine Module, T8 Connect Module, and Mobile Devices.
Sigtec expertise in real-time wireless data solutions, typically used in fleet management, vehicle
tracking and related services to the taxi and commercial transport industries. The company offers
hardware, software (pre-engineered applications and custom applications development), mobile
computing equipment, wireless communication services (WLAN and WWAN) and professional
services. The company provides custom software development services for the in-vehicle and/or
hand-held device (Microsoft.Net) and web back-end (ASP and Java Application Servers).
Sigtec provides both turnkey and custom-built solutions for commercial and industrial customers. The
company markets its solutions in Australia, New Zealand, United Kingdom, Singapore and Indonesia.
Sigtec was established in 1982.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review
Sigtec Acquires Technisyst
Sigtec acquired Brisbane-based Technisyst. The acquisition not only enhances the company’s
revenue substantially but also effectively diversifies its offering with complementary technologies
and access to diverse market segments for all products and services.
Technisyst specializes in delivering mission-critical mobile data solutions to the public safety and
public transport sectors.

Sigtec Takes over Raywood Communications


Sigtec acquired its major competitor, Raywood Communications. The acquisition effectively doubles
the size of the company’s business and gives a sound base for expansion in Australia and overseas.

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STRATECH SYSTEMS LIMITED
2 International Business Park, Level 6, Tower 2, The Strategy, Singapore 609930
Phone: +65 6323 2188, Fax: +65 6323 2177

SOURCES: www.stratechsystems.com and other secondary online sources

BUSINESS PROFILE
Stratech Systems Limited (Stratech) is a leading provider of Intelligent Computer Vision-based
systems. The company is also a global leader in Advanced Technology and e-Systems. Stratech
provides innovative, technology-intensive IT solutions for wide range of industries such as Aerospace
and Defense, Homeland Security and (Air, Land and Sea) Transportation, Financial Services,
Government, and Healthcare. The company’s core products include Intelligent Vision (IV), Intelligent
Transport Systems, SmartCare™, Parkvasive™ and E-Systems. The company offers various IV
solutions such as intelligent Vehicle Access Control System (iVACS) ™; SmartPark™; SuperTrack™;
Super BullsEye™ II; Air Defense Decision Support System; intelligent Airfield/Runway Surveillance
and FOD Detection System; Vessel Image Processing System (VIPS) ™; iBLOX™; SmartReports™;
intelligent Perimeter Security and Surveillance System (iPSSS) ™; intelligent Border Crossing System
(iBCS™); and intelligent Strategic Asset Protection System (iSAPS) ™. The company’s principal
clients include governments, banks, developers, universities, and corporations in the automobile and
aerospace industries. The company is accredited with ISO 9001 certification.
Stratech was established in 1989.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Partnership
Stratech Teams Up with US Government Agency…
Stratech teamed up with US Government Agency to commercialize the next generation secure
Vessel Identification and Positioning System. As per the agreement, Stratech would integrate its
state-of-the-art Vessel Image Processing System (VIPS®) to enhance port security through real-
time situation awareness. The partnership between both the companies brings a paradigm shift in
vessel traffic management and maritime security.

Memorandum of Understanding (MOU)


Stratech and Glosset Signs Memorandum Of Understanding…
Stratech signed a Memorandum of Understanding (MOU) with Glosset Co. Ltd. (Glosset), South
Korea to establish a joint-venture corporation to replicate as well as build on its advanced
technologies in the Korean market, as part of its commercialization strategy. Glosset would
initially invest US$1 million into the interim business venture to promote Stratech’s technologies
and professional services.
Glosset is a leading financial and real estate development company in South Korea.

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Year 2006 in Review…

Contracts

Stratech Signs a Contract with Nanyang Technological University…


Stratech signed a contract with Nanyang Technological University (NTU) to provide electronic
parking systems. Stratech would empower the 24 car parks located across the NTU campus with
state-of-the-art technology of networked intelligence for central monitoring and remote operations.

Stratech Receives Contract For Medical Claims Proration System…


Stratech received a contract from the Government of Singapore for Medical Claims Proration
System (MCPS) worth S$4.7 million (including options). As per the contract, Stratech would
update the system and provide maintenance services and operations support over the next 3 years
with an option to extend another 2 years.

Product Launches

Stratech Launches intelligent Airfield/Runway Surveillance and FOD…


Stratech launched state-of-the-art intelligent Airfield/Runway Surveillance and FOD (Foreign
Object & Debris) Detection System. FOD includes wide range of materials such as fallen part off
an aircraft, detached runway light fitting, building materials, rocks, and wildlife. FOD inspection
and assessment system also provides validation for millimeter wave radar, laser radar and other
sensing technologies.

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SUMITOMO ELECTRIC INDUSTRIES LTD.
5-33, Kitahama 4-chome, Chuo-ku, Osaka 541-0041, Japan
Phone: +81-6-6220-4141, Fax: +81-6-6222-3380

SOURCES: www.sei.co.jp and other secondary online sources


Sales
2450
2007 Sales: ¥ 2,384.40 billion 2290
2130
2006 Sales: ¥ 2,007.13 billion
1970
2005 Sales: ¥ 1,740.20 billion 1810
1650
(Fiscal Year Ends in March) 2005 2006 2007

BUSINESS PROFILE
Sumitomo Electric Industries Ltd., (Sumitomo) is a global leading manufacturer of electrical wire
and power transmission cables. The company designs, and markets optical fibers and components,
advanced electronic devices and automotive parts. Sumitomo also manufactures anti-vibration
rubber parts and brake systems found in automobiles. The company operates through five segments
namely Automotive, Information & Communications, Electronics, Electric Wire & Cable, Energy,
Industrial Materials and Engineering. The products offered by the company include automotive
wiring harnesses, fiber optic components, optical fibers and related subsystems. The company
operates electric wire and cable division, which produces power and telecommunications cables,
plastic materials, and wires used in manufacturing electronic components. Sumitomo operates 200
companies and affiliates throughout the world. The company’s major competitors include Fujikura
Ltd., Furukawa Electric, and Alcatel-Lucent.
Sumitomo was established in 1897.

BUSINESS OPERATIONS

Automotive
Sumitomo manufactures automobile systems & intelligent transport systems. Major offerings of the
company include Wiring harness, Brake system, Front side monitoring camera, Connector and
Center cluster integration panel. The company also develops automobile power equipment that
effectively converts and provides power to in-vehicle devices.

Information & Communications


The Information & Communications business consists mainly of optical fibers, fiber optic cables
and devices, photonic components, and access network equipment. Sumitomo is the first in the
world to develop the plastic molding technology and supply low cost fiber optic transmitter /
receiver modules with high reliability. The company’s core products include fusion splicer for
FTTH applications, optical data link, access network system product, river/road information

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
system, laser handy terminal, optical connector, two-way communication device, traffic control
system and cable television (CATV) system.

Electronics
Sumitomo provides flexible printed circuits (FPCs), electronic wires, compound semiconductors
such as gallium arsenide (GaAs) and gallium nitride (GaN), and electron beam irradiated products.
The company also offers ultrafine copper wire & twisted wire, contact probe, polyimide tube, flat
component, electric wire for electronic equipment and automobiles, porous metal (for batteries),
fluororesin-coated products and others.

Industrial Materials & Engineering


Sumitomo’s Industrial Materials & Engineering segment uses its proprietary materials technology
to develop carbide tools and special steel wires. The company manufactures a range of industrial
materials including hard materials, special steel wires, powder metallurgical parts and epoxy-
coated steel wire for prestressed concrete.

SALES DATA

Annual Sales Comparison: 2005-2007


(In ¥ billion)

Year Sales %Change


2007 2,384.40 18.80
2006 2,007.13 15.34
2005 1,740.20 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Japan, Americas,
Asia and Others (In ¥ billion)

Region 2006 2005 %Change


Japan 1,609.78 1,444.25 11.46
Americas 290.87 205.77 41.36
Asia 329.84 236.34 39.56
Others 115.38 104.39 10.53
Eliminations (338.74) (250.55) 35.20
Total 2,007.13 1,740.20 15.34

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Automotive, Information
and communications, Electronics, Engineering, Industrial materials and
others (In ¥ billion)

Segment 2006 2005 %Change


Automotive 883.92 745.19 18.62
Information and communications 252.37 216.12 16.77
Electronics 317.31 278.61 13.89
Engineering 213.26 214.46 (.56)
Industrial materials and others 385.22 322.87 19.31
Eliminations (44.95) (37.05) 21.32
Total 2,007.13 1740.20 15.34

Percentage Breakdown of Annual Sales (Value) by Business Segment (2006 Vs. 2005) –
Automotive, Information and communications, Electronics, Engineering,
Industrial materials and others

Segment 2006 2005


Automotive 43 43
Information & Communications 12 12
Electronics 16 16
Engineering 10 12
Industrial Materials 19 18
Total 100 100

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreement

Sumitomo Enters into an Agreement with Mitsubishi Electric Corp., NEC Electronics Corp…
Sumitomo in association with Mitsubishi Electric Corp., NEC Electronics Corp., Oki Electric
Industry Co. Ltd., Opnext Inc., formed a Multi-Source Agreement (MSA) for compatible sources
of optical transmitter and receiver devices for use in 40 Gbit/s optical transceiver modules. The
agreement would assist the emergence of the 40 Gbit/s compact module market, providing
advanced solutions to high capacity network and storage systems.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Contract
Sumitomo Electric Networks Introduces into China’s FTTH Market…
Sumitomo Electric Networks Inc., a member of the Sumitomo signed a contract for investment in
Wuhan Yangtze Optical Technology Co., Ltd, (YOTC) a manufacturer of FTTH (fiber-to-the-
home) communication equipment in WuhanCity of HubeiProvince, People's Republic of China.
The investment enables the company to develop, manufacture and market FTTH communication
equipment including GE-PON products for the Chinese market.

Product Launch
Sumitomo Unveils Commercial Production of SFP+ Transceivers…
Sumitomo unveiled a new range of SFP+ transceivers for 10 Gb/s applications designed for
IEEE802.3ae and 802.3aq specifications for 10G Ethernet. The new transceiver package for 10
Gb/s Ethernet and Fibre Channel applications offers more compact form factor than currently
offered by the X2 and XFP packages and low power consumption of less than 1 watt.

Year 2006 in Review…


Merger
Sumitomo Enters into an Agreement for Stainless Steel Wire Business Integration…
Sumitomo (SEI) Steel Wire Corporation, a subsidiary of Sumitomo and Suzuki Metal Industry Co.
Ltd., an affiliate of Nippon Steel Corporation, entered into a basic agreement to merge the stainless
steel wire business and establish a new company. The merged business would be named as Suzuki
Sumiden Stainless Co., Ltd. The new company would manufacture and sell stainless steel wire.
Following the merger, Sumitomo would hold 40% stake and Suzuki Metal would hold 60% stake
in the new company.

Acquisition
Sumitomo Acquires Volkswagen Bordnetze…
Sumitomo in association with Sumitomo Wiring Systems acquired Volkswagen Bordnetze.
Following the acquisition, Sumitomo and Sumitomo Wiring Systems group, would expand
automotive wiring harness business around the world, supplying automotive wiring harnesses to
international car manufacturers.
Sumitomo would hold 60% stake in Volkswagen while Sumitomo Wiring Systems would hold the
remaining 40% stake.

Joint Venture
Sumitomo and ITOCHU to Establish a Joint Venture…
Sumitomo in association with ITOCHU Corporation (ITOCHU) agreed with Yantai Jinhui Copper
Industry Co. Ltd., (Yantai Jinhui) to establish a joint venture company in Yantai City, Shandong

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Province to manufacture contact wires for the Chinese market. The joint venture would be named
as Yantai JSI Electric Industry Co. Ltd.

Collaboration

Sumitomo Enters into a Collaboration Agreement with GE Global Research…


Sumitomo entered into a collaborative research and development agreement with GE Global
Research, the centralized research organization of the General Electric Company. As per the terms
of the agreement, SEI would concentrate on superconducting wire development to provide
industrial equipment using higher temperature superconducting materials. Following the
collaboration, both the companies would design and develop a wide range of industrial products
with new commercial applications in energy and health care.

New Establishments

Sumitomo Establishes Automobile Wire Manufacturing Company…


Sumitomo and Sumitomo Wiring Systems established a new automobile wire manufacturing
company in Hai Duong Province, Vietnam, to strengthen the system for supplying automobile
wires in Asia.

PRODUCT PORTFOLIO

Automotive
Wiring harness, Brake system, Front side monitoring camera, Connector and Center cluster
integration panel.

Information & Communications


Optical fiber cable, Fusion splicer for FTTH applications, Access network system product, Laser
handy terminal, PureBand, Optical connector, Two-way communication device, Traffic control
system, Cable television (CATV) system and Power line communications (PLC).

Electronics
Printed circuit, Compound semiconductor, Irradiated products, Ultrafine copper wire & twisted
wire, Contact probe, Polyimide tube, Flat component, Gallium nitride substrate, Electric wire for
electronic equipment and automobiles "ECO-WIRE", Porous metal (for batteries), Fluororesin-
coated products and POREFLON module.

Electric Wire & Cable, Energy


Ecology cable, High-voltage power cable, High-temperature, superconducting cable, Insulated wire
for ultrasonic bonding, Fiber-optic distributed temperature sensing system, Multibeam lens
antenna, Highly-fire-resistant non-halogen cable for fire fighting, Submarine power cable, Trolley
wire for high-speed railway, Ultra-fine magnet wire and Infrared optical products.

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Industrial Materials
Cemented carbide insert, End mill & drill, Powder metallurgical parts, Bonding tool, Steel wire for
springs, Synthetic diamond, Microdrill, Composite material for substrates and heat sinks (CMSH)
and Epoxy-coated steel wire for prestressed concrete and Steel cord.

SUBSIDIARIES/AFFILIATES
Sumitomo Wiring Systems Ltd.
OCC Corporation
Toyokuni Electric Cable Co., Ltd.
Kawamura Electric Wire Industries Co., Ltd.
Daikoku Electric Wire Co., Ltd.
Kiyohara Sumiden Ltd.
Daiden Co., Ltd.
Hokkaido Electric Industries Ltd.
J-Power Systems Corporation
Sumiden Fine Conductors Co., Ltd.
Kitanihon Electric Cable Co., Ltd.
Hannan Electric Wire and Cable Co., Ltd.
Tomita Electric Co., Ltd.
Sumiden Material Processing Co., Ltd.
Kanto Sumiden Electronics Wire Ltd.
AutoNetworks Technologies Ltd.
Kyoto Electric Wire Co., Ltd.
Kansai Pipe Industries Ltd.
Sumiden Magnet Wire, Inc.
Sumiden Shoji Co., Ltd.
Tomita Traders Co., Ltd.
Sumideninet Co., Ltd.
Sumiden Cable Co., Ltd.
Nissin Electric Co., Ltd.
Sunrec Co., Ltd.
Sumiden Asahi Industries Ltd.
Japan Communication Accessories Manufacturing Co., Ltd.
Sumiden Opcom Ltd.
Sumiden High Precision Co., Ltd.
Sumitomo Densetsu Co., Ltd.
Commuture Corp.
Sumitomo Electric Communications Engineering Co., Ltd.
SEI Engineering Corporation
Sumitomo Rubber Industries Ltd.
Sumitomo 3M Ltd.
Tokai Rubber Industries Ltd.
Allied Material Co., Ltd.
Sumitomo Electric Tool Net, Inc.
Sumitomo Electric Tochigi Co., Ltd.
Sumitomo Electric Sintered Alloy Ltd.
Kanto Wire Products Corporation
Metax Corporation
Kyushu Sumiden Precision Industries Ltd.
Tokai Seimitsu Co., Ltd.
Sumitomo Electric Fine Polymer, Inc.

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SUBSIDIARIES/AFFILIATES
Toyo Bussan Co., Ltd.
Misawa Trading Co., Ltd.
Gokoh Shoji Co., Ltd.
Sumitomo Electric Hybrid Products Co., Ltd.
Sumi-Pac Corp.
Sumitomo Electric Wiring Systems (Europe) Limited
First Sumiden Circuits, Inc.
Sumitomo Electric Interconnect Products (M) Sdn. Bhd.
Sumitomo Electric (Wuxi) Co., Ltd.
Sumitomo Electric Sintered Components (Thailand) Co., Ltd.
Engineered Sintered Components Co.
SEI Interconnect Products (Europe) Ltd.
Sumiden Powder Metallurgy (Wuxi) Co., Ltd.
Beijing Zhulidiantong Optoelectronics Technology Co., Ltd.
Conductores Technologicos de Juarez, SA de CV
Engineered Sintered Components Co.
First Sumiden Circuits, Inc.
Huizhou Zhurun Automotive Wire Co., Ltd.
International Electric Wires Phis. Corp.
Judd Wire, Inc.
Korea Sintered Metal Co., Ltd.
PT Karya Sumiden Indonesia
PT Sumiden Serasi Wire Products
PT Sumi Indo Kabel Tbk
PT. Sumitomo Electric Wintec Indonesia
SEI Brake Systems (Thailand) Ltd.
SEI Electronics Materials Ltd.
SEI Interconnect Products (Europe) Ltd.
SEI Interconnect Products (Hong Kong) Ltd.
SEWS Hungary Ltd.
SEWS-Polska sp.zo.o.
SEWS-Slovakia s.r.o.
SIAM Electric Industries Co., Ltd.
Sumiden Carbide Manufacturing (Tianjin) Ltd.
Sumiden Electronic Materials (M) Sdn. Bhd.
Sumiden Powder Metallurgy (Wuxi) Co., Ltd.
Sumiden Wire Products Corp.
Sumiden Wire Products Guangzhou Co., Ltd.
Sumiden Wire Products Corp.
Sumiden Wire Products Guangzhou Co., Ltd.
Sumiden (Wuxi) Electronic Materials Co., Ltd.
Sumi-Pac Corp.
Sumi Texas Wire, Inc.
Sumitomo Electric Carbide Manufacturing, Inc.
Sumitomo Electric Hartmetallfabrik GmbH.
Sumitomo Electric Interconnect Products, Inc.
Sumitomo Electric Interconnect Products (M) Sdn. Bhd.
Sumitomo Electric Hardmetal Manufacturing (Thailand) Ltd.
Sumitomo Electric Lightwave Corp.
Sumitomo Electric Magnet Wire America, Inc.
Sumitomo Electric Schrumpf-Produkte, GmbH
Sumitomo Electric Semiconductor Materials, Inc.

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SUBSIDIARIES/AFFILIATES
Sumitomo Electric Sintered Components (Malaysia) Sdn. Bhd.
Sumitomo Electric Sintered Components (Thailand) Co., Ltd.
Sumitomo Electric Wintec (Malaysia) Sdn. Bhd.
Sumitomo Electric Wintec (Singapore) Pte. Ltd.
Sumitomo Electric Wiring Systems (Europe) Limited.
Sumitomo Electric Wiring Systems, Inc.
Sumitomo Electric (Wuxi) Co., Ltd.
Zhongshan Sumiden Hybrid Products Co., Ltd.
Sumitomo Electric Fine Polymer, Inc.
Sumitomo Electric Wintec, Inc.
Japan Communication Accessories Manufacturing Co., Ltd.
Sumiden High Precision Co., Ltd. (Shonan and Suwa plants)
Sumiden Opcom Ltd. (Head Office/Yokohama Works)
Sumitomo Electric Sintered Alloy Co., Ltd.
Kanto Wire Products Corporation
Sumitomo Electric Toyama Co., Ltd.
Kawamura Electric Wire Industries Ltd.
Sumiden Electronics Ltd.
Sumitomo (SEI) Brake Systems, Inc.
Metax Corporation
Sumitomo Electric Hightechs Co., Ltd.
S.E.I. LogiTex Co., Ltd.
S.K. Fine Material Co., Ltd.
ST Press Industries Ltd.
Axismateria Ltd.
Metax Corporation
Kawamura Electric Wire Industries Ltd.
Kanto Wire Products Corporation
Kyushu Sumiden Seimitsu Co., Ltd.
Kiyohara Sumiden Ltd.
Sunray Reinetsu Co., Ltd.
Sumiden Asahi Industries Ltd.
Sumiden Electronics Ltd.
Sumiden Opcom Ltd.
Sumiden Material Processing Co., Ltd.
Sumiden Diamond Technology Co., Ltd.
Sumiden High Precision Co., Ltd.
Sumiden Semiconductor Materials Co., Ltd.
Sumiden Fine Conductors Co., Ltd.
Sumitomo Electric Wintec, Inc.
Sumitomo Electric Sintered Alloy Co., Ltd.
Sumitomo (SEI) Steel Wire Corp.
Sumitomo (SEI) Electronic Wire, Inc.
Sumitomo Electric Hardmetal Corp.
Sumitomo Electric Hightechs Co., Ltd.
Sumitomo Electric Hybrid Products Co., Ltd.
Sumitomo Electric Fine Polymer, Inc.
Sumitomo Electric Flat Components, Inc.
Sumitomo Electric Printed Circuits, Inc.
Sumitomo (SEI) Brake Systems, Inc.
Daikoku Electric wire Co., Ltd.
Tokai Seimitsu Ltd.

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SUBSIDIARIES/AFFILIATES
Sumitomo Electric Tochigi Co., Ltd.
Sumitomo Electric Toyama Co., Ltd.
Nippon ITF, Inc.
Japan Communication Accessories Manufacturing Co., Ltd.
Hannan Electric Wire and Cable Co., Ltd.
Hoshi Industries Co., Ltd.
Hokkaido Sumiden Precision Co., Ltd.
Hokkaido Electric Industries

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SWARCO HOLDING AG
Blattenwaldweg 8, A-6112 Wattens, Austria
Phone: +43-5224-5877-0, Fax: +43-5224-56070

SOURCES: www.swarco.com and other secondary online sources

BUSINESS PROFILE
Swarco Holding AG (Swarco), a part of Swarco Group, is a provider of an array of products,
services and solutions in traffic management and materials. The company offers energy-saving
LED traffic lights through intersection control, adaptive control of traffic flows, highway and
tunnel guidance systems, telematic software and communication solutions, retroreflective road
marking systems, and others. Swarco provides various services including road marking contracting,
consultancy and on-site services, call center/helpdesk facility, installation, maintenance, project
management, and others. The company is active in three business divisions – Traffic Materials,
Traffic Management, and Surface Treatment. The Traffic Management division comprises twelve
companies including Mizar Automazione S.p.A., Signelit ZRt., Swarco Danmark AS, Swarco Elsig
s.r.o., Swarco Finland OY, Swarco Futurit Verkehrssignalsysteme GesmbH, Swarco ITS, Swarco
Norge AS, Swarco Sverige AB, Swarco Technology APS, Swarco Traffic Management, Inc., and
Swarco V.S.M. GmbH. China based Swarco Intelligent Traffic Management System Equipment
Co., Ltd. (SITS) supplies advanced intelligent traffic management systems and products, as well as
market interurban traffic management systems. Swarco Futurit is one of the leading suppliers of
variable message signs. Swarco operates more than 60 companies located in Austria, China,
Germany, Italy, Norway, Romania, Russia, Sweden, and the United States.
The company was established in 1969.

DIVISIONAL ANALYSIS

Traffic Materials
Traffic Materials division offers Reflective glass beads - megalux-beads®, swarcolux; Road
marking materials - EUROTHERM, Limboplast D480 structured cold plastic, Limboplast KSP 120
UNIVERSAL, Limboroute Circuitline WBP, Limboroute Degalan LP 96, Limboroute HR,
Limboroute K 809 two-component high solid paint, Limboroute K 833, Roll plastic RP 15,
Swarcoplast Spray Formulation, Swarcotherm 62; High Index Beads - plus9beads; Road Markings
- Airport Markings, Construction Zone Markings, Indoor Markings, and Longitudinal and Surface
Markings.

