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Motorola to Acquire Leapstone Systems


Privately-Held Company to Contribute Leading Software Platform for Converged Services and Applications

SCHAUMBURG, Ill and SOMERSET, NJ. – 10 July 2007 – Motorola, Inc. (NYSE: MOT) has signed a definitive merger agreement to acquire privately held Leapstone Systems, Inc. Leapstone is a leading communications software developer that provides a unified platform for rapidly creating, managing and delivering converged video, voice and data service bundles across multiple networks and devices. Terms of the transaction were not disclosed.

Leapstone flagship Communications Convergence Engine (CCE) product suite is a real-time service delivery platform that enables fixed and mobile network operators to expand and evolve their service offerings through its powerful Service Broker and Content Manager software products. Leapstone has a proven commercial track record of success and counts some of the world’s leading service providers as its customers, including AT&T and Verizon Wireless.

“Leapstone will contribute its leading intelligent service delivery and content management platform to Motorola, which will serve as our new engine for enabling seamless mobility experiences across applications, devices and domains,” said Dan Moloney, President, Motorola Home & Networks Mobility. “We’re pleased to add the talented Leapstone team and their proven powerful software platform to Motorola’s end-to-end content delivery portfolio” added Moloney.

“The combination of Leapstone’s CCE with Motorola’s world-class infrastructure equipment and consumer devices will offer service providers an integrated approach to deliver a unique combination of compelling end-user services to their customers,” said Rick Orriss, Chief Executive Officer of Leapstone Systems. “Our team is excited to join an industry leader like Motorola and contribute to the Motorola’s commitment to delivering innovative solutions for home and mobile networks.”

The transaction is subject to customary closing conditions, including the approval of Leapstone Systems stockholders, and is currently expected to be completed in the third quarter of 2007.

About Leapstone Systems
Leapstone Systems delivers intelligent multimedia service delivery and content management solutions to network operators. The Communications Convergence Engine (CCE) is aligned with the IMS architectural framework and empowers converged services providers to expand and evolve their product portfolios to include all elements of the triple/quad play, including IPTV, VoIP, high-speed internet data and fixed-mobile convergence. The Leapstone CCE has been licensed by multiple service providers worldwide, including Verizon Wireless and AT&T, who awarded Leapstone its 2006 Supplier Recognition Award for Outstanding Performance in Technical Innovations.

Leapstone is privately held and headquartered in New Jersey, USA. The company has sales offices and technical centers in the United States, the United Kingdom, and Canada. Additional news and information about the company is available at

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 $42.9 billion in 2006. For more information about our company, our people and our innovations, please visit

Forward-Looking Statements
Certain statements contained in this press release, including the expected timetable for completing the proposed transaction between Motorola and Leapstone Systems, future financial and operating results, benefits and synergies of the transaction, future opportunities for the combined company and products, any other statements regarding Motorola’s or Leapstone Systems’ future expectations, beliefs, goals or prospects, the near-term impact of the transaction on Motorola’s earnings per share, and any statements that are not statements of historical facts might be considered forward-looking statements. While these forward-looking statements represent managements’ current judgment of future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those stated in the forward-looking statements. Important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, include: (i) the parties’ ability to consummate the transaction; (ii) the conditions to the completion of the transaction may not be satisfied, or the regulatory approvals required for the transaction may not be obtained on the terms expected or on the anticipated schedule; (iii) the parties’ ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction; (iv) the possibility that the parties may be unable to achieve expected synergies and operating efficiencies within the expected time-frames or at all; (v) Motorola’s ability to successfully integrate Leapstone Systems’ operations and technology into those of Motorola and the possibility that such integration may be more difficult, time-consuming or costly than expected; (vi) revenues following the transaction may be lower than expected; (vii) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the transaction; (viii) the retention of certain key employees at Leapstone Systems; and (ix) the other factors described in Motorola’s Annual Report on Form 10-K for the year ended December 31, 2006 and its subsequent reports filed with the SEC. Motorola and Leapstone Systems assume no obligation to update or revise any forward-looking statement in this press release, and such forward-looking statements speak only as of the date hereof.

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MOTOROLA and the Stylized M Logo are registered in the US Patent and Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2007


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