AUSTIN, Texas, Feb. 9 /PRNewswire/ -- In a continuation of cost-reduction measures Motorola (NYSE: MOT) began in the fourth quarter, the company's Semiconductor Products Sector today announced further steps to boost efficiency and improve profitability.

These measures will include a substantial reduction in capital spending and operating budgets, further business and manufacturing consolidations, and the elimination of up to 4,000 jobs during the year. These workforce reductions will be achieved by ending the assignments of contract and temporary employees, attrition, and both voluntary and involuntary severance programs.

"Each of our business units and support organizations has reviewed its circumstances and is making the necessary adjustments to help the Sector meet its goals," said Fred Shlapak, president of the Semiconductor Products Sector. "While job reductions are extremely painful, they are a necessary part of our cost-reduction needs."

Shlapak noted that some of the cost-reduction measures will be completed in the first quarter, while others will conclude later in the year, depending upon legal or regulatory requirements in various countries.

"At the same time," Shlapak said, "we are continuing to invest in R&D and build on our strengths to provide embedded solutions for the person, work team, home and auto."

As the world's #1 producer of embedded processors, Motorola's Semiconductor Products Sector offers multiple DigitalDNA™ technologies which enable its customers to create "smart" products and new business opportunities in the networking and computing, wireless communications, transportation, and home networking markets. Motorola's worldwide semiconductor sales were $7.9 billion (USD) in 2000. http://www.motorola.com/semiconductors/

Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2000 were $37.6 billion. http://www.motorola.com

Contacts:

Americas - Ken Phillips, 602-952-3852

Asia-Pacific - Gloria Shiu, +85-226-668-237

Europe/Middle East/Africa - Steven Sloan, +41-22-799-1329

Japan - Koichi Yoshimura, +81-332-808-672

SOURCE Motorola SPS

CONTACT: Americas - Ken Phillips, 602-952-3852; or Asia-Pacific - Gloria Shiu, +85-226-668-237; or Europe/Middle East/Africa - Steven Sloan, +41-22-799-1329; or Japan - Koichi Yoshimura, +81-332-808-672, all for Motorola/