Traffic Management
Traffic Management division offers Signal heads ROAD – Alustar, Futurled retrofits, Mini-signal,
Type Mondial, Type Standard; Variable Message Signs - Dynamic Route Information Panels
(DRIPs), LED VMS - freely programmable, LED VMS – limited; LED Road Marker – LaneLight;
Optical components - Backing boards, Color Filters, Lenses, Optics, Reflectors; Mechanical
components – Brackets.

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STRATEGIC CORPORATE DEVELOPMENT

Year (2007) in Review…

Alliance

Swarco Forms an Alliance with Efkon…


Swarco formed a strategic Alliance with Efkon AG to offer even more complete, innovative
approaches in traffic management, traffic telematics, road safety, LED signalling technology, fully
electronic turnkey toll systems and communication solutions linking road infrastructure and
vehicles.Efkon AG specializes in ITS Intelligent Transportation Systems.

TAXITRONIC, INC.
36-15 13th Street, Long Island City, New York 11106, USA
Phone: (718) 752-1656, Fax - (718) 786-9701

SOURCES: www.taxitronic.net and other secondary online sources

BUSINESS PROFILE
TaxiTronic Inc., (TaxiTronic) specializes in manufacturing taxi equipment. The company offers a
full line of meters, printers, credit card processing systems, GPS system, dispatch systems, roof
lights, and air conditioning extensions. TaxiTronic also offers a wide range of accessories such as
bumpers, pulse divider, emergency lighting, partition, rates/credentials holder, ribbon and paper
rolls, voice reminder, and others. The company provides merchant account services. TaxiTronic’s
partners include Discover Network, Visa, Master Card, American Express, Global Payments,
Verizon, AT&T Wireless Services, and Adapt Media, Inc.

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TC IP LTD. – TRANSCORE
11000 SW Stratus, Suite 100, Beaverton, Oregon 97008-7113, USA
Phone: 972.733.6056, Fax: 972.733.6486
SOURCES: www.transportationsoftware.com and other secondary online sources

BUSINESS PROFILE
TC IP Ltd. – Transcore provides 3sixty transportation management products. The company’s
3sixty products provide customers with a flexible suite of products that delivers the information
and services needed to make transportation enterprise as efficient and profitable as possible. TC IP
Ltd. – Transcore’s 3sixty Freight Match product is one of the world’s largest, most powerful load
board and truck search engine. The company’s 3sixty Operations Management suite enables to
control virtually every facet of transportation process ranging from dock management to business
analytics, dispatching to accounting. TC IP Ltd. – Transcore’s transportation management solutions
are feature-rich, highly integrated, and built to provide quick access to the mission-critical data need.
TC IP Ltd. – Transcore’s wireless products identify and monitor rail, port, and intermodal equipment,
enabling to track and monitor assets better, increasing equipment use, and reducing rehandles, dwell
time, and overhead. The company operates more than 80 facilities throughout the US and abroad.

BUSINESS OPERATIONS
RFID
TC IP Ltd. – Transcore’s Amtech® Technology Center produces 15 million tags and 15,000
readers annually. The company distributes more than 17 million Amtech brand tags and more than
36,000 readers worldwide.

Satellite Communications Technology Center


TC IP Ltd. – Transcore's Global Wave® MT2000 wireless communication devices are
manufactured in Ottawa-based Satellite Communications Technology Center. MT2000
communications terminals are the smallest, most-powerful satellite communication products
available and are used in a multitude of applications across a wide variety of worldwide industries.

PRODUCT ANALYSIS
Shippers
Transportation Management Solution(TMS)
CarrierPoint SelecTender is a web-based TMS used by 3PLs to control transportation processes,
increase customer service, enhance carrier relationships, and increase shipment visibility
throughout multi-site enterprises.

CarrierPoint DockMaster
CarrierPoint DockMaster is a web-based load scheduling tool providing automated carrier self-
scheduling, carrier and loader performance measurement, service exception reporting, and real-
time customer service visibility across an entire enterprise.

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Carriers
GlobalWave uses proven GPS and satellite communication technology along with a Web-based
interface that allows to locate trucks and communicate with drivers.

Transportation Management Software


Keypoint Logistics is a software designed specifically for brokers and 3PLs to track the special
billing needs of all truckload movements, including LTL consolidation, air, multi-modal and
common carrier.

Dock and Yard Management


CarrierPoint SelecTender is a web-based TMS used by 3PLs to control transportation processes,
increase customer service, enhance carrier relationships, and increase shipment visibility
throughout multi-site enterprises.

Other Products and Services


Transportation Management; Logistics Management software; and Travel Plaza /Truck Stop
Services

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TEC TRAFFIC SYSTEMS
Newtonbaan 3, 3439 NK, Nieuwegein, The Netherlands
Phone: +31 30 602 30 00, Fax: +31 30 602 30 29

SOURCES: www.tectraffic.nl and other secondary online sources

BUSINESS PROFILE
TEC Traffic Systems (TEC) specializes in the field of traffic technology. The company’s products
include Vehicle Classification products, Traffic Signaling, Vehicle Detection, Speed Measurement
Equipment, Number plate recognition and Radar detector. TEC supplies traffic related products in
domestic markets such as governmental institutions and industry. The company’s activities consists
of supplying, and giving support to, traffic related products and implementing the products into
specific projects, system integration and supplying specialized knowledge on sensor technology, in
all types of vehicle detection.

PRODUCT PORTFOLIO

Vehicle Classification
The company offers Marksman 410, Marksman 660 AVV, Roadside Cabinets, Marksman 660
Classifier, Kistler WIM sensors, Vtel software, TEC Radar (TWR).

Traffic Signaling
The company offers BS5-50 Acoustic signal for blind, Flashing Unit, Matrix Signs, Lamp
monitors, Incandescent lamps for traffic lights

Vehicle Detection
3M Canoga Loop Detectors, 3M Non-Invasive Microloop, Autoscope SOLO Video Detection,
TOM 2000 laser scanner, 3M Opticom Priority Control System, SAM-S Laser Height Detector

Speed Measurement Equipment


Pro Laser III Lasergun, LED Matrix Signs, Driver Feedback Sign

Number Plate Recognition


P372 Spike Integrated ALPR Camera Processor, P366 Camera ALPR Image Capture System,
PAGIS Police ANPR Graphic Interface System, P362 Compact ALPR Image Capture System,
P357 Complete ALPR Processor

Radar detection
The company offers Spectre III RDD microwave receiver used by traffic police to identify
motorists using illegal radar detectors

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TELEATLAS NV
Reitscheweg, 7F, 5232 BX `s-Hertogenbosch, The Netherlands
Phone: +31-73-640-21-21, Fax: +31-73-640-21-22

SOURCES: www.teleatlas.com and other secondary online sources Sales


280
2007 Sales: 136.83 € million 248
216
2006 Sales: 264.30 € million
184
2005 Sales: 200.06 € million 152
120
(Fiscal Year Ends in December) 2005 2006 2007

BUSINESS PROFILE
TeleAtlas NV, (TeleAtlas) is a leading developer of navigation solutions, digital maps and
dynamic data. Tele Atlas provides leading solutions in the key segments of the navigation
market such as personnel navigation solutions, mobile services (LBS), emergency services and
fleet Based services (mobile data acquisition). Tele Atlas’ digital map database helps users
with the search, offers traveler guideline assistance with Landmarks and makes exact data
available. The company’s 360-Grad-Darstellung of the landscape is first singular mobile
Mapping system of the world. The company provides Technology overview, Digital card data,
Dynamap kaartdatabase, Multinet, Navigatie-cd's, dvd's and sd-kaarten, products for improving
cards, Interest points, Address points, Logistical, Speech-activated ones cards, Town cards,
Town guide, Dynamic content, and Geocoding. TeleAtlas’ database covers 64 countries, more
as 20 million kilometers road system, 845 million addresses and worldwide more than 20
million POINTS OF Interest (POIs). The company cooperates with partners from several
sectors including the government, companies, application developers and hardware
manufacturers.
Tele Atlas was established in 1984.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006


(In € million)

Year Sales % Change


2007 136.83 17.46
2006 116.49 -

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Half Yearly Sales Comparison by Product Segment (2007 Vs. 2006) - Automotive navigation,
Data products navigation, Personal navigation, Enterprise and government, and Other
Segments (In € million)

Product Segment 2007 2006 % Change


Automotive navigation 22.71 25.62 (11.36)
Data products navigation 10.62 12.23 (13.16)
Personal navigation 71.19 46.18 54.16
Enterprise and government 22.43 25.31 (11.38)
Other segments 9.88 7.15 38.18
Total 136.83 116.49 17.46

Half Yearly Sales Comparison by Geographic Region (2007 Vs. 2006) – EMEA,
Americas and APAC (In € million)

Region 2007 2006 % Change


EMEA 97.54 83.16 17.29
Americas 34.76 31.54 10.21
APAC 4.53 1.79 153.07
Total 136.83 116.49 17.46

Annual Sales Comparison: 2006 Vs. 2005 (In € million)

Year Sales % Change


2006 264.30 32.08
2005 200.06 -

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreements

TeleAtlas and MCH GeoPoints Enter into a Partnership Agreement…


TeleAtlas and MCH GeoPoints entered into an agreement for the integration of new technology.
As per the agreement, the data of MCH GeoPoints would be integrated into digital maps of
TeleAtlas, which enables various organizations and institutions such as utility and insurance
companies, to include ready access to important information pertaining to the respective fields of
activity. GeoPoints’ unique database, places2protect™, which provides vital information related to
various relevant institutions, would be blended into digital maps of TeleAtlas.

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TeleAtlas Signs an Agreement with Wayfinder Solution…
TeleAtlas signed an agreement with Wayfinder Solution, specializes in server-based navigation
solutions for mobile phones. As per the terms of the agreement, TeleAtlas would provide maps for
Wayfinder Solution in new mobile phones.

New Facility
TeleAtlas Opens New Facilities in Asia Pacific…
TeleAtlas inaugurated new offices in Singapore and Seoul, South Korea. The new offices would
expand the company’s business in the Asia Pacific region.

Product Launch
TeleAtlas Launches Tele Atlas Connect…
TeleAtlas launched Tele Atlas Connect™ that provides digital map coverage for more than 140
countries. TeleAtlas Connect is featured with basic mapping and routing functionalities, including
cross-border routing, and is intended to provide partners with a single, seamless global coverage
solution for digital map and location-based applications.

Product Upgradation
TeleAtlas upgrades Digital Map Content with Historical Traffic Speed Information…
TeleAtlas upgraded digital map content with Tele Atlas Historical Traffic Speeds, that aggregates
and enhances billions of historical data points from real-time GPS probe and numerous other traffic
resources to help provide accurate average speeds on individual road segments in the USA. Tele
Atlas Historical Traffic Speeds is combined with DOT sensors and highway toll tags to determine
the average roadway speeds based on historical traffic information for the past two years.

Year 2006 in Review…


Collaboration
TeleAtlas Collaborates with WindSpring
TeleAtlas and WindSpring Inc. entered into a collaboration agreement for marketing Data
Miniaturization Technology (DMT) ™ of the latter. This technology will also be integrated into
digital maps of Tele Atlas for further enhancing their standards. For this purpose, there is no
necessity to upgrade existing hardware and storage systems, as is the case with integration of most
of other technologies. DMT converts large map and data files into Micro Data Format (MDF)™,
without affecting the quality and quantity of content. This is highly useful for integrating them into
smaller devices like personal navigation systems and mobile phones.

Agreements
TeleAtlas Signs Licensing Agreement with MapIT…
TeleAtlas and MapIT entered into an agreement for jointly providing coverage of digital maps to
seven African countries - South Africa, Namibia, Zimbabwe, Botswana, Lesotho, Swaziland and

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Mozambique. Growing popularity of South African region as a destination for tourists increased
the necessity of digital maps, and led TeleAtlas to initiate this agreement.

TeleAtlas and PT Navindo Enter into a Joint Venture…


TeleAtlas and PT Navindo Technologies entered into a joint venture agreement, resulting in
formation of another entity, PT Tele Atlas Indonesia. This agreement, which is essentially targeted
for providing a highly precise digital map database in Indonesia, also reflects the zeal of Tele Atlas
in expanding to diverse regions.

TeleAtlas Signs Letter of Intent with Intermap…


TeleAtlas signed a letter of intent with Intermap Technologies Corporation for the development of
3-D and 2-D digital road maps. The digital road maps intended for vehicle navigation segment, is a
combination of Intermap’s 3-D NEXTMap data along with the 2-D road data of Tele Atlas.

TELEATLAS NV’S SUBSIDIARY

TELEATLAS NORTH AMERICA, INC.


100 Cambridge Street, Suite 1302, Boston, Massachusetts 02114, USA
Phone: (617) 570-6300, Fax: (617) 725-2809

SOURCES: www.teleatlas.com and other secondary online sources

BUSINESS PROFILE
TeleAtlas North America Inc. (TeleAtlas USA), a subsidiary of Tele Atlas NV, is a leading global provider of digital
maps and dynamic content for navigation and location-based solutions. The company is the leading provider of
navigation solutions including personal navigation, wireless/LBS, emergency services, and fleet-based services. The
company’s navigation products include Map Data, Dynamap®, MultiNet™, Navigation CDS & DVD’S, Map
Enhancement Products such as Points of Interest (POIs), Tele Atlas Address Points, Tele Atlas Logistics, Voice-
Enabled Maps, City Maps, and CityGuide. The company’s products are also used in mobile phone, smartphone, PDA,
in-car navigation system, laptop and home computer, transportation, emergency preparedness, homeland security,
health & human services, regulation, taxation & revenue, community planning, parcel mapping, redistricting, vehicle
tracking, e-government applications, and web locator services. Teleatlas’ digital map database enables consumers to
find destinations, guides travelers with landmarks.

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TELENAV, INC.
1130 Kifer Road, Sunnyvale, California 94086, USA
Phone: 408.245.3800, Fax: 408.245.0238

SOURCES: www.telenav.com and other secondary online sources

BUSINESS PROFILE
TeleNav Inc., (TeleNav) is a global player in location-based services (LBS), including asset GPS tracking
(AVL), Mobile Resource Management (MRM), and GPS navigation. TeleNav is the first company to
launch a GPS navigation application on mobile devices in the US. The company offers GPS navigation,
Mobile Resource Management (MRM), asset GPS tracking (AVL) and local search services. The
company’s flagship product, TeleNav GPS Navigator™ is an in-car system offering functions such as
automatic updated maps and business locations, full color 3D moving maps, traffic alerts and one-click
rerouting, speech recognition, Wi-Fi hotspot finder, lowest price fuel finder and related services.
TeleNav’s Track™ is the first mobile phone-based tracking service with integrated voice and visual GPS
navigation, tracking and reporting, wireless timesheets, wireless job dispatching, wireless forms, wireless
barcode scanning and mobile phone navigation. The company’s TeleNav Track product enables visual
GPS navigation, electronic timesheet reporting, and interactive dispatching.
TeleNav’s products are compatible with almost all wireless networks, including GSM, CDMA,
iDEN, HSDPA, EV-DO, EDGE and GPRS. The company’s key partners include Motorola, LG,
Samsung, Nokia, RIM (Research In Motion), TeleAtlas, Hewlett Packard, NAVTEQ, Palm, Sanyo,
deCarta, HTC, and Qualcomm. TeleNav’s customers include wireless carriers and telematics
service providers. The company’s top competitors include Ardmore Holding Corporation, ATX
Group, and CSI Wireless. TeleNav was established in 1999.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…


Alliance
TeleNav Forms Alliance with Rogers wireless in Canada
TeleNav entered into alliance with Rogers wireless in Canada. Under the terms of the agreement,
Rogers Wireless customers would get immediate access to TeleNav’s GPS Navigator system,
which provides turn-by-turn GPS-enabled driving directions directly from BlackBerry® handsets,
including the new BlackBerry 8800.

Partnership
TeleNav Partners with Dada SpA
TeleNav partnered with Softec SpA, a subsidiary of Dada SpA. Under the terms of the agreement,
TeleNav would provide GPS Navigation to customers of Dada SpA in Italy. TeleNav GPS
Navigator includes GPS-enabled, turn-by-turn voice and on-screen driving directions, addresses
and directions to businesses and community locations, full-colour and 3D moving maps.

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Service Launches

TeleNav Launches 3D GPS Navigation


TeleNav launched 3D GPS Navigation system for BlackBerry Smartphones in Europe. Mobile
customers in more than 15 European countries could receive the benefits of an in-car navigation
system. TeleNav GPS Navigator, is available on variety of BlackBerry® smartphones. The system
offers turn-by-turn voice and on-screen driving directions, addresses and directions to business and
community locations, as well as full-colour and 3D moving maps.

TeleNav Introduces GPS Navigation Service with Traffic Rerouting


TeleNav introduced GPS navigation service with traffic rerouting using TeleNav GPS Navigator™
on selected phones. Telenav offers a turn-by-turn GPS-enabled voice and on-screen navigation
service and regularly monitors traffic and proactively alerts users of slowdowns and incidents
along their routes.

Year 2006 In Review…

Alliance

TeleNav Forms Alliance with SouthernLINC Wireless


TeleNav entered into alliance with SouthernLINC Wireless to provide GPS navigation system to
SouthernLINC Wireless customers directly on mobile phones.
Other features of the product include Biz Finder, provides information and directions to businesses
such as ATMs, restaurants and hotels.

Service Launch

TeleNav Launches 3D GPS Navigation Service in the US


TeleNav launched 3D GPS Navigation Service in the US. Latest version offers 3D moving maps,
Wi-Fi Hotspot finder and predictive and error-correcting address entry. Customers could quickly
find and get turn-by-turn directions to wireless hotspots across the US. With TeleNav GPS
Navigator 5.0, customers also search along-the-route (ATR) service, enabling them to look up a
business, place of interest and even the lowest gas prices along their predetermined routes.

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TELVENT GIT SA
Valgrande, 6, 28108 Alcobendas, Madrid, Spain
Phone: +34-91-714-70-00, Fax: +34-91-714-70-01
SOURCES: www.telvent.com and other secondary online sources
2007 Sales: € 278.0 million (H1)
2006 Sales: € 503.8 million
2005 Sales: € 402.4 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Telvent GIT SA (Telvent GIT), the information technology (IT) subsidiary of Abengoa, specializes
in high value-added systems and professional services in the energy, transportation, environment and
public administration industry. Telvent GIT executes projects and provides technical services in the
field of mission-critical, real-time control and information management and also manages IT and
telecommunications infrastructure for an extensive international client base. The company’s traffic
management systems include RedEye (red-light detection system); Odyssey (Intelligent traffic
control, highway and city access management system); SmartTOLL (Intelligent Toll Management
and Control System); Itaca (Intelligent system for urban traffic control); MoviSmart (Integrated
systems for traffic and transportation); and Sicotie (Tunnel management and control system).
Telvent GIT’s technology allows high performing companies to make real-time business decisions
using data acquisition, control and advanced operational applications, providing secure actionable
information delivered to the enterprise. Major services include systems integration, consulting
services, design and engineering services, maintenance and outsourcing services and software,
which enables customers to more efficiently, manage operations, business processes and customer
services. Telvent GIT operates in several countries across Europe, North America, Latin America,
the Asia-Pacific region, and the Middle East and Africa. In 2008, The OHL Brasil construction
company awarded a contract worth more than €8 million to Telvent GIT for the supply,
implementation and start-up of the latter’s SmartToll system on three of the Brazilian federal
highways.
The company’s key competitors include Affiliated Computer Services, GE and Indra.
Telvent was established in 2000.

BUSINESS OPERATIONS
Energy Segment
Oil & Gas
Telvent GIT provides complete solutions for gathering, pipeline and distribution operators that
manage the capture of field data, provide validation and operational control, advanced operational
applications and real time business applications.

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Traffic Segment
Telvent GIT’s Traffic solutions are focused on minimizing urban congestion and maximizing
highway road capacity through ITS (Intelligent Transportation Systems), ATMS (Advanced Traffic
Management Systems) and ATIS (Automatic Traffic Information Systems). The company also
deploys automated toll solutions for highways. Telvent GIT’s products and services solutions cover
traffic management systems, highway management systems, tunnel management systems,
enforcement management systems and toll management systems. In the segment, the company’s
competitors include Transcore, Inc. (a subsidiary of Roper Industries), Affiliated Computer
Services Inc., Indra, Siemens, Peek, Sagem and Kapsch.
Transport Segment
Transport solutions include fare collection systems, remote control systems and passenger
information systems for railways and public transportation systems, and access control and
payment systems for parking. The segments competitors include Indra, Logica CMG, ERG, ACS,
Thales, Cubic Corporation and GFI Genfare.
Environment Segment
Environment segment includes all activities related to environmental protection (air quality and
continuous emissions monitoring), meteorology and hydrology, water and wastewater management. The
segment is based in Spain, the Netherlands, the US, Canada, Australia, Mexico, Brazil and China.
Other
Telvent GIT’s other segment includes opportunities in the public administration, healthcare and
managed services areas. The company provides complete solutions for healthcare customers to
provide patients, professionals and Public and Private NHS healthcare delivery at points of care.

SALES DATA
Half Yearly Sales Comparison: 2007 Vs. 2006 (In € million)

Year Sales % Change


2007 278.0 37.69
2006 201.9 -
Half Yearly Sales Comparison by Business Segment (2007 Vs. 2006) – Energy,
Transportation, Environment, Public Administration, Global Services (In € million)

Segment 2007 2006 % Change


Energy 112.4 84.1 33.65
Transportation 104.2 73.0 42.74
Environment 19.5 18.3 6.56
Public Administration 22.1 9.3 137.63
Global Services 19.8 17.2 15.12
Total 278.0 201.9 37.69

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Annual Sales Comparison: 2006 Vs. 2005 (In € million)

Year Sales % Change


2006 503.8 25.20
2005 402.4 -

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Euorpe,


Latin America, North America, Asia-Pacific (In € million)

Region 2006 2005 % Change


Europe 294.2 216.7 35.76
Latin America 89.7 68.6 30.76
North America 78.4 58.8 33.33
Asia- Pacific 19.1 31.9 (40.13)
Middle-East and Africa 22.4 26.4 (15.15)
Total 503.8 402.4 25.20

Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Energy, Traffic,
Transport and Environment (In € million)

Segment 2006 2005 % Change


Energy 217.2 177.6 22.30
Traffic 156.5 124.6 25.60
Transport 43.9 29.2 50.34
Environment 43.5 36.0 20.83
Other 42.7 35.0 22.00
Total 503.8 402.4 25.20

Percentage Breakdown of Annual Sales (Value) by Business Segment (2006 Vs. 2005) –
Energy, Traffic, Transport and Environment

Segment 2006 2005


Energy 43.1 44.1
Traffic 31.1 31.0
Transport 8.7 7.2
Environment 8.6 9.0
Other 8.5 8.7
Total 100 100

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STRATEGIC CORPORATE DEVELOPMENTS
Year 2008 (1st Half) in Review…
Installation
Telvent GIT to Install Traffic Control System in Xinxiang
Telvent GIT announced plans to install an urban traffic control system in the city of Xinxiang in
China. The project worth more than €4 million is part of an agreement signed by the company with
Bureau of Public Safety of Xinxiang in 2004. Under the terms of the agreement, Telvent would
integrate the city’s electronic police system, the geographical information system (GIS), the
integrated assistance system, and the traffic signal control system during project execution.
Year 2007 in Review…
Merger
Telvent Merges Consulting, Integration and Outsourcing Businesses into Telvent Global Services
Telvent announced the strategic merger of its consulting, integration and outsourcing businesses, as
well as its infrastructure, housing and communications divisions into a single company, Telvent
Global Services (TGS). The incorporation of TGS marks Telvent’s creation of a new integrated
division able to provide global solutions in all markets and for all system types. The solutions
would span the full service life cycle, including: the initial technology and business consulting
stages, in which clients’ needs are identified and the project designed; system and application
integration, when the solution designed during the preliminary consulting stage is installed and
commissioned; and the outsourcing and operation of clients’ information systems or business
processes (BPO).

