Motorola Completes Sale of Automotive Electronics Business to Continental AG

SCHAUMBURG, Illinois – 3 July 2006 – Motorola, Inc. (NYSE: MOT) today announced it has completed the sale of its automotive electronics business to Continental AG, a leading automotive supplier, for approximately $1 billion.

On 3 April 2006, Motorola and Continental AG announced that the companies had entered into an agreement under which Continental would acquire Motorola’s automotive electronics business and integrate it into Continental’s Automotive Systems division. Beginning on 2 July 2006, the former Motorola automotive unit began operating as Continental; however the assets and employees of the business in China will be transferred following the satisfaction of certain regulatory and other customary closing conditions.

In connection with this sale, the financial results of this business will be presented in accordance with Generally Accepted Accounting Principles (GAAP) as a discontinued operation in the company’s 2nd quarter results, to be released on July 19, 2006. Therefore, reported sales in the earnings release to be issued July 19, 2006 for periods of 2006 and 2005 will exclude sales of this business, which has had sales of approximately $400 million per quarter each quarter from the first quarter of 2005 through the first quarter of 2006. The guidance that the company provided on April 18, 2006 of $10.3 - $10.5 billion for its 2nd quarter 2006 sales included an assumption of approximately $400 million of sales for the automotive electronics business. Therefore the company’s guidance for the 2nd quarter of 2006 stated to exclude the automotive electronics business would have been $9.9 - $10.1 billion. This communication is not a reiteration of that sales guidance, it is being made to place that guidance in the proper context given the circumstances described above. The net earnings contribution from the automotive electronics business will be included in the company’s GAAP reported earnings on a separate line titled Discontinued Operations.

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering “must have” products, “must do” experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.8 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com.

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Jeff Madsen

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Motorola, Inc.

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