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Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Motorola semiconductors power communication devices, computers and millions of other products.

The fundamental objective of the company is total customer satisfaction. Motorola maintains sales, service and manufacturing facilities throughout the world, conducts business on six continents and employs more than 139,000 people worldwide.

History and Evolution
The company was founded by Paul V. Galvin in 1928 as the Galvin Manufacturing Corporation, in Chicago, Illinois. Its first product was a "battery eliminator," allowing consumers to operate radios directly from household current instead of the batteries supplied with early models. In the 1930s, the company successfully commercialized car radios under the brand name "Motorola," a new word suggesting sound in motion. During this period, the company also established home radio and police radio departments; instituted pioneering personnel programs; and began national advertising. The name of the company was changed to Motorola, Inc. in 1947. The decade of the 1940s also saw the company enter government work and open a research laboratory in Phoenix, Arizona, to explore solid-state electronics. By the time of Paul Galvin's death in 1959, Motorola was a leader in military, space and commercial communications, had built its first semiconductor facility and was a growing force in consumer electronics.

Under the leadership of Robert W. Galvin (Paul Galvin's son), Motorola expanded into international markets in the 1960s and began shifting its focus away from consumer electronics. The color television receiver business was sold in the mid-1970s, allowing Motorola to concentrate its energies on high-technology markets in commercial, industrial and government fields. By the end of the 1980s, Motorola had become the premier worldwide supplier of cellular telephones and in the early 1990s received its first orders as the prime contractor for the IRIDIUM® satellite-based, global personal communications system.

Operating and Financial Results

Sales in 1996 rose 3% to $28.0 billion from $27.0 billion in 1995. Earnings were $1.15 billion, or $1.90 per fully diluted common and common equivalent share, compared with $1.78 billion, or $2.93 per share, a year ago. Net margin on sales was 4.1% in 1996 and 6.6% in 1995. In 1996, 58% of sales were outside the United States.

Organization and Management
The company's operations are highly decentralized, with six sectors and one group reporting to the Office of the Chief Executive. The businesses include the Semiconductor Products Sector; the Cellular Subscriber Sector; the Cellular Networks and Space Sector; the Land Mobile Products Sector; the Messaging, Information and Media Sector; the Automotive, Energy and Components Sector; and the Motorola Computer Group. In addition, the New Enterprises organization manages Motorola's entry into strategically relevant, emerging, high-growth and high-technology global business opportunities.

The Office of the Chief Executive includes Christopher B. Galvin, Chief Executive Officer, and Robert L. Growney, President and Chief Operating Officer. Gary L. Tooker is Chairman of the Board. Robert W. Galvin serves as Chairman of the Executive Committee of the Board of Directors.

We Enable...
At Motorola, we enable people to do the things they want to do. Motorola provides the tools that give you the time and the freedom to explore new worlds¬that enable you to handle daily tasks in the most efficient way possible. Our semiconductors enable you to lead a safer, more secure life in a cleaner, healthier world. You can depend on Motorola products to keep you in touch¬with your family, or with your colleagues. Your telephone can be with you when you need it¬a phone so light and so small that you can wear it. You can share information by fax, voice or e-mail. Imagine the possibilities.

Business Activities

The Semiconductor
  68HC05-based Micro-
controller used in
the First Union VISA®
Cash Smart Card
by Schlumberger
Products Sector
designs, produces and distributes a broad line of discrete semiconductors and integrated circuits, including microprocessors, RF devices, microcontrollers, digital signal processors, memories, logic and analog circuits, and sensors.

GC-87 Cellular

The Cellular Subscriber Sector designs, manufactures and distributes a full range of wireless telephone products for worldwide markets.

Microcell Base

The Cellular Networks and Space Sector designs and manufactures equipment for wireless telephone systems and satellite communications for commercial and government customers and is responsible for forming joint-venture telecom operating companies worldwide.

iDENTM i370
Portable Two-
Way Radio

The Land Mobile Products Sector designs, manufactures and distributes analog and digital two-way radio products and systems for applications worldwide, from on-site to wide-area communications.

2000 Pocket
Message Center

The Messaging, Information and Media Sector designs, manufactures and distributes a variety of messaging products, including pagers and paging systems, wireless and wireline data communications products, infrastructure equipment and systems, handwriting-recognition software products, image communications products and services, and Internet software products.

Integrated Circuit

The Automotive, Energy and Components Sector designs and manufactures a broad range of electronic components, modules and integrated electronic systems and products for automotive, industrial, transportation, navigation, communication, energy systems, consumer and lighting markets.

   StarMaxTM Minitower
Personal Computer

The Motorola Computer Group designs, manufactures and distributes Mac® OS-compatible systems, computer board products and technical computer system platform products.

Motorola. What you never thought possible.[TM]

Motorola Corporate Communications
1303 East Algonquin Road
Schaumburg, IL 60196 USA
Phone: (847) 576-5000

Motorola is an Equal Employment Opportunity/
Affirmative Action Employer

Motorola and are registered trademarks of Motorola, Inc.

Mac® is a registered trademark of Apple Computer, Inc.

IRIDIUM® is a registered trademark and service mark of Iridium L.L.C.

The Schlumberger name and logo are registered trademarks of Schlumberger Technologies, Inc.
used by permission.

VISA® is a registered trademark of VISA International Service Association
used by permission.

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