Acquisition
Telvent GIT Pockets Caseta
Telvent GIT, through the subsidiary Telvent Traffic North America Inc., acquired Caseta
Technologies Inc., a US based manufacturer and distributor of electronic toll collection systems.
The transaction helps Telvent GIT consolidate position in supplying intelligent transport and
electronic toll collection systems in the US as well as international markets.

Agreements
Telvent Reaches an Agreement to Acquire Matchmind…
Telvent reached an agreement to acquire international company Matchmind. Matchmind
specializes in system integration, consulting services and information technology outsourcing. The
integration of Matchmind into Telvent, and the combination of professional teams from both
companies, would consolidate Telvent’s leading position in the fields of consulting services,
integration and management of information technologies. Under the agreement, Telvent would
initially acquire 58% of Matchmind, with the management team retaining a 40% share. Telvent
would gradually increase its holding over the next three years until reaching 100%.

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Telvent and Oracle Join Forces to Develop Technological and Business Solutions…
Telvent signed an agreement, through its Global Services business unit, with Oracle Ibérica S.A.
for the joint development of technological solutions applied to businesses, focused on covering an
emerging niche in the outsourcing market for new business process outsourcing (BPO). The
strategic alliance established between the two technological companies plans to cover the new
demand through the joint development of solutions that help the market to find flexible alternatives
for the outsourcing and management of its IT applications and services. Through the utilization of
customized models adapted to suit the specific business of each customer, Telvent and Oracle
intend to offer solutions, that cover all their customers’ technological, ranging from global services
and information technology infrastructures to management and evolution of the applications.

Telvant Signs an Agreement with INTECO…


Telvent signed a collaboration agreement with the National Institute of Communication
Technologies (INTECO) to establish a Security Development Center in Leon, complementary to
INTECO’s initiatives in security matters in Leon. The security center would focus on the
development of pioneer information technologies for the integral management of borders:
identification of individuals utilizing biometric techniques (automatic fingerprint and iris
identification systems and automatic facial and voice features recognition systems), issuing of
electronic identification documents (eDNI), as well as systems connected with road safety and the
prevention of traffic accidents. With the establishment of the Security Center, Telvent would
strengthen its presence in Leon.

Contracts
Telvent GIT Wins Supply Contract for Road Safety Systems
Telvent GIT received a contract worth €5 million from the Chinese City of Bayannur Police
Department to provide road safety and traffic control systems to the latter. As per the agreement,
Telvent GIT installs a computerized control center, which connects a variety of other systems
installed by Telvent GIT, such as traffic flow supervision on the main roads, traffic monitoring and
control through cameras as well as traffic regularization and optimization at traffic lights.

Telvent Signs a Contract with Emcali E.I.C.E. E.S.P…


Telvent announced the signing of a contract with one of Colombia’s major electricity companies,
Emcali E.I.C.E. E.S.P. Telvent would upgrade electricity management systems that control distribution
lines that supply electricity to more than 450,000 customers in Cali, Yumbo and Puerto Tejada.
Telvent’s technology would manage information to ensure more secure, reliable and efficient
operations of the company’s electricity distribution network, in order to shorten outage response times
and enhance the quality of service provided to its customers. Telvent would implement leading-edge
systems for data management and control (SCADA), energy distribution operations planning and
optimization (DMS) and outage and incident management of the network (ArcFM™/Responder).
Telvent Secures a Contract from Australian Bureau of Meteorology…
Telvent secured a contract from the Australian Bureau of Meteorology (BoM) to supply of
Automatic Weather Station (Data Acquisition System) equipment for use across Australia. The

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purpose of the contract is to supply the Bureau of Meteorology with equipment, to enable them to
replace all 600 Automatic Weather Stations (AWS) in the Australian national weather monitoring
network. The AWSs are located all around Australia and on various nearby offshore islands, and
would be progressively upgraded over the next three to five years. The contract also includes the
provision of 50 Sea Level Monitoring Stations, for the Australian Sea Level Observation System
(ASLOS), which is a central part of the Australian Tsunami Warning System (ATWS).

Telvent Bags a Contract to Maintain and Modernize Traffic Systems in the City of Avilés…
Telvent bagged a contract to maintain and modernize the city’s traffic infrastructure by the
Municipal Government of Avilés (Asturias). The city would invest 2.7 million euros for the
development of the key project. The project not only involves the maintenance of the city’s traffic
management installations for a period of four years, with the possibility of an additional two years,
but also the modernization and expansion of the current roadway installations. The centralized
traffic-light control system would be updated, and a management system would be installed for
accesses to the historic center, including remotely-managed retracting pylons in the surrounding
streets. The project also includes the supply of specific equipment to detect and photograph red-
light infractions.

Telvent and Kahramaa Signs a Contract to Enhance Management of Qatar’s Water Network…
Telvent announced the signing of a contract with Kahramaa, the Qatari water and electricity utility
company. Under the contract, valued at over 5.5 million euros, Telvent would provide consulting
services to Kahramaa for a period of four years on ways to enhance its drinking water transmission
and distribution network.

Telvent Signs a Contract with BOTAŞ...


Telvent signed a contract with the Turkish National Petroleum Pipeline Transport Corporation
(BOTAŞ) in Ankara, Turkey to perform system integration work related to the SCADA system,
which Telvent supplied to BOTAŞ’s Natural Gas Control Operations Directorate in 2001. The
project scope would include adding new communication protocols, creating new graphic screens
and modifying the SCADA database to accommodate future system expansion, installing the sub-
master SCADA center at the Doğu Beyazit CS1 compressor station, integrating new valve, pig,
metering and compression stations with the Eastern Anatolia sub-master SCADA center,
determining the maintenance requirement for the existing SCADA system, and providing training
for the personnel at BOTAŞ’s facility in Yapracık.

Telvent Secures a Contract to Implement Electronic National ID Project for the Spanish
Government…
Telvent secured two contracts for the deployment stage of the electronic National ID (NID) system
throughout Spain. The strategic project, valued at more than 30 million euro, is a key to enabling
the Information Society in Spain to become a reality. Telvent would supply personalization
systems for the electronic NID, specifically the hardware and software required for laser recording
of citizens’ personal data on their NID cards. After the initial deployment in Cadiz, the technology
would be implemented and maintained throughout the country. The contracts strengthen Telvent’s

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Public Administration presence and complement the project that Telvent recently completed for
electronic verification of identification documents at Spanish border check-points.

Telvent Bags a Contract with the Municipal Corporation of Mumbai


Telvent bagged a contract to design, construct and commission a traffic infrastructure management
system for the City of Mumbai. The purpose of the project is to enhance traffic mobility and
fluidity, as well as increase the average vehicle speed on Mumbai’s roads. Telvent would
implement its RealTime intelligent urban traffic management technological solution – ITACA – at
253 traffic-light-controlled intersections across the city. The project would be managed from a
traffic control center. Special emphasis would be placed on using low energy consumption
technologies for traffic lights and controllers at the intersections.

Telvent Enters into a Contract with Agencia Catalana del Agua…


Telvent announced the signing of a more than 4 million euro contract with Agencia Catalana del
Agua to maintain its hydrological data system for the rivers uga, Fluvia, and Bajo Ter. The service
contracted for two years and extendible by another two, comprises the maintenance of the hydro-
meteorological sensors, data acquisition systems and support infrastructures of the different control
points located in the northeastern area of the Catalonia Inshore Basins.

Telvent Signs a Contract with the Andalusian Health Service …


Telvent announced the signing of a contract with the Andalusian Health Service (SAS), to develop
and implement a Radiology Information System (RIS) and a centralized medical image
management system (PACS) in more than 40 hospitals throughout Andalusia. The project places
Andalusia at the forefront of medical image management, with its PACS system having one of the
largest image storage capacities in the world.

Telvent Wins a Contract to Upgrade Maritime Traffic Control Systems at Mexico’s Five Main
Ports…
Telvent wins a contract to maintain and upgrade the maritime traffic control systems at five of the
Mexican Port Authority’s main ports. The project would strengthen Telvent position in relation to
Mexican ports, while also consolidating the company as the leader in the sector of the Mexican market.

Telvent Secures a Contract with City of Bayannur Police Department in China…


Telvent signed a contract of approximately five million euro with the City of Bayannur Police
Department in China to supply traffic control and road safety systems. Telvent is implementing a
project that would enhance the city of Bayannur’s road infrastructure by providing integrated
traffic control systems. Telvent would facilitate vehicle and pedestrian control and safety, reduce
congestion, and optimize operation of the city’s transportation networks.

Telvent Signs Additional Contracts to Provide Technological Systems to PEMEX…


Telvent announced the signing of several contracts with the Mexican energy company PEMEX.
Under the contracts, Telvent would provide the management platform for PEMEX’s petroleum
storage and distribution depots and upgrade several of the company’s technological systems.

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Tevent Contract with the Venezuelan Ministry of the Environment and Natural Resources…
Telvent signed a contract with the Venezuelan Ministry of the Environment and Natural Resources
to supply weather observation systems for eleven of the country’s airports. The contract is part of
the Venezuelan government’s upgrading program for the National Hydro-meteorological
Forecasting System.

Telvent and the Federal Electricity Commission (CFE) of Mexico Signs a Contract…
Telvent signed a contract with the Federal Electricity Commission (CFE) of Mexico to upgrade the
Ostuacan region hydroelectric power plant, located in the State of Chiapas. Telvent would supply and
install a control system for four electric generating units with a total rating of 420 megawatts that supply
the States of Tabasco, Chiapas and Campeche. Telvent would provide its Hycos (Hydraulic Control Open
System) technological solution, which would manage the generation of hydroelectric energy.

Product Launches

Telvent Launches 511 Traveler Information Service…


Telvent launched 511 traveler information system for the San Diego Association of Governments
(SANDAG). 511 puts a wealth of free, travel-related information at commuters’ fingertips — 24
hours a day, seven days a week. Accessed through phone or Internet (www.511sd.com), users of
the one-stop resource could obtain up-to-the-minute freeway driving times, transit route and
rideshare information, roadside assistance, public transportation fare information, and much more.

Year 2006 in Review…

Acquisitions

Telvent Acquires Remaining Stake in Miner & Miner…


Telvent acquired the remaining 30% of Miner and Miner, Consulting Engineers, Incorporated
(Miner & Miner). Telvent initially acquired 70% of the issued and outstanding shares of Miner &
Miner in December, 2004. Miner & Miner is a worldwide leader in the development and
implementation of Geographical Information Systems (GIS) software for utilities.

Telvent Completes Acquisition of PB Farradyne


Telvent took control over the assets of the US-based ITS company, PB Farradyne (Farradyne); and
plans to operate the combined company under the name Telvent Farradyne. The move is a part of
Telvent’s strategy to expand its transportation and traffic business, globally, and to gain from
widespread growth opportunities. The acquisition brings in a professional team that serves both
public and private clientele, including local/regional transportation agencies, state transportation
departments, and the Federal Highway Administration. Besides, the acquisition is likely to enhance
Telvent’s Traffic IT platform, and offer long-term growth potential. In addition, the acquisition offers
broad range of products and services including urban/interurban traveler and traffic information
systems, operations and management services, tolling and pricing systems, and ITS design and
consulting services, as it integrates Traffic IT business of Telvent with the portfolio of Farradyne.

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Telvent Acquires the Leading Spanish Public Transport Ticketing Technology Company…
Telvent signed an agreement to acquire the business and assets of Maexbic, S.A., the leading
provider of public transportation ticketing technology in Spain. The acquisition strengthens Telvent
positioning in the Spanish transportation ticketing market.

Contracts
Tevent Enters into a Contract with the Spanish National Meteorology Institute (NMI)…
Telvent signed a contract with the Spanish National Meteorology Institute (NMI) to upgrade its
radar observation meteorological systems. Under the contract, Telvent would provide and install
information and control systems for fifteen meteorological radar systems the NMI uses for making
weather observation throughout Spain.

Telvent Secures a Contract from Kenya Pipeline Company (KPC)…


Telvent signed a contract with Kenya Pipeline Company (KPC) to upgrade their existing
Supervisory Control and Data Acquisition (SCADA) system to OASyS DNA. The project would
also include the installation of Telvent’s feature-rich pipeline simulation system, SimSuite
Pipeline. The upgrade to a highly distributed OASyS DNA system would allow KPC to control
its pipelines from a centralized location and provide KPC with the means for improving
business automation, corporate wide information management and data access. Telvent would
be responsible for system design, integration, programming, configuration, testing, packing,
transportation, site installation, running until maintenance, after-sales service and training.

Telvent Signs €20 Million Contract with PEMEX…


Telvent and Petróleos Mexicanos (PEMEX) signed a three-year contract for a total amount of 20
million euros, for Telvent to provide integrated voice and data communications services through
satellite communication to the Oil and Natural Gas surveying and exploration unit of PEMEX, the
first company in the world in marine hydrocarbide extraction and the third company in the world in
production of crude petroleum.

Telvent and Aeropuertos Españoles y Navegación Aérea (AENA) Signs a Contract…


Telvent signed a contract with Aeropuertos Españoles y Navegación Aérea (AENA), Spain’s
airport operator, to supply radio-communication terminal units that would be utilized as part of the
Madrid airport’s Tetra standard-based digital communication system. Telvent would supply more
than 600 portable terminals, 70 mobile terminals for vehicles and 25 stationary terminals that would be
utilized in Madrid Airport. Telvent’s solution is the only one on the market with architecture and design
based on non-proprietary devices, with multi-protocol capacity and architecture based on software
instead of hardware, which simplifies and optimizes system operation.

PRODUCT PORTFOLIO
Oil
Liquids Management System, POLARIS Framework, POLARIS Liquids, SimSuite Pipeline

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Gas
Gascat, Gas day operations, Gas device interface, Gas measurement, Oasys 6.3, Oasys DNA,
Polaris framework, Polaris gas, Realtime gas suite

Electric
Hydro Automation, Distribution Management System (DMS), Street Lighting, Feeder Management
System (FMS), Remote Terminal Units (RTU), Metering Systems, Railway Traction Remote
Control and others

Water
Flood Warning System, GIS Water, GOES/DRGS, Hydrometeorology Networks, Innova
Executive Information System, Irrigation Network Control, Detection of Leaks in Supply
Networks, Saimet +, Watershed Management Optimization, Water Management Suite (WMS)

Meteorology
Aeronautical Meteorology, Automated Weather Observation System (AWOS), EWDSS Applied
Meteorology, Remote Sensing, Surface Meteorology, Weather Information Systems

Environmental Protection
Air Pollution Modelling, Air Quality Monitoring Network, Air Quality Monitoring Unit, Ambitel,
Continuous Emission Monitoring System, Decision Support System for Wild Fire Extinction

Traffic
ITACA, MoviSmart, RedEye, Highway management, Tunnel control & management, Toll
collection management, Marine Traffic Management and others

Transportation
Parking, Ticketing, Railway, Buses, Maritime & Naval Systems

Public Admin
Citizen Relationship Management, GIS (Health & Government), MMS Asset Management, Outage
Management System (OMS), TiWorks

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TELVENT GIT S.A.’S SUBSIDIARIES

TELVENT FARRADYNE, INC.


3206 Tower Oaks Boulevard, Rockville, Maryland 20852, USA
Phone: 301-468-5568, Fax: 301-816-1884

SOURCES: www.telvent-farradyne.com and other secondary online sources

BUSINESS PROFILE
Telvent Farradyne Inc., (TFI) specializes in offering a wide range of services and software products for freeway
management, electronic toll and pricing, parking management, traffic enforcement, traffic signal, transit fare payment,
traveler information and SCADA tunnel control system applications. TFI is a leader in the field of Intelligent
Transportation Systems (ITS). The company provides a powerful array of technical solutions for safety, mobility and
security requirements. The company’s product portfolio comprises software products such as Alert Radio, Smartnet,
Transportation Infrastructure Maintenance Management System (TIMMS) Software, Mist® Version 4 and vehicle
probe systems. The company offers ITS systems to various customers throughout the United States and Canada. TFI
offers consulting services that are mainly focused on advanced public transportation services, electronic toll collection
system design, incident management programs, ITS system management and operations, telecommunications planning
and design as well as transportation management center (TMC) design. TFI is accredited with ISO 9001 certification.
TFI was established in 2006 following a merger between Telvent GIT S.A., and PB Farradyne.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 in Review…

Collaboration

TFI Teams-up with the Computer Sciences Corporation on a $22 million Contract…
TFI teamed up with the Computer Sciences Corporation on a $22 million contract. As per the collaboration, TFI would
develop the software for the Maryland State highway administration’s intelligent transportation systems and Computer
Sciences Corporation would conduct the systems integration, development testing and deployment.

Contract

TFI Enters into Contract with Transportation Departments


TFI entered into a US$12 million traffic contract with Virginia Department of Transportation (VDoT). Under the terms
of the contract, Telvent would provide expertise, services and operations personnel for VDoT’s Northern Virginia
based Smart Traffic Center, for a period of five years.
Besides, the company entered into a traffic contract worth US$4 million with Missouri Department of Transportation,
to offer operational support for the Gateway Guide traffic management system located in St. Louis, Missouri. As per
the deal, Telvent would provide operations supervisor, and system operators for a period of four years. Additionally,
the company would offer training on advanced standard operating procedures, incident management techniques, and
operational techniques of an enhanced Traffic Management Center.

PRODUCT ANALYSIS

Mist 4
The company’s Mist® Version 4 is an integrated transportation management software platform. The company’s Mist®
software is also available for the Windows 2003 / XP operating system.

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Alert Radio
The company’s Alert Radio is a software tool that filters and distributes emergency information. The company’s Alert
Radio is used for providing organizational, weather, civil emergency, homeland security, and child abduction (amber
alert) information.

Smartnet
The company’s powerful product Smartnet is suitable for law enforcement, transportation agencies, emergency
responders, security personnel, metropolitan planning organizations and private enterprises for distributing various
information throughout an event.

Transportation Infrastructure Maintenance Management System (TIMMS) Software


TFI offers a powerful, web-based software tool for assisting various customers with systems management and
operations. The company’s product could be used for prioritization and assignment of resources and personnel easy by
scheduling and tracking work orders and preventative maintenance as well as providing performance metrics.

TELVENT TRAFFIC NORTH AMERICA, INC.


7000A Hollister Road, Houston, Texas 77040-5337, USA
Phone: +1 713 939-9399, Fax: +1 713 939-0393

SOURCES: www.telvent.com and other secondary online sources

BUSINESS PROFILE
Telvent Traffic North America Inc., (Telvent NA) specializes in providing high value-added products, services and
integrated solutions for the Energy, Transportation, Environment and Public Administration industry segments, as well
as Global IT Services. The company’s innovative technology and client-proven expertise enable the efficient and
secure real-time management of operational and business processes for industry-leading companies worldwide. The
company’s technology allows companies to make real-time business decisions by employing control and data
acquisition systems together with advanced operational applications, which provide the company with safe, effective
information.

SERVICE PORTFOLIO
Air Quality Monitoring Network; Ambitel; ArcFM; ATIS; AWOS; Citizen Relationship Management; Continuous
Emission Monitoring System (CEM); Control and Simulation System for Desalination Plants; Decision Support
Systems for Forest Fires Suppression; Dispersion Models; Distribution Management System (DMS); Enterprise Water
GIS; Flood Warning System; Gas Device Interface Modules; Gas Measurement; Hydro Automation;
Hydrometeorological Networks; Irrigation Control Networks; ITACA; Liquids Management System; LLWAS; MMS
Asset Management; Mobile Air Quality Monitoring Unit; Mobile Units for Forest Fires Suppression; MoviSmart;
myOASyS; OASyS DNA 7.5; Outage Management System (OMS); POLARIS Framework; POLARIS Gas; POLARIS
Liquids; RealTime Gas; RedEye; Remote Sensing System; Responder; SCADA OASyS; Seismic Phenomena
Detection System; Sicotie; SimSuite Pipeline; Smart Metering System (ANSI); SmartTOLL; Surface Meteorology;
Telmet 320; Telvent Metering System (TMS); TERWIS; TiCares-CIS Clinical Information System; TiCares-DIS
Department Information System; TiCares-PAS Patient Administration System; Titanium; Water Leakage
Management; Water Management Suite; Water Quality Monitoring System; Weather Radar Networks

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THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION
1505 Eastover Drive, Jackson, Mississippi 39215-1850, USA
Phone: (601) 359-7244, Fax: (601) 359-7063

SOURCES: www.gomdot.com and other secondary online sources


2006 Sales: US$ 1,165.4 million
(Fiscal Year Ends in June)

BUSINESS PROFILE
The Mississippi Department of Transportation (MDOT) specializes in providing a safe intermodal
transportation network services. The company expertise in activating new traffic signals on
highway roads. MDOT primarily provides its services to Aeronautics sector. The company
develops and updates airport layout plans for the public use airports in the State to promote timely
development of the needed airport facilities. The company also operates in the cities of Tupelo,
Batesville, Yazoo City, Newton, Hattiesburg and McComb in providing services such as pothole
repair, litter removal, mowing, painting and repairing bridges.
In 2006, MDOT announced plans to develop ITS for Gulf Coast region, for enhancing the safety
and efficiency of the transportation network. The proposed ITS program would include
Advanced Transportation Management Systems, Advanced Traveler Information Systems,
Advanced Public Transportation Systems, Advanced Emergency Management Systems,
Coordinated Incident Management Systems, Advanced Construction and Maintenance
Management Systems, Hazardous Materials Management Systems, and Road Weather
Management Systems. The ITS program is intended to address various needs across the Gulf
Coast region.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

New Facilities

MDOT to Activate New Traffic Signal in Pearl River County…


MDOT announced plans to activate a new traffic signal at the intersection of Highway 53 and
Highway 26 in Poplarville, Miss., weather permitting. The new signal would replace the existing
four-way stop that was previously at the intersection. The system is available in four-way red
flashing mode.

MDOT to Activate Four new Traffic Signals…


MDOT announced plans to activate four new traffic signals on Highway 145 in Lee County.
MDOT personnel would be activating four new traffic signals in Saltillo at the locations of
Highway 145 and Willow Brook Drive, Highway 145 and Old Highway 45 Road, South 45 exit
ramp and Highway 145, and North 45 exit ramp and Highway 145.

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MDOT Plans to Open the First Two Lanes…
MDOT announced plans to open the first two lanes of the new U.S. Highway 90 St. Louis Bay
Bridge, linking the communities of Bay St. Louis and Henderson Point.

MDOT to Open Stateline Bypass…


MDOT announced plans for opening of the newly four-laned “Stateline Bypass” of U.S. 45 and
State Route 57 in Greene and Wayne Counties. The 5.3 mile grading, drainage, paving and bridge
construction project is completed by Tanner Construction in two phases.

Other Development

MDOT to Develop Intelligent Transportation System…


MDOT announced plans to develop ITS for Gulf Coast region, for enhancing the safety and
efficiency of the transportation network. The proposed ITS program would include Advanced
Transportation Management Systems, Advanced Traveler Information Systems, Advanced Public
Transportation Systems, Advanced Emergency Management Systems, Coordinated Incident
Management Systems, Advanced Construction and Maintenance Management Systems, Hazardous
Materials Management Systems, and Road Weather Management Systems. The ITS program is
intended to address various needs across the Gulf Coast region.

Installation

MDOT to Install Temporary Four Way Stop in Lamar County…


MDOT announced its plans to install a new four way stop at the intersection of Old Highway 24
and State Route Highway 589 in front of the new Oak Grove Elementary School in Lamar County.
Along with electronic billboards, MDOT would also install specially designed “rumble strips”
along the roadway to bring attention to the new stop.

