">http://Trafficmaster PLC
05 October 2005

5 October 2005



Trafficmaster signs 5 year contract to work with Norwich Union on "Pay As You
Drive"TM Insurance



Trafficmaster, the leading supplier of digital traffic information and
intelligent in-vehicle services, has signed a five year contract with Norwich
Union (NU) to deliver "Pay As You Drive"TM (PAYD) insurance services to the
motorist.



Trafficmaster will supply NU with an initial quantity of 10,000 advanced "
black-box" in-car units in the first half of 2006. The black box, which is
already being used for both Trafficmaster's navigation unit Smartnav and
tracking device RAC Trackstar, identifies the location of the vehicle to allow
the delivery of PAYD insurance.



NU customers will be offered comprehensive products that provide cost effective
insurance together with a raft of optional in-vehicle services. These will
include safety camera warnings, Smartnav navigation, emergency and breakdown
calls and stolen vehicle tracking from RAC Trackstar.



Tony Eales, Chief Executive of Trafficmaster, said "This is a major new market
for Trafficmaster as it not only provides large scale deployment of our
in-vehicle units but also provides an opportunity to sell our other compelling
services. The deal provides a new way to deliver Smartnav and it will allow us
to offer insurance products to many of our own subscribers."



Stephen Doran, Director of Business Development at Norwich Union said "Our
partnership with Trafficmaster will allow us to deliver some very compelling new
customer propositions combining "Pay As You Drive" TM Insurance from Norwich
Union with a range of added value in-vehicle services that Trafficmaster will
deliver. Norwich Union have been the pioneers of PAYD insurance in the UK, and
this partnership will allow us to take the programme to the next level."



-ends-


Trafficmaster Tel: 01234 759 300
Tony Eales, Chief Executive
Stuart Berman, Executive Director

Financial Dynamics Tel: 020 7831 3113
Ben Atwell / John Gilbert



Trafficmaster

Founded in 1988, Trafficmaster Plc is the UK's leading journey management
company providing high quality satellite navigation, traffic data and vehicle
tracking systems.



Trafficmaster's traffic information is derived from its unique state-of-the-art
network of nationwide static roadside sensors and transmitters that gather and
distribute traffic data from over 8,000 miles of motorway and trunk routes.
Traffic data is then delivered to the customer through a number of screen or
speech-based receivers. These include a variety of in-car products and services
that include its satellite navigation - Smartnav, Trafficmaster Monitor, YQ(2),
Oracle and Freeway units. Traffic information can also be obtained by phoning
the 1740 service, which is run in partnership with the RAC and the UK's main
mobile phone operators.



The traffic data provided through Trafficmaster RDS TMC is used, in conjunction
with third party satellite navigation systems, to route drivers around
congestion. The data is broadcast on licensed radio networks owned by GCap Media
Plc and Chrysalis Radio and is provided to original equipment manufacturers
(OEMs) or direct to automotive manufacturers.



For more information please visit www.tmc.co.uk or www.trafficmaster.co.uk or
contact:



Pay As You Drive (PAYD)



Pay As You Drive is the concept of insurance charging based upon usage.



About Norwich Union Insurance

Norwich Union is the UK's largest insurer with a market share of around 14 per
cent.

With a focus on insurance for individuals and small businesses, Norwich Union
insures:

- One in five households

- One in seven motor vehicles

- Around 800,000 businesses



Norwich Union products are available through a variety of distribution channels
including brokers, corporate partners such as banks and building societies and
Norwich Union Direct.



Aviva, Norwich Union's parent company, recently announced its acquisition of the
RAC. The acquisition brings together the RAC's powerful brand and customer base
with the expertise and leading position in motor insurance of Norwich Union
Insurance.




This information is provided by RNS
The company news service from the London Stock Exchange
END

CNTUUGQAUUPAGMC

Stephen Doran, Director of Business Development at Norwich Union said "Our
partnership with Trafficmaster will allow us to deliver some very compelling new
customer propositions combining "Pay As You Drive" TM Insurance from Norwich
Union with a range of added value in-vehicle services that Trafficmaster will
deliver. Norwich Union have been the pioneers of PAYD insurance in the UK, and
this partnership will allow us to take the programme to the next level."

About Norwich Union Insurance

Norwich Union is the UK's largest insurer with a market share of around 14 per
cent.

