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Motorola, Inc. (ticker: MOT, exchange: NYSE Archipelago Exchange (.N)) News Release - 31-Jan-2001


Motorola Strategically Reorganizes Broadband Communications Sector to Leverage Its Position as Global Broadband Market Leader

HORSHAM, Pa., Jan. 31 /PRNewswire/ -- Motorola, Inc. (NYSE: MOT) Broadband Communications Sector today announced its strategic organizational realignment into two powerful new business groups -- the IP Systems Group and the Entertainment Systems Group. Motorola Broadband Communications Sector's new structure is designed to better serve Motorola's cable industry customers, while broadening its scope as the leading global provider of advanced broadband technology.

Led by Dave Robinson, its newly appointed president, the Broadband Communications Sector will accelerate the rollout of new technologies and applications, broaden Motorola's global reach, and leverage the sector's close association with two other Motorola divisions: the Global Telecommunications Solutions Sector and the Commercial, Government and Industrial Solutions Sector.

These organizations, together with the Broadband Communications Sector, now comprise Motorola's newly formed Networks Sector, led by Ed Breen, former president of the Broadband Communications Sector. Motorola's new Networks Sector combines personal, broadband, and wireless infrastructure networking technologies to lead both current and future innovative technology applications.

"Over the years, Dave Robinson has proven himself as a leader in this industry, and his ability to combine practical strategic vision and execution is unparalleled," said Ed Breen, Executive Vice President and President of Motorola's Networks Sector. "Under Dave's leadership, the Broadband Communications Sector will continue to advance technology and create new, innovative products that raise the bar for the entire broadband industry."

About Motorola's IP Systems Group

The IP Systems Group, consisting of the Internet Protocol (IP) Network Systems business unit and the Transmission Network Systems business unit, will be headed by Dan Moloney, Senior Vice President and General Manager. Moloney formerly served as head of the IP Network Systems business unit.

Motorola's IP Network Systems business unit consists of four focus businesses: Cable Modems -- led by John Burke, Vice President and General Manager; North America Telephony -- headed by Charles Dougherty, Vice President and General Manager; International Telephony -- managed by Bruce Swail, Vice President and General Manager; and Network Infrastructure Solutions -- headed by Peter Sherlock, Vice President and General Manager. The IP Network Systems business unit is the established world leader in cable modems, with the largest market share and over three million cable modems deployed. It has also established itself as an emerging leader in the development of home networking and Voice over Internet Protocol (VoIP) solutions.

In addition to his new responsibilities, Dan Moloney will continue to oversee the activities of the IP Network Systems business unit. He also has been chosen to manage all of Motorola, Inc.'s home-networking initiatives, which now fall under the Networks Sector umbrella.

Motorola's Transmission Network Systems business unit specializes in Hybrid Fiber Coax solutions for a full complement of broadband services including video, voice, and data communications. These solutions include RF and optical headend, optoelectronic nodes, RF amplifiers, and system taps and passives. All are designed to be easily installed, managed and upgraded as service levels evolve. Bick Remmey, Corporate Vice President and General Manager of Transmission Network Systems, will continue to oversee the unit's activities.

About Motorola's Entertainment Systems Group

Motorola's Entertainment Systems Group, to be overseen by Dave Robinson, is comprised of the Satellite & Broadcast Network Systems business unit; the Worldwide Interactive Systems (WIN) business unit, dedicated to the international market; and the newly named DigiCable® business unit, focused on the North American digital cable market.

Doug Means, Vice President and General Manager will lead Motorola's Satellite & Broadcast Network Systems (SBNS) business unit. Means, formerly Vice President of Sales and Marketing for SBNS, will replace Tom Lynch as the business head. Lynch was recently promoted to Executive Vice President and President of Motorola, Inc.'s Integrated Electronic Systems Sector.