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TOYOTA MOTOR CORPORATION
1, Toyota-cho, Toyota, Aichi 471-8571, Japan
Phone: +81-565-28-2121, Fax: +81-565-23-5800

SOURCES: www.toyota.co.jp and other secondary online sources

Sales
2008 Sales: ¥ 6,522.6 billion (Q1) 24550
23200
2007 Sales: ¥ 23,948.1 billion
21850
2006 Sales: ¥ 21,036.9 billion 20500
19150
2005 sales: ¥ 18,551.5 billion
17800
(Fiscal Year Ends in March) 2005 2006 2007

BUSINESS PROFILE
Toyota Motor Corp., (Toyota) is one of the global largest auto manufacturers. The company is
the # 1 carmaker in Japan. The company designs, manufactures, assembles and markets
passenger cars, recreational and sport-utility vehicles, minivans and trucks and related parts and
accessories. The company offers gas-powered cars, pickups, minivans, and SUVs under models
such as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the luxury Lexus line, the new Scion
brand, and a full-sized pickup truck, the V-8 Tundra. The company is also involved in designing
and manufacturing of prefabricated housing and information technology related businesses,
including certain intelligent transport systems and an e-commerce marketplace called
Gazoo.com. Toyota also makes forklifts and manufactured housing, and also provides consumer
financial services.
Toyota’s financial services business provides financing to dealers and customers for the purchase
or lease of Toyota vehicles. Toyota owns and manages 52 manufacturing facilities in 27 countries,
which produces Lexus- and Toyota-brand vehicles and components. The company operates
manufacturing plants such as Honsha Plant, Motomachi Plant, Kamigo Plant, Takaoka Plant,
Miyoshi plant, Tsutsumi Plant, Myochi Plant, Shimoyama Plant, Kinu-Ura Plant, Tahara Plant,
Teiho Plant and Hirose Plant. The company markets vehicles and components to over 170
countries, under the brand names Lexus and Toyota. The company produces more than 5.5 million
vehicles annually. Toyota’s top competitors include Ford, General Motors and Honda.
The company was established in 1937.

DIVISIONAL ANALYSIS
Automotive Operations
Toyota’s automotive operations include the design, manufacture, assembly and sale of passenger
cars, recreational and sport-utility vehicles, minivans and trucks and related parts and accessories.
Automotive segment is Toyota’s most significant business segment that accounts 90% of Toyota’s
total revenues.

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Financial

Toyota Financial Services Corporation (TFS)


Toyota Financial Services Corporation (TFS) is the center of the Toyota Financial Services Group.
TFS provides auto loans and car insurance, a comprehensive range of financial products and
services. TFS is also involved in credit card operations, securities, pension and estate investment
services, machine leasing, and housing loans.

Information Technology And Telecommunications


Information Technology and Telecommunications Division provides G-BOOK services to the
entire network society. The company also invests in various telecommunication companies
including KDDI Corporation, which researches and develops communication technology for
automobiles.

Intelligent Transport Systems Business (ITS)


The ITS division, a mobility service provider, provides car intelligence, car multimedia, facilities,
logistics and transportation services. The division also provides a wide range of solutions to a
number of traffic-related problems, using advanced electronics and telecommunication
technologies. In addition, the company also constructs advanced systems for highway traffic.

GAZOO Business
GAZOO is an information network service offered by the company. The company’s services
enable the user to shop, request vehicle price estimates and make appointments with the car
dealers. In addition, the division also markets E-TOWER a multimedia information terminal used
to access GAZOO services.

Housing Business
The company’s Housing business constructs a wide range of detached and prefabricated homes
using three construction methods namely a unit building system, a steel framework construction
method and residential steel framing technique.

Marine Business
Marine division manufactures and markets a wide range of motorboats and marine engines. The
company also maintains collaborative relationship with Yamaha Motors Co. Ltd., for the
production and sale of motorboats.

Biotechnology and Afforestation


Toyota manages various biotechnology and afforestation programs. The various projects conducted
by the company includes eucalyptus tree plantation project for the supply of paper pulp; producing
livestock feed from sweet potatoes in Indonesia; and flowering-plant business in Japan, including
mini-roses and poinsettias.

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SALES DATA

First Quarter Sales Comparison: 2008 Vs. 2007 (In ¥ billion)

Year Sales % Change


2008 6,522.6 15.69
2007 5,638.1 -

First Quarter Sales Comparison by Geographic Region (2008 Vs. 2007) – Japan,
North Amercia, Europe and Asia (In ¥ billion)

Region 2008 2007 % Change


Japan 3,662.9 3,422.3 7.03
North America 2,510.9 2,181.6 15.09
Europe 1,019.0 832.3 22.43
Asia 720.1 484.6 48.60
Others 559.7 453.1 23.53
Eliminations (1,950.0) (1,735.8) 12.34
Total 6,522.6 5,638.1 15.69

First Quarter Sales Comparison by Business Segments (2008 Vs. 2007) – Automotive
and Financial Services (In ¥ billion)

Segment 2008 2007 % Change


Automotive 6014.3 5187.6 15.94
Financial Services 378.6 284.6 33.03
Other 293.0 295.0 (.68)
Eliminations (163.3) (129.1) 26.49
Total 6522.6 5638.1 15.69

Annual Sales Comparison: 2005 – 2007


(In ¥ billion)

Year Sales % Change


2007 23,948.1 13.84
2006 21,036.9 13.40
2005 18,551.5 -

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5645 Silver Creek Valley Road, San Jose, California 95138, USA
Annual Sales Comparison by Geographic Region (2007 Vs. 2006) – Japan, North America,
Europe, Asia, and Other Regions (In ¥ billion)

Region 2007 2006 % Change


Japan 14,815.3 13,111.5 12.99
North America 9,029.7 7,687.9 17.45
Europe 3,542.1 2,727.4 29.87
Asia 2,225.6 2,042.8 8.95
Other Regions 1,922.7 1,601.7 20.04
Eliminations (7,587.3) (6,134.4) 23.68
Total 23,948.1 21,036.9 13.84

Annual Sales Comparison by Business Segment (2007 Vs. 2006) – Automotive and
Financial Services (In ¥ billion)

Segment 2007 2006 % Change


Automotive 21928.0 19,338.1 13.39
Financial Services 1300.5 996.9 30.45
Others 1323.7 1,190.3 11.21
Eliminations (604.1) (488.4) 23.69
Total 23948.1 21,036.9 13.84

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Japan, North America,
Europe, Asia, and Other Regions (In ¥ billion)

Region 2006 2005 % Change


Japan 13,111.5 12,004.1 9.23
North America 7,687.9 6,373.5 20.62
Europe 2,727.4 2,479.4 10.00
Asia 2,042.8 1,625.4 25.68
Other Regions 1,601.7 1,183.7 35.31
Eliminations (6,134.4) (5,114.6) 19.94
Total 21,036.9 18,551.5 13.40

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Percentage Breakdown of Annual Sales (Volume) by Geographic Region (2006) –
Japan, North America, Europe and Asia

Region 2006
Japan 60.7
North America 15.6
Europe 8.1
Asia 10.8
Others 4.8
Total 100

Percentage Breakdown of Annual Sales (Value) by Geographic Region (2006) – Japan,


North America, Europe and Asia

Region 2006
Japan 29.7
North America 32.1
Europe 12.8
Asia 11.0
Others 14.4
Total 100

Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Automotive and
Financial Services (In ¥ billion)

Segment 2006 2005 % Change


Automotive 19,338.1 17,113.5 13.00
Financial Services 996.9 781.3 27.60
Others 1,190.3 1,030.3 15.53
Eliminations (488.4) (373.6) 30.73
Total 21,036.9 18,551.5 13.40

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Merger
Toyota Combines Asia R&D Base with Production Support Company…
Toyota combined Toyota Technical Center Asia Pacific (Thailand) Co., Ltd. (TTCAP-TH), its Asia
R&D base, with Toyota Motor Asia Pacific Co., Ltd. (TMAP Thailand), production support

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company to establish Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd.
(TMAP-EM). The company, through integration strengthened operations of Toyota production
affiliates in Asia and promotes further localization by unifying development and evaluation of
locally produced vehicles with local procurement and production operations.

Capacity Expansion

Toyota to Expand Philippine Manual Transmission Production…


Toyota’s subsidiary Toyota Autoparts Philippines Inc., (TAP) announced plans to increase both
annual production and exports of manual transmissions. The company would produce
approximately 340,000 units, compared to approximately 180,000 units in 2006, and export
approximately 330,000 units, compared to approximately 170,000 units in 2006.

Business Expansion

Toyota Starts Production at its Plant No. 2…


Toyota’s joint venture, Tianjin Faw Toyota Engine Co., Ltd. (TFTE), started production at its Plant
No. 2. TFTE's Plant No. 2 would produce 220,000 units annually and also support production of
the ZR 1.6/1.8-liter engines.

Toyota Begins Production at its Plant No. 3…


Tianjin FAW Toyota Motor Co., Ltd. (TFTM), a joint venture established by Toyota and China
FAW Group Corporation (FAW) for the production of passenger vehicles, begins production of the
new Corolla at TFTM's Plant No. 3, in the Tianjin Economic and Technological Development
Zone in Tianjin, China.

New Establishments

Toyota Establishes Toyota Motor Manufacturing, Mississippi, Inc…


Toyota established Toyota Motor Manufacturing, Mississippi Inc. (TMM MS), the company’s
eighth vehicle production plant in North America. The new plant would produce Highlander SUV
with capacity of 150,000 vehicles annually.

Toyota to Open Toyota Technical Training Institute in India…


Toyota plans to open Toyota Technical Training Institute (TTTI), a technical training school for
middle-school graduates in Bangalore, India. TTTI would focus on four technical-skill courses
namely painting, welding, automobile assembly and mechatronics.

Toyota Opens 3rd Thai Plant…


Toyota’s subsidiary Toyota Motor Thailand Co., Ltd. (TMT) opened Ban Pho Plant, third
production base in Thailand. The Toyota Ban Pho Plant would produce Hilux pickup trucks for
domestic Thai market, and also for more than 90 other markets worldwide. The plant would
produce 100,000 vehicles annually.

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Product Launches

Toyota Unveils Fully Redesigned Voxy and Noah…


Toyota unveiled completely redesigned Voxy through "Netz" dealers, and completely redesigned
Noah through "Toyota Corolla" dealers in Japan. The new models extend the advanced functioning
of the first generation, including one-touch folding third-row seats and second-row "long-slide
multi-use rotating" seats with a child seat mode.

Toyota Introduces Fully Redesigned Premio and Allion…


Toyota announced nationwide launch in Japan of the completely redesigned Premio through
"Toyopet" dealers, and completely redesigned Allion through "Toyota" dealers. The two model
features Smart Entry & Start System, a color rear-view monitor and an HDD navigation system
compatible with G-BOOK mX, the latest version of the G-BOOK telematics service.

Toyota Launches Flexible-fuel Corolla Models for Brazil…


Toyota’s Brazilian sales and manufacturing subsidiary Toyota do Brasil Ltda (TDB) launched
bioethanol-compatible Corolla Flex and Corolla Fielder Flex, two new locally produced models.

Lexus Introduces LS600h and LS600hL in Japan…


Toyota’s Lexus introduced LS600h and LS600hL1 hybrid sedans, which form the pinnacle of the
Lexus brand. The two models feature the world's first 2-hybrid system combining a 5.0-liter V8
engine, a high-output motor and a full-time all-wheel-drive system.

Toyota Unveils Fully Redesigned 'IST'…


Toyota unveiled the completely redesigned "IST" compact hatchback through "Netz" dealers in
Japan. The IST is upgraded from the 1.3-liter or 1.5-liter engine offered with the first-generation
IST to a choice of either 1.5-liter or 1.8-liter engine.

Product Development

Toyota Develops Advanced Head Restraint…


Toyota developed the Active Headrest, a new head restraint that reduces the stress on the neck
during low-speed, rear impacts. The company plans to introduce the head restraint shortly, starting
with new vehicle models.

Toyota Develops Next-generation Engine Valve Mechanism…


Toyota developed Valvematic, a variable valve lift mechanism created through combining
VVT-i (Variable Valve Timing-intelligent), which continuously controls intake valve
opening/closing timing, with a new mechanism that continuously controls the intake valve lift
volume. The company also plans to unveil Valvematic with a new vehicle model featuring a
2.0-liter engine.

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Year 2006 in Review…

Capacity Expansions

Toyota Expands R&D Base in Belgium…


Toyota expanded its Toyota Motor Europe SA/NV (TME), Belgium to meet the needs of its
customers in Europe. The expansion would strengthen Toyota's product-development
competitiveness in the diversifying European market.

Toyota Increases Production Capacity…


Toyota announced today that Sichuan FAW Toyota Motor Co., Ltd. (SFTM), a joint vehicle-
production company added a second version of the Land Cruiser Prado to its production lineup,
raising SFTM's overall annual production capacity from 20,000 units to 23,000 units.

Toyota to Expand Mexican Plant…


Toyota plans to expand its Mexican Plant to increase the annual production capacity of Toyota Motor
Manufacturing de Baja California (TMMBC) to 50,000 pickup trucks and 200,000 truck beds.

Toyota to Increase FAW (Tianjin) Dies Co.’s Production…


Toyota’s stamping die-production joint venture, Toyota FAW (Tianjin) Dies Co., Ltd. (TFTD),
would produce automotive stamping dies for automobile body panels. The company would also
start exporting automotive stamping dies outside Japan.

New Establishments

Toyota Establishes Production Support Center…


Toyota established North American Production Support Center (NAPSC). The NAPSC is a branch
of Toyota's Global Production Center (GPC), which is established to improve the efficiency of
support from Toyota and to promote the self-reliance of local manufacturing companies.

Toyota Establishes European Global Production Centre…


Toyota established European Global Production Centre (E-GPC) in Burnaston, Derbyshire in the
United Kingdom. The E-GPCC is a training center for teaching production and maintenance skills
to future trainers from Toyota's European plants. E-GPC Presents explicit production know-how
through a series of "best method" practices for each required skill. E-GPC delivers a range of
courses designed to enhance and develop key vehicle production skills and equipment maintenance
knowledge to support the Toyota Production System with its emphasis on superior quality.

Toyota and Tsinghua University Open Tsinghua University-Toyota Research Center…


Toyota and Tsinghua University established Tsinghua University-Toyota Research Center. The
company established new center to achieve sustainable global economic and social development
and the formation of a prosperous and environmentally considerate society.

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The new center would research in environmental science, energy and materials science and
automobile safety technologies.

Toyota Establishes New R&D and Manufacturing Company in North America…


Toyota established Toyota Motor Engineering & Manufacturing North America Inc., (TEMA) to
consolidate Toyota's R&D and manufacturing operations in North America. TEMA would increase
operation efficiency and flexibility by reducing lead times for all related processes.

Product Launches

Toyota Unveils Auris Compact…


Toyota unveiled Auris*1, a strategic compact passenger vehicle for both Japan and Europe.

Toyota Introduces Corolla Sedan and Corolla Fielder…


Toyota introduced completely redesigned Corolla sedan, as the Corolla Axio, and completely
redesigned Corolla Fielder as Toyota Corolla.

Toyota Launches New Compact SUV…


Toyota in association with Daihatsu launched new compact SUV as Daihatsu Be-go*1 through the
Daihatsu dealers and Toyota Rush*2 through "Toyopet" ("Osaka Toyota" in the Osaka Area)
dealers.

Toyota Launches Estima Minivan in Japan…


Toyota launched Estima Minivan through "Toyota" ("Osaka Toyopet" in the Osaka area) and
"Toyota Corolla" dealers in Japan.
Estima Minivan is developed under a concept of "total innovation and refinement", the new
Estima, is a next-generation minivan with advanced exterior styling and driving performance.

SUBSIDIARIES/AFFILIATES
Tokyo Financial Services Corporation (Japan)
Hind Motors, Ltd. (Japan)
Toyota Motor Kyushu, Inc. (Japan)
Daihatsu Motor Co., Ltd. (Japan)
Toyota Finance Corporation (Japan)
Toyota Administa Corporation (Japan)
Toyota Auto Body Co., Ltd. (Japan)
Tokyo Toyo-Pet Motor Sales Co., Ltd. (Japan)
Kanto Auto Works, Ltd. (Japan)
Toyota Motor Manufacturing North America, Inc. (USA)
Toyota Motor Manufacturing, Kentucky, Inc. (USA)
Toyota Motor North America, Inc. (USA)
Toyota Motor Credit Corporation (USA)
Toyota Motor Manufacturing, Indiana, Inc. (USA)
Toyota Motor Sales, U.S.A., Inc. (USA)

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SUBSIDIARIES/AFFILIATES
Toyota Motor Manufacturing Canada, Inc. (Canada)
Toyota Credit Canada Inc. (Canada)
Toyota Motor Europe S.A./N.V. (Belgium)
Toyota Motor Italia S.p.A. (Italy)
Toyota Kreditbank G.m.b.H. (Germany)
Toyota Espana, S.L. (Spain)
Toyota Deutschland G.m.b.H. (Germany)
Toyota France S.A. (France)
Toyota Motor Finance (Netherlands) B.V. (Netherlands)
Toyota Motor Manufacturing (UK) Ltd. (UK)
Toyota Financial Services (UK) PLC (UK)
Toyota (GB) PLC (UK)
OOO “TOYOTA MOTOR” (Russia)
Toyota Motor Corporation Australia Ltd. (Australia)
Toyota Finance Australia Ltd. (Australia)
Toyota Motor Asia Pacific Pte Ltd. (Singapore)
Toyota Motor Thailand Co., Ltd. (Thailand)
Toyota Leasing (Thailand) Co., Ltd. (Thailand)
Toyota do Brasil Ltda. (Brazil)
Toyota Financial Services South Africa (Pty) Ltd. (South Africa)
Toyota South Africa Motors (Pty) Ltd. (South Africa)
Tahara Plant
Motomachi Plant
Takaoka Plant
Tsutsumi Plant
Kamigo Plant
Honsha Plant
Kinu-ura Plant
Myochi Plant
Higashi-Fuji Technical Center
Daihatsu Motors Co., Ltd.
Hino Motors, Ltd.
Toyota Auto Body Co., Ltd.
Toyota Motor Kyushu, Inc.
Kanto Auto Works, Ltd.
Toyota Motor Sales, U.S.A., Inc.
Toyota Motor Manufacturing, Kentucky, Inc.
Toyota Motor Manufacturing, Indiana, Inc.
Toyota Motor Corporation Australia, Ltd.
Toyota Motor Thailand Co., Ltd.
Toyoda Gosei Co., Ltd.
Toyoda Gosei North America Corp
Toyota Financial Services Corporation
RouteOne LLC

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TRAFFICMASTER PLC
University Way, Cranfield, Bedfordshire, MK43 0TR, UK
Phone 44-08705-561712, Fax: 44-01234-759318

SOURCES: www.trafficmaster.co.uk and other secondary online sources


2006 Sales: £ 52.72 million
2005 Sales: £ 42.32 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
Trafficmaster PLC (Trafficmaster UK) is the leading journey management firm, providing
advanced satellite navigation, traffic data and vehicle tracking systems. The company is a leader in
the global telematics market. Major products of the company include navigation systems, vehicle
tracking systems and traffic products. The company covers traffic detection network of more than
8,000 miles of roadway in the UK, and gathers data from roadside sensors and deliver traffic
conditions to car radios and cell phones through using wireless technology. The company offers in-
car products and services including Trafficmaster Monitor, Smartnav (navigation systems), RAC
Trackstar Plus (vehicle tracking systems), Oracle/Freeway, and YQ² mobile receivers to provide
both speech and visual traffic information for the customers. Trafficmaster UK provides a wide
range of services including Radio Data System-Traffic Message Channel (RDS TMC) service, that
supplies traffic data to satellite navigation systems. The company’s Smartnav service also provides
24-hour personal assistant support, emergency and breakdown service, nationwide safety camera
alerts and GPS stolen vehicle tracking, and avoids traffic jam.
Trafficmaster UK utilizes Fixed infrared sensors mounted on motorway over-bridges and Passive
Target Flow Measurement 'blue pole' cameras for the collection of traffic information from a
network of 7,500 sensor sites. The company also offers Trafficmaster.Net Internet based traffic
information service. Trafficmaster UK owns a subsidiary, Teletrac that provides fleet management
services. The company operates in Germany, France, Italy, Benelux and US, and also maintains
business relations with Motorola, Vauxhall, BTCellnet, BMW, Citroen, Halfords, Land Rover,
Mediamobile, Orange, Schefenacker, Deutche Telekom, Haymarket, Mitsubishi and Toyota. The
company’s top competitors include CybIT, Minorplanet, and XATA.
Trafficmaster UK was established in 1988.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In £ million)

Year Sales % Change


2006 52.72 24.82
2005 42.32 -

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STRATEGIC CORPORATE DEVELOPMENTS
Year (2007) in Review…
Contract
Trafficmaster UK Signs Contract with UK Department of Transport…
Trafficmaster UK signed a supply contract with UK Department of Transport. As per the terms of
the contract, Trafficmaster UK would supply a combination of real road speed data, collected from
its 50,000 intelligent vehicle probes and journey time and traffic flow data collected through its
fixed sensor network, to UK Department for Transport. The data would assist the Department for
Transport and other government agencies in monitoring transport planning and congestion
reduction initiatives. The contract would develop the data services of Trafficmaster UK to improve
understanding of Britains congestion picture.
Year 2006 in Review…
Contracts
Trafficmaster UK Division Signs a Contract with Citroen and Peugeot…
RAC Trafficmaster Telematics (RTT), a division of Trafficmaster UK, signed a contract with
Citroen and Peugeot Motor Company (UK) Limited, to supply Radio Data System Traffic Message
Channel services (RDS TMC) to factory-fitted screen-based satellite navigation systems. RTT also
signed an extension to its existing agreement with Audi, that live traffic data would also be
available on factory-fitted DVD based navigation systems in its A4 and A3 models.
Trafficmaster UK Signs a Contract with Norwich Union...
Trafficmaster UK signed a contract with Norwich Union (NU), for the provision of a further
35,000 telematics black boxes, and also to deliver Pay As You DriveTM (PAYD) insurance
services to the motorist.

Agreement
Trafficmaster UK Enters into an Agreement with Wayfinder…
Trafficmaster UK entered into five-year agreement with Wayfinder to provide live traffic data on
Wayfinder navigation software for mobile phones in the UK. Trafficmaster provides real-time
traffic information to Wayfinder Navigator™ software that is used to dynamically calculate routes
and update traffic information. The traffic service uses the company’s high quality real time traffic
flow data to deliver information on the traffic conditions to help users of the Wayfinder navigation
software, to avoid congestion on the UK’s motorways and trunk roads. Wayfinder is the UK’s
leading supplier of navigation software for installation onto mobile phones.

PRODUCT/SERVICE ANALYSIS
Navigation System
Trafficmaster UK develops Smartnav, an advanced satellite navigation system that offers better
journey management with better routes.

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Traffic Products
RDS TMC, Trafficmaster Monitor, Trafficmaster YQ2, Oracle/Messenger, Trafficview,
Trafficmaster.net, and Mobile Traffic Information Services

RDS TMC
The company’s RDS TMC (Radio Data System – Traffic Message Channel) provides a reliable and
robust mechanism for delivering Trafficmaster’s high quality real-time traffic information and
RAC traffic incident data directly into satellite navigation systems, installed in the vehicles of UK
motorists. The company offers dynamic routing through RDS TMC service that allows motorists to
select alternative routes and avoid traffic jams on the roads.

Trafficmaster Monitor
Trafficmaster Monitor is a full colour touch screen, displays traffic problems on a map detailing the
motorway network and 95% of trunk roads. The company’s product is designed to ease the burden
of congestion by displaying the problems ahead

Trafficmaster YQ²
YQ² is a screen-based portable unit that displays clear information on traffic hold-ups and
problems on over 200 map screens, used in the cars and desktop.

