Moto Q2 Boosted by Devices

Second Quarter

%

2005

2004

Increase

Sales

$8.83B

$7.54B

17%

EPS

$0.38

$0.25

52%

Second-Quarter 2005

EPS Impact

Income from gain on sale of investment

$ 0.10

Repayment of previously-reserved loan

0.01

Restructuring charges

(0.01)

Prior-year China tax adjustment

0.02

$ 0.12

During the quarter, the company continued to strengthen its balance sheet, generating operating cash flow of $1.0 billion, its 18th consecutive quarter of positive operating cash flow, and ending the quarter with a record net cash[1] position of $7.5 billion.

“Motorola delivered a very strong second quarter and once again exceeded guidance," said Ed Zander, chairman and CEO, “Revenues increased 17 percent, earnings per share were up 52 percent and all four of our businesses grew profitability. We announced great new products and are delighted that customers are embracing seamless mobility solutions around the globe. After six consecutive quarters of positive performance, the entire organization is focused on continuing our momentum. During the quarter, we initiated the first stock repurchase program in Motorola’s history--underscoring our commitment to long-term financial performance.”

Motorola Inc.