Motorola's SBNS business unit is the recognized leader in secure video processing and communications, primarily for satellite and broadcast media. Its commercial satellite systems are a key link in the end-to-end content delivery chain, currently in use by the industry's largest programmers to feed the entire North American cable market. Through the recent acquisition of the Network Systems business from Zenith Electronics Corporation and ongoing internal development, SBNS is also a major force in the rapidly expanding worldwide direct-to-home (DTH) satellite market.

Motorola's WIN business unit is focused on developing, marketing, and deploying Motorola's DVB-compliant interactive digital network, as well as SCTE-ATSC networks and set-top terminals for operators in Europe, Middle East, Asia/Pacific, Latin America, and Africa. Motorola is the worldwide leader in addressable systems with over 2,400 systems on six continents and over 50 million set-tops installed. These solutions are designed to allow both analog and digital systems to coexist, with increasing emphasis on interactive digital solutions. The WIN unit will continue to be led by Denton Kanouff, Vice President and General Manager.

Motorola's DigiCable business unit, to be led by Carl McGrath as Vice President and General Manager, will focus on North American digital cable initiatives of the unit previously known as Digital Network Systems (DNS). McGrath was formerly the engineering Vice President for DNS. The DigiCable name reflects Motorola's strategic decision to broaden its focus to support not only operators, but also their end customers, the consumer. As part of this initiative, DigiCable will concentrate on leading new software/service applications and supplemental distribution initiatives in the marketplace, such as retail and e-commerce sales. DigiCable's new focus supports the public demand for choice and opens new channels to grow the digital market.

"Motorola Broadband Communications Sector's evolved structure will help us better leverage and utilize our industry strengths, and will be led by one of the most knowledgeable teams in the industry," said Dave Robinson, President of Motorola Broadband Communications Sector. "Our new structure provides a means for more intense focus on the things that will best help our customers and shareholders, both today and for the long term."

Leveraging Motorola's Unique Strengths

As the only vendor that can supply complete end-to-end interactive broadband network solutions for video, voice, and data applications, Motorola is unique within the industry. Unlike telecom build-out companies that know voice but offer little video expertise, and video competitors with little data and voice experience, Motorola offers the complete end-to-end broadband solution for a "triple-play" of interactive services -- voice, video, and data. This advantage has positioned Motorola at the forefront of the industry, and heightened customer demand for these services has created a market to which operators can provide the full spectrum of cable, video, and interactive services.

About Motorola Broadband Communications Sector

The Motorola Broadband Communications Sector was created when General Instrument Corporation (GI) was acquired by Motorola, Inc. in January 2000. Combining GI's leadership in converged voice, video, and data networks with Motorola's global reach and brand identity, the Motorola Broadband Communications Sector focuses on broadband solutions that deliver interactive television, the Internet, and telephone services over wired and wireless networks. For more information about the Motorola Broadband Communications Sector, visit www.motorola.com/broadband.

About Motorola

Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. These include:

  • Software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers.

  • Digital and analog systems and set-top terminals for broadband cable television operators.

  • Embedded semiconductor solutions for customers in the networking and computing, transportation, wireless communications and imaging and entertainment industries.

  • Embedded electronic systems for automotive, communications, imaging, manufacturing systems, computer, consumer and industrial markets.

Sales in 2000 were $37.6 billion.

For more information, visit Motorola on the Web at www.motorola.com

MOTOROLA, the Stylized M Logo and all other trademarks indicated as such herein are trademarks of Motorola, Inc. ® Reg. U.S. Pat. & Tm. Off. All other product or service names are the property of their respective owners.

David E. Robinson, President of Motorola Broadband Communications Sector Executive Profile: January 31, 2001

Dave Robinson, Executive Vice President of Motorola, Inc. and newly appointed President of Motorola's Broadband Communications Sector, has earned the industry's respect as a dynamic visionary of interactive broadband technology.

