Motorola MOT and Mercedes-Benz USA (MBUSA) today announced the deployment of Tele Aid, a Telematics system developed with Motorola, as a standard feature on all Model Year 2001 Mercedes-Benz vehicles. This decision by Mercedes represents an agreement valued at more than $225 million in Motorola's Telematics hardware over the next four years. As the first automotive manufacturer to offer in-vehicle Telematics systems as standard across an entire vehicle line, Mercedes-Benz is further demonstrating its commitment to driver safety, convenience and security. The Tele Aid system provides MBUSA with the ability to offer several different services, including automatic emergency response, roadside assistance and product information, such as answering vehicle questions or providing retailer information. MBUSA is providing the Tele Aid service free of charge for the first year.

To further exhibit the significance of Tele Aid's widespread availability, Motorola will launch a print advertising campaign about the new standard Tele Aid feature. These ads will appear in automotive trade publications and select editions of general business publications to extend the reach to a broad base of technology professionals.

Motorola's Telematics technologies are the driving force behind the Mercedes-Benz Tele Aid system. Tele Aid is another example of Motorola's DigitalDNA(TM) technology-chips, systems and ideas that help smart companies create smart products. The Tele Aid system incorporates Motorola's Telematics Communication Unit (TCU(TM)) -- a Motorola GPS receiver and wireless communications technology, combined with cellular voice and data transmission capabilities. The Motorola TCU, one of the market's leading Telematics units in terms of sales and advanced technology, was developed specifically for the automotive environment.

"We're pleased that MBUSA has utilized Motorola's state-of the-art Telematics technology and is offering Tele Aid as a standard feature in all its vehicles," said Marios Zenios, corporate vice president and general manager, Motorola's Telematics Communications Group. "The availability of Tele Aid is a great example of how the proliferation of Telematics systems is spurring demand and changing the face of the automotive industry.

"The Tele Aid system is a valuable feature to MBUSA customers," said Ken Enders, vice president of sales and marketing, MBUSA. "Since the safety and security of Mercedes-Benz drivers is of the utmost importance, it's only natural to offer this feature as standard. With Motorola's help, we look forward to further development of this vital system."

About Mercedes-Benz USA

Mercedes-Benz USA, a Daimler Chrysler company, is headquartered in Montvale, New Jersey and employs approximately 1,500 people in 20 locations across the U.S. Through a nationwide network of over 300 retailers, Mercedes-Benz sold 189,437 vehicles in the U.S. during 1999, an 11 percent increase over the previous year, setting the highest sales volume ever in its history. Currently over eight percent ahead of last year, the company expects to set a new sales record in 2000.

Motorola IESS

The Integrated Electronic Systems Sector (IESS) is part of Motorola, Inc. MOT. IESS is a leading provider of advanced electronic products and systems for customers integrating electronics into their products. The Telematics Communications Group (TCG) is a business unit of Motorola IESS. TCG was formed in 1998 and focuses on emerging automotive communications markets for advanced wireless applications.Motorola, Inc. MOT is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1999 were $33.1 billion.