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As Digital Content Moves into Cars, CD Players Begin to Move Out

      -- Continental reduces the radio to the size of a large Postcard
         -- Automotive Industry Gains More Interior Design Freedom
      -- Digital Media Connectivity achieved via SD, USB, iPod(R) and
                                Bluetooth(R)

    AUBURN HILLS, Mich., Oct. 20 /PRNewswire/ -- As a partner to the
automotive industry, Continental continues to answer consumers' calls by
developing in-vehicle electronics that meet the demands of their digital
lifestyles. Today, Continental unveiled its Flat Panel Radio which is
designed without a CD player. The high-tech radio is small but packs a
punch. The single-tuner digital radio connects consumer's portable devices
-- USB, SD memory card or MP3 players -- providing easy access to digital
music. The radio also contains Bluetooth(R) technology, enabling vehicle
occupants to place and receive hands-free phone calls or wirelessly stream
digital music so it can be heard through the vehicle audio system.

    Consumers Rock the Vote: Personalization & Digital Music Win

    According to Continental and independent industry research, CD sales
have been on the decline since 2004. Research has shown that sales of
digital music singles grew 45 percent -- from 582 million in 2006 to a
total of 844 million in 2007. Continental believes that digital singles
will continue to experience tremendous growth and has designed its Flat
Panel Radio to help automakers prepare for this trend.

    Industry analyst Thilo Koslowski, vice president of Gartner's
Automotive and Vehicle ICT Manufacturing Industry Advisory Service, agrees
with the trend and says, "CDs will not go extinct anytime soon, but within
four to five years - a relatively short time in automotive terms - we
expect digital music to exceed CD sales in units and revenue. Furthermore,
consumer interest in digital media playback in vehicles has grown
significantly over the last two years."

    A recent research study conducted by Gartner confirmed the trend and
showed that 12 percent of U.S. consumers definitely want to get the
functionality of integrating their digital media player in their next car.
An additional 27 percent expressed a very strong interest.

    According to Dr. Ruf, head of Continental's Multimedia Business Unit,
"We are living in a digital world and Continental is clearly focused on
adapting the trends that are appearing in consumer culture for the car. The
market is going in the direction of enabling flash based memory to lower
warranty cost and at the same time to allow an easy and safe connection and
operation of mobile devices in the car. Continental has combined both these
trends into one product and presented a solution that integrates this
technology in an intelligent manner into the car."

    Stylish and Compact Design

    Designed in a sleek chrome finish, Continental's Flat Panel Radio is
about the size of a large postcard and measures approximately 7 inches wide
by 4 inches high. Because the radio contains a Class D amplifier,
Continental has designed the product without a "silver box," or all the
metal and components required to house a CD player. The radio, which
operates more efficiently than those that contain a class A/B amplifier, is
an economical solution that is well suited for mass market cars. The radio
also weighs about three pounds less than a traditional car radio, which
contributes to enhanced fuel economy. And, the depth of the radio, about
1.5 inches, enhances in-vehicle interior design options by providing
engineers with more freedom to position the radio in the vehicle instrument
panel.

    Driving A Digital World

    The Flat Panel Radio's ergonomic controls are functional and include a
large dot-matrix display that provides artist and song title information. A
phone keypad also doubles as an intuitive method for programming and
accessing pre-set radio stations. The radio is capable of handling 4 GB of
storage from an SD card and the system library can typically process more
than 30,000 songs.

    Continental's Flat Panel Radio is currently available to automotive
OEMs as a factory-fit solution for future vehicle platforms. The product
could appear in the North American market as early as 2010.

    The Continental Corporation is one of the top automotive suppliers
worldwide. As a supplier of brake systems, systems and components for the
powertrain and chassis, instrumentation, infotainment solutions, vehicle
electronics, tires and technical elastomers, the corporation contributes
towards enhanced driving safety and protection of the global climate.
Continental is also a competent partner in networked automobile
communication. Today, the corporation employs approximately 150,000 people
at nearly 200 locations in 36 countries.

    Supplying both OEMs and the aftermarket worldwide, the Interior
Division of Continental AG develops and produces electronic systems which
allow the information in a vehicle to be controlled and communicated
according to the requirements of the driver and the driving situation. The
Division currently achieves annual sales exceeding euro 6 billion (based on
figures for 2006) with a workforce of more than 33,000. The range of
products includes instruments clusters and multifunctional displays,
control units, electronic car entry systems, tire information systems,
climate control systems, radios, multimedia and navigation systems,
telematic solutions as well as cockpit modules and systems. The Interior
Division develops vehicle electronics enabling car-to-car and
car-to-infrastructure communication, Internet access and the seamless
integration of mobile devices (car-to-device). The focus on systems
integration offers customers less complexity and ensures efficient and
cost-effective solutions for the management of information in passenger
cars as well as commercial and special vehicles.

    Corporate Media Database: http://www.continental-corporation.com

    iPod(R) is a registered trademark of Apple Computer Inc. The Bluetooth
trademarks are owned by their proprietor and used by Continental under
license.



SOURCE Continental




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    CONTACT:
    Sue Frederick of Continental,
    +1-248-790-7277, sue.frederick@continental-corporation.com