Final Ruling on Tire Pressure Monitoring Favorable to Direct Method Supported by RFM
DALLAS--(BUSINESS WIRE)----RF Monolithics, Inc. (RFM) (Nasdaq:RFMI) announced today that it expects that the final ruling from the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) dated April 7, 2005, will prove favorable to the direct method of tire pressure monitoring supported by RFM's low-power components. The new safety standard ruling requires all new vehicles manufactured for sale in the United States after September 1, 2007, to be equipped with tire pressure monitoring systems (TPMS) that will detect when one or more of the vehicle's tires are 25 percent or more below the recommended inflation pressure. RFM is unaware of any technology other than the direct method currently available that can satisfy the new standards, although other technologies might be developed or improved to satisfy the NHTSA's ruling.
The TPMS was required by Congress when it enacted the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act in 2000. RFM has provided wireless components in TPMS for suppliers to original equipment manufacturers (OEMs) since the technology was first commercialized domestically in 1996. Since then, RFM has continued to develop dependable wireless products and solutions for the automotive industry which enable TPMS to operate in the harsh environment to which vehicles and tires are exposed.
"RFM has been anticipating the NHTSA's final ruling in compliance with the TREAD Act, and we have planned our product development to capitalize on this opportunity with smaller, more robust products. We are the major supplier of surface acoustic wave (SAW) components to the world's largest TPMS manufacturer and believe this final ruling will have a positive effect on our component shipments for the second half of fiscal 2005, and a substantially greater effect on unit shipments in our 2006 and 2007 fiscal years," stated Larry Miller, Product Manager for RFM's Low-Power Group.
David M. Kirk, President and Chief Executive Office of RFM, stated, "The automotive industry is a market in which we have a long history of success in providing products for low-power wireless solutions used in applications like TPMS. We are unable to quantify what kind of shipment increase to expect for the remainder of fiscal 2005 due to the slowing auto schedules and the carry forward calculations allowed in the final ruling. However, over the last year, we have shipped nearly 9 million components for TPMS. Additionally, while the NHTSA's ruling affects automotive production for vehicles sold in the United States only, there is a rising sentiment in Europe for additional safety measures to reduce traffic accidents. It is reasonable to expect similar TPMS standards to become mandatory in Europe in the near future."
The final Federal Motor Vehicle Safety Standard covers an estimated 16 to 17 million new vehicles sold in the U.S. annually requiring automotive manufacturers to equip all new vehicles with TPMS under a three-year phase-in schedule: 20 percent of manufacturers' light vehicles are required to comply with the standard during the period from October 5, 2005 to August 31, 2006; 70 percent during the period from September 1, 2006 to August 31, 2007, and all light vehicles thereafter. The final ruling can be viewed on NHTSA's website: www.nhtsa.gov. According to the Alliance of Automobile Manufacturers, the automotive industry was well on its way toward meeting the original requirements with about 10 percent of new cars already being offered with "direct" TPMS. These vehicles will be credited against the initial 20 percent requirement.
About RFM
Celebrating over 25 years of low-power wireless solutions, RFM, headquartered in Dallas, is a leading designer, developer, manufacturer and supplier of radio frequency wireless solutions enabling wireless connectivity for the automotive, consumer, industrial, medical and communications markets worldwide, allowing our customers to provide products and services that are both cost effective and superior in performance. RFM's wireless solutions are supported by industry leading customer service. For more information on RF Monolithics, Inc., please visit our websites at www.rfm.com and www.wirelessis.com.
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