Grundig Selects Wavecom to Equip Truck On-Board Units

Wavecom to Provide Wireless Connectivity for Germany's Pioneering Truck Toll System "Toll Collect"

Issy-les-Moulineaux, France – 20 March 2003 – Wavecom SA (Nasdaq: WVCM; Euronext Nouveau Marché: 7306) today announced the signature of a contract with Grundig AG. Under the terms of the contract, Wavecom will deliver wireless technology for integration into on-board terminals designed by Grundig's Car InterMedia System business unit for use in trucks under Germany's "Toll Collect" system. Grundig has selected Wavecom's WISMO Quik hardware platform with GPRS software, and the contract calls for the delivery of 400,000 units.

Toll Collect, an electronic motorway toll program for heavy commercial vehicles, is Germany's answer to the Europe-wide issue of road toll. Based on an automated toll charging process, it eliminates the need to construct toll booths along the highway, thereby relieving traffic congestion and reducing infrastructure investments – key concerns for a country facing an increase in goods transport of up to 60% by 2015. The program is also intended to fund rising highway maintenance costs, and the German transport minister has estimated that the revenues from the tolls will total 3.37 billion euros annually.

In order to provide the data needed for automatic toll charge calculation, Grundig's on-board terminals combine Global Positioning System (GPS) and GSM technology. GPS is used to pinpoint precisely the truck's position and calculate its mileage. Thanks to the wireless connectivity provided by Wavecom, the information is transmitted over the GSM network to a Toll Collect central, which invoices the vehicle owners every month based on the data received.

Grundig's sophisticated on-board terminals also enable vehicle owners themselves to use the location and mileage information collected, notably for fleet management initiatives such as navigation assistance and load tracking.

Commenting on the agreement, Charles Chaussonnier, Sales Director EMEA (Europe, Middle East and Africa) at Wavecom, said: "We are delighted that our technology has been selected for such a pivotal and high-profile initiative. Grundig's decision to incorporate our solutions into its on-board units underlines industry confidence in our know-how."

Michael Daucher, General Manager Transport & Traffic at Grundig, outlining the factors behind the choice of Wavecom, said: "We were convinced by Wavecom's market expertise, proven technology and manufacturing processes designed to comply with the automotive industry's quality standards. We very much look forward to working together with Wavecom on this pioneering project."

Deliveries of WISMO modules will start by the end of the first quarter of 2003 and are expected to be completed within a maximum of two years. Grundig's first wireless-enabled on-board units are scheduled to hit the road in the third quarter of 2003.