Moto Invests in India

CHENNAI, India -- In keeping with its strong commitment to India, Motorola (NYSE: MOT - News) today announced plans for a manufacturing facility with an initial investment of US $30 million. This will be scaled up to a total of US$100 million in phases. The company will establish a manufacturing plant in the 300 acre Sriperumbadur Hi-tech Special Economic Zone (SEZ) being developed jointly by Motorola and Government of Tamilnadu at Sriperumbudur, near Chennai.

Speaking on the occasion, the Union Minister for Telecom & IT, Thiru Dayanidhi Maran said, "It gives me great pleasure to be part of yet another milestone achieved by the telecommunications industry. Motorola's manufacturing facility being set up in the Sriperumbadur Hi-tech SEZ will be a further catalyst to bringing the highest level of technology and electronics manufacturing into the country. The Sriperumbadur Hi-tech SEZ being developed jointly by the state government and Motorola, when fully operational is expected to make Sriperumbadur the electronics manufacturing hub of the country. I congratulate Motorola for yet another major effort in connecting the unconnected and accelerating the country's telecom revolution."

Ron Garriques, executive vice president, Motorola Inc. and president, mobile devices business, highlighting the importance of India to Motorola's global plans, said, "India is a vitally important market for Motorola and as a strategic manufacturing hub offers a compelling value-proposition of best-in- class talent and strong cost efficiencies. Our decision to make an investment of this scale is a reflection of our continued global commitment to connect the next billion consumers."

Expected to be operational in 2007, the state-of-the-art facility will undertake full-scale production, to support a wide range of Motorola handsets. It will also support production and assembly of network base stations for products across Motorola's Networks & Enterprise portfolio.

"We have long been engaged in high-end 'soft manufacturing' and creating intellectual property in the country. With this Motorola owned facility we come full circle, delivering on the promise of leveraging India's intrinsic advantages: excellent IT skills, exceptional scientific talent, competent, mature workforce and economies of scale offered by a vast market," said Firdose Vandrevala, chairman, Motorola India and corporate vice president, Motorola Inc.

Motorola Inc. (NYSE: MOT)