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Continental and Microsoft Enter Into Strategic Alliance to Develop Mobile Device Platform

    AUBURN HILLS, Mich. and FRANKFURT AM MAIN, Germany, Jan. 8 /PRNewswire/
-- Continental Automotive Systems announced today that it has entered into
a global strategic alliance with Microsoft to integrate the Microsoft Auto
software into its next generation Telematics gateway. The companies also
have been awarded their first contract by Ford Motor Company. The
Continental Telematics gateway will be introduced on Ford Motor Company
products later this year in an in-car communications system called Ford
Sync(TM).
    Continental's next generation Telematics gateway will wirelessly
connect certain consumer electronic devices, like mobile phones or digital
music players, to a vehicle audio system. The system also includes a USB
port so a driver will have multiple options and can choose how they prefer
to easily carry, play and listen to their personal music collection from
inside the car. The product, which also will be voice-operated, will
provide consumers with a more convenient way to "control" and use their
portable devices while inside the car.
    "Continental is at the forefront of the Telematics industry and is
changing the way drivers access content inside their car," said Kieran
O'Sullivan, senior vice president of the Telematics Business Unit and
member of the Continental Automotive Systems Management Board. "Our
telematics products connect cars and the people who drive them so that
together, with our customers, we can enhance vehicle convenience, mobility
and safety."
    "Microsoft is applying its software engineering expertise toward
providing the auto industry with a reliable and flexible platform," said
Martin Thall, general manager of the Automotive Business Unit at Microsoft.
"Together, Continental and Microsoft are creating innovative solutions for
drivers and passengers for today and tomorrow. With this new generation of
in-car systems based on the Microsoft Auto platform, motorists have a
simple, integrated and updateable solution for using their portable devices
in the car."
    By working together, Continental and Microsoft are developing products
that will help their automotive customers speed their time-to-market when
introducing innovative, consumer electronic technologies in future vehicle
platforms.
    As part of its four pillar Telematics strategy that was announced last
year, Continental Automotive Systems is making individual mobility more
convenient and fun by uniting the trends appearing in consumer culture and
applying them to the car.
    About Continental
    The Continental Corporation is a leading automotive supplier of brake
systems, chassis components, vehicle electronics, tires and technical
elastomers. In 2005 the corporation realized sales of 13.8 billion euros.
At present it has a worldwide workforce of around 85,000.
    As a leading global technology and systems engineering partner to the
automotive industry, the Automotive Systems Division of Continental AG
combines comprehensive know-how and uncompromising quality in the areas of
active and passive driving safety, telematics, hands-free communication
systems, drive systems and comfort. In 2005, this Division generated sales
of roughly 5.2 billion euros with a workforce of more than 24,000.
Continental Automotive Systems develops and produces electronic and
hydraulic brake, stability and suspension control systems, electronic
pneumatic suspension systems, sensors, engine management and transmission
control systems, hybrid drives, radiator fan modules and electronic devices
for comfort and safety applications and is a leading global producer of
telematics and communications solutions for the automotive sector.


SOURCE Continental AG




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    CONTACT:
    Sue Frederick, Manager of Communications of
    Continental Automotive Systems Division, +1-248-393-5273, or
    Cell, +1-248-790-7277, or Sue.Frederick@us.contiautomotive.com