Motorola Personal Communications Sector

(PCS) Refocuses Messaging Division

BOYNTON BEACH, Fla., Dec 3, 2001

New PCS Strategy Will Support and Expand Wireless Messaging Opportunities

Motorola Inc.'s Personal Communications Sector (PCS) announced today that it will refocus the objectives of its Wireless Messaging Division. PCS will concentrate its development efforts on 2-way messaging products for use on cellular networks for GSM, GPRS and CDMA protocols. This means that PCS will discontinue distributing ReFLEX protocol-based products such as the Talkabout® T900 and Timeport™ P935 personal communicators, as well as its one-way paging products, in mid-2002. PCS will continue to provide technical support of the ReFLEX® protocol to the growing list of over twenty ReFLEX licensees.

Miguel Pellon, vice president and general manager, Wireless Messaging Division, said, "Sales of our traditional one and two-way messaging products are migrating to demand for 2-way messaging for use on cellular networks with integrated product offerings and increased functionality. Demand still exists for these traditional products; however, Motorola is committed to market leadership. This means we need to begin now to redeploy our resources and development efforts to transport protocols such as GSM, GPRS and CDMA."

PCS's refocus is also being driven by the need to better utilize existing resources within the company while leveraging the technology platforms it has recently developed. The recent introductions of the V100, V200 and impending release of the AccompliTM 009 personal communicator products are the initial results of this refocused effort. This move will allow PCS to utilize its expertise in messaging and cellular communication while encouraging the development of FLEX™ and ReFLEX networks and devices through participation in the Personal Communication Industry Association's (PCIA) Paging Technical Committee.

PCS plans to continue to provide technical resources to those licensing the FLEX and ReFLEX protocol for manufacturing subscriber devices, infrastructure, test equipment, chip sets or modules. PCS will also continue to provide warranty service for their 1-way and 2-way messaging products.

"PCS alone has shipped over two million ReFLEX-based devices since 1996, with the majority of those shipments happening in the past 18 months," said Pellon. "There are currently 21 ReFLEX licensees designing and manufacturing ReFLEX-based products -- a sign of the strength of the wireless messaging industry."

Motorola PCS's participation in PCIA's Paging Technical Committee has been instrumental in providing a forum for discussing technical issues related to the paging industry as well as in creating, publishing, and adopting non-proprietary standards in support of enhanced industry services. Recent committee activities include developing improved formats and methods for inter-networking of paging carrier systems, creation of a national standard to allow carrier compliance with the Commission on Accreditation for Law Enforcement Agencies, Inc., (CALEA®) and reviewing new vendor proposals for industry service enhancements.

The PTC is migrating its focus to support the ReFLEX protocol by serving as an industry "sounding board" for technical issues, but with a focus on ReFLEX systems, devices and services as well as support for FLEX protocol (one-way) networks. PCS's involvement includes providing device standards as well as support for the evolution of the ReFLEX protocol, including ReFLEX 2.7.

Manufacturers interested in obtaining a FLEX or ReFLEX protocol license can visit http://www.motorola.com/flex for more information.