TrafficView
The company’s TrafficView system offers a window on the world of traffic congestion and is
designed for individual and multiple access viewing on any screen-type.

Mobile Traffic Information Services


Mobile traffic information services include mobile phone services with RAC Traffic Alert.

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TRANSLINK
1600 - 4720 Kingsway, Burnaby, BC, V5H 4N2, Canada
Phone: (604) 453-4500
SOURCES: www.translink.bc.ca and other secondary online sources
2006 Sales: US$ 863.6 million
2005 Sales: US$ 792.1 million
(Fiscal Year Ends in December)

BUSINESS PROFILE
TransLink, the Greater Vancouver Transportation Authority, is involved in planning, funding,
building, and marketing0 of integrated transportation system for the Greater Vancouver Regional
District (GVRD). The company’s Security and Law Enforcement provides security and
enforcement for Coast Mountain Bus, SeaBus, SkyTrain, and West Coast Express. Major
products/services land include Fares Tickets and Posses, Coast Mountain Bus, Skytrain, Sea Bus,
West Coast Express, Albion Ferry, Cycling, Accessibility, Greater Vancouver on Transit, Safety
and Security, and Etiquette on Transit. The company’s Fare Systems provides the ability to travel
freely between buses, SeaBus and SkyTrain. The company improves major road networks in
partnership with the municipalities. The company’s transportation systems promote the health,
safety and security of employees and the public.
TransLink operates through Coast Mountain Bus Company, the largest subsidiary, provides three-
quarters of all transit trips in the region, and services through B-Line Bus Rapid Transit, NightBus,
Shuttle Minibuses, Emission-Free Trolley bus, Standard Bus, Express Coach, and SeaBus
Passenger Ferry. The company also operates through the City of Vancouver subsidiary.

SALES DATA

Annual Sales Comparison: 2006 Vs. 2005 (In US$ million)

Year Sales % Change


2006 863.6 9.03
2005 792.1 -

STRATEGIC CORPORATE DEVELOPMENTS


Year 2006 In Review…
Agreements
TransLink Signs an Agreement with GCGC and CLCO…
TransLink signed an agreement with Great Canadian Gaming Corp., (GCGC), and Canada Line
Rapid Transit Inc. (CLCO), to build and operate a vehicle parking facility adjacent to the future

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Canada Line Bridgeport Station, and across River Road from the River Rock Casino Resort. The
new agreement would result in a better parking facility for transit customers at the Canada Line's
Bridgeport Station, as well as guests of River Rock Casino Resort.

TransLink Enters into an Agreement with Golden Crossing…


TransLink entered into an agreement with Golden Crossing Group (Golden Crossing), to design,
build, finance, operate, maintain and rehabilitate the Golden Ears Bridge and associated road
network. The new bridge would connect Maple Ridge and Pitt Meadows with Surrey and Langley,
and would dramatically improve the movement of people and goods through the region. The
Golden Ears Bridge Project is approximately 14 kilometers in length and includes a six-lane toll
bridge across the Fraser River, new arterial roads connecting the bridge to the existing road
network on both sides of the Fraser River, and municipal road upgrades to improve traffic flow.

Capacity Expansion

TransLink Expands its Community Shuttle Service…


TransLink expanded its Community Shuttle Service in Tsawwassen, as well as two-downtown
Vancouver shuttle routes would be extended to main street SkyTrain Station. The C84 English
Bluff/South Delta Exchange and C89 Boundary Bay/South Delta Exchange would represent a
significant boost to transit services in Tsawwassen. The C89 would provide seasonal service to
Centennial Beach. The C21 and C23 routes, currently serving people living and working
downtown and in the West End and Yaletown, would extend to Main Street Station, providing
service through a rapidly growing area of Vancouver. TransLink would also expand its Community
Shuttle service in Langley.

PRODUCT/SERVICE ANALYSIS

Coast Mountain Bus


Coast Mountain Bus Company’s B-Lines are rolling out global positioning systems and signal
priority technologies to deliver even more reliable service, and provide fast, frequent, and limited-
stop service to major routes and transfer points. The company’s B-Line routes include 97 B-Line
(Coquitlam-Port Moody-Burquitlam-Lougheed Town Center), 98 B-Line (Richmond-Airport
Station-Vancouver), and 99 B-Line (UBC-Broadway/Commercial).
Express Coach routes that uses Wheelchair lifts, Bicycle racks, Raised seating, Fabric, high-
backed seats, Air conditioning, Overhead package racks, and Individual controlled reading
lights, would provide direct, limited-stop service connecting Surrey, White Rock, North Delta,
and Ladner with Vancouver.

SkyTrain
SkyTrain moves quickly, efficiently and reliably across the region through 33 stations along the
49.5 kilometers of the Expo and Millennium lines. SkyTrain is emission-free and energy efficient
that connects to an extensive network of buses, including SeaBus ferries, West Coast Express
commuter rail and HandyDART custom transit. SkyTrain and SeaBus stations are provided with

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Ticket Vending Machines that accept payment from Canadian $5, $10 and $20 bills and coins
except pennies. SkyTrain also operates a proof of payment system.

Sea Bus
SeaBus Passenger Ferry, operated by Coast Mountain Bus, includes services of two double-ended
catamaran ferries, each seating up to 400 passengers. SeaBus connects with buses, SkyTrain and
the West Coast Express in downtown Vancouver; and in North Vancouver, with an extensive
network of North Shore buses.

West Coast Express


West Coast Express is a commuter rail service linking Mission, Port Haney, Maple Ridge, Pitt
Meadows, Port Coquitlam, Coquitlam and Port Moody with downtown Vancouver. West Coast
Express service is provided from Monday to Friday, with five round trips per day.

Albion Ferry
The Albion Ferry service is included in TransLink's Major Road Network that functions as a
vehicular travel corridor across the Fraser River, east of the Port Mann bridge.

Cycling
TransLink makes cycling a realistic travel option, by providing bike access on transit, bike storage,
and planning and funding support for bikeways, and other cycling infrastructure.

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TRANSMART TECHNOLOGIES, INC.
Principal 2802 Coho Street, Suite 102, Madison, Wisconsin 53713, USA
Phone: (608) 273-4740, Fax: (608) 273-4783

SOURCES: www.trafficonline.com and other secondary online sources

BUSINESS PROFILE
Transmart Technologies Inc., (Transmart) is a high-tech multidisciplinary consulting and
engineering firm, provide services in intelligent transportation system, transportation engineering
and planning, information technology, and software development. The company offers a wide
range of Software & Internet Products such as Traffic Online System; Fleet Online System;
Traffic Cast System; and Internet Push Technologies. Traffic online is a traveler information
system for commercial vehicle operations. The company operates through two major business
divisions such as transportation consulting division and information technology division.
TranSmart is involved in various ITS projects, including ITS system architecture design, traffic
management center design, traveler information gateway design, traveler information system
design and operations, commercial vehicle traveler information system development, and
integrated transit system design.
TranSmart develops, markets, and supports Internet software solutions and web pages for
disseminating personalized real-time traveler information to users in an interactive fashion. The
company also provides software-consulting services for various government agencies and private
companies. The company provides high quality professional services to federals, state and local
government agencies, private clients, and other professional colleagues. The company’s key clients
include Federal Highway Administration; State Departments of Transportation; Federal Transit
Administration; Local Government Transportation Agencies; National Transportation System
Centers; Transportation Engineering and Consulting Companies; Carrier Service Companies;
Computer Software Companies; European Transportation Consulting Companies; Korean
Information Technology Companies; China Metro Engineering Consulting Corporation; Beijing
Urban Engineering Design & Research Institute; and China Highway Engineering Consulting
Company.

DIVISIONAL ANALYSIS

Transportation Consulting Division


The company’s transportation consulting division provides services on intelligent transportation
systems (ITS), traffic engineering, highway engineering, transportation planning, research, and
transportation software development.

Information Technology Division


The company’s information technology division develops web-based software, web pages,
database, GIS systems, and provides consulting services on Internet, intranet, and Y2K
problems.

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PRODUCT/SERVICE ANALYSIS

Software & Internet Products

Traffic Online System and Internet Push Technologies


The company’s Traffic Online system and Internet push technologies are used to transmit real-time
graphics and compressed video image for Traffic Management Centers. The Traffic online system
provides customized, route-specific, point-to-point congestion, incident, construction, and driving
restriction information to carriers for safe, effective routing and dispatching.

Fleet Online System


Fleet Online System is a customized, route-specific, and point-to-point real-time traveler
information system that provides traffic and driving restriction information and routing for
Commercial Vehicle Operations (CVO).

Traffic Cast System


Traffic Cast System is a national traffic forecast system for freeways and arterials in 50 states and
top 100 metropolitan areas in the US. The traffic forecast covers interstate highways, state
highways, and major arterials. Traffic Cast System is to provide statewide forecasting and citywide
forecasting.
The features of the Traffic Cast System includes congestion map (showing time-dependent speeds
for the next four hours and next morning commute traffic); travel time report (showing predictive
travel times from major origins and to the major destinations for the next four hours and next
morning commute traffic); user class selection (aggressive driver, neutral driver, and conservative
driver); vehicle class selection (car, van/minibus, bus and truck); and departure and arrival time
choice.

Intelligent Transportation Systems (ITS)


Design, Simulation and Analysis of ITS systems; System Integration and Design; Software Design
& Development; Benefit/Cost Analysis; ITS Project Evaluation & Impact Studies; Traveler
Information System Design & Operations; Traffic Management Center Design; CVO Traveler
Information System Development; Analysis of Integrated Freeway Corridor Operation; Study on
Changeable Message Sign & Highway Advisory Radio; Smart Inter modal System; Rural Traveler
Information System; Real-Time Passenger Information System; and Integrated Transit System
Design services.

Traffic Engineering Solutions


Traffic Data Collection; Traffic Signage Inventory; Highway Operational Analysis; Traffic Impact
Study; Traffic Safety Study; Signal System Design & Analysis; Site Transportation Design and
Analysis; Traffic Mitigation Design and Evaluation; Signal and Sign Warrants Analysis; Traffic
Simulation and Modeling; and Mixed Traffic Analysis (bicycle).

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Highway Engineering Solutions
Highway Facility Design; Parking Facility Design; Construction Management Design;
Roundabouts (rotary) Design; and Design of Highway Facilities for Bicycle

Transportation Planning Services


Travel Demand Forecasting; Joint/Combined Choice Modeling; Inter modal Transportation System
Analysis; Transportation Network Optimization; and Environmental Impact Analysis.

Information Technology and System


Software Development and Consulting; Internet/Intranet Software and Service; Website
Development; Client/Server; Web Server and Web page Design; General Transportation Software
Development; Databases And Database Management; Geographic Information Systems; Year 2000
Problems; Client/Server; Application Of Global Positioning System (GPS); Engineering Software
And Custom Programming; Animation and Graphical User Interface; and CAD services.

Intelligent Vehicles
Collision Warning and Avoidance; Control And Deployment Logic; and Design Of Proactive
Crash Mitigation Systems

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TRANSPORT SECURITY SYSTEMS
P.O. Box 2013, 2990 DA Barendrecht, The Netherlands
Phone: +31-180-618922, Fax: +31-180-611326

SOURCES: www.tssh.com and other secondary online sources

BUSINESS PROFILE
Transport Security Systems (TSS) offers security systems for vehicle security and anti-terrorism. The
company’s security products include Rodgard Runflat systems, Hutchinson Runflat systems,
SecureBand Wheel Safety System, TSS Explosion-Proof and/or Self-Sealing Fueltanks, Intervox
Hands Free 2-way Communication Systems and Pulsetech Battery Maintenance Systems. The
company’s products are mainly installed on Armored Limousines, Armored 4x4 SUVs, Military
Vehicles, Para-Military Vehicles, Cash-In-Transit Vehicles and Police Vehicles and are also installed
on Vehicles for Aid Agencies, Ambulances, Fire brigade Trucks, Airport People Movers and others.

PRODUCT ANALYSIS

Rodgard Runflat Systems


The purpose of a runflat system is to provide the capability for a vehicle to continue on its journey
for some extended distance, while experiencing one or more deflated or damaged tyres. There are
basically three different models of Rodgard® Runflat systems including Getaway, Low Profile and
Standard.

Hutchinson Runflat Systems


Hutchinson is a world leader in Run Flat devices for all types of wheeled vehicles. Hutchinson
design, fabricate and market mounting and demounting machines for the VFI, Anti-mine VFI,
VP.PV, Beadlock and RL.

SecureBand Wheel Safety System


SecureBand is designed to simply fit over the wheel well to prevent the tyre bead from moving into
the well.

Fueltanks
TSS Explosion-proof fuel tanks are manufactured with a flexible polyurethane foam with fully
open pores, composed of a skeletal network of tiny lightweight interconnecting strands which act
as a three dimensional fire screen.

Pulsetech
PulseTech offers over 60 charging and performance systems that would keep batteries working
harder and longer than ever before. PulseTech Products uses the ReNew-IT Pulse Technology®,
the most effective method available for insuring peak battery performance, extending battery life,
reducing battery-related costs and even recovering dead batteries.

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Intervox
With InterVox, users communicate effortlessly through the closed windows of any vehicle using an
advanced voice sensor.

Products for Anti-Terrorism


TSS offers Talos® Magnetic Bomb Detectors, Eagle® Bulletproof & Knife Resistant Vests, and
Covert Night Vision System.

Semaworld® Solutions Against Terrorists Threats


Sema World Chemical products include Bio Bag, Rotoluve, TET (Tunnel Etanche Transport) and
Dirty Bomb Killer.

M-II Flashcam
M-II Flashcam, a Complete, Covert Night Vision System is designed for Military Personnel, EOD
Teams, Patrol and Traffic Officers, Narcotics Officers, Criminal Investigators, Tactical Units, First
Responders, Special Operations Personnel, Correctional Officers, Border Agents and Federal and
State Police Officers and Investigators.

XT-III FlexCam
The XT-IIIt FlexCam® is a fully-radiometric, portable, video rate infrared camera with outstanding
image quality and instant non-contact temperature measurement. The Sharper-Simpler-Smarter™
design features combine unprecedented ease of use with a rich set of functionality.

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T-SYSTEMS ENTERPRISE SERVICE GmbH
Raimundstrasse 48-54, 60431 Frankfurt am Main, Germany
Phone: +49 69 9093 2041, Fax: +49 69 9093 2049

SOURCES: www.t-systems-mediabroadcast.com and other secondary online sources

BUSINESS PROFILE
T-Systems Enterprise Service GmbH (T-Systems), a part of Deutsche Telekom, is a global leading
provider of integrated information and communications technology services. The company
provides a wide range of services such as AutoID/Right Time Enterprise Services, Commodity
Online Services, In-store Communications, Information Technology solutions, Application
Management Services, and Corporate Performance Management services. The company provides
services to various industries including automotive, banking, healthcare, insurance, manufacturing,
media, public, retail, travel, transport and logistics, airlines/airports, railways, tourism and utilities.

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UNIDEN AMERICA CORPORATION
4700 Amon Carter Boulevard, Fort Worth, Texas 76155, USA
Phone: 1-817-858-3300, Fax: 1-817-858-3300

SOURCES: www.uniden.com and other secondary online sources

BUSINESS PROFILE
Uniden America Corp., (Uniden America), a subsidiary of Japan-based Uniden Corporation, is a
leading manufacturer and marketer of wireless consumer electronic products including cordless
telephones, Bearcat® scanners, business telecommunications systems, marine radios, FRS/GMRS
radios, and other wireless personal communications products. The company’s product line consists
of Internet phones, DECT 6.0 phones, GPS Navigation Systems, Scanners, Cordless phones, Volp
phones, Business phones, Two-way radios, Digital cameras, portable mobile GPS navigation unit,
and CB radios. The company markets its products through dealers and distributors throughout
South, North and Central America.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 in Review…

Acquisition

Uniden America Acquires Joden Electron Company…


Uniden America acquired Joden Electron Company Ltd., (Joden Electron) a manufacturer of
advanced external power supply technologies. Uniden America purchased 97% of Joden’s stock.
The acquisition of Joden Electron represents an opportunity for Uniden America to lead the
initiative to offer cost-effective, energy efficient consumer electronics products to consumers.

Alliance

Uniden America and Microsoft Corporation forms Alliance…


Uniden America and Microsoft Corporation formed alliance in North America to offer the WIN
1200, a 5.8GHz digital cordless phone that serves as a traditional landline phone and takes calling
to the next level by also enabling customers to make and receive Internet calls through the
upcoming Windows Live™ Messenger phone. The digital cordless phone integrates Voice over
Internet Protocol (VoIP) telephony with a landline.

Partnership

Uniden America Enter into Partnership with Playboy and the Palms Hotel…
Uniden America entered into partnership with Playboy and the Palms Hotel to co-sponsor a Grand
American Rolex Sports Car Series racing team for 2006 at the Consumer Electronics Show (CES).
Under the partnership, Uniden America and Playboy would introduce a co-branded racecar, drivers

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and team transporter, as well as host a number of events featuring Grand Am drivers and Playboy
Playmate spokesmodels.

Product Launches

Uniden America Introduces its Global Positioning System (GPS) Category…


Uniden America introduced its new line of portable GPS navigation products, Uniden MapTrax
TM with compact designs, large displays and cutting-edge technology. The company’s Uniden
MapTrax TM includes Bluetooth capabilities, text-to-speech navigation and pin point positioning
accuracy down to three meters. The company’s product is powered by Navteq TM navigation
software and also features TFT digital color LCD screens.

Uniden America Launches its new Digital Enhanced Cordless Telecommunications (DECT)…
Uniden America launched its new digital enhanced cordless telecommunications (DECT) 6.0
cordless phone series that utilize the interference-free DECT 6.0 frequency.

Uniden America Introduces the BC-RH96…


Uniden America introduced the BC-RH96, a new remote control head that enables the users to
access and control the functions of a scanner from a remote location. The Uniden BC-RH96
enables total remote operation of key scanners, including the BCD996T digital mobile trunk
tracker IV, BCT15 Beartracker mobile, BCD396T digital handheld trunk tracker IV, or BR330T
handheld trunk tracker III. The company’s BC-RH96 offers complete control of four Uniden
scanners, including volume and squelch.

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VERIFONE TRANSPORTATION SYSTEMS, INC.
2099 Gateway Place, Suite 600, San Jose, California 95110, USA
Phone: 1-800-VeriFone (837-43663); (408) 232-7800, Fax: (408) 232-7811; (408) 232-7822
SOURCES: www.verifone.com and other secondary online sources

BUSINESS PROFILE
VeriFone Transportation Systems Inc. (VTS), a joint venture of VeriFone Holdings, Inc., and
TAXiTRONiC Inc., provides mobile payment and transportation automation solutions. The company is a
leading developer of new innovations in the industry and the first manufacturer to pioneer and deliver to
the market the first integrated, taximeter based wireless credit card processing system. VTS provides
hardware, software, and electronic payment solutions to the market. The company’s solutions offer
wireless payment, navigation, dispatch, text messaging, and real-time information to the transit, vehicle
for hire, dispatch, and cargo transportation industries. Additionally, the company offers a wide variety of
application development tools for the development community and innovative solutions specifically for
the Petro/C-store environment. VTS’ Equipment products include wireless point of sale terminals,
taximeters, mobile data terminals, vehicle lighting systems, driver safety partitions and passenger comfort
systems, accessories, signage and vehicle monitoring sensors, and dispatch systems.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) In Review…
Partnership
VTS Enter into Partnership with WABC-TV/Channel 7
VTS entered into partnership with WABC-TV/Channel 7 to provide news content to the city’s
famed yellow cabs. Under the partnership, WABC would provide a customized version of its
market-leading “Eyewitness News,” updated several times a day with the latest news and weather
information. VTS would work to make ‘Eyewitness News’ available to its viewers to watching
Channel 7, using its own website, sampling new digital channels, and viewing the latest news on
cell phones. WABC-TV/Channel 7 is the ABC owned station in New York, and the most-watched
local television station in the country.

PRODUCT/SERVICE PORTFOLIO
VTS Wireless Point of Sale
VTS MX870, VTS Omni 7000
VTS Taximeters
VTS TX-36 Taximeter, VTS MX870, VTS Omni 700, VTS SC 5000
Accessories
Automated voice reminders, Braille passenger signage, custom vehicle signage, door sensors,
engine sensors, front and rear bumper guards, integrated driver panic buttons, pulse dividers, and
rate card and credentials holders

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Driver Information Services
Weather update, road conditions, road closings, and delivery instructions, driving schedules,
passenger information services
News updates, location directories, current location, fare accumulation, public service
announcements

VTS Maintenance Services


Drive-in – drive-out warranty and maintenance services, rolling retrofit programs, rate table
programming, road test and calibration, inspection cycle management, vehicle / asset inventory
management, electronic seal management, and physical seal management

Systems Design Services


Equipment design, vehicle installation design and prototyping, communications systems design,
applications design and programming, database and systems information interchange design,
process design, project management and requirements modeling, cost vs. design analysis, return on
investment analysis, and deployment planning

Other Products:
Payment devices, Vx solutions, PCCharge software, PC and enterprise payment software, Smart
card peripherals, Receipt printers, Server-based/on-site software, Hosted solutions, Terminal-based
software, Estate management software solutions, NURIT prepaid services system,

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VIASYS CORPORATION
Viasys Services, Inc., 2944 Drane Field Road, Lakeland, Florida 33811, USA
Phone: (863) 607-9988, Fax: (863) 607-9955

SOURCES: www.viasyscorp.com and other secondary online sources

BUSINESS PROFILE
Viasys Corp. (Viasys), a part of Charys Holding Company Inc., provides a wide range of solutions
for the transportation, utility, industrial and telecommunications markets. Viasys provides a wide
range of services such as system design, RF planning, site-surveys, installation, equipment
procurement, software integration, financing, bonding, network management & maintenance and
consultation services. Viasys is also involved in providing fiber and wireless broadband services
throughout North America. The company offers mobile broadband systems for public safety,
transit, transportation, municipal Wi-Fi deployment, enterprise wireless networks and fiber optic
deployments for the telecom industry. The company operates in partnership with PBS&J, Edwards
& Kelcey, HNTB, PB Farradyne, URS, Road Building Firms, APAC and Blythe.
The company was established in 2001.

PRODUCT/ SERVICE ANALYSIS

Transportation Solutions
Viasys installs cameras, sensors, weigh-in-motion scales, traffic signal systems, variable message
signs and all other components involved in ITS. The company also offers advanced telecom
products, LED Traffic signalization systems and ITS installation systems. The company’s
Transportation Products are used in Two-Way Video; Signal Prioritization; Real-Time Fleet
Management; Field Communications; Variable Speed Limits; Emergency Evacuation; Transit
Scheduling & Routing; Complete Mobile Broadband; Variable Message Signs; Traffic Sensors &
Monitoring; Automatic Vehicle Location (AVL); 1st Responder Alerts; Power Failure
Redundancy; and Chemical & Hazard Spill Routing.

Telecommunication Solutions
The company designs and builds efficient networks that optimize existing infrastructure. The
company offers the latest fiber documentation and management software platforms for long term
network operations. The company provides GPS receiver, Laser Rangefinder, Laptop field
computer, Field-mapping software, Digital Photography and Corrected GIS Map Files with
addresses.

Wireless Solutions
Viasys specializes in wide-area networks and mission-critical communications such as video
surveillance, fiber alternatives, and metro-scale police & fire networks. The company offers
wireless and wire line broadband integrators. The company offers wireless broadband systems for

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Port of Long Beach, California; Orlando, Florida; Atlanta, Georgia; Philadelphia, Pennsylvania;
and Medford, Oregon. The company provides pre-deployment services such as Noise-floor
analysis, Existing network analysis (wireless and wire-line), Backhaul needs analysis,
Infrastructure analysis, Future network recommendation, ROI/Financial analysis and RF design.

