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Motorola and PowerDsine Form Strategic Partnership to Deliver Power over Ethernet ASIC

Market Leaders Combine to Create Industry's First 12-Port 802.3af Compliant Chip for Emerging PoE Market

SMART NETWORKS DEVELOPER FORUM, PARIS - June 5, 2003 -Motorola Inc.'s (NYSE: MOT) Semiconductor Products Sector and PowerDsine, the leader in Power over Ethernet (PoE) solutions, are combining expertise to jointly create an application-specific integrated circuit (ASIC) for the emerging PoE market.

PowerDsine and Motorola will assemble a joint team of engineers to design 802.3af-compliant chips based on Motorola's SMARTMOS™ technology and PowerDsine's Power over LAN™ technology. The first chip will integrate power, analog and logic functions into one device. Its use in Ethernet switches and midspans - an alternative for power sourcing equipment - will allow next generation network devices to share power and data over the same cable.

"By easing the expansion of networks, PoE reduces common concerns for limited space, costly installations and extensive back-up systems,” said Dave Passmore, research director of The Burton Group. “And, as the industrial market gravitates towards Ethernet bus applications, PoE opens doors for automation and control applications."

Partnership Advantages
Motorola's and PowerDsine's strategic partnership agreement leverages the two company's strengths to ease PoE installations and reduce overall installation costs. Motorola's SMARTMOS technology and PowerDsine's foothold in the PoE market enable a level of integration unparalleled in the industry. PowerDsine holds 85 percent share of the midspan market and a 50 percent share of the integrated solutions market.

Motorola's SMARTMOS technology is the backbone of mixed-signal analog integrated circuits and acts as the interface between the digital environment of leading-edge microprocessors and analog, real-world interaction such as sensing, providing power or driving motion. The SMARTMOS8 process allows power, high-voltage analog and high-density digital logic functions to be manufactured on a single chip in less space than previous generations. This helps simplify system design, lower costs and improve reliability.

"With more than one million ports shipped in 2002 and its pioneering role in the IEEE 802.3af standard task force, PowerDsine has proven its leadership in the PoE industry," said Ciaran Connell, marketing and strategy manager of Motorola's Analog Products Division. "Combining our company's expertise, we will deliver the industry's only single-chip solution and together lead the Power over Ethernet market."

New Market Innovation
The first product resulting from the Motorola-PowerDsine collaboration will address the needs for 12, 24 and 48-output equipment. Using the ASIC, networking equipment manufacturers can expect to be able to directly integrate power sourcing equipment functionality. Unlike other semiconductors offered for PoE, the chip designed by Motorola and PowerDsine is expected to provide power to 12 Ethernet ports (15W power per port) through one chip, minimizing the number of external components and reducing overall system costs.

Motorola's SMARTMOS technology and our system know-how allows us to develop an ASIC that stands above the rest in the industry," said Igal Rotem, chief executive officer of PowerDsine. "We're working together to extend our market reach and to build a flexible, yet tightly integrated and reliable solution that is top of the line, takes up less space and requires fewer components - something customers need today."

PowerDsine is expected to sample products to customers by year-end 2003. Volume production is expected in early 2004. The device is fully IEEE 802.3af compliant and also works with pre-standard proprietary solutions.

About Power over Ethernet Technology
PoE is a technology for wired Ethernet, the most widely installed local area network (LAN) technology in use today. PoE allows the electrical power necessary for the operation of each device, to be carried by data cables rather than by power cords. It minimizes the number of wires that must be strung in order to install the network, resulting in lower cost, less downtime, easier maintenance and greater installation flexibility.

According to PowerDsine, PoE potentially reduces the cost of installing a Wireless LAN access points by up to 50 percent. Because the network's switches also can deliver power through the standard Ethernet infrastructure, the need to connect each access point to a separate electrical circuit and install additional AC power outlets is eliminated. Beyond cost effectiveness, PoE also can provide customers with uninterruptible power for critical applications such as IP (Internet protocol) phones, security cameras, entry loggers and other powered data terminals.

About the IEEE Standard and Power over LAN
Defined by the IEEE 802.3af Task Force, the standard is scheduled for ratification in June 2003. For more information on the standard, go to www.standards.ieee.org.

Power over LAN, which encompasses PoE, converges data and operating power into one LAN cable. The technology allows IP telephones, Wireless LAN access points and other enterprise terminals to safely receive power over standard Category 5 LAN cabling without modification to existing infrastructure. The 802.3af standard defines two alternatives for power sourcing equipment (PSE): end-span and midspan. End-span refers to an Ethernet switch with embedded Power over LAN technology. Midspan is a patch-panel resembling device, with multiple channels (typically 6 to 24), that is placed between any standard switch and the powered terminal.

Power over LAN provides continuous service during power outages by using the same centralized, uninterrupted power supply that backs up the network. This architecture enhances a customer's investment in both Category 5 infrastructure and in Ethernet switch equipment.

(See graphic at http://www.motorola.com/mediacenter/graphics/detail/0,1101,768,00.html)

About PowerDsine
PowerDsine (www.powerdsine.com) is the leader in Power over LAN technology, providing the ability to deliver both power and data over a single network cable. PowerDsine offers converged power and data solutions to corporate users via its own range of equipment and via OEM agreements with the leading communications equipment manufacturers. PowerDsine's product line offers a variety of Power over LAN midspan devices as well as integrated solutions, which are embedded directly into Ethernet switches. The company is a founding member of the IEEE 802.3af Task Force and in June 2002 was awarded most outstanding emerging European hi-tech company of 2002 at Tornado Insider's UpStart Europe event in Amsterdam.

About Motorola, Inc.'s Semiconductor Products Sector
As the world's #1 producer of embedded processors, Motorola's Semiconductor Products Sector creates DigitalDNA(tm) system-on-chip solutions for a connected world. Our strong focus on wireless communications and networking enables customers to develop smarter, simpler, safer and synchronized products for the person, work team, home and automobile. Motorola's worldwide semiconductor sales were $5.0 billion (USD) in 2002. For more information please visit www.motorola.com/semiconductors

About Motorola, Inc.
Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2002 were $27.3 billion. Motorola is a global corporate citizen dedicated to ethical business practices and pioneering important technologies that make things smarter and life better for people, honored traditions that began when the company was founded 75 years ago this year. For more information, please visit: www.motorola.com.

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Media Contacts:

PowerDsine
North America:
John Conrad
Merritt Group
(703) 556-6300
conrad@merrittgrp.com

Europe:
Beverley Knibbs
Éclat MARKETING
0118 989 5600
beverley@eclat.co.uk

Motorola
North America:
Brian Thorsen
Motorola
+1 (480) 413-5209
brian.thorsen@motorola.com

Emilie Harris
Lois Paul & Partners
+1 (512) 638-5321
emilie_harris@lpp.com

Europe, Middle East, Africa:
Regina Cirmonova
Motorola
+41-22-799-1258
regina.cirmonova@motorola.com

Asia/Pacific:
Gloria Shiu
Motorola
+852 2666 8237
gloria.shiu@motorola.com

Latin America:
Jill Partridge
Motorola
+1 (602) 952-3078
jill.partridge@motorola.com

Reader Inquiry Response:
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P.O. Box 17927
Denver, CO 80217 USA
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