With a focus on insurance for individuals and small businesses, Norwich Union
insures:

- One in five households

- One in seven motor vehicles

- Around 800,000 businesses

directors will buy now for sure

- Trafficmaster led the TechMarks today as news of another niche market product helped to win support from investors.

The traffic navigation group has signed a 5-year deal with Norwich Union to supply 'Pay As You Drive' insurance services to motorists.

Trafficmaster said it would (INITIALLY) supply 10,000 in-car 'black-box' units, which are currently used for its navigation unit and tracking device, to identify the location of a vehicle and allow the delivery of PAYD insurance.

Trafficmaster said customers would be offered products that provide cost effective insurance alongside a raft of optional in-vehicle services.


NOTE THE WORD INITIALLY... ITS GOING TO BE A LOT MORE THAN 10,000 THAT GET SOLD
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=550364

and another thing, those people that already have smartnav or RAC Tracker fitted could ask Norwich union if they can go on to there pay as you go insurance, so thats another 50,000 people...

yummy...... this is very very BIG!!!!!!!!

going to tick up shortly.

watch the institutions jump on board now!!!!

Also note the share price has not got incorporated the RDSTMC deals that started in June and the Garmin contract...

Hi all, Not really that many potential customers as the pay as you go insurance is only for 18 to 23 year olds and only if you do about 1000 miles a month and no more than about 60 of them are after 11pm.

Mart

you didnt read the note from Norwich Union did You, Norwich Union want to expand it to others...

its huge

and read the FT tomorrow... this will rise very very quickly

It will be good for TFC if this happens and good for me as i have thought TFC were good value for a while now, if it carries on like this I will break even:-)!! Has anyone got any figures as to what the insurance will cost, I have done a few quotes to find out what the restrictions are but it does not give actually cost. At the moment I personally cant see how this way of paying for insurance can lead to cheaper premiums for us and more money for them other than maybe for the very few high risk(who are willing to never use their car) or those people who's car never leaves the drive. But hay! it is still a step in the right direction for TFC!!

in London a lot of people only use there car for going shopping or going out at weekends... same with people in the countryside, and also it will save young people a lot of money too, I can see a lot of car insurance companies losing out to Norwich Union... also people will see that if they go for pay as you go insurance they will get a very cheap satnav as its already in the car.... TOMTOM GO... Adios

HELLO SMARTNAV....

and with cars now being broken in to for sat navs, people with smartnav wont have problems as its not removable ;-)

this is going to be very very big, norwich union has over 1 million customers for car insurance, not only this, if people have the black box in there car and there car gets stolen, nowrich union will instantly know where the car is

thats a very BIG +

LONDONERS who use their cars only a couple of times a week could be offered cheaper insurance under new plans for pay-asyoudrive insurance.




Norwich Union has ordered thousands of black boxes from navigation systems maker Trafficmaster to roll out its pay-as-you-drive car insurance, which is currently aimed at young drivers.
The insurer offers those aged 18 to 23 the chance to pay insurance according to when and where they drive. For journeys between 6am and 11pm they pay only 6p a mile but that rockets to 1 after 11pm, when most accidents involving inexperienced drivers occur.


Norwich Union has tested the scheme on 1500 young drivers and is examining ways of extending pay-as-you-drive. 'We are certainly looking at how we could use the product for low-usage London drivers,' a spokesman said.


The Trafficmaster black box uses GPS technology and mobile phone communications to tell Norwich Union exactly what a vehicle is doing. Drivers receive a monthly statement with their premium and a log of all the car's journeys.


The contract runs for five years with 10,000 black boxes set for delivery in the first half of 2006. Other features that could be added to the black box are speed camera detection, Smartnav navigation and stolen-vehicle tracking.

Trafficmasters troubled shares got a boost today with news that it has sold 10,000 black boxes to Norwich Union for its Pay-As-You-Drive insurance, although the insurer warns it is early days for the scheme.

Trafficmaster shares (TFC) are up 3.5p to 35.5p, valuing the business at 47.8 million.

The company has modified the software in the Smartnav in-car black boxes it already provides for satellite navigation and traffic monitoring purposes, to enable Norwich Union to collect data from car journeys.

The insurer last year launched its Pay-As-You-Drive insurance scheme for 18-23 year olds, in which drivers pay for insurance based on the mileage they do, and on what time of day they are driving (with penalties for night driving for example). The company also a year ago launched a trial of the system with 5,000 older drivers, which is due to continue for a further six months to a year.

