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Motorola Announces Three-Year Extension of
iDEN Infrastructure and Handset Supply Agreements with
Nextel
SCHAUMBURG, Ill. – 16 December
2004 – Motorola, Inc. (NYSE: MOT) today announced that it has reached an
agreement with Nextel Communications Inc. (NASDAQ: NXTL) to extend its iDEN
infrastructure and iDEN subscriber supply agreements for a period of three years
from January 1, 2005 through December 31,
2007.
Terms of the existing iDEN infrastructure
supply agreement that are being extended includes those relating to base station
equipment, core network equipment, plus software and hardware maintenance and
support services necessary to expand, upgrade and support Nextel’s
nationwide iDEN based network. The extension of the iDEN subscriber supply
agreement includes pricing and other terms relating to current and proposed new
handset models for Nextel, including handset models to be marketed under
Nextel’s youth-lifestyle brand, Boost Mobile.
“Today’s announcement is another
important milestone in Motorola’s long-standing relationship with
Nextel,” said Adrian
Nemcek, president of Motorola’s Networks business.
“Extending our iDEN supply relationship with Nextel for another three
years further solidifies Motorola’s relationship with Nextel as supplier
of iDEN technology that has existed since the early 1990s. Motorola and Nextel
remain committed to the ongoing development and deployment of iDEN technology
and products.”
“We’re
pleased to continue our close and cooperative working relationship with
Motorola,” said Nextel Executive Vice President and Chief Operating
Officer Tom Kelly. “Our collaboration has resulted in the development of
iDEN products and services that enable Nextel to serve the most valuable
customers in the wireless
industry.”
“Based on current
projections, Motorola expects the value of its infrastructure and subscriber
shipments to Nextel to be comparable to the average levels we've seen over the
past two years,” added Nemcek.
Motorola
noted that more new models of iDEN handsets are expected to be introduced in the
next 12 months, including new models that incorporate the new WiDEN data
functionality that increases data rates up to four times faster than customary
iDEN data rates.
About
Motorola
Motorola is a FORTUNE 100 global
communications leader that provides seamless mobility products and solutions
across broadband, embedded systems and wireless networks. In your home,
auto, workplace, and all spaces in between, seamless mobility means you can
reach the people, things and information you need, anywhere, anytime.
Seamless mobility harnesses the power of technology convergence and
enables smarter, faster, cost-effective and flexible communication.
Motorola had sales of US$27.1 billion in 2003. For more information:
www.motorola.com.
Motorola’s
iDEN technology is currently deployed in 18 countries around the globe with
approximately 21 million customers enjoying the benefits of a single handset
that offers one-to-one Push-To-Talk service; simultaneous Push-To-Talk service
to multiple individuals or groups; telephone interconnect service;
short-messaging; and wireless internet data service. Current models of iDEN
handsets offer a full range of features including global positioning satellite
(GPS) technology, color displays, speakerphone, voice recorder, voice dialing
and downloadable ring tones in competitively sized and designed handsets. For
further information on iDEN handsets, visit www.motorola.com/iden.
Business
Risks:
Statements in this press release
that are not historical facts are forward-looking statements based on current
expectations that involve risks and uncertainties. Such forward-looking
statements include statements about: the value of future infrastructure and
subscriber shipments under the agreements, and the planned introduction of new
products. Factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not limited to, the
following: changes in consumer demand for the products and technology subject to
the agreements, especially for new products or technology; regulatory changes
adversely impacting the use, performance or competitiveness of iDEN technology;
the impact of the proposed merger of Nextel and Sprint was announced December
15, 2004 the risk associated with the development, implementation and
commercialization of new products and features, uncertainty of current economic
and political conditions, possible industry realignment or restructuring, as
well as the economic outlook for the telecommunications industry; and other
factors found (i) on pages 76 through 85 of Motorola's annual report
on Form 10-K for the year ended December 31, 2003, in Motorola's first, second
and third quarter reports 2004 on Form 10-Q and in its other filings with
the SEC, and (ii) in Nextel's annual report on Form 10-K for the year ended
December 31, 2003 and in Nextel's first, second and third quarter 2004
reports on Form 10-Q and in its other SEC filings.
# #
#
Media Contact:
Jennifer
Weyrauch
Motorola
+1
(847) 435-5320
Jennifer.Weyrauch@motorola.com
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