Subject: Counterfeit Motorola Products — Our Latest Successes

As you know, Motorola has considerably increased its efforts to eliminate counterfeiting. Over the last several months, we have been able to seize over US$7.5 million worth of counterfeit products around the globe. I wanted to share our latest initiatives that have helped us achieve these results.

Last month, Motorola became a voting member of the Quality Brand Protection Committee (QBPC). This is a multi-national anti-counterfeiting organization registered in China with 163 major international corporate members. QBPC's mission is to work cooperatively with the Chinese Central and local governments, local industry, and other organizations to make positive contributions to intellectual property protection in China.

Earlier this month, as a result of a local sting operation, the Chicago Police Department raided a number of stores in an area of Chicago known to be selling counterfeit Motorola merchandise. The operation targeted distributors of counterfeit Motorola Bluetooth® headsets. The counterfeit products are being imported into the country from counterfeit manufacturers in China and are being illegally distributed throughout the Chicago area and other parts of the country. Law enforcement agents seized over US$100, 000 worth of counterfeit products.

• At the Consumer Electronic Show (CES), Motorola representatives were on hand to help us identify sellers of counterfeit products. We identified the following:
• A Los Angeles distributor offering and taking orders for counterfeit H9, H700 and HS850;
• A New York based distributor offering counterfeit H700 (the same distributor was supplying counterfeit products to the group of stores that were raided in Chicago);
• A small number of distributors offering to sell knock-off Motorola product — our product without the Motorola logo.

Motorola obtained court orders to search the booths and confiscate the counterfeit product along with the sales records from the counterfeit sellers. Motorola is seeking damages from the counterfeit sellers. The product and invoices seized are being used to target other larger distributors and manufacturers.

Additionally, while at CES we made additional plans with several organizations eager to assist Motorola in its battle against counterfeit products. These include the following:

• Bluetooth Special Interest Group:  They will continue to collaborate with Motorola to work against counterfeiters and continue to share information.
• Director of New York Police Department, Organized Crime Investigation Division:  They want to support our efforts against the influx of counterfeit product flowing in and out of New York City.
• Executives from UBid and Alibaba, forums to sell goods:  They will support us in eliminating auctions of counterfeit product. UBid has already taken action and closed all auctions of Motorola counterfeit products.

We continue to work diligently to make more progress in eliminating counterfeiters. Thank you for your support. Please continue to report any suspected counterfeit product by sending an e-mail to MOMEPT@Motorola.com.

Best regards,