MADISON HEIGHTS, Michigan, September 5, 2000 - After 10 years of producing remote car starters for the aftermarket, Code-Alarm, Inc. (OTC: CODL) has unveiled its first remote starter product to be branded by an original equipment manufacturer (OEM).

The Madison Heights, Mich. manufacturer of vehicle security and convenience systems said that it is developing and producing the technology for Ford Motor Co. (NYSE: F). The automaker's Customer Service Division will offer Code-Alarm's remote starter as a Ford-branded option at its North American dealerships as part of a plan to grow sales of automotive accessories at the dealership level.

"From the hand crank to the electric ignition to the simple touch of a button, the way we start our vehicles has changed dramatically over the past 100 years," said Michael Schroeder, vice president of marketing and business development. "We are pleased that Ford has joined with Code-Alarm to be the first automaker to offer this innovative option as a dealer-installed, branded accessory for its customers.

"We are excited that Ford is putting its name on Code-Alarm technology in order to bring drivers this increasingly high-demand product. Ford is now the only OEM in the world that can offer an approved remote car start product, another distinction that will keep the automaker a step ahead of the competition."

Beginning today, Ford and Lincoln Mercury customers can have a Code-Alarm remote starter installed on any car, truck, van or sport utility vehicle (SUV) equipped with an automatic transmission. The new product will be launched to coincide with the Ford's 2001 model year introduction. The remote starters allow drivers to start their vehicles with the push of a button up to 500 feet away in order to warm up the engine and heat or cool the interior prior to driving.

"Remote starters are particularly popular items during cold-weather months in northern climates, when you want your vehicle to be warm by the time you get into it, and during warm-weather months in southern climates, when you want your vehicle to be cool," said Jim Gillette, vice president of International Resource Network, Inc., a Grand Rapids firm that tracks the auto industry and advises suppliers. "As with other electronic options for vehicles, remote starters are enjoying increasing popularity and market penetration."

"I think Code-Alarm and Ford will do very well by partnering to introduce a branded remote starter. Putting a Ford badge on Code-Alarm's technology will give the dealer a high level of credibility, as such branding is really worth a price premium. Offering the remote starter at the dealer level will make it an easy add-on option for consumers and allow dealers to enjoy margin benefits. I think other OEMs will be interested in this technology."

Code-Alarm will use a "good-better-best" approach to produce three remote-starter products for Ford, under the names Bronze, Silver and Gold. The Bronze package features the long-range remote starter, car find and panic alert; the Silver package adds remote keyless entry and trunk release to the remote starter; and the Gold package adds complete vehicle and content security to the remote starter and keyless entry options.

The Gold model features additional security and convenience options, including:

• Theft protection against glass breakage, towing and vehicle/content damage
• Vehicle starter disabling
• Optional remote control rear window defroster activation and remote headlight illumination

Code-Alarm began working with Ford officials 18 months ago to develop and bring to market this first branded OEM remote starter. Schroeder said Code-Alarm trimmed six to eight months off the typical development timetable in order to bring the product to market in August. He expects the first-month orders will bring in between $600,000 and $1 million to Code-Alarm, with the potential of adding $4 million to $6 million in revenue to the company after its first 12 months on the market.

"We see this partnership with Ford as a cornerstone in our plan to regenerate top-line growth and bottom-line profitability at Code-Alarm," Schroeder said. "Next month, Code-Alarm plans to launch an exciting new technology that we know will revolutionize the mobile electronics marketplace. Ford's adoption of the remote starter technology now means it will be well positioned to take full advantage of our new cutting-edge products over the months to come."

About Code-Alarm

Code-Alarm manufactures car security and remote keyless-entry products for the world's top automakers, including General Motors, Ford, DaimlerChrysler, Mitsubishi, Subaru, Honda, Toyota, Kia, Mazda and Volkswagen. The company also sells its products in 2,000 locations in 35 countries around the globe under the Code-Alarm and Chapman® brand names.

Code-Alarm builds its products to automotive specifications and is certified under the QS-9000 quality system designated by the Big Three. Drawing on more than 20 years experience working with the world's top automakers, Code-Alarm's systems are designed specifically to work with the sophisticated electrical systems found in today's cars, trucks, minivans and sport utility vehicles. Code-Alarm employs more than 30 engineers and technical specialists who work closely with automotive engineers on three core product categories: vehicle security and content protection, remote keyless-entry and remote car starters. Visit Code-Alarm on the web at www.code-alarm.com

SOURCE: Code-Alarm, Inc.