By using the Trafficmaster box, the insurer would be able to offer customers additional services such as safety camera warnings, Smartnav navigation, emergency and breakdown calls and stolen vehicle tracking from RAC Trackstar.
http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=77481&MenuKey=News.Home

You make a good case. This could be a very effective way of getting smartnav into a lot of cars. Probably better than getting a deal with a manufacturer to get them in new cars like TomTom has. I guess this means that they dont really have to use it as a way of offering cheaper insurance but instead as you say a way of offering value added extras such as camera locations, tracker etc etc.

Mart

no, you can expand further... if car manufacturers see nowrich union are fitting the black box, they will follow.... it simplifies things for the manufacturer...

i.e. vauxhall are working together with NU in giving there customers free insurance when they buy a car...

see what I mean.. we have just been given a golden key

you also have to remember the goverment want to introduce road charging..

another golden key for TFC... manufacturers have to follow NU now, and so will the other insurance companies..

we got it made

also note prudential is part of the same group as Norwich Union and friends provident and Elephant.com

A BIG GOLDEN KEY

tomorrow the newspapers will lift this up some more

Are you op23/suehelen Bluedolphin ?

Can't see any reference to what Norwich Union have paid. It's possible that TFC have actualy lost on this initial deal by letting the boxes go for next-to-nothing. Looks to me a bit like like Jam tomorrow... or perhaps the day after...

I hold TFC, by the way (but wish I didn't).

re norwich union deal:this is just the start all insurance co,s will eventually move to this format as competion for customers increases led by consumer demand.........sat nav systems either moveable like garmin or tomtom or installed like smartnav from traffickmaster willmassivley increase over the next 3 years..........over 20m cars in uk alone as at present only about 1 m have sat nav so the potential is massive just like the mobile phone was 15 years ago. buy long term target over 1

Pay-as-you-drive car insurance from Norwich Union
10/10/2005
Norwich Union has purchased high-tech black boxes to chart where and when car owners drive to determine how much insurance they should be paying.

The car insurer believes the navigation system from Trafficmaster will help young people struggling to pay for car insurance and could help Londoners who use their cars on an occasional basis.

The scheme has been tested on a group of 1,500 drivers so far and charges would apply on sliding scale.

For journeys between 6am and 11pm drivers pay only 6p a mile but after 11pm it soars to 1 a mile.

Norwich Union say that the technology, which uses a satellite to track the cars, could be useful in providing other services to drivers including breakdown services and satellite navigation.

Nine in ten people say they would prefer their motor insurance to reflect the usage of their car and the type of journeys they make - with the majority favouring pay "as you go" systems similar to those offered by gas and electricity suppliers.*

Why is it a good idea?
As stated by Robert Ledger, programme director for Norwich Union, "Customers choosing "Pay As You Drive" insurance will benefit from individual premiums based on how often, when and where they actually used their cars. Motorists would receive a fairer deal as this initiative provides them with the opportunity to really be in the driving seat when it comes to controlling their premiums."

What is the scheme?
Norwich Union will be able to collect real-time vehicle data using a 'black box' device installed in your vehicle. This will allow monthly insurance payments to be calculated based on how often, when and where you use your vehicle.

Norwich Union believe this represents a major breakthrough in the calculation of fairer motor insurance premiums and ultimately gives you greater control, flexibility and choice.

The black box device measures vehicle usage and sends data directly to Norwich Union using similar technology to that used by mobile phones. You could be billed monthly and the technology will also allow us to offer you associated in-car services, such as emergency assistance and real-time route planning.

To apply or find out more information please click on the link below.
www.payasyoudriveinsurance.co.uk
http://www.norwichunion.com/pay-as-you-drive/index.htm

http://www.norwichunion.com/pay-as-you-drive/register-now-success.htm

Electrical and Electronic

It was another very difficult month for most, especially in white goods where sales of cookers, refrigeration and laundry continued to suffer from the housing slowdown. Microwaves, floorcare and smaller appliances also suffered, though less than the larger appliances. Brown goods remained generally flat as the weakness of older technology products - the major part of the market - outweighed the few bright spots, notably internet audio and flat-panel TVs. Where supply problems allowed, the new iPod nano sold extremely well, and other internet audio and satellite navigation remained popular. Although computer sales benefited from back-to-school and college, despite unit sales growth, significant price deflation cut sales values. This also affected other new technology products such as digital cameras and mobile phones.
http://http://www.theretailbulletin.com/index.php?page=5&id=7339&cat=news