Industrial Solutions
Viasys’ Industrial services provide an extensive range of general contracting and maintenance
services to the manufacturing and government sector.

Utilities
Viasys provides outsource services to the Power Utility industry. The company’s Power Utility
services include Residential Drop Installations; Commercial Power Installations; Subdivision
Power Installations; Streetlight Installations; Distribution Field Services; Directional Boring and
Trenching; and Emergency Restoration Work. The company provides advanced wireless solutions
for load management, SCADA, fleet monitoring and remote meter reading.

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VIDEO CONVERGENCE
6800 Versar Center Springfield, Virginia 22151, USA
Phone: 703.658.3400, Fax: 703.656.3440

SOURCES: company related secondary online sources

BUSINESS PROFILE
Video Convergence is a subsidiary of Cornet Technology, Inc., provides a wide range of services
for the Security Surveillance and Intelligent Transportation System (ITS). The company’s product
line includes Encoder/Decoder/Codec, Analog Video Matrix Switch and CCTV Control Software.
The company’s solutions include real time data collecting and processing, physical subsystems,
information flows between subsystems and information distribution for user services. Video
Convergence provides ITS solutions for the state and domestic transportation divisions and also for
border surveillance and state and federal Homeland security agencies. Video Convergence provides
services in network infrastructure design, system integration, installation and testing. The company
expertise in video, voice, and data communication, to offer turnkey integrated solutions, providing
the best in Intelligent Transportation or facility surveillance subsystems with flexible network
technology and centralized control.

STRATEGIC CORPORATE DEVELOPMENT

Year 2006 in Review…

Partnership

Video Convergence Enters into Partnership with ObjectVideo®…


Video Convergence entered into partnership with ObjectVideo®. As per the deal, Video
Convergence would install ObjectVideo’s Object Video OnBoard® (intelligence video
surveillance) into its Intelligent Transportation and Surveillance (ITS) solutions. ObjectVideo’s
intelligent video surveillance software offers automated, identification, real-time detection, safety
incidents and issues, analysis and tracking of potential threats.

PRODUCT ANALYSIS

Encoders, and Decoders


The company offers a range of standalone, rackmount, software, chassis-based, MPEG-2, 4, or
H.264 encoders, and decoders. The company ensures the safety of roadways, buildings, borders,
from an array of network topologies and video-encoding algorithms to transport video from remote
cameras to operations centers.

Analog Video Matrix Switches


The company's analog video matrix switches offer scaleable switch configurations with superior
video specifications to meet a wide range of video switch requirements. The non-blocked matrix

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design of the VTX matrix switchers make use of a logical, modular component design offering the
highest level of flexibility in addressing the widest range of surveillance requirements. The
company’s products are designed to meet a wide variety of composite video and RGB switching
requirements, the VDO Link family of video switchers offer high bandwidth capability, a wide
range of input and output ports, and open control architecture makes a logical choice for
applications such as design and production test labs, CCTV video surveillance and security, and
intelligent transportation systems.

Video Surveillance Software


Intelligent and intuitive video control system manages and controls multiple surveillance elements
and provides video intelligence modules such as GIS, alarm/camera integration, and video stream
access and distribution. The video control system requires Video Surveillance Software to access
the video storage system.

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VIDSYS, INC.
5285 Shawnee Road, Suite 520 Alexandria, Virginia 22312, USA
Phone: 703.642.9510, Fax: 703.642.9011
SOURCES: www.vidsys.com and other secondary online sources

BUSINESS PROFILE
VidSys Inc., (VidSys) is a leader in providing Physical Security Information Management (PSIM)
solutions, and developing mission-critical video management and distribution solutions. The
company is also the only operations center software company that provides truly collaborative
situational awareness for safety, security, military and transportation organizations. VidSys’
mission-critical video management and distribution solutions, include VidShield, VidPhone, and
Intelligent Traffic Management System (ITMS). The company’s VidSys™ platform is based on an
open, hybrid architecture that integrates data from any video source, as well as any detection,
monitoring or control system, allowing safety and security personnel to focus on awareness,
assessment and action. VidSys installs VidShield™ ITMS and VidSwitch, and integrates other
systems including loop detection sensors and an Automatic Traffic Management System.
VidSys’ VidShield solution also integrates sensors and analytics including gun shot detection. The
company’s VidShield operations center management platform also features a hybrid architecture
that utilizes both analog and digital technologies. VidSys’ VidShield manages and correlates
massive amounts of data collected from cameras, sensors, alarms, access control, analytics, DVRs,
RFID, GIS and other systems over multiple protocols and in various formats. The company’s
VidShield solution includes components such as VidShield Client Software, VidShield Intelligent
Transportation Management Solution (ITMS), VidShield Server, and VidShield Security and
Surveillance Management Solution (SSMS).
VidSys also offers a broad range of solutions for transportation, federal government, military,
traffic management, enterprise and state and local government applications. The company’s
customers include Caltrans, Texas DOT, Department of the Treasury, Office of Thrift Supervision,
Metropolitan Washington Airports Authority, Northwest Commander Navy Region, City of
Chicago, U.S. Department of Veteran Affairs, Clear Channel, New York City DOT, Broward
County FL, PENN DOT, Washington Metropolitan Area authority, and NysdoT.gov (New York
State Department of Transportation). VidSys, through partnership with world class IT and security
system integrators, provides turnkey solutions using best of breed technology. The company
maintains its offices in Marlborough, Massachusetts and Vienna, Virginia.
VidSys was established in 2005.

STRATEGIC CORPORATE DEVELOPMENTS


Year 2007 (1st Half) in Review…
Partnership
VidSys Teams Up with North American Video, Inc…
VidSys teamed up with North American Video, Inc. (NAV), a leading security systems integrator
and a premier provider to the gaming industry. As part of the partnership, NAV would join the

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VidSys Interoperability Partner (VIP) program, which would enable customers to select products
from any vendor within the program, and seamlessly integrate all of the technologies with the
VidSys VidShield™ operations center management software platform. The partnership of VidSys
and NAV, would focus on creating a fully integrated physical and IT security environment that
provides true collaborative, real-time situational awareness across any gaming organization.
The partnership would also allow NAV to enhance its current security offerings and provide a new
level of integrated situational awareness for its customers through VidSys’ flagship product,
VidShield.

Year 2006 in Review…

Product Launch

VidSys Unveils New VidShield™ 3.7…


VidSys unveiled VidShield™ 3.7, a new version of its flagship product. VidShield is the company’s
operations center management platform that enables organizations to deploy an entire network of
physical and virtual security and surveillance technologies and integrate them into a single seamless
management platform. VidShield 3.7 includes the added functionality of three new features such as
Video Wall Wizard, Video Analytics Trigger and Network Video Recorder Manager.

PRODUCT/SERVICE ANALYSIS

Vidshield Architecture
The VidShield product line is based on an architecture that enables disparate systems built on silos
and managed separately to be integrated into one integrated security network, to provide true
integrated situation awareness and true converged physical security.
The company also provides routing fabric, device control translator, intelligence engines, event
correlation engine, policy engine, tour and macro engine, visualization and mapping interface
engine, collaboration engine, visualization and communication adaptation layer, and shared
situational awareness tools.

VidShield Intelligent Transportation Management Solution (ITMS)


The VidShield ITMS client software is specifically designed for the needs of the ITS professional,
with a feature set that enables the efficient management of a transportation system, whether an
interstate highway, airport, seaport or subway. The VidShield ITMS client also provides
transportation departments and other traffic management organizations with the ability to deploy an
entire network of physical and virtual security/surveillance technologies to prevent, detect, deter
and respond to traffic situations on public roadways and rail systems.
Through VidShield ITMS, video surveillance technologies, including cameras, network video
recorders (NVRs) and intelligent video monitors, would be integrated with road sensors, ramp
meters, signs, mapping, global information systems (GIS) and e-collection devices, all managed
from a single user interface.

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Vidshield SSMS
SSMS is VidShield client software specifically designed for the needs of the security and first
responder professional with a feature set that enables the efficient management of a security and
surveillance system–whether used to protect city streets and buildings, government facilities,
utilities and chemical plants or private facilities. The VidShield SSMS client provides security
departments and other public safety organizations (police, fire, EMS) with the ability to deploy an
entire network of physical security and surveillance technologies to prevent, detect, deter and
respond to security situations in public or private environments.

Solutions
VidSys provides a true hybrid management platform for security and surveillance and traffic
management operation centers to leverage their existing infrastructure and legacy equipment, while
incorporating best-of-breed technologies. The company also provides the ability to deploy an entire
network of physical and virtual security/surveillance technologies to prevent, detect, deter and
respond to critical incidents with a cohesive, swift response.

Traffic Management
VidSys provides a true hybrid management platform for the traffic management industry to
leverage the existing infrastructure and legacy equipment while helping incorporate best-of-breed
technologies. VidShield Intelligent Management Transportation Solution (ITMS) provides
transportation departments and other traffic management organizations with the ability to deploy an
entire network of physical and virtual security/surveillance technologies to prevent, detect, deter
and respond to traffic situations on public roadways.

Public Safety
VidSys offers a true hybrid management platform for the public safety industry to leverage
the existing infrastructure and legacy equipment while helping incorporate best-of-breed
technologies. VidShield Security and Surveillance Management Solution (SSMS) provides
the ability to deploy an entire network of physical and virtual security/surveillance
technologies to prevent, detect, deter and respond to the most critical incidents while
minimizing false actions.

Transportation Facilities (Air, Rail, Port)


The company provides new sophisticated surveillance and monitoring technologies to airports,
subway and light rail facilities and ports, which are fused with existing security methods to better
protect people and cargo. VidSys provides transportation organizations with tightly integrated
systems required to corroborate an event and respond proactively. VidSys offers a true hybrid
management platform for transportation facilities to leverage the existing infrastructure and legacy
equipment while helping incorporate best-of-breed technologies. VidShield Security and
Surveillance Management Solution (SSMS) also provides the ability to deploy an entire network of
physical and virtual security/surveillance technologies to prevent, detect, deter and respond to
critical incidents with a cohesive, swift response.

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Military
VidSys provides a true hybrid management platform for military facilities to leverage the existing
infrastructure and legacy equipment while helping incorporate best-of-breed technologies.
VidShield Security and Surveillance Management Solution (SSMS) provides the ability to deploy
an entire network of physical and virtual security and surveillance technologies to prevent, detect,
deter and respond to critical incidents with a cohesive, swift response. The open architecture of
VidShield SSMS also enables military installations to integrate both analog and digital
technologies, enabling them to proactively monitor potential incidents.

Enterprise
VidSys provides a management platform that would take in all the data, correlate it with data from
IT security systems, and provide security personnel the insight to make effective decisions and
respond to security threats. VidSys offers a true hybrid management platform for enterprises to
leverage the existing infrastructure and legacy equipment while helping incorporate best-of-breed
technologies.

Gaming
Gaming organizations are adopting new technologies such as biometrics and state of the art digital
video equipment. Gaming organizations are also rapidly adopting new technologies such as
biometrics and state of the art digital video equipment to better protect casino properties, patrons
and personnel. VidSys offers a true hybrid management platform for the gaming industry that
enables seamless migration from passive analog CCTV to intelligent digital video surveillance.
The VidShield Security and Surveillance Operations Center Software Platform enables gaming
facilities to leverage the existing infrastructure and legacy equipment while helping the
organization to incorporate best-of-breed security technologies to enhance security and safety
measures.

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VIRGINIA DEPARTMENT OF TRANSPORTATION
1401 E. Broad Street, Richmond, Virginia 23219, USA
Phone: (804) 786-2801

SOURCES: www.virginiadot.org and other secondary online sources

BUSINESS PROFILE
Virginia Department Of Transportation (VDOT) constructs, maintains and operates state's roads,
bridges and tunnels. The company, through the Commonwealth Transportation Board provides
funding for airports, seaports, rail and public transportation. VDOT manages snow removal on
interstates and state-maintained roads in most counties. VDOT uses traffic video surveillance to
monitor incidents at key interstate locations. VDOT’s Smart Traffic Centers use the cameras to
dispatch emergency responders, and to coordinate incident response among various state and local
agencies.
VDOT’s products include Pre-Approved Traffic Control Device Listing comprising the Approved
Products list and the Rescinded Products list. The company’s traffic control device includes
reference to many types of traffic control equipment typical to contract installation. The company’s
items from the pre-approved traffic control device listing could be used with construction projects.
Additionally, some products on the list could only be used upon successful materials testing and/or
modification as noted on the listing. The items on the rescinded products list could be used on
projects where the date of contract award is later than the rescinded date for that specific item.

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VISTEON CORPORATION
1 Village Center Drive, Van Buren Township, Michigan 48111, USA
Phone: 313-755-2800, Fax: 734-736-5564

SOURCES: www.visteon.com and other secondary online sources


2007 Sales: US$ 5.86 billion (H1)
2006 Sales: US$ 11.41 billion
2005 Sales: US$ 16.98 billion
(Fiscal Year Ends in December)

BUSINESS PROFILE
Visteon Corp., (Visteon) is a leading global supplier of automotive systems, modules and
components to global vehicle manufacturers and the automotive aftermarket. The company is the
second largest manufacturer of factory-installed audio systems to the worldwide automotive
industry. The company designs, engineers, and manufactures innovative interior, climate control
sytems, electronics and lighting products. Visteon supplies a range of integrated systems and
components to vehicle manufacturers for use in the manufacture of new vehicles, as well as to the
aftermarket for use as replacement and enhancement parts. The company is also a leader in
providing satellite radio systems including the portable Dockable media player and the terrestrial
digital video-broadcasting tuner DigiTune™ DVB-T M1. Visteon operates through two business
segments namely automotive operations and glass operations.
Visteon’s products are classified into six groups such as Climate Control (climate systems and
powertrain cooling systems); Interior Products (cockpits, door modules, consoles); Electronic
Products (audio systems, driver control systems, infotainment systems); and Exterior (lighting)
products; Chassis Products (driveline and steering systems); Powertrain Products (battery
management, controls, fuel injectors). The company’s product line includes OE quality climate
control products, automotive electronics, instrument panels/chassis, suspension systems, interior
systems, rotating electrical products including starters and alternators; advanced mobile electronics
such as in-car entertainment and communication products; chassis components and aftermarket
automotive glass. Visteon also provides Genpad® (generic parametric design) computer aided
engineering design and instrument panel manufacturing services.
Visteon’ OE quality climate control products include radiators, condensers and air conditioning
products. The company partners with Nissan, BMW, Ford, DaimlerChrysler and other major
organizations to develop innovative solutions applicable in the automotive market. Visteon’s
products are developed in collaboration with Ford in Europe including the SportKa, Fusion and
Focus C-MAX. The company operates in Van Buren Township, Michigan (USA); Shanghai,
China; and Kerpen, Germany. The company operates more than 170 facilities in 24 countries.
The company’s top competitors include Delphi, Robert Bosch, and Siemens VDO
Automotive.
In 2000, Visteon is a spun off from Ford Motor Company.

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BUSINESS OPERATIONS

Automotive Operations
Visteon is a global leading supplier of automotive systems, modules and components mainly to
OEM customers through major product groups such as chassis products and systems, interior
products and systems, climate control products and systems, power train products and systems,
electronic products and systems and exterior products and systems.

Chassis Products and Systems


Chassis products and systems unit designs and manufactures a wide range of chassis-related
products from driveline systems for all-wheel drive vehicles to steering and suspension systems.
The unit’s product line includes all major components for all-wheel drive system, steering systems
and columns, suspension systems, catalytic converters and other exhaust system products.

Interior Products and Systems


Visteon is a leading global supplier of interior products and systems including cockpit systems,
instrument panels, door modules, interior trim and console modules.

Climate Control Products and Systems


Visteon offers components, modules and systems that provide automotive heating, ventilation,
power train cooling and air conditioning.

Powertrain Products and Systems


Powertrain products and systems unit designs innovative solutions for engine management, fuel
storage and delivery and electrical conversion systems. The product line includes advanced
powertrain systems including electronics, ignition, engine air/fuel systems, air induction systems
and others. The business unit offers starters, alternators, wiper washers, systems and components
supporting low emission vehicles such as fuel tanks, fuel pumps and delivery modules and carbon
canisters.

Electronic Products and Systems


Visteon’s Electronic products and systems group produces a wide range of advanced in-vehicle
entertainment, wireless communication and safety and security electronics equipment.

Exterior Products and Systems


Visteon designs and manufactures a broad range of lighting and bumper systems through its exterior
products and systems group. The company’s product line includes various types of headlamps, rear
lamps, stop lamps, foglamps, bumper systems, fascias, assemblies and valance panels.

Glass Operations
Glass Operations segment designs, manufactures and supplies glass components for Ford and
aftermarket customer base and float glass for commercial architectural and automotive

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applications. The unit’s glass product line includes windshields, backlites, moonroofs and side
windows. The company markets architectural glass under Versalux® brand name.

SALES DATA

Half Yearly Sales Comparison: 2007 Vs. 2006 (In US$ billion)

Year Sales % Change


2007 5.86 (0.17)
2006 5.87 -

Annual Sales Comparison: 2006 Vs. 2005 (In US$ billion)

Year Sales % Change


2006 11.41 (32.8)
2005 16.98 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ billion)

Quarter 2006 2005 % Change


Q4 2.84 2.87 (1.05)
Q3 2.61 4.12 (36.65)
Q2 3.00 5.0 (40)
Q1 2.96 4.99 (40.68)
Total 11.41 16.98 (32.8)

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – North America,
Europe, Asia and South America (In US$ billion)

Region 2006 2005 % Change


North America 4.71 10.70 (55.98)
Europe 4.13 4.22 (2.13)
Asia 2.50 2.03 23.15
South America 0.52 0.49 6.12
All Other 0.03 0.02 50
Intra-Region Eliminations (0.47) (0.48) (2.08)
Total 11.41 16.98 (32.8)

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Percentage Breakdown of Annual Sales (Vlaue) by Geographic Region (2006 Vs. 2005) –
North America, Europe, Asia and South America

Region 2006 2005


North America 41 63
Europe 36 24
Asia 22 12
Others 1 1
Total 100 100

Annual Sales Comparison by Business Segment (2006 Vs. 2005) – Climate, Electronics,
Interiors, Other Products, Services and ACH (In US$ billion)

Segment 2006 2005 % Change


Climate 3.04 2.85 6.67
Electronics 3.05 3.23 (5.57)
Interiors 2.83 3.00 (5.67)
Other Products 2.54 2.56 (0.78)
Services 0.54 0.17 217.65
ACH - 6.08 (100)
Eliminations (0.59) (0.91) (35.16)
Total 11.41 16.98 (32.8)

Percentage Breakdown of Annual Sales (Value) by Business Segment (2006 Vs. 2005) –
Climate, Electronics, Interiors and Services

Segment 2006 2005


Climate 25 24
Electronics 25 27
Interior 24 25
Services 5 1
Others 21 23
Total 100 100

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Annual Sales Comparison by Product Segment (2006 Vs. 2005) - Chassis Products and
Systems, Interior Products and Systems, Climate Control Products and Systems,
Powertrain Products and Systems, Electronic Products and Systems, Exterior Products
and Systems, Glass Products, and Service Operations (In US$ billion)

Product 2006 2005 % Change


Chassis Products and Systems 0.78 3.29 (76.29)
Interior Products and Systems 2.67 3.90 (31.54)
Climate Control Products and Systems 4.20 4.29 (2.1)
Powertrain Products and Systems 0.69 2.80 (75.36)
Electronic Products and Systems 3.17 1.98 60.1
Exterior Products and Systems 0.04 0.77 (94.81)
Glass Products 0.05 0.39 (87.18)
Service Operations 0.54 0.17 217.65
Eliminations (0.73) (0.61) 19.67
Total 11.41 16.98 (32.8)

STRATEGIC CORPORATE DEVELOPMENTS

Year 2007 (1st Half) in Review…

Divestiture
Visteon Divests Chassis Business Units in Europe and Brazil…
Visteon and Special Situations Venture Partners II LP (SSVP) entered into a final agreement under
which Visteon would divest its chassis business units in Europe and Brazil. The agreement
includes Visteon’s chassis operations in Dueren and Wuelfrath, Germany, and Praszka, Poland, and
certain driveline assets in Sao Paulo, Brazil. Through the agreement, Visteon would transfer the
manufacturing facilities and associated assets including machinery, equipment, tooling, inventory
as well as purchase and supply contracts and certain intellectual property rights to SSVP. The
agreement would enable Visteon to restructure business, improve base operations, and focus on
growing core product areas.

New Plant

Visteon to establish a new Manufacturing Plant…


Visteon plans to establish a manufacturing and assembly facility in Eureka, Mo., to support new
business in North America with automakers including Chrysler Group. The Visteon plant initially
would supply door panels, consoles and cockpits to Chrysler Group’s St. Louis North Assembly
Plant. The new plant supports Visteon’s three-year plan to restructure, improve base operations and
grow the business.

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Product Launches

Visteon Introduces HD Zoom™ HD Radio™ Receiver…


Visteon introduced an innovative in-vehicle HD radio™ receiver and installation kit as an addition
of HD radio portfolio. The new product is designed to offer fast, easy access to digital AM and FM
radio signals for virtually any vehicle make or model. The HD zoom offers the full spectrum of HD
Radio features including program associated data (real-time song title, artist and album
information), as well as multicasting. The clarity of HD Radio technology allows FM stations to
enjoy with CD-quality sound and boosts AM quality up to that of FM sound.

Visteon Introduces New Products to its Air Conditioning Product Line…


Visteon introduced 13 new products to its existing air conditioning product line. The new additions
include remanufactured compressors, clutch compressors, fan clutches, fan assemblies, hose
assemblies and water outlets. The increased product line of Visteon would provide the most
complete coverage for replacement air conditioning parts.

Visteon Introduces New Products to its Heat Transfer Line…


Visteon introduced 14 new part numbers to its heat transfer line. The expansion adds to Visteon’s
extensive portfolio of heat transfer products that include radiators, condensers and heater cores.
Following the products launch, Visteon also provides OE-quality solutions including late-model
Jeep Wranglers and Ford Mustang Cobras for automotive service providers.

Visteon Launches New Transportable HD Radio™ Receiver…


Visteon launched a new transportable HD Jump Radio™ Receiver. The transportable HD Jump™
unit delivers premium new HD2 multicast channels and crystal-clear sound, both in the car, as well
as in the home. HD Jump offers a wide spectrum of HD Radio features, including program-
associated data such as multicasting, real-time song title, artist and album information. With the
product launch, Visteon provides its customers with one of the latest breakthrough mobile
electronics technologies.

Visteon Presents Wireless In-Vehicle Charging Device


Visteon Corporation showcased its in-vehicle battery charging system at the International
Consumer Electronics Show (CES) held in Las Vegas. The device ensures that the charge of
batteries in applications such as PDAs, MP3 players and mobile phones is always maintained. The
system ascertains the proximity and the possibility to charge an object. Power is transferred
wirelessly to the portable device from the battery charger through electromagnetic induction.
Year 2006 in Review…
Partnership
Visteon Enters into a Partnership with Boston Acoustics®…
Visteon entered into a partnership with Boston Acoustics® to provide the 9-speaker premium
branded audio system on the Chrysler Group’s boldly designed 2007 Dodge Caliber. Caliber is one

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of the latest new generation Chrysler Group vehicles to feature a signature high performance sound
system co-engineered by Visteon and Boston Acoustics. Visteon and Boston Acoustics also
provide customized sound systems in Chrysler’s 2006 Jeep® Commander and Jeep Grand
Cherokee, PT Cruiser and PT Cruiser Convertible models, the Chrysler 300C as well as the Dodge
Charger and Magnum.

