Clarion and Kotei Create Joint Venture to Develop Custom Software for Automotive Applications

New venture aims to reinforce Clarion's software development activities, expand solution offerings, and increase product competitiveness

Cypress, Calif. June 23, 2016 – Clarion Corporation of America, a leader in consumer and commercial mobile electronics, announced today that its parent company, Clarion Co., Ltd., has launched a joint venture with Wuhan KOTEI Informatics Co. Ltd. (KOTEI), a leading Chinese software development company. This new venture enables Clarion to respond with even greater agility to shifting market trends of in-vehicle infotainment systems in the Chinese market as well as the broader global market. Established in May 2016, the new company, Wuhan Clarion Kotei Software Technology Co., Ltd, began operation in June 2016 and is expected to assume a progressively significant role in the research and development of advanced new software solutions specifically designed for the automotive market.

Clarion and Kotei have been working together in designing and developing software for in-vehicle devices for several years. The new joint venture reinforces Clarion's software development activities in China, increases the product competitiveness for major markets, and is expected to generate new opportunities for Clarion to expand its customer base.

"For the past decade, the key to developing high performance in-vehicle navigation, infotainment and connected systems has been dependent on the sophistication and flexibility of the software architecture, and the capabilities of the development team involved," stated Paul S. Lachner, President of Clarion Corporation of America. "Establishing this joint venture is a great step forward in our commitment to providing our customers with the very best in-vehicle infotainment and navigation solutions. The new company's dedicated software engineering and application development resources will make a positive impact on our ability to innovate more quickly. They enhance Clarion’s capabilities in developing custom software solutions for our customers, reducing the overall time it takes to bring new solutions to market and positioning Clarion as a dominant force in today’s rapidly changing global market."

The primary business focus of Wuhan Clarion Kotei Software Technology Co., Ltd., is to develop and bring to market advanced new software for intelligent in-vehicle infotainment solutions. To do so, the new company is tasked with conducting research and development in automotive systems, in-vehicle software/solutions, and mobile device internet communication technologies, as well as application development for satellite navigation positioning.

Currently, the new joint venture employs 113 professionals in the High Technology Development Zone in Wuhan, Hubei in China. Clarion and Kotei expect the operation to systematically expand based on the company's success in offering current and new customers a larger and more advanced portfolio of software solutions and custom applications.

About Clarion

Headquartered in Cypress, California, Clarion Corporation of America is a subsidiary of Japan-based Clarion Co. Ltd, which has been a consolidated subsidiary of the Hitachi Group since 2006. Clarion has been an international leader in car audio and electronics since 1940. The company is engaged in the research, development, engineering, design, manufacturing, sales and marketing of mobile entertainment, navigation, infotainment, communication, safety, and security products for the automotive, marine, recreational vehicle, commercial fleet, and heavy industry environments. Clarion has been the recipient of numerous excellence awards for design, innovation, support, manufacturing and product reliability from independent organizations. The company has marketing and sales affiliates in Europe, North and South America, Asia and Australia. Clarion is located on the web at www.clarion.com/us.

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Clarion Corporation of America

6200 Gateway Drive

Cypress, CA 90630

Media Contact:

Sheri Aliabadi

Clarion Corporation of America

Phone: (310) 217-4238

saliabadi@clarionus.com

Alyson Yarberry