Motorola To Acquire Leading Set-Top Platform Developer Kreatel Communications, Gain Immediate European Telco TV PresenceKreatel’s set-top software enables integration with a broad range of middleware solutions, expanding options for service providers. HORSHAM, Pa. and LINKÖPING, Sweden – 17 Jan 2006 – Motorola, Inc. (NYSE: MOT) today announced it has entered into an agreement to acquire Kreatel Communications AB (publ), a leading developer of innovative Internet Protocol (IPTV) based digital set-tops, headquartered in Linköping, Sweden. Terms of the deal were not disclosed.
Kreatel’s Linux-based solution extends into the application and middleware layers, allowing it to be used with a broad set of middleware solutions. Kreatel’s customer base includes such major service providers as Telefónica (Spain), TeliaSonera (Sweden), and KPN (The Netherlands).
This flexible set-top platform is a natural complement to Motorola’s end-to-end digital video solution, and particularly addresses the growing need for IPTV based digital set-tops. Motorola offers flexible solutions throughout the cable, xDSL, and fiber-to-the-premise (FTTP) video chain – including network infrastructure, video headend and transport, industry-leading MPEG-4 encoding, and connected home devices.
“Combining Motorola and Kreatel’s strengths is immensely attractive to green field video networks around the world and provides a critical solution as service providers evolve their video networks in the future,” said
Dan Moloney, president, Motorola Connected Home Solutions. “Motorola will have a flexible IPTV portfolio that addresses the real challenges faced by service providers worldwide as they build and evolve their networks.”
Kreatel brings over six years’ experience developing and delivering innovative IPTV set-top software and hardware solutions to European telecom operators and ISPs. The Kreatel team and IPTV technology will add another significant advantage for Motorola customers worldwide – augmenting the company’s existing portfolio and providing significant flexibility for operators as they deploy video services.
“Current Kreatel customers – and others looking for a strong, flexible solution – will now achieve the benefits of working with a global leader in digital video,” said Lars Bengtsson, CEO, Kreatel. “Motorola has an unmatched heritage of deploying and supporting video networks worldwide, and will enable more service providers to utilize the benefits of the Kreatel platform.”
The agreement, which is subject to customary closing conditions, is expected to be completed during the first quarter of 2006. Kreatel’s management team and employees will remain based in Linköping, Sweden, and be integrated into the Motorola Connected Home Solutions business.
About KreatelSince entering the IPTV industry in 2000, Kreatel has established itself as a leading player and provider to IPTV deployments. The company delivers an optimized combination of set-top boxes, software and professional services, proven to satisfy service providers’ need for a stable and future-proof solution for creation and rollout of profitable TV services.
Through established partnerships with leading companies, Kreatel can offer complete solutions and is a preferred choice among xDSL and fiber operators worldwide. The main current shareholders are ABN AMRO Capital, SEB Företagsinvest and Innovationskapital, who were advised by Arma Partners LLP. For more information, please visit www.kreatel.com.
About MotorolaMotorola 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 $31.3 billion in 2004. For more information:
http://www.motorola.com/.
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Media Contacts: Sweden:
Jakob Cederquist
Motorola, Inc.
+46 708 44 45 44
Jakob.Cederquist@motorola.comLars Bengtsson
Kreatel Communications AB
+46 13 367601 or +46 733 517601
lars.bengtsson@kreatel.comEurope, Middle East, and Africa:
Mark Durrant
Motorola, Inc.
+44 1256 790313
Mark.Durrant@motorola.comNorth America
Paul Alfieri
Motorola, Inc.
+1-215-323-1804
Paul.Alfieri@motorola.com MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2006.
Statements in this press release that do not directly relate to historical facts constitute “forward-looking statements”. These statements are based on current expectations and are subject to numerous risks and uncertainties, many of which are outside of both companies’ control. Such forward-looking statements include, but are not limited to, statements about: (1) benefits and synergies of the proposed transaction, (2) future opportunities for the combined company and products, (3) the impact of the proposed transaction on the combined company's financial and operating results, and (4) the expected timeline for completing the transaction. The companies caution the reader that the actual events and results may be materially different than the anticipated results described in the forward-looking statements. The factors below, as well as the factors in Motorola's most recent annual report on Form 10-K and in its other SEC filings could cause these differences. These factors include: (1) the companies’ ability to consummate the transaction; (2) the possibility that the parties may be unable to achieve expected synergies and operating efficiencies from the transaction within the expected time-frames or at all; (3) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; (4) the retention of certain key employees at Kreatel; (5) the volatility of the international marketplace; and (6) the conditions to the completion of the transaction may not be satisfied, or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule. Motorola and Kreatel disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.
