ONDAS Media Selects Delphi as First Strategic Investor and Technology Provider to Help Bring Satellite Radio to Europe
Release Date: January 04, 2006
LAS VEGAS -- Delphi Corp. announced today that it has become a strategic investor and technology provider for ONDAS Media SA, (ONDAS) the premier European satellite radio company.
Delphi made the announcement at its media briefing here today at the 2006 International Consumer Electronics Show. Delphi officials said the company has made significant cash strategic investment in ONDAS.
ONDAS expects to launch a full subscription-based satellite radio service in 2009 with more than 150 channels of music, sports, news and entertainment as well as digital telematics and data services across Europe.
In addition to being a strategic investor, Delphi will also provide hardware for ONDAS, be represented on ONDAS' board of directors, and provide input into the company's business and technology strategies.
On the basis of its many years of experience as a supplier of hardware to three different satellite radio broadcasting companies in the United States, Canada, and Asia, Delphi will design and manufacture satellite terminals, OEM receivers and portable electronics equipment capable of receiving the satellite audio, video and data information from ONDAS. Delphi will establish a European satellite radio innovation center in Germany in 2006 to develop these new products.
"We are certainly excited to help introduce satellite radio to Europe," said Bob Schumacher, general director of advanced product development and business strategy at Delphi Electronics & Safety. "We believe satellite radio will revolutionize the European audio broadcast industry across the continent by offering consumers a lot more choices that are aligned with today's lifestyles."
Delphi was the first OEM supplier to sign licensing agreements with both U.S. companies and currently leads the U.S. market in the number of satellite radios sold.
"This is an outstanding opportunity for Delphi to grow in an important market, both with automakers and retailers," said Joe Damato, director, consumer electronics Delphi Products & Service Solutions. "We're excited to be on the forefront of satellite radio yet again, and look forward to leveraging our experience, expertise and relationships to help ONDAS succeed."
ONDAS will offer Europeans more than 150 channels of proprietary and re-distributed music, sports, news, weather, traffic and special interest programming in various European languages. The programming will be delivered via satellite in superior digital quality, enabling listeners to enjoy crystal clear, no-fade, broadcasts in Europe while they are on the move. In addition, ONDAS will provide customers with real-time traffic and other tailored telematics data services.
"We are thrilled to welcome Delphi on board as our strategic investor and key technology provider," said Celso Azevedo, chief executive officer, ONDAS. "As Europe continues to be marked by a shortage of digital capacity, ONDAS is in the pole position to bring European customers the unparalleled depth and breadth of media content they have never been able to enjoy.
"Our fully integrated and state-of-the-art technology and unique satellite configuration enables us to deliver a carefully selected and well-balanced mix of Pan-European and dedicated local content," he said. "Europe's diversity in languages and cultures, often seen as a possible deterrent for Pan-European satellite radio, is in reality a fantastic opportunity for ONDAS and Delphi to address a largely untapped market together. We believe Delphi is uniquely positioned to combine economies of scale and global synergies with technology expertise to meet the needs of ONDAS' future subscribers."
Azevedo was named CEO of ONDAS in 2005. In addition to securing further investment and supporting the necessary regulatory process throughout Europe, ONDAS Media is establishing strategic partnerships with European OEMs. Satellite radio took off in the United States in 2001 and the number of subscribers for the two American companies has grown rapidly, with over 9 million subscribers between both of them at the end of 2005.
As the leading provider of satellite reception hardware, Delphi has already taken satellite radio to the next step of integration. While most units on the market today use separate receiver and head units, Delphi has developed and is providing OEM satellite radio systems without a remote satellite receiver. These systems save precious vehicle space for platform engineers by integrating the receiver into the radio head unit.
Delphi has been producing radios since 1936 and currently produces more than 7 million OEM receivers per year and more than 270 million since its inception. Delphi has also been first in a number of radio new technologies including: the first to install a radio in the instrument panel of a vehicle; the first push button mechanical radio; the first successful signal seeking radio; the introduction of the favorite station version of signal seeking radio; the introduction of first completely transistorized radio, DVD rear seat entertainment, electronic tuning, and MP3 playbacks; and the first factory-installed mobile satellite radio.
For more information on Delphi, go to www.delphi.com.
ONDAS MEDIA (ONDAS) is a pan-European media company based in Madrid. ONDAS focuses on delivering unparalleled breadth and depth of media content in superior digital quality to European consumers. With its fully integrated, state-of-the-art digital satellite transmission network, ONDAS intends to broadcast its multi-lingual radio, music, video, data and telematics services directly to European consumers in their automobiles, trucks, homes, offices and to their mobile and portable devices.
ONDAS is scheduled to launch its pan-European subscription-based services at the end of 2009.
Alegro Capital and ING acted as exclusive financial advisers to ONDAS on Delphi's investment in the Company.
Note: Satellite reception depends on the ability of the antenna to receive a signal. The signal may not be available in buildings or if obstructed (e.g. by mountains, trees, bridges, etc.)
This press release as well as other statements made by Delphi may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the DIP facility; the Company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company's SEC reports, including, but not limited to the annual report on Form 10-K for the year ended December 31, 2005 and its most recent quarterly report on Form 10-Q and current reports on Form 8-K Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
Grapevine PR, ONDAS