Robinson was one of the first in the industry to recognize the enormous potential of this technology. A pioneer in applying fiber optics since the 1980s and a leader in commercializing digital cable technology since the 1990s, he has helped the industry to create the awesome Hybrid Fiber Coax (HFC) interactive networks enjoyed today. In 1996, he spearheaded Motorola Broadband Communications Sector's (then General Instrument's) launch of the industry's first volume deployments of digital cable set-top terminals and the related interactive digital delivery system. From 1995 to 2000, Robinson took the company's digital cable business from zero revenue to its worldwide leadership position today -- with cumulative digital set-top shipments exceeding 12 million units and deployments of over 1,600 Motorola headends serving over 54 million homes.

Robinson's history with the Broadband Communications Sector began in 1983 when he joined General Instrument Corporation (GI) after earning an MBA from Dartmouth College. He left briefly to work at AT&T Network Systems in 1993 and returned to GI two years later. His time with AT&T gave Robinson an expanded technology solutions perspective, highlighting the challenges faced by developers and operators when integrating software on complex networks for interactive video, voice, and data services. Robinson used this experience combined with his previous GI customer-based relationships to drive success at Motorola's Broadband Communications Sector.

While with the company, Robinson has fulfilled the vision of interactive broadband technology, helping to deliver the benefits of voice, video, and data convergence to millions of people throughout the world. The company's global leadership in interactive broadband technology dates back over 50 years and encompasses Jerrold Electronics (cable TV technology's original pioneer, acquired by GI in 1967); GI addressable set-top systems (1970s); GI's fiber- optics advances (1980s); GI's invention of all-digital high-definition television (1990); and the continued innovations of Motorola's top-notch engineering teams in video, high-speed data, and telephony.

Robinson and his colleagues at GI/Motorola mapped out a winning path, committed to digital interactive technology before the rest of the industry, and executed a platform and strategy faster than anyone else in the world. When the cable industry struggled with digital technology in the mid-1990s, Robinson helped ensure the company and its customers ended up years and millions of units ahead of others in terms of volume commercial deployments.

"One of Dave's greatest strengths has always been his ability to combine practical strategic vision and execution. This ability -- combined with the entrepreneurial, winning team culture Dave has fostered -- has helped make Motorola Broadband the leader we are today," said Ed Breen, President of Motorola's newly formed Networks Sector (which is comprised of the Broadband Communications Sector, Global Telecom Solutions Sector, and the Commercial, Government and Industrial Solutions Sector). "Dave also consistently works with customers to find solutions that meet their needs and the needs of the end consumer. He has a history of extending those individual cutting-edge solutions to all customers, advancing technology and creating new, innovative products that the entire industry uses as a benchmark."

Robinson sees a bright future for Motorola's Broadband Communications Sector. He intends to parlay Motorola's global leadership position in interactive broadband technology into a powerful market position in what he describes as "Motorola's broadband triple-play" -- the total cable solution for interactive video, voice, and data communications. He welcomes the challenge.

"Motorola is the only company that addresses the complete picture and provides the total broadband solution consumers need to remain informed, entertained, and connected," Robinson said. "As the world's leader in interactive digital cable and high-speed cable modems and a forerunner in voice-over-IP networks, we are at the center of convergence. Our focus now is to continue providing the state-of-the-art technology that enables operators all over the world to deliver the latest interactive broadband solutions that customers demand. As that demand grows, our customer base will grow, and so will our leadership."

Reflecting on his new responsibilities, Robinson looks forward to Motorola's future and the opportunities it will bring. "I have an intense passion for what we do at Motorola Broadband," he said. "In my new role as president, I now have the opportunity to channel that passion into working with a larger group of customers, suppliers, and fellow employees to identify a winning path -- and to help us stay focused on that path, as it twists and turns, as paths often do, until success is clear to all."

SOURCE Motorola, Inc.

/NOTE TO EDITORS: Bios of Motorola executives available upon request. Organizational chart available upon request./

CONTACT: Jeanne Russo, Manager of Media Relations of Motorola Broadband Communications Sector, 215-323-1873, or jrusso@gi.com/