Motorola WiMAX News

SCHAUMBURG, Ill. - 25 July 2005 - Motorola Inc. has expanded its strategic focus to bring comprehensive WiMAX (802.16e) solutions quickly to market to fulfill the rapidly growing demand for fixed and mobile wireless broadband solutions. The initiative includes a combination of increased R&D, resources, and technology relationships; and the introduction of the Moto Wi4 product portfolio that will take operators to the 4th generation of mobile wireless networks.

"Motorola has aligned our Networks business to support a companywide initiative to develop WiMAX and other mobile broadband wireless solutions that provide an effective means for carriers to give their customers broadband services when and where they want them at an affordable cost," said Dan Coombes, senior vice president, general manager of Wireless Broadband Networks, and chief technology officer for Motorola Networks. "With our longstanding history as a top provider of both broadband wireless access systems and cellular networks, a portfolio of technology innovations from all businesses, and the focused efforts of our engineering teams, Motorola is well on the way to delivering WiMAX solutions."

According to Maravedis, a research and analysis firm focusing on broadband wireless access technologies, the global market for fixed and mobile broadband (including WiMAX) is expected to reach up to $1 billion in 2007, and to potentially hit $4 billion by 2010. Under Coombes' leadership, Motorola will build on its highly successful Canopy(tm) wireless broadband business and utilize its expertise in the underlying technologies - Orthogonal Frequency Division Multiplexing (OFDM); IP internetworking; its all-IP based, flat Carrier Access Point (CAP) architecture; and IP-enabled handsets - to develop fixed, nomadic, and mobile solutions that will be suited to meet the various needs of Motorola's customers in its consumer, enterprise, and government markets.

"Motorola's intensified focus on 802.16e development will have a significant impact on the standard's progress into the mainstream. A company of Motorola's scale needs to lead, not follow in key technologies, and its latest moves show that it aims no less than to create another inflection point in the telecoms industry, as it did with the introduction of the world's first mobile handset in 1983," said Caroline Gabriel, research director, Rethink Research Associates.

The Moto Wi4 portfolio of WiMAX solutions includes a "light infrastructure" solution for rural areas and developing countries that offers very low cost of deployment and ownership, and a carrier-class solution. The carrier-class solution embodies Motorola's CAP architecture that uses all-IP access technology to put intelligence into the base station itself, thereby eliminating several hardware elements from the radio access network. This peer-to-peer architecture offers carriers the opportunity to lower capital and operational costs while also reducing footprint requirements.

Motorola recently announced a major joint technology development agreement with Sprint for wireless broadband WiMAX 802.16e technology testing and equipment trials. The agreement spans lab testing of the Moto Wi4 portfolio of WiMAX base stations, smart antenna technology and multimedia handsets. Motorola's breadth of experience also includes delivering high quality, fully mobile wireless solutions for more than 20 years and deploying wireless broadband products in more than 100 countries.

Motorola, a key participant in the WiMAX industry, has been a principal member of the WiMAX Forum since 2004, and has been an active contributor to the IEEE 802.16 committees, especially those focused on mobility and internetworking. Universal standards will be a key element in the delivery of timely WiMAX solutions to market.

Business Risks

Statements about WiMAX wireless broadband technology, its development and acceptance in the marketplace, are forward-looking and involve risk and uncertainties. Factors that could cause actual results to differ materially from those in the forward- looking statements include unforeseen events or market conditions that influence the rate of adoption of this technology, its commercial deployment, and other factors in Motorola's filings with the Securities and Exchange Commission, including but not limited to the Annual Report on Form 10-K for the year ended December 31, 2004 and other filings made periodically by the company.