DEARBORN, Mich. - In keeping with the mission of the corporation's new Telematics/Multimedia business system to pursue a greater share of the market, Visteon Corporation has formed a strategic alliance with iBiquity Digital Corporation, a new company being created from the merger of USA Digital Radio and Lucent Digital Radio. 

As part of this alliance, Visteon will develop a working prototype concept radio using iBiquity's digital AM and FM broadcast technology for incorporation into future radio platforms. 

In addition, Visteon will make its Digital Signal Processing (DSP) technology available to select radio chip manufacturers for sale to radio set makers.  This technology will act as an enabler to iBiquity's in-band on-channel (IBOC) digital radio broadcast technology. 

By allowing the digital signal technology to be broadly deployed, Visteon will help iBiquity bring digital radio broadcasting more quickly to market within North America.  Additionally, Visteon will consult with iBiquity to merge the DSP technology with IBOC technology as part of its prototype radio development efforts. 

Visteon will take an ownership stake in the company, whose owners will include Lucent Technologies and 15 of the nation's top 20 radio broadcasters, including Viacom, Inc.'s, Infinity Broadcasting Corporation, and Clear Channel Communications, Inc. 

"This is a prime example of the strategic alliances we are forming to support our new telematics and multimedia group," said Jim Wynalek, vice president and general manager of Visteon's Telematics/Multimedia business system. "By making our technology widely available and leveraging our expertise in audio systems, we are in a great position to lead the deployment of radios capable of receiving digital broadcast. Through this alliance with iBiquity, Visteon is taking advantage of its technological leadership and position as the world's largest manufacturer of radio head units to pave the way for the next generation of audio and wireless data systems." 

Today, radio in the United States is broadcast using analog signals. Digital radio broadcast technology will enable consumers to receive a digital signal, capable of containing CD-quality audio with crystal clear reception and additional wireless data for a variety of consumer applications such as station and program content, stock and news information, local traffic and weather. 

Visteon will showcase its alliance with iBiquity Digital Corporation at Convergence 2000 in Detroit, Mich., in October. 

(August 14, 2000)