Contract

Visteon Signs a Contract with Hyundai…


Visteon signed a contract with Hyundai to supply satellite radio systems on Hyundai Motor
America’s Sonata. Following the terms of the contract, Visteon also supplies cockpit modules on
the Hyundai Santa Fe, Tiburon and Elantra models; instrument panels on the Sonata and Accent
models; and climate systems on the Santa Fe and Sonata.

New Establishments

Visteon Opens Technical Center in India…


Visteon established Visteon Technical and Services Center in Chennai, India. The center of
excellence for automotive embedded software would provide support to Visteon globally,
including joint ventures and aftermarket business. The new center would develop and validate
electronic modules for audio products (radios, satellite digital radios, media players), body control
modules, instrument clusters, adaptive lighting products, electronic climate controls, power train
electronics and engine control modules, center displays and other products. The center would also
provide business process outsourcing support in the areas of supplier management, finance
operations and environmental engineering.

Visteon Establishes Automotive Climate Control Components and Systems Plant…


Visteon established a new plant for the production of automotive climate control components and
systems in Turkey to diversify its manufacturing presence in Europe’s growing automotive market.
Visteon’s Korean affiliate Halla Climate Control Corporation (HCC) operates the new facility. The
plant manufactures and assembles heating, ventilation and air-conditioning (HVAC) units and
cooling modules for the sub-compact Hyundai Accent.

Product Launches

Visteon Unveils Innovative Mobile Electronics Solutions…


Visteon unveiled its first transportable HD Radio™ receiver and an exclusive in-vehicle portable
entertainment system that plays movies, music, Nintendo® Game Boy Advance video games.

Visteon Introduces Bluetooth® Hands-Free System…


Visteon started production of a Bluetooth® hands-free system that is developed jointly with Parrot
to equip the Nissan Bluebird Sylphy in China. The company manufactures new system at the
Yanfeng Visteon Automotive Electronics plant in Shanghai, China. Visteon is an integrator of the

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Bluetooth® hands-free system, which includes digital signal processing techniques, as well as a
high degree of compatibility with mobile phone devices.

Visteon Launches Aftermarket USB Audio Interface Solution for Renault Vehicles…
Visteon launched an innovative USB audio interface solution as an optional accessory for a wide
range of Renault vehicles. The interface enables customers to enjoy portable electronic devices
such as iPod®, through the vehicle’s audio system. The USB audio interface links portable music
players with the car’s audio system through a CD-changer interface. The USB audio interface
supports a wide range of audio file formats and contains a connector for two additional inputs for
further flexibility.

Visteon Unveils Game Boy® Advance…


Visteon unveiled the popular video game system, Game Boy® Advance to its next-generation
Dockable Family Entertainment System™. The new Dockable Entertainment system featuring
Game Boy Advance combines the performance and versatility of the first portable premium in-
vehicle entertainment system with a gaming platform. Dockable Entertainment featuring Game
Boy Advance enables users to enjoy any of the more than 750 Game Boy Advance titles or watch
any DVD-based video.

PRODUCT PORTFOLIO
Chasis Systems
Chasis systems include all-wheel drive system, propshaft, slip-in-tube propshaft, axle, high
efficiency axle, power transfer unit, halfshaft, electric power assisted steering systems, power
steering pump, rack and pinion steering gear, recirculating ball nut steering gear, brake hub, brake
rotor, knuckle, spindle, and catalytic converter.

Climate Systems
Climate systems include R744 climate system, modular multi-zone HVAC, auto defog / demist
system, air pollution sensing, climate controls, metal seal fittings, A/C lines, heater lines, A/C
fittings, co-tube technology, next GEN refrigerant fittings W/LT3 sealing material, clamshell
accumulator insulator, plastic insert accumulator, and stepped thread tube o' coupling, fixed
swashplate compressor, variable swashplate compressor, scroll compressor, heat exchangers, and
battery cooling module.

Powertrain Cooling Systems


Powertrain cooling systems include all-aluminum cooling module, combo condenser oil cooler, all-
aluminum radiator, PrecisionCooling™, front end module, cooling module for traction motor and
inverter, fluid transport, co-tube technology, next GEN refrigerant fittings W/LT3 sealing material,
and power steering lines.

Electronic Systems
Electronic systems include audio-digital and analog systems, infotainment-information,
entertainment and multimedia systems, driver awareness, and driver information clusters.

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Lighting Systems
Lighting systems include advanced front lighting systems, light emitting diode (LED) front
lighting, discharge (HID) / xenon lighting, projector headlamps, halogen headlamps, center high-
mounted stop lamp (CHMSL), variable warning brake system, rear combination lamp, and
bumpers and exterior trim.

Glass Automotive OE
Glass automotive OE products include GlideMaster™ gliding rear window, fine wire heated
windshield, glass customization, backlites, moon roofs, pyrolytic coated glass, quarterlites,
sidelites, touch glass keyless entry, windshields, and hardware attachments.

Interior Systems
Interior systems comprise cockpit systems (instrument panel, floor console, and moving console),
and door systems (integrated trim door module, door modules, and door panels). Cockpit module
includes an instrument panel and one or more wire harness, audio, instrument cluster, climate
control head, finish panels, and steering products.

Powertrain Controls
Powertrain controls include electro-mechanical drive system, powertrain electronics and controls,
power electronics unit and traction, motor for hybrid electric applications, voltage control module,
integrated ionization control system, ignition coils, transmission controls, engine controls, electric
current sensors, and torque sensors.

Engine Induction Systems


Engine induction systems include torque enhancement system, electro-mechanical valve actuation,
engine induction systems, mass air flow sensor, throttle body-mechanical (PDF-157 KB), throttle
body-electronic (PDF-171 KB), intake manifold tuning valve, air charging assembly, fuel charging
assembly (PDF-138 KB), and air / fuel charging assembly solutions.

Fuel Delivery Systems


Fuel delivery systems include low pressure direct injection fuel system, fuel, storage and delivery
system, fuel tank, fuel pump, fuel pump-brushless, fuel system control module, fuel delivery
module, fuel rail, fuel rail-self-damping, fuel vapor storage system, and carbon canister.

Electrical Conversion Systems


The electrical conversion systems include products such as alternators and starters.

Aftermarket Products
Visteon’s aftermarket products include OE-quality replacement and custom auto glass equipment,
mobile electronic equipment, Tacnet™-law enforcement vehicle technology, and Underhood parts
such as climate control components, air conditioning parts, and rotating electrical parts.
Aftermarket products offered in Europe include air conditioning and heat transfer components,

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electrical and mechanical components, and specialty automotive electronics and audio equipment.
Aftermarket products offered in South America include specialty automotive audio equipment
products and air conditioning components.

SUBSIDIARIES
Atlantic Automotive Components LLC (USA)
Altec Electronica Chihuahua SA de CV (Mexico)
Autovidrio SA de CV (Mexico)
Autopal Sro (Czech Republic)
Brasil Holdings Ltda. (Brazil)
Carplastic SA de CV (Mexico)
Cadiz Electronica, SA (Spain)
Climate Systems Mexicana, SA de CV (Mexico)
Coclisa SA de CV (Mexico)
Duck Yang Industy Co., Ltd. (Korea)
Grupo Visteon, S. de R.L. de CV (Mexico)
Halla Climate Control Corporation (Korea)
Lamosa SA de CV (Mexico)
LTD Parts, Incorporated (USA)
Naldec Corporation (Japan)
Shanghai Fudian Automotive Electronics Company Ltd. (China)
Visteon Centro SA (Spain)
Visteon Holdings France SAS (France)
Visteon Holdings Italia S.R.L. (Italy)
Visteon Automotive Systems India Private Limited (India)
Visteon Canada, Inc. (Canada)
Visteon Sistemas Automotivos Ltda. (Brazil)
Visteon Brasil Trading Company (Brazil)
Visteon Caribbean, Inc. (Puerto Rico)
Visteon European Holdings Corporation (Delaware, USA)
Visteon Export Services, Inc. (Barbados)
Visteon Global Technologies, Inc. (Delaware, USA)
Visteon Holdings GmbH (Germany)
Visteon Deutschland GmbH (Germany)
Visteon International Holdings, Inc. (USA)
Visteon Holdings Espana SI (Spain)
Visteon Interior Holdings France SAS (France)
Visteon Interior Systems France SA (France)
Visteon Global Treasury, Inc. (USA)
Visteon Climate Control Systems Limited (USA)
Visteon Automotive Holdings LLC (USA)
Visteon Amazonas Ltda. (Brazil)
Visteon Ardennes Industries SAS (France)
Visteon Argentina SA (Argentina)
Visteon Asia Holdings, Inc. (USA)
Visteon Asia Pacific, Inc. (Japan)
Visteon Domestic Holdings LLC (USA)
Visteon Hungary Kft (Hungary)
Visteon Philippines, Inc. (Philippines)
Visteon Poland SA (Poland)
Visteon Portugesa Ltd. (Bermuda)
Visteon Powertrain Control Systems India PL (India)

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SUBSIDIARIES
Visteon South Africa Pty., Ltd. (South Africa)
Visteon (Thailand) Limited (Thailand)
Visteon UK Limited (England)
Visteon ZEM SA (Poland)
Visteon LA Holdings Corp. (USA)
Visteon Systems LLC (USA)
Visteon AC Holdings Corp. (USA)

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V-TRAFFIC
Mediamobile, 10, street of Oradour on Glane, 75015 Paris, France
Phone: 01.55.95.21.10

SOURCES: www.v-trafic.com and other secondary online sources

BUSINESS PROFILE
V-Traffic (formerly named Visionaute) provides a range of information services related to road
traffic. The company provides information services on problems caused due to circulation on more
than 25 000 km of roads in France; conditions of roads of the principal axes of the French network;
and more. The company also provides information directly on the client’s mobile telephones. V-
traffic developed V-Traffic VOR specifically for I-mode of Bouygues Telecom.

STRATEGIC CORPORATE DEVELOPMENTS

Year 2006 in Review…

Partnership

V-Traffic Enters into Partnership with Masternaut…


V-Traffic and Masternaut entered into a partnership agreement for implementation of Intelligent
Transportation System (ITS). The partnership enables both the companies to provide effective
solutions to various traffic-related issues. Masternaut would utilize the pertinent information
provided by V-Traffic, for rendering efficient services to its customers. For the purpose, V-Traffic
would study data from about 24,000 vehicles, and based on this, relevant information would be
provided to Masternaut. The Floating Car Dated (FCD) Technology of the latter will be used for
this study.

Collaboration

V-Traffic Collaborates with University Paul Sabatier


V-Traffic and University Paul Sabatier entered into a collaboration agreement. The collaboration
enables analysis of traffic-related issues with a statistical perspective, which would assist V-Traffic
in coming out with ITS services and solutions conforming to exemplary standards.

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WAVETRONIX LLC
380 South Technology Court, LINDON, Utah 84042, USA
Phone: (801) 764-0277, Fax: (801) 764-0208

SOURCES: http://www.wavetronix.com and other secondary online sources

BUSINESS PROFILE
Wavetronix LLC (Wavetronix) is a global leader in patented Digital Wave Radar™ traffic sensors.
Wavetronix offers a broad range of traffic management, and ITS solutions, including Command data
collection/ management appliances; and Click!™ line of communication and power devices. The
company develops advanced technologies for ITS (Intelligent Transportation Systems), including
data management appliances, advanced radar sensors, and power and communication solutions. The
company’s core products include Wavetronix Certified Systems, and traffic detection devices.
Wavetronix’s wide array of traffic management solutions supports road safety and efficiency.
Wavetronix was established in 2000.

STRATEGIC CORPORATE DEVELOPMENTS


Year (2007) in Review…
Product Launches
Wavetronix Introduces Command Speedmap™…
Wavetronix introduced the Command SpeedMap™. SpeedMap is a real-time traffic health
monitoring tool that gives traffic operations centers a 3-D graphical view of the roads in the
metropolitan areas. SpeedMap is an integrated software/hardware solution that is ready for
immediate deployment.

Wavetronix Unveils DataCollector™ 2.0…


Wavetronix unveiled the newest version of its Command DataCollector™ at the 2007 ITSA
exhibition in Palm Springs, California. DataCollector 2.0 offers several new features and improved
functionality for better management of large sensor networks.
DataCollector is an out-of-the-box, Web-based data collection appliance that integrates easily into
any environment and provides quick access to all sensors in a network. DataCollector offers at-a-
glance verification of collected data as well as the communication status of individual sensors, and
easily expands to respond to a transportation department's growing needs.

Year 2006 in Review…


Partnerships
Wavetronix Teams Up with ISS For European Distribution…
Wavetronix teamed up with Image Sensing Systems Inc. (ISS), the world leader in video detection
for advanced traffic management systems to distribute and co-brand the Wavetronix SmartSensor™

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in Europe as the ISS Autoscope® SmartSensor. Under the agreement, ISS' subsidiary, ISS Europe Ltd.
would offer the Autoscope SmartSensor and the Wavetronix Command™ line of data collection and
management appliances to the European transportation market through its own pre-established
distribution network. The agreement with ISS enables Wavetronix to introduce the Autoscope
SmartSensor in Europe through a well-organized distribution channel.

Wavetronix Teams Up with Triangle Software…


Wavetronix teamed up with Triangle Software LLC (Triangle Software), the award-winning
provider of solutions for the broadcasting of traffic reports to jointly promote unique, end-to-end
traffic solutions. Under the agreement, Triangle Software and Wavetronix would market each
other's products through an exclusive interfacing of the Wavetronix Command™ line of traffic data
management appliances, and Triangle's BeatTheTraffic™ system for delivering real-time-to-air 3-
D animations of traffic conditions.

Agreement
Wavetronix and ASIM Announces Strategic Technology Agreement…
Wavetronix and ASIM Technologies, Inc. (ASIM), a manufacturer of non-intrusive, multi-
technology detection devices announced a joint technology agreement. Under the agreement,
ASIM and Wavetronix would develop unique solutions for the detection and collection of traffic
data. The agreement between both the companies would lead to better technical solutions for traffic
data management problems that grow more challenging every day.

Product Launches
Wavetronix Unveils SmartSensor HD ™…
Wavetronix unveiled the new SmartSensor HD™ device. The SmartSensor HD combines
Wavetronix patented technologies with high definition to deliver greater resolution, range and
accuracy for freeway and arterial traffic management applications. SmartSensor HD is a non-
intrusive, all-weather detection device that uses patented Digital Wave Radar to monitor vehicle
volume, occupancy, speed and class across multiple lanes. The product also features the patented
auto-configuration process that made SmartSensor the easiest device to install, configure and
maintain in the industry.

Wavetronix Launches New DataTranslator™ Appliance…


Wavetronix launched the new DataTranslator™ appliance as part of the Command™ line of data
management products. DataTranslator is available for purchase as an integration solution that
bridges the gap between incompatible data systems. DataTranslator is a traffic data management
device that performs immediate translations of databases, file formats and data types.

New Facility
Wavetronix Opens Mid-Atlantic Region Office…
Wavetronix opened an office in the mid-Atlantic region of the United States, and also hired Bill
Ippolito to be responsible for sales and marketing.

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PRODUCT ANALYSIS
Traffic Detection Devices
SmartSensor
The SmartSensor installs above-ground and uses patented Digital Wave Radar to measure vehicle
volume, occupancy, speed and classification in up to eight lanes of traffic simultaneously.

SmartSensor HD
Wavetronix SmartSensor HD uses the latest technology to collect consistently accurate traffic data
in high definition. The patented Digital Wave Radar II™ measures traffic volume, individual
vehicle speed, average speed, 85th percentile speed, average headway, average gap, lane
occupancy, vehicle classification and presence.

SmartSensor Advance
SmartSensor Advance installs aboveground and is specifically designed for installation at signal-
controlled intersections. With a detection range of 500 feet, the SmartSensor Advance offers five-
foot zone resolution in up to eight user-definable zones, providing traffic managers with accurate
detection and effective dilemma zone management.

Connectivity Solutions
Click! 100. Contact closure devices
The Click! 100 Contact Closure Module collects real-time data from the Wavetronix
SmartSensor and translates data to contact closure outputs. The module includes 16 separate
contact closure outputs and is equipped with multiple operation modes to facilitate single-and
dual-loop emulation.

Click! 200. Surge protection and power modules


Click! 200 series modules mount to a DIN rail and are equipped with pluggable screw terminals to
ensure proper wiring. The modules are designed to operate as stand-alone products or in
conjunction with other Wavetronix Click! devices. The Click! 200 Surge Protection Module
features a three-stage surge suppression design that protects the SmartSensor and other devices
from power surges over DC power lines, RS-232 and RS-485 communication lines.

Click! 300. Wired communication data converters


The Click! 300 Serial Data Converter bridges the gap between the SmartSensor (or any other RS-
232 connected device) and RS-485 protocols by converting communication from RS-232 to RS-
485 and vice versa. Click! 300 series modules are DIN rail mounted and includes hot-swappable
connection buses and pluggable screw terminals for easy installation.

Click! 400. Wireless communication data converters


The Click! 401 Serial to 802.11b Converter Module allows serial devices such as the SmartSensor
to communicate over 802.11b by converting either RS-232 or RS-485 communication to 802.11b

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communication and vice versa. The 401 devices could also perform serial conversions and uses
either 802.11b or serial interfaces to configure its communication baud rates.

Command Data Appliances

DataCollector
DataCollector is a system expansion solution that minimizes system downtime at a fraction of the
price of custom developments. DataCollector gathers and manages real-time data from traffic
detection networks at intervals as frequent as 20 seconds and also monitors specific sensor settings,
manages data logging processes and provides TMDD and other industry standard data formats for
reliable data delivery and effective data sharing with other ITS applications, including traveler
information systems.

DataTranslator
DataTranslator is part of the growing command line of Wavetronix traffic data management
appliances, and provides a much-needed function for the ITS industry: performing real-time data
translations between databases, data types, file formats and data streams.

Wavetronix Certified Systems

Mid-block Detection
The system is designed to share detection information from one SmartSensor between two
intersections for intelligent signal timing and control.

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WEBTECH WIRELESS, INC.
215 – 4299 Canada Way, Burnaby BC, V5G 1H3, Canada
Phone: (604) 434-7337, Fax: (604) 434-5270

SOURCES: www.webtechwireless.com and other secondary online sources

2007 Sales: US$ 22.0 million (Nine Months Ended, April)


2006 Sales: US$ 16.3 million
2005 Sales: US$ 10.3 million
(Fiscal Year Ends in July)

BUSINESS PROFILE
WebTech Wireless Inc., (WebTech) is the leading provider of location-based and fleet Telematics
services. The company is a wireless services provider that develops and delivers turnkey wireless
solutions to improve the productivity and profitability of small to large mobile fleets. WebTech
products include wireless hardware and software services running on cellular and satellite
networks; and include Automatic Vehicle Location, Mapping, Reporting, Vehicle Maintenance,
Driver Status, In-vehicle Telemetry, Messaging, In-vehicle Navigation, and wireless application
and Internet connectivity.
WebTech’s products are used in transportation, government, waste management, construction,
utility and business services. The company’s Wireless solutions integrate GPS, terrestrial wireless
communication technologies, and Internet to provide fleet operators real-time information about
the location and status of the vehicles. WebTech also provides vehicle history and corresponding
telemetry events in a report format. The company operates in several countries across North
America, Europe and the Middle East. The company markets its products in over 37 countries.
The company was established in 1999.

SALES DATA

Nine Months Sales Comparison: 2007 Vs. 2006 (Nine Months Ended, April)
(In US$ million)

Year Sales % Change


2007 22.0 92.98
2006 11.4 -

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Nine Months Sales Comparison by Geographic Region (2007 Vs. 2006) – Canada, USA,
Europe and South America (Nine Months Ended, April) (In US$ million)

Region 2007 2006 % Change


Canada 2.5 1.3 92.31
USA 4.6 4.5 2.22
Europe 1.9 2.5 (24.00)
South America 12.3 1.6 668.75
Other 0.7 1.5 (53.33)
Total 22.0 11.4 92.98

Annual Sales Comparison: 2006 Vs. 2005


(In US$ million)

Year Sales % Change


2006 16.3 58.25
2005 10.3 -

Quarterly Sales Comparison: 2006 Vs. 2005 (In US$ million)

Quarter 2006 2005 % Change


Q4 5.0 3.3 51.52
Q3 4.7 2.9 62.07
Q2 4.1 2.8 46.43
Q1 2.5 1.3 92.31
Total 16.3 10.3 58.25

Annual Sales Comparison by Geographic Region (2006 Vs. 2005) – Canada, US, Europe
and South America (In US$ million)

Region 2006 2005 % Change


Canada 1.9 2.0 (5.00)
US 6.4 4.5 42.22
Europe 3.0 2.2 36.36
South America 3.0 0.6 400.00
Other 2.0 1.0 100.00
Total 16.3 10.3 58.25

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Percentage Breakdown of Annual Sales (Value) by Geographic Region (2006 Vs. 2005) –
Canada, US, Europe and South America

Region 2006 2005


Canada 11 20
US 39 43
Europe 19 21
South America 19 6
Other 12 10
Total 100 100

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreement

WebTech Signs an Agreement with Gateway Cities Council of Governments…


WebTech signed an agreement with Gateway Cities Council of Governments (COG) to supply the
WebTech Wireless™ Quadrant™ System in support of a landmark air pollution reduction
program. The system would be part of the Gateway Cities Fleet Modernization and Retrofit
Program, which uses vehicle Telematics to track usage of trucks equipped with lower-emissions
technologies.

WebTech and Rogers Signs Agreement…


WebTech and Rogers Communications Inc., Canada's largest wireless voice and data
communications services provider, entered into a supply agreement. Under the agreement, Rogers
Wireless would be selling WebTech’s Quadrant™ system under the new mFleet brand through its
nationwide sales network of over 500 sales representatives, plus other distribution partners. The
supply agreement provides access to the Canadian market of fleet vehicles through the Rogers sales
and distribution network. mFleet, powered by WebTech, is available in three formats such as
mFleet for Service Fleets, mFleet for Transportation & Logistics Fleets, and mFleet for trailer and
asset tracking.

Collaboration

WebTech and Iridium Enter into Collaboration…


WebTech and Iridium entered into collaboration to provide a new dual-mode cellular and satellite
asset tracking and management solution for the transportation industry. WebTech’s new
WT1900system incorporates Iridium’s 9601 short-burst data modem, offering seamless coverage
for long-haul customers.

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Product/Service Launch

WebTech Introduces Motorola G24 Java Platform…


WebTech announced the introduction of Motorola, Inc.’s embedded G24 JAVA wireless module in
Locator family of Telematics devices. The latest JAVA option integrates the new J2ME
programming environment of Motorola’s G24 JAVA wireless module with the Locator application
processor. WebTech’s WT5000 and WT6000 are the first products to implement Motorola's G24
JAVA wireless module.
The Motorola G24 JAVA platform serves as a powerful stand-alone controller, supporting a range
of M2M applications, and providing developers control over the G24 resources such as CPU,
memory and I/O's.

WebTech Announces Telematics and Location-Based Services ASIC…


WebTech announced an Application Specific Integrated Circuit (ASIC) designed for installation on
large volume assembly lines of automotive manufacturers would be offered in production and
deployment form. The ASIC delivers Telematics and Location-Based Services (LBS) to passenger
and commercial vehicles.
The GSM-based wireless gateway ASIC is specially designed for facilitating Telematics and LBS
using GPS and a centralized Telematics and LBS Management System (TLMS) based on
WebTech’s QuadrantTM technology.

WebTech Announces Complete Solution for Transportation Companies…


WebTech announced a complete solution for transportation companies with both tractor and trailer
assets as well as a new software release for all users of the Quadrant™ Fleet Management system.
The WebTech Quadrant Transportation Fleet Management solution provides the unique ability to
address both tractor and trailer fleet management from a single vendor. The new solution also
offers multi-zone temperature sensors to meet increasing regulatory requirements for perishable
and pharmaceutical transportation.

