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Very good question Far Canal. Alpinestars web site doesn't give a lot more info than this article but I believe it uses a combination of on bike sensors like GPS, accelerometers and position sensors in addition to rider sensors. I did find a news item saying this technology will be available in late 2011 for street riders at a premium over a regular suit of arouns 2000 Euros. Not in my price range I'm afraid :(
You can see their article at alpinestarsinc dot com forward slash safety.