Revolutionary Semiconductor Technology Breakthrough by Motorola Opens New Opportunities to Double the Market for Smart Wireless Devices

The MXC architecture simplifies and cuts development times, drives new applications, increases carrier margins and speeds adoption of mobile devices by rethinking the architecture to eliminate current design roadblocks and reduce cost, complexity, size, power consumption and part count. It will open new markets for the next generation of "smart" mobile devices and consumer electronics.

"With the Extreme Convergence architecture, Motorola's Semiconductor Products Sector has found a way to simplify the design of hardware and software and to reduce the cost of components for mobile systems," said Max Baron, principal analyst, InStat/MDR. Motorola's technical and business strategy combines DSP and applications processor cores positioning the company to compete in a wide variety of applications that goes beyond traditional mobile devices and into consumer electronics. The rapid delivery of chips and platforms by Motorola for mobile and tethered applications will enable it to secure a solid share in an addressable embedded processors market that is expected to consume over 900 million chips by 2007."

Delivers Value to All Market Participants

MXC is specifically designed to provide a powerful, yet simplified, device development platform for manufacturers and mobile operators to bring advanced products to consumers.

MXC is designed to significantly reduce the materials and development effort required enabling original equipment manufacturer (OEM) developers to deliver higher featured mobile devices at nearly half the cost and more rapidly than ever before. The MXC's small footprint, high performance, and flexibility allow developers to use a single platform to target multiple product designs ranging from entertainment to enterprise applications that currently are delivered through as many as 300-400 components. This facilitates the creation of thousands of permutations of devices without changing the central core of the designs.

As mobile carriers struggle to improve margins, they are pressuring suppliers to deliver products at much lower price points. Incremental cost improvements are no longer enough. OEMs can offer feature-rich, innovative devices at mass market prices, doubling the addressable market size, creating new revenue opportunities and providing higher value services to their customers.

To protect consumers, operators and content owners, the market requires mobile devices offering both onboard security, like fingerprint recognition technology, and secure over-the-air transactions. Motorola's Semiconductor Products Sector built a security engine into the MXC architecture to increase the speed of adoption of everything from music downloads to mobile credit card transactions.

"To meet growing cost pressures manufacturers have attempted to shrink the size of components. We went outside of that box and rethought the entire device architecture. Our new MXC architecture is the result, and with it, we believe we have a revolutionary innovation that will significantly impact mobile market growth," said Franz Fink, vice president and general manager of Motorola's Wireless and Mobile Systems Group. "The MXC architecture is a streamlined approach to building devices, and that means OEMs have the potential to double or even triple the number and kind of devices they make and deploy. MXC also makes it possible for OEMs to bring highly valued applications into the mass-market, enabling untapped value for suppliers, carriers, developers and consumers alike."

A Reset in Building Mobile Platforms

Comprising one of the largest assemblies of advanced technology in its history, Motorola's Semiconductor Products Sector has combined an exceptional array of knowledge and design expertise to produce this revolutionary architecture. A complete rethink of cellular platform design, the MXC architecture:

  * Converges the hardware needed to drive call processing technology and
    applications processing technology with a shared memory system,
    enhancing the performance of both functions

  * Separates the communication function software to provide a clean
    application development environment for rapid deployment of features
    across tiers, allowing developers to write once and port their
    applications to any other device, using a consistent processing core

  * Utilizes hardware acceleration and memory caching techniques to
    dramatically cut power consumption

  * Secures airborne transactions and provides on-board security by
    incorporating Motorola's security technology to help protect consumers
    and enable widespread access to anywhere, anytime downloads like video
    files and mobile commerce transactions

  * Enables a "system-in-a-postage-stamp"-size module, to be easily
    integrated into existing device footprints. When fully implemented, the
    architecture is expected to deliver a fully equipped "smartphone"
    platform in a 16 by 20 millimeter package and a slim 1.4 millimeters,
    enabling virtually any product -- an MP3 player, a handheld DVD, a
    digital camera -- to become a fully functioned "smart mobile device"

  Availability

The first chips using the MXC architecture are expected to sample in the second half of 2004.*

About Motorola Semiconductor Products Sector

As the world's #1 producer of embedded processors, Motorola's Semiconductor Products Sector creates DigitalDNA(TM) system-on-chip solutions for a connected world. Our strong focus on wireless communications and networking enables customers to develop smarter, simpler, safer and synchronized products for the person, work team, home and automobile. Motorola's worldwide semiconductor sales were $5.0 billion (USD) in 2002. For more information please visit http://www.motorola.com/semiconductors .

About Motorola

Motorola, Inc. (NYSE: MOT) is a global leader in wireless, automotive and broadband communications. Sales in 2002 were $27.3 billion. Motorola is a global corporate citizen dedicated to ethical business practices and pioneering important innovations that make things smarter and life better, honored traditions that began when the company was founded 75 years ago this year. For more information, please visit http://www.motorola.com/ .

MOTOROLA and the Stylized M Logo registered in the U.S. Patent and Trademark Office. All other product or service names are the property of their respective owners.

* Except for historical information, all of the expectations and assumptions, contained in the foregoing are forward-looking statements involving risk and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements, include, but are not limited to, the competitive environment for our products, changes of rates of all related services, and legislation that may affect the industry. For additional information regarding these and other risks associated with Company's business refer to the Company's reports with the Securities and Exchange Commission.

CONTACT: North America: Andrea Crocker +1-512-895-7714,
andrea.crocker@motorola.com, Europe, Middle East and Africa: Regina Cirmonova,
+41 22 799 1258, regina.cirmonova@motorola.com, Asia-Pacific: Gloria Shiu
(Hong Kong), +852-2666-8237, gloria.shiu@motorola.com, or Koichi Yoshimura
(Japan), +81-3-3280-8672, koichi.yoshimura@motorola.com , all of Motorola

Web site: http://www.motorola.com/
http://www.motorola.com/semiconductors