---

Microsoft and Bosch to Bring the Internet to the Auto

27 September 2000

Microsoft and Bosch to Bring the Internet to the Automobile With Windows CE For Automotive Software Platform

   Will Include Wireless Data-Capable Information and Entertainment Systems

    REDMOND, Wash., Sept. 27 Microsoft Corp.
today announced a strategic alliance with the Blaupunkt subsidiary of Robert
Bosch GmbH, a worldwide leader in advanced automotive electronics, to create a
comprehensive family of powerful in-vehicle computing and communicating
products, including navigation and telematics (wireless data delivery)
devices. Based on the Microsoft(R) Windows(R) CE for Automotive software
platform, these devices will combine Internet connectivity with traditional
car navigation and route-planning functions, as well as entertainment systems
for drivers and passengers.
       Experts predict that 50 percent of all new cars and 90 percent of the
higher-end models will have telematics-capable appliances by 2006 (source:
Strategy Analytics). With more than 55 million new cars sold annually and
650 million cars registered worldwide, the potential for automotive telematics
is staggering. According to the Westwind Research Group, subscription services
such as Internet access for these devices is expected to become a $20 billion
industry by 2005. Americans alone spend more than 500 million "commuter hours"
per week in the car (source:  U.S. Department of Transportation, 1995).
    Consumers are increasingly demanding better safety and security
capabilities in new vehicles, as well as the latest in entertainment systems.
Internet-based information services such as news, traffic updates, instant
messaging and navigation assistance, as well as DVD-based entertainment
systems, are key elements in meeting these demands. The need to integrate the
delivery and display of this rich data across many different products and
vehicles has complicated the design of in-vehicle telematics devices, making
it critical that developers and manufacturers use a common platform for the
software that powers each of the devices.
    "We at Blaupunkt have decided in favor of selecting Windows CE for
Automotive as our preferred development platform for future navigation,
telematics and a range of smart devices," said Andreas Eppinger, managing
director of development at the Blaupunkt subsidiary. "This allows us to
accelerate development cycles and speed up the rollout of an intelligent
software platform for telematics applications."
    "Alliances like this confirm our conviction that as in-vehicle computing
systems evolve, the industry will benefit from an open platform environment
such as Microsoft Windows CE for Automotive," said Joachim Kempin, senior vice
president of sales for Microsoft. "It provides great technology on which to
build a rich selection of applications and services that are optimized for the
automotive user experience."
    The companies hope to bring their first products, including OEM and
aftermarket devices, to market in 2001.
    Microsoft's alliance with Bosch follows a major win last week in Japan,
where the Windows CE for Automotive Forum was created. The forum includes
five of Japan's largest suppliers of automotive accessories, all of whom
intend to standardize their development environments on Windows.
    "For quite some time, people have been measuring the success of the
Windows CE platform in only the handheld space," said Kempin. "Certainly we've
had some terrific wins recently with our Pocket PC. But we believe there's
significantly greater business and growth opportunity for Windows CE in areas
like automotive accessories."