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Trafficmaster share price slumps to 12-month low

Forecasts that vehicle telematics service revenues will exceed $6.4 billion a year in Europe and the United States by 2006 have failed to prevent a crash in the share price of traffic information and telematics company Trafficmaster.

Its stock price plunged to a 12-month low of 107p after it issued a profit warning due to slower than anticipated sales of its telematics service Fleetstar.

Trafficmaster continues to believe telematics services that connect drivers to traffic, navigation, travel and other practical information will have a burgeoning future. It now has a 150-strong sales force to sell Fleetstar in the UK and four other European countries.

It forecast that by 2005, 50% of all new cars in Europe and the USA will be telematics equipped, a projection that tallies with a new report from US automotive analysts Kelsey Group which forecasts in-car that safety, navigation and content services will top $6.4 billion by 2006.

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