Moto Unveils $4B Share Buyback

SCHAUMBURG, Ill. –— Motorola, Inc. (NYSE: MOT) today announced that its Board of Directors has authorized the Company to repurchase up to $4.0 billion of its outstanding shares of common stock over the next 36 months, subject to market conditions. Based on Motorola’s current stock price, $4.0 billion represents approximately 10% of the Company’s total market capitalization. As of April 2, 2005, Motorola had approximately 2.45 billion shares of common stock outstanding.

“Motorola is committed to investing for growth and creating value for our stockholders,” said Ed Zander, chairman and CEO. “We are pleased to initiate the first stock repurchase program in Motorola’s history. Motorola’s financial performance over the past five quarters has proven that we have transformed our business model into one with the capability to consistently generate free cash flow[1]. We believe this stock repurchase program creates value for stockholders and further underscores our confidence in Motorola’s long-term growth. Our strong balance sheet and significant free cash flow allow us the flexibility to simultaneously invest in our current business, pay dividends, further reduce debt, initiate a share repurchase program and take advantage of strategic opportunities.“

Motorola will repurchase the shares from time to time for cash in open market transactions or in privately negotiated transactions in accordance with applicable federal securities laws. The timing and amount of the repurchases will be determined by the company's management based on their evaluation of market conditions, share price and other factors. The stock repurchase program may be suspended or discontinued at any time. As of April 2, 2005, Motorola had cash, cash equivalents and short-term investments of approximately $11.3 billion and had a net cash position of $6.0 billion.[2]

Motorola Inc.