Code-Alarm Signs Agreement with Ford to Introduce PowerCode Technology

    MADISON HEIGHTS, Mich., Aug. 20 Code-Alarm, Inc. today
announced it will work with Ford Motor Co. to introduce its new all-
in-one remote vehicle control system(TM) less than eight months after the
system debuted.

    The Madison Heights, Mich. manufacturer of vehicle electronic systems said
the agreement makes Ford the first automaker to allow PowerCode Technology(TM)
the opportunity to be part of a vehicle option package, and will allow Ford to
acquire a minority stake in Code-Alarm over a five-year period through an
equity incentive program.

    Code-Alarm will work with Ford Motor Company to introduce PowerCode
Technology, a revolutionary package of comfort, convenience and security
options, to the Dearborn, Mich.-based original equipment manufacturer (OEM)
and its stable of brands.  PowerCode offers remote start, keyless entry,
complete security and other features, to be defined by Ford brand management
in concert with Code-Alarm, in a system that can be customized to help
differentiate Ford Motor Company models and platforms.

    "Consumer interest in the comfort, convenience and security category has
never been higher -- and automakers know that," said Peter Stouffer, president
and CEO of Code-Alarm.  "We are pleased to work with Ford to deliver the
technology that allows drivers to personalize their vehicles with today's most
popular comfort, convenience and security options.  More purchasing decisions
are being made based on vehicle electronics and interiors, and that makes
PowerCode Technology an appealing part of any option package."

    Ford's Janine Bay said:  "Code-Alarm is committed to developing new and
innovative products.  We are pleased that this agreement will allow Ford
customers the option to choose safety and convenience features.  It also
allows Ford to be first to market with a product that will surprise and
delight our customers."  Bay is the managing director of global vehicle
personalization in the automotive consumer services group of Ford Motor
Company.

    PowerCode's "plug and play" technology brings comfort, convenience and
security to vehicle owners.  It offers a main controller module, which runs
interchangeable software cartridges that allow drivers to start their vehicles
from the comfort of their home or office, open sliding minivan doors when
they're struggling with an armload of groceries or defrost their rear window
-- all with the touch of a key fob.  Code-Alarm's initial menu of options for
PowerCode includes more than 100 comfort, convenience and security features
that can be combined to customize the vehicle to the driver's specifications.

    Code-Alarm engineers have developed a proprietary software language that
allows the Company to bring new feature sets to market in less than half the
time of traditional products.  PowerCode Technology's software-based format
makes upgrading convenient and cost effective through Ford's dealer network.
Once the main controller module is installed in the vehicle, consumers can add
features by purchasing additional software cartridges.

    "PowerCode Technology represents an ongoing sales opportunity," said
Michael Schroeder, vice president OEM and business development for Code-Alarm.
"Consumers can upgrade quickly and easily at any point during the sale process
-- or after the sale has been finalized.  Drivers will never outgrow PowerCode
Technology because new features will continue to be developed and introduced."

    Douglas Graham, chairman of Code-Alarm, said:  "This agreement
demonstrates Ford's initial confidence in our technology and our Company.  We
appreciate Ford's commitment to our future success, and look forward to a
long-term partnership that will be mutually beneficial."