Delphi Technologies Inc., Forms New Antenna Company
DTI seeks to commercialize innovative Self-Structuring Antenna technology
Release Date: April 23, 2007
TROY, Mich. — Delphi Technologies Inc. (DTI), a Delphi Corp. (PINKSHEETS: DPHIQ) subsidiary, in conjunction with Michigan State University and Automation Alley have formed a new antenna company called Monarch Antenna, Inc., company officials announced today.
Monarch has been created to commercialize innovative Self-Structuring Antenna (SSA) technology, developed by Delphi and Michigan State University. The business will be predominantly focused on high-growth wireless segments.
The new company will be headquartered in Ann Arbor, Mich., at SPARK, a Michigan SmartZone. The location will allow Monarch engineers to take advantage of SPARK's incubator facilities while being relatively close to MSU's antenna facilities in East Lansing, Mich.
SSA uses a microprocessor-based feedback system to alter its electrical shape through RF relays, allowing it to dynamically respond to changes in the RF signal environment — and thereby providing a robust performance in mobile applications. The technology will benefit directly from the advances in the RF relay/switch technologies such as micro-electromechanical systems (MEMS-) in applications beyond 24 GHz, which is the operational limit for today's state-of-the-art solid-state relays.
The new company will have its day-to-day operations managed by Dr. Tayfun Ozdemir, who will serve as Monarch's chief technical and operating officer. Ozdemir, 44, has been the CEO of VirtualEM, a R&D business focused on developing modeling software for antenna systems for the U.S. Navy under federal grants.
"Antenna technologies are rapidly evolving to respond to increased demands of the wireless applications," said Tim Forbes, director for Delphi's new markets, commercialization and licensing. "Delphi and MSU have developed a premium level antenna technology that is elegantly sophisticated and can potentially provide enhanced and reliable two-way communication link while reducing the complexity of multiple antennas in devices."
Antenna performance determines, to a great extent, how well the wireless device will perform its functions. Major disappointments for consumers with today's wireless devices are dropped calls, poor line quality, "dead spots" and short battery life, all of which can be traced to poor antenna performance. Antenna shortcomings are also slowing down the release of third- and forth-generation (3G and 4G) devices because such devices require more bandwidth for richer content delivery. SSA technology has the potential to address the issues cited above while offering an integrated antenna solution for a multitude of services such as Cellular, Bluetooth, Wi-Fi, and WiMax.
Ready to develop prototypes, Monarch will initially seek original equipment manufacturer (OEM) and supplier development contracts to confirm, design, prototype and validate SSA for a wide range of applications including laptops, home entertainment systems, computers, routers, military networks, cell phones, consumer products and automotive.
Delphi's decision to support the formation of Monarch is the latest step in DTI's efforts to commercialize and license technologies and methods, which have strong potential benefits in alternative new markets.
"The formation of Monarch follows the creation of SpaceForm, Inc., in 2005, and is another example of Delphi's strategy to place promising non-core technologies into start-up companies that partner with entrepreneurs, venture capitalists, and strategic partners who are committed to building a successful start-up company," said Jayson D. Pankin, new venture creation specialist at Delphi Technologies, Inc., and co-founder of Monarch.
Monarch has been selected to participate at the Michigan Growth Capital Symposium in Ann Arbor in May 2007 and to present a scientific paper at the Antenna Systems Conference, in Denver in September 2007. Monarch's technology was also selected for presentation at Navy's Advanced Technology Review Board meeting held in Lexington Park, Maryland in April 2007.
Funding for the company comes from an investment by Automation Alley, southeast Michigan's business organization dedicated to advancing business opportunities through the development of new technology applications. Delphi's support will be provided through a SSA license. MSU will also contribute a license to SSA technology which together with Delphi's license will give Monarch a potentially dominate intellectual property position in the self structuring antenna field. In addition, Monarch is seeking grant funding from the federal government for military applications.
For more information on MONARCH visit its website at www.monarchantenna.com.
For more information about Delphi and its subsidiaries, visit www.delphi.com.
FORWARD-LOOKING STATEMENT
This press release, as well as other statements made by Delphi may contain forward-looking statements, 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. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. 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 debtor-in-possession financing facility; the terms of any reorganization plan ultimately confirmed; the Company's ability to obtain Court approval with respect to motions in the chapter 11 cases 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; the Company's ability to satisfy the terms and conditions of the Equity Purchase and Commitment Agreement (including the Company's ability to achieve consensual agreements with GM and its U.S. labor unions on a timely basis that are acceptable to the Plan Investors in their sole discretion); the Company's ability to satisfy the terms and conditions of the Plan Framework Support Agreement; 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 (including the transformation plan described in Note 2, Transformation Plan and Chapter 11 Bankruptcy, of our Annual Report on Form 10-K for the year ended December 31, 2006) and to do so in a timely manner; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Annual Report on Form 10-K for the year ended December 31, 2006, including the risk factors in Part I, Item 1A. Risk Factors, contained therein. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/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 prepetition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy cases to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. In addition, under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to prepetition liabilities.
David Bodkin
david.g.bodkin@delphi.com
[1] 248.813.2535
