1. North American Automotive Entertainment and Navigation Systems Market New Products Flood the Burgeoning Market “Emerging automotive entertainment and navigation applications such as satellite radio and compressed-audio (MP3) playback systems are providing fresh growth opportunities for the North American mobile electronics manufacturers.” Ground Transportation Analyst Team Frost & Sullivan

2. Relatively new applications - satellite radio and compressed audio systems - are expected to grow four times as fast as rear-seat entertainment and navigation systems Technological advances and increasing economies of scales continue to drive price declines Current high rate of innovation and new product introduction will continue through the medium-term (2003-2005) and slow down thereafter As applications mature and product-features/functions stabilize, manufacturers will increasingly integrate them into the radio head unit to provide a single point of control and to reduce form-factor and system cost Multiple product configurations will support a growing range of vehicle segments and customer demographics Key Industry Trends

3. DVD’s superior performance is driving rapid replacement of other storage media in multimedia applications XM satellite radio systems have gained a big early lead over Sirius system Vehicle owners with small children prefer systems with driver- operated single-point controls, while adults without children or with grown-up children prefer systems with distributed controls Greater ease-of-use of voice and touch-screen based HMIs is driving replacement of other HMIs Emergence of Integrated Driver Information Systems to cost- effectively support increasing range of applications, functions, and features in scarce vehicle space Wirelessly networked systems based on 802.11 and Bluetooth technology are under developed, expected to be commercially available by 2005 Industry Trends

4. Frost & Sullivan provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications Market sizing and competitive analysis Market forecasts and demand analysis Threats and opportunities analysis Key Features

5. Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise growth plans What We Offer

6. Current Market Participants Find out how you compare to the competition Assess current and future drivers and restraints Determine and exploit new market share opportunities New Entrants Analyze challenges associated with the industry Calculate time scales for strategy implementation Position yourself to capitalize on the market’s unmet needs Investment Community Analyze long-term strategies of market participants Determine which participants will outperform the competition Assess the attractiveness of investments in the market Who Will Benefit?

7. Rear-Seat Entertainment System Market: Video Monitors Video Source Units Audio/Video Distributor and Controller FM Modulators Infrared (IR) Remote Control Headphones Navigation System Market: Display and User Interface Module Navigation Module (On-Board Computer and Optical Disc Drive) Global Positioning System (GPS) Receiver What’s Covered

8. Satellite Radio System Market: Antenna Radio Receiver Unit (RRU) Radio Frequency (RF) Modulator Cassette Adapter Cigarette Adapter (For Portable Units) Radio Control Unit (RCU) Wireless Remote Control Compressed-Audio Player Market: CD-R/RW-Based Players HDD-Based Players Solid-State Memory-Based Players What’s Covered (Cont’d)

9. Key Market Participants Alpine Electronics of America, Inc. Audiovox Electronics Corp. Blaupunkt USA/ The Robert Bosch Corp. Clarion Corp. of America Delphi Delco Electronics Systems/ Delphi Corp. DENSO International America, Inc. Johnson Controls, Inc. JVC Americas Corp. Kenwood USA Corp. Lear Corp. Mitsubishi Electric Automotive America, Inc. Panasonic Automotive Electronics Co. Pioneer North America, Inc. Recoton Corp. Siemens VDO Automotive Corp. Sony Corp. of America Thales Navigation, Inc. Visteon Corp. (Automotive Systems) Xanavi Informatics Corp.

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