Year 2006 in Review…

Agreements

WebTech Enters into Agreement with Trailcon…


WebTech entered into a distribution agreement with Trailcon Leasing that offers leading expertise
in freight transportation solutions across Canada and specializes in trailers, intermodal equipment
and fleet management.

Webtech Signs Distribution Agreement with Motient…


Webtech signed a distribution agreement with Motient Communications to deliver its Quadrant™
Fleet Management products and services. The agreement enabled WebTech to spread out its

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customer base and subsequently consolidate its position as telematics market leader. Motient
Communications is a leading provider of wireless data solutions.

Webtech Enters into an Agreement with Tracking World…


Webtech entered into an agreement with Tracking World to market and install Quadrant Portal for
personal automotive and commercial fleet telematics services in Pakistan. The agreement provides
WebTech to access a substantial market in Pakistan and provides Tracking World with proven
solutions and ROI models for addressing personal automotive safety and security and more
traditional telematics solutions for commercial fleets.

WebTech and Business Machine Corporation Signs Agreement …


WebTech signed an ISV teaming agreement with International Business Machine Corp.
Subsequent to the agreement, WebTech would offer Quadrant on IBM's WebSphere™ Application
Server and xSeries™ platforms. Following the agreement, IBM would include Quadrant in its
Global Solution Directory and offers joint marketing of WebTech's products through its Global
distribution network in all countries around the globe.

PRODUCT/SERVICE ANALYSIS
Quadrant Services
Quadrant is a wireless vehicle services system that provides users with GPS-based location
information in real-time for efficient fleet management. Quadrant Services Solution provides the
means for dispatchers to accurately know where their vehicles are at any time, the ability to
monitor routes from start to finish and the opportunity to correct obstacles to productivity and
efficiency. Quadrant provides a wide range of fleet management solutions including automatic
vehicle location, mapping, reporting, vehicle maintenance, driver status, and wireless application
and Internet connectivity.

WebTech Locator
WebTech Locator provides vehicle-monitoring capabilities 24 hours a day, 7 days a week.
Locators are fully configurable over-the-air, are remotely supported and are designed to meet the
needs of a wide range of markets/end-users. Locators operate on several communications
standards, including GSM / GPRS, 802.11 WiFi and satellite, and provide everything from basic
Internet access to Databus Connectivity (J1708), Location/Tracking and Telemetry applications.

Quadrant Government Solution


The Quadrant Government Solution allows fleet managers the ability to monitor and control
vehicles remotely using Telemetry. WebTech's Quadrant Government Solution provides a number
of worker safety features designed to address lone worker legislation.

WebTech 4000
WebTech 4000 is a web-based system that provides web-based mapping and reporting to optimize
fleet management.

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WebTech 5000
WebTech 5000 is a web-based system that provides web-based mapping and reporting to optimize
fleet management with four critical mobile application areas for fleets.

Components
Components include WebTech Locator Devices, Wireless Networks, and Quadrant Online.

Vehicle Services
Vehicle services include Mapping, Command Center/Activity Reports, DOT Driver Logs, Fuel Tax
Reporting, Landmark Reports, Schedule Adherence, J1708 Interface, Messaging and Paperless
Reporting, Geofences, and Telematics.

Wireless Networks
WebTech's primary wireless network focus is GSM/GPRS although the Quadrant System is
capable of supporting Satellite networks and other digital cellular networks.

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WINDSPRING, INC.
1735 North First Street, Suite 102, San Jose, California 95112, USA
Phone: (408) 452-7400, Fax: (408) 452-7444

SOURCES: www.windspring.com and other secondary online sources

BUSINESS PROFILE
WindSpring Inc., (WindSpring) is a provider of advanced compression software for the digital
mapping and navigation markets. The company is focused on in-dash navigation, personal
navigation devices, trucking/logistics, Internet/consumer wireless and enterprise/public sector GIS.
The company's patented data miniaturization technology (DMT™) eliminates the need for file
decompression, drastically reduces the data footprint of large files, and allows total data
manipulation while in the reduced state. The company’s core products include Wind Spring Mobile
and Wind Spring SDK. The company’s products provide a flexible and powerful software solution
for the growing problems of data transmission latency, storage space constraint and network cost
for wireless, mobile, digital mapping, web services, high-speed database and online search
applications. The company's products also eliminates the need for file decompression, drastically
reduces the data footprint of large files, and allows total data manipulation.
The company’s WindSpring Mobile is a PDA software product increases the effective memory
capacity of PDAs with all Microsoft Pocket Office applications & ActiveSync, Adobe PDF,
Sybase UltraLite and a large range of GPS navigation applications, used by consumer and
enterprise Pocket PC users. The company’s WindSpring SDK is an OEM product that provides
internal mobile phone and smartphone files, Firmware-Over-The-Air (FOTA), mobile computing,
mobile GPS navigation, mobile games, and digital mapping applications with faster access and
transmission speeds, and increased mobile device storage capacity.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Agreements

WindSpring Signs an Agreement with ITX E-Globaledge Corporation…


WindSpring signed a sales and marketing agreement with ITX E-Globaledge Corporation. As per
the agreement, WindSpring’s patented Data Miniaturization Technology (DMT™) would be
represented by ITX-EG to market in Japan, China and Korea.

WindSpring Signs an Agreement with Increment-P Corporation…


WindSpring signed an OEM agreement with Increment-P Corporation (iPC), a leading application
software developer in the digital mapping and navigation market. As per the agreement,
WindSpring would integrate its data miniaturization technology (DMT™) with iPC for DrivTrax
P5 personal navigation devices (PND).

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WindSpring Signs an Agreement with Alpine Electronics, Inc…
WindSpring signed an OEM agreement with Alpine Electronics Inc., a leading manufacturer of
mobile media solutions. As per the agreement, WindSpring would integrate its patented data
miniaturization technology (DMT™) with Alpine for next generation in-dash solutions for a major
car manufacturer.

Year 2006 in Review…

Collaboration

WindSpring Collaborates with Tele Atlas…


WindSpring and Tele Atlas entered into a collaboration agreement for marketing Data
Miniaturization Technology (DMT) ™ of WindSpring. The technology would also be integrated
into digital maps of Tele Atlas for further enhancing their standards. DMT converts large map and
data files into Micro Data Format (MDF)™, without affecting the quality and quantity of content.

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WORLD WIDE TECHNOLOGY INC.
60 Weldon Parkway, St. Louis, Missouri 63043, USA
Phone: 314-569-7000, Fax: 314-569-8300

SOURCES: http://www.wwt.com and other secondary online sources

BUSINESS PROFILE
World Wide Technology Inc., (WWT) a systems integrating company, specializes in providing
technology and supply chain solutions to customers and suppliers around the world. The company
also provides network design and installation, systems and application integration, and
procurement services. The company provides a variety of Web-based products and services,
including electronic marketplace creation, order tracking, and catalog management. WWT provides
a wide range of services including leasing, inventory management, staging, configuration, design,
test, asset tagging and logistics.
The company’s subsidiary Telcobuy.com LLC supports in managing technology and supply chain
planning, procurement and deployment processes of telecommunications customers such as SBC,
Verizon, BellSouth, Sprint, Verizon Wireless and Cingular Wireless. The company’s competitors
include EDS, HP Technology Solutions Group, and IBM Global Services. The company is
accredited with ISO 9001:2000 certification.
WWT was established in 1990.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Partnership

WWT Partners with AeroScout…


WWT partnered with AeroScout, the leading provider of Wi-Fi-based Active RFID solutions.
WWT would leverage the AeroScout partnership and its long-standing relationship with Cisco
Systems® to help its customers enhance operations through improved asset utilization, security and
tracking by utilizing a single, unified wireless network for data, voice and location services.

Contracts
WWT Renews Contract with PG&E…
WWT renewed its contract with Pacific Gas & Electric Company (PG&E) to provide Cisco
Systems® products and services. The contract enhances WWT’s utility expertise in the commercial
market to expand in its growth in the Bay area. The contract with PG&E as its Cisco value-added
reseller enhanced WWT’s utility expertise in the commercial market and is the cornerstone for
WWT’s expanding growth in the Bay area.
PG&E is one of the largest combination natural gas and electric utilities in the US.

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WWT Signs Three-Year Contract with VHA…
WWT signed a three-year contract with VHA Inc., an alliance that represents 2,400 not-for-profit
health care organizations nationwide to provide IT products and solutions.

WWT Receives SEWP Contract…


WWT received Solutions for Enterprise-Wide Procurement (SEWP) contract from the National
Aeronautics and Space Administration (NASA) contracting office. Follow-on to SEWP III, SEWP
calls for WWT to provide products and services, which assist NASA and all federal agencies to
meet their mission objectives through technology.

WWT Wins Army ITES-2H Contract…


WWT won the Army’s Information Technology Enterprise Solutions – 2 Hardware (ITES-2H) contract
to provide a comprehensive range of IT hardware. The specific hardware includes servers, desktops, and
notebooks, networking equipment, printers, storage systems and other related components.

Other Development
WWT Launches IPv6 Resource Microsite…
WWT launched www.ipv6resource.com, a microsite for organizations and individuals. The site
provides baseline information about IPv6 and its benefits as well as information about the Internet
protocol. IPv6 is replacing IPv4, the dominant Internet protocol used today.

Year 2006 in Review…


Contracts
WWT Awards IT Procurement Contract…
WWT awarded a $15 million IT procurement contract with the State of Alaska, Department of
Administration. WWT expanded its operations in Alaska to meet the regions growing need for
advanced technology solutions. Under the terms of the contract, WWT would deploy 15,000 IP
phones for the State of Alaska in Anchorage, Juneau and Fairbanks.

WWT Bags Order from Arizona Department of Transportation…


WWT bagged a contract from Arizona Department of Transportation (ADOT) to provide wireless
equipment and services to state government entities, universities, political subdivisions, and
schools in Arizona. The multi-year, statewide contract forms a part of ADOT’s wireless
communications project, to provide ITS and a traffic signal for homeland security and
transportation applications.

New Facility
WWT Opens World Class Integration Technology Center…
WWT opened a 12,000 square foot Integration Technology Center near its corporate headquarters
in St. Louis. The company operates more than 1.5 million square-feet of warehousing, distribution

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and integration space in 19 facilities throughout the United States. The Integration Technology
Center (ITC) features raised-floor data center space, 12 independent networks, redundant and
fully conditioned power, over 150 tons of cooling capacity, and a conveyor belt box materials
handling system. The facility could also simultaneously accommodate servers, laptops,
desktops and network components with a total capacity to configure over 30,000 systems per
week.

PRODUCT/SERVICE ANALYSIS

Information Technology Products and Solutions

E-Commerce Integration
The company developed one-stop e-commerce portal to manage procurement through deployment
responsibilities via the Internet, including Product Availability Inquiries, Product
Research/Comparison, Requisition and Procurement, Routing and Approval Project Collaboration,
Product Catalog, Order Tracking, Inventory Management, Delivery Coordination, Invoicing and
Financial Settlement.

Order Management and Reporting


WWT provides a number of customizable reports including Supplier Performance, Operational
Reporting, Order Processing Metrics, Shipping Performance, and Quality Metrics. The company
offers a wide array of reports generated from transactional data within ERP and e-Commerce
site, supporting operational or metric reporting needs as per the established service level
agreements.

Integration and Staging


The company offers configuration and integration services including equipment aggregation and
staging; hardware configuration; software imaging; asset tagging; and auditing. In addition, WWT
also offers Asset Recovery Solutions, and Pre-Sales Technical Support.

Supply Chain Services

Outsourced Procurement
WWT developed an array of world class and highly scalable outsourced procurement services,
which combine a state-of-the-art technology platform with best practices delivered by a
professional and responsive procurement team.

Supplier Management
WWT utilizes a real-time Web-based metric reporting engine to manage supplier performance.

Business Process Outsource


WWT provides outsourced business processes designed to increase customers’ operational
efficiency and save the money.

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Professional Services

Consulting
The company’s consulting staff provides advice and solutions in the areas of supply chain
improvement, IT asset acquisition process improvement, Oracle Applications, EDI/XML
integration, and e-Commerce application development.
The company also provides a wide array of professional services such as Planning & Design,
Configuration, Implementation, Training,

WUHAN E-FLY TECHNOLOGY CO., LTD.


430022, China
Phone: 027-85769762, Fax: 027-85774415

SOURCES: Company related secondary online sources

BUSINESS PROFILE
Wuhan E-Fly Technology Co. Ltd., (Wuhan E-Fly) (formerly Wuhan City of Science and
Technology Development Limited) is a leader in network and security management, software
development, computer and network equipment and office automation equipment sales; Intelligent
buildings and traffic engineering, network design, integrated wiring, security monitoring, and other
anti-theft system integration planning, design and installation of construction.

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XUZHOU PAT CONTROL TECHNOLOGY CO., LTD.
No.1 Industrial District, Jinshanqiao Development zone Xuzhou 221004, China
Phone: +86-516-87885799, Fax: +86-516-87793971

SOURCES: http://www.pat-xuzhou.com and other secondary online sources

BUSINESS PROFILE
Xuzhou PAT Control Technology Co. Ltd., (XZPAT) a subsidiary of PAT GmbH Co., is a
provider of Project Mechanical Electronic Control System, General Controller, Hoisting
Equipment Entire Automatic Moment of Force Killer, Harbor Mechanical Safekeeping of Security
System, Programmable Ultra Limits Protection System LSS, Electric Shock Protector PSV, Project
Machinery Special-Purpose Sensor, Axis Sensor, Pulling Force Sensor, Flowing Tubing Head
Pressure Sensor, Presses Type Sensor, Length Angle Sensor LWG, Electric Capacity Angle Sensor
WGC, and Intelligent Transportation Monitoring Examination System. The company markets its
products under the brand name of PAT.
In 2006, XZPAT entered into an agreement with International Road Dynamics Inc. (IRD) that
confers distribution rights to the former, for a period of two years.

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ZEUS TECHNOLOGY LIMITED
The Jeffreys Building, Cowley Road, Cambridge CB4 0WS, UK
Phone: +44 (0)1223 525000 / +44 (0)1223 568555, Fax: +44 (0)1223 525100

SOURCES: www.zeus.com and other secondary online sources

2005 Sales: US$ 3.70 million


(Fiscal Year Ends in September)

BUSINESS PROFILE
Zeus Technology Ltd., (Zeus) is involved in developing application traffic management software
that enhances network/web-enabled applications. The company develops web server software for
ISPs, content providers, and e-commerce companies to deliver web page content to Internet users.
The company’s major product line includes traffic management and load balancing software,
traffic management for virtual desktop infrastructure, and Web Serving system. The company’s
application traffic management software improves network and web-enabled applications.
Zeus’ traffic management and load balancing software include ZXTM™, ZXTM Load Balancer™
(ZXTM LB™), ZXTM Global Load Balancer (ZXTM LB), and Platform Flexibility. The company
offers ZXTM Virtual Desktop Broker™ (ZXTM VDB™), and Zeus Web Server™ (ZWS™) for
traffic management for virtual desktop infrastructure. The company offers web infrastructure
solutions to more than 800 clients, including China Telecom, NASA, Federal Railroads
Administration, STA Travel, VNU, BT, Hotel.de, PLAY.COM, The Institute of Financial Services,
Strategic Command, and Virgin Holiday.
Zeus provides a wide range of solutions to government, financial institutions, media and content
providers, news and entertainment portals, ISPS, telcos and hosters, utility companies, online
retailers, application service providers, internal systems, e-learning, and systems integrators. The
company’s partners include HP, AMD, Egenera, Dell, IBM, Sun Microsystems, Intel, Qualcomm
and VMware. The company’s top competitors include Citrix Systems, F5 Networks, and Juniper
Networks.
Zeus was established in 1995.

STRATEGIC CORPORATE DEVELOPMENTS

Year (2007) in Review…

Partnerships

Zeus Partners with Abtech Systems…


Zeus partnered with Abtech Systems to enhance the performance of the industry -leading hardware
and software sold by Abtech Systems. As per the terms, the company would provide its flagship
solution ZXTM (Zeus Extensible Traffic Manager), as well as ZXTM VA (ZXTM Virtual
Appliance) and ZXTM GLB (ZXTM Global Load Balancer) to Abtech.

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Abtech Systems provides customized IT solutions and specializes in platform migrations between
Windows, Linux, Novell & Unix environments.

Zeus Partners with Intercept IT…


Zeus partnered with Intercept IT, a solution provider specializing in infrastructure centralization,
virtualization and optimization. As per the partnrship, Intercept IT would provide the entire Zeus
Technology product line, including ZXTM (Zeus Extensible Traffic Manager), ZXTM LB (ZXTM
Load Balancer), ZXTM VA (ZXTM Virtual Appliance), ZXTM VDB (ZXTM Virtual Desktop
Broker) and ZXTM GLB (ZXTM Global Load Balancer).

Zeus Enters into Partnership with Brazilian Distributor, Servix Informática…


Zeus entered into partnership with Brazilian Distributor Servix Informática Company to develop
and strengthen its global channel. By adding ZXTM (Zeus Extensible Traffic Manager) to the
portfolio, Servix would be in a unique position to offer Brazilian customers the full flexibility and
return on investment benefits of a software based load balancer/traffic manager deployment.

Zeus Enters into Partnership with Itlog…


Zeus entered into a partnership with Itlog, a supplier of IT management applications. As per the
deal, Itlog would distribute Zeus Extensible Traffic Manager (ZETM) to medium to large Brazilian
organizations, providing the latest Application Delivery Controller (ADC). The partnership allows
Itlog to gain from Zeus’ flexible software in creating an inclusive solution for traffic management,
and application acceleration, and offer either as a service or a project.

Agreements
Zeus Signs an Agreement with Bell Microproducts, Inc…
Zeus and Bell Microproducts, Inc. signed an agreement whereby Bell Microproducts would
distribute Zeus’ flagship product, ZXTM (Zeus Extensible Traffic Manager) through its UK and
US distribution network. The Zeus traffic manager is ideally suited to expand VAR opportunities
in both the SMB and enterprise markets.

Product Launches

Zeus Launches ZXTM (Zeus Extensible Traffic Manager)…


Zeus launched ZXTM (Zeus Extensible Traffic Manager) software to run on Windows. ZXTM is
the only Layer 7 Traffic Manager to run on Microsoft Windows server systems, providing a well-
proven alternative to more expensive, less sophisticated hardware load balancers.

Zeus Launches ZXTM VDB (ZXTM Virtual Desktop Broker)…


Zeus launched ZXTM VDB (ZXTM Virtual Desktop Broker), a connection broker for any virtual
desktop infrastructure (VDI) remote desktop. ZXTM VDB provides secure remote access to
desktops that are running in virtual environments such as VMware’s ESX Server or Microsoft’s
Virtual Server.

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Zeus Launches ZXTM 2000 (Zeus Extensible Traffic Manager 2000)…
Zeus launched ZXTM 2000 (Zeus Extensible Traffic Manager 2000) for small-to-medium
businesses (SMBs). The ZXTM 2000 provides full ZXTM functionality, including the powerful
TrafficScript™ programming language engine, and offers options of Service Level Monitoring,
Content Caching and Bandwidth Management.

Year 2006 In Review…


Alliances
Zeus Forms an Alliance with Egenera…
Zeus and Egenera formed an alliance to offer a fully agile application infrastructure by combining
Zeus Extensible Traffic Manager (ZXTM) and the Egenera® BladeFrame® system. ZXTM
improves the performance, capacity and security of hosted services, reducing downtime and
facilitating routine maintenance.

Partnerships
Zeus Enters into Partnership with DSHi…
Zeus entered into a reseller partnership with DSHi. As per the terms of the partnership, DSHi
would offer Zeus Extensible Traffic Manager (ZXTM) and ZXTM Load Balancer (ZXTM LB) as
part of its solution portfolio offered to US federal, state and local governments.

Zeus Enters into Partnership with SYSDBA…


Zeus entered into partnership with South African systems integrator and consulting services firm
SYSDBA. The partnership would enable SYSDBA to deliver Zeus Extensible Traffic Manager
(ZXTM) to its corporate and channel customers, establish, for the first time, availability of the
advanced Application Delivery Controller (ADC) in South Africa.

Zeus Partners with IXEurope…


Zeus expanded channel strategy through partnership with IXEurope. IXEurope selected Zeus
Extensible Traffic Manager (ZXTM) as the only traffic management solution to be offered to
customers through its IXExchange community portal.

Zeus Enters into Partnership with AEP Networks…


Zeus and AEP Networks entered into a technology licensing, co-development and marketing
partnership that would integrate Zeus Extensible Traffic Manager (ZXTM) into the AEP Netilla
Security Platform (NSP) architecture. AEP Networks would introduce products through combining
the NSP solutions with the ZXTM software.

Zeus Enters into Partnership with IBM, Oracle and BEA…


Zeus joined an exclusive list of appliance companies, including IBM, Oracle and BEA, to become
a classified VMware Technology Alliance Partner. As part of its accreditation as a VMware

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partner, Zeus released a version of its Zeus Extensible Traffic Manager (ZXTM) software that
could be run as a Virtual Machine with VMware Player.

Zeus Partners with IT distributor OpenPSL…


Zeus entered into partnership with leading IT distributor OpenPSL. The partnership sees OpenPSL
selling Zeus Extensible Traffic Manager (ZXTM), an advanced Application Delivery Controller
(ADC) to its extensive client base in the SME, corporate and enterprise markets.

Zeus Partners with jetNEXUS…


Zeus entered into a strategic partnership with jetNEXUS. Under the partnership, jetNEXUS would
market Zeus Extensible Traffic Manager Load Balancer (ZXTM LB) on its platform.

Zeus Enters into Partnership with Itlog…


Zeus entered into a partnership with Itlog, a supplier of IT management applications. As per the
deal, Itlog would distribute Zeus Extensible Traffic Manager (ZETM) to medium to large Brazilian
organizations, providing the latest Application Delivery Controller (ADC). The partnership allows
Itlog to gain from Zeus’ flexible software in creating an inclusive solution for traffic management.
The lone traffic management solution from Zeus, ZXTM, offers superior performance features
appropriate for assisting enterprises in administering their own network infrastructure. ZXTM is
offered both as a software platform and as an appliance, and is suitable on prevailing data center
blades/servers, and in virtualized settings. ZXTM offers ultimate flexibility to the customers in
choosing a product that meets their business and technological specifications.

Agreements
Zeus Signs OEM Agreement with Fabric7…
Zeus signed a strategic OEM agreement with enterprise server vendor Fabric7. As per the deal,
Zeus Extensible Traffic Manager (ZXTM) integrated on Fabric7's flagship Q160 server that is
based on the company's unique fabric computing architecture.

Capacity Expansions

Zeus Expand its Global Operations…


Zeus expanded its US operations by opening offices on the US West Coast following continued
growth of its US client base with significant customer wins and the successful execution of the
company's expansion strategy that started in China, Germany, France, and Japan. The sales,
marketing and engineering operation would be located in Mountain View, California.

Product Launches

Zeus Launches ZXTM Virtual Appliance on VMwares Virtual Appliance Network…


Zeus launched Zeus Extensible Traffic Manager Virtual Appliance (ZXTM VA), a new version of
its flagship traffic management technology that operates as a virtual appliance within virtualized

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datacenter environments. ZXTM VA is a virtual appliance that runs on VMware's ESX Server 3
datacenter infrastructure.

Zeus Launches Zeus Extensible Traffic Manager (ZXTM) 7400 Software…


Zeus launched Zeus Extensible Traffic Manager (ZXTM) 7400 software to help make networked
and web enabled applications faster, more reliable, secure and easier to manage. The 7400
appliance management software moves ZXTM outside its traditional Linux and Unix base making
the appliance very attractive to organize Microsoft-based technologies.

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