NEW YORK, Oct. 21, 2002—Motorola’s Global Telecom Solutions Sector (GTSS) today signed contracts valued at $446 million for the deployment of CDMA 1X networks for China United Telecommunications Corp. (China Unicom). The contracts were signed just before Chinese President Jiang Zemin’s visit to the United States. The signing ceremony in New York was coordinated by China’s State Development Planning Commission (SDPC), and witnessed by SDPC Chairman Zeng Peiyan and Secretary Donald Evans of the U.S. Department of Commerce.

Motorola, through its joint venture in Hangzhou and partners Guangzhou Jinpeng Group Company Limited, will provide its SC4812T^TM base station to expand and upgrade China’s Unicom’s 95A CDMA network in the city of Beijing and in 10 provinces, including Guangdong, Jiangsu, Fujian, Hebei, Jilin, Shanxi, Jiangxi, Guangxi, Xinjiang and Gansu. With the exception of a frame contract in Beijing, final contracts for CDMA 1X deployment have been signed for the other 10 provinces. Overall, the expansion will provide additional network capacity of up to 5.4 million subscribers.

“As a global leader of CDMA RF solutions, Motorola is proud to play an integral role in Unicom’s CDMA network upgrade,” said Adrian Nemcek, executive vice president of Motorola, Inc., and president and chief executive officer of Motorola’s GTSS. These contracts further strengthen our long-term partnership with China Unicom as well as the Sino-US trade relationship.”

“Last year, we used only half a year to complete the construction of our national CDMA network, which has a capacity of about 15 million subscribers,” said Yang Xian Zu, Chairman of China Unicom. “Now, in order to meet the increasing market demands, we will expand and upgrade the network to CDMA 1X, which will have a total capacity of about 30 million subscribers. In cooperation with vendors from home and abroad, including Motorola, we will try our best to complete the project within the year, so as to offer high speed data services and wireless applications to the customers, as well as provide more value to our investors.”

Motorola's CDMA2000 1X architecture builds upon existing 2G or 2.5G networks by adding packet based network elements. For China Unicom, these network elements will include the access node from Cisco Systems, Inc., that enables the radio access network to be Internet protocol capable.

Motorola CDMA2000 1X equipment will enable operators to offer their subscribers high-quality voice and high-speed data services at speeds of up to 153 kilobits per second. This speed is up to 10 times faster than what is available on second-generation networks. With this increased speed, subscribers can easily download music and data directly from the Internet, enjoy multi-media, video on demand and advanced location based services from their mobile phones.

“We are committed to bringing new technology to China and will deliver new wireless experiences that are simpler, smarter and fun for people,” said Nemcek.

Motorola is the leading provider of CDMA handsets in China. The company launched its CDMA 1X-enabled V730 handset in China earlier this month. Including this announcement, Motorola has CDMA 1X network infrastructure contracts with four operators in Asia-Pacific region

Motorola is a leader in CDMA2000 1X contracts, having won contracts with 12 wireless operators worldwide and shipped more than 30,000 Code Division Multiple Access (CDMA) 2000 1X-capable base stations

China Unicom is a provider of integrated telecommunications services in China, offering a range of services including cellular, paging, long distance, data and Internet services to more than 60 million cellular and 43 million paging subscribers. Of 60 million subscribers, 4 million are CDMA users.

About Motorola
Motorola Inc. (NYSE: MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Its sales in 2001 were $30 billion. For further information, please visit www.motorola.com.cn.


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ãMotorola, Inc., 2002

Statements about the value of the supply contract and its impact on Motorola and the future demand for infrastructure equipment are forward-looking statements involving risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements include unforeseen events related to the performance of the contract, growth in the cellular industry and competitive environment for wireless services. For additional information regarding other risks associated with Motorola’s business, refer to Motorola’s SEC filings, including the risk factors on pages F-35 through F-40 in Motorola’s proxy statement for its 2002 shareholder meeting.