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Motorola to Extend Wireless Broadband Capabilities Through Acquisition of Orthogon Systems


SCHAUMBURG, Ill. 18 April 2006 -- Motorola, Inc. (NYSE: MOT) today announced that it has signed a definitive agreement to acquire Orthogon Systems, a privately held, leading provider of high-performance fixed wireless solutions. The addition will expand the MOTOwi4 portfolio of IP, wireless broadband solutions. Terms of the transaction were not disclosed. The acquisition, which is subject to regulatory and other customary conditions, is expected to close in the first half of 2006.

Orthogon’s industry leading expertise in wireless Ethernet connectivity is highly strategic to Motorola’s rapidly growing wireless broadband business. A pioneer in intelligent OFDM-based, wireless IP, point-to-point transmission solutions, Orthogon has developed and successfully marketed innovative, software-defined Ethernet bridges. With this acquisition Motorola will enhance its OFDM capability and broaden the support of its MOTOwi4 wireless broadband offerings -- including WiMAX, Mesh Solutions and Canopy products -- and accelerate the growth of its existing wireless IP access business. Motorola expects to advance Orthogon core technology to build it into a series of future products.

Orthogon, headquartered in Ashburton, England, is known for delivering true non-line of sight and reliable connectivity in the most challenging environments. The Company has an impressive portfolio of products and technologies including its award-winning wireless Ethernet bridges that are renowned for their high performance, security, and ease of installation and management. Since July 2003, Orthogon has installed thousands of wireless links, successfully connecting disparate networks within corporate enterprises, service providers and municipalities in 53 countries worldwide.

“Orthogon is at the forefront of innovation in wireless OFDM point-to-point solutions and is highly complementary to Motorola’s MOTOwi4 wireless broadband capabilities,” said Greg Brown, President, Motorola’s Networks and Enterprise business. “Orthogon products and technologies will advance Motorola’s vision of seamless mobility by providing customers with easy, uninterrupted access to communication and information. By combining Orthogon’s expertise and best-in-class product portfolio with Motorola’s strength in product and technology development, we are confident that Motorola will be a stronger competitor with a broader product portfolio and enhanced prospects for continued growth and success.”

“This is an outstanding transaction for our company and we look forward to taking our solutions to the next level as part of Motorola,” said Philip Bolt, President and CEO of Orthogon. “Motorola is at the forefront of mobile communications and wireless broadband technology, making it the ideal partner for Orthogon. This combination creates exciting future growth opportunities for Orthogon, our customers and our employees and we look forward to joining the Motorola team.”

Motorola has an existing minority equity investment in Orthogon, which was driven by its venture capital arm, Motorola Ventures. In addition, Motorola has been a distributor of Orthogon’s products through its Canopy business since 2004.

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

About Orthogon
Orthogon Systems is a leading provider of high-performance fixed wireless solutions known for delivering reliable connectivity in the most challenging environments. Based on unique, patented intelligent radio technology, the award-winning OS-Gemini and OS-Spectra products are secure, easy-to-install and self-managing. Since July 2003, Orthogon has installed thousands of wireless links, successfully connecting disparate networks within corporate enterprises, service providers and municipalities in 53 countries worldwide and growing. Orthogon Systems is headquartered in Ashburton, England with offices in Moscow, Dubai, Singapore and Shanghai. The legal name of the company is Piping Hot Networks Limited, which operates under the name of Orthogon Systems. For more information, please visit

Business Risks
The statements in this release that are not historical facts are forward-looking statements based on current expectations and involve risks and uncertainties. Such forward-looking statements include, but may not be limited to, statements about the anticipated timing of the transaction and the potential impact the acquisition will have on Motorola. Motorola wishes to caution the reader that the factors below and those contained in Item 1A of Motorola’s Form 10-K for the year ended December 31, 2005, as amended, and in its other SEC filings could cause Motorola’s results to differ materially from those described in the forward-looking statements. These factors include: (i) unforeseen factors that could impact the timely completion of the transaction on the terms described, (ii) difficulties in integrating the operations of the newly-acquired business and achieving strategic objectives, (iii) difficulties in retaining employees at Orthogon, (iv) difficulties and delays in the further development, production, testing and marketing of acquired technologies, (v) uncertainties related to broader deployment of relatively new technologies, including customer acceptance of the products and technologies, (vi) the ability to differentiate our products and compete with other companies in the same markets and (vii) the general outlook for the economy and the telecom industry.


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