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ATCA/Standard Servers

Moto Reports Q3

SCHAUMBURG, Ill. -- Motorola, Inc. (NYSE:MOT) today reported record sales and earnings from continuing operations.

During the quarter, the company continued to strengthen its balance sheet. The company generated operating cash flow of $1.1 billion, its 19th consecutive quarter of positive operating cash flow. In addition, the company reduced its total debt by $1.0 billion through repurchases of long-term debt in the market. Also, the company purchased $353 million of its outstanding shares pursuant to a previously announced and ongoing share repurchase program. The company ended the quarter with a record net cash(1) position of $8.4 billion.

"We are very excited about our record third-quarter results and overall performance year-to-date," said Ed Zander, chairman and CEO. "Excluding reorganization charges, all four of Motorola's businesses grew profitably during the quarter - a testament to the hard-working and dedicated talent across the global Motorola organization. We are especially pleased with the record results achieved by our Mobile Devices business for unit shipments.

Mobile Devices Segment sales were $5.6 billion, up 41 percent compared with the year-ago quarter and a record for the business. Operating earnings were $597 million, compared with operating earnings of $394 million in the year-ago quarter, also a record for the business. Sales, earnings and market share were up as a result of "must-have" products that combine innovative style, leading technology and quality while enabling "must-do" experiences such as mobile video and mobile music.

  • Shipped 38.7 million handsets during the third quarter -- an increase of 66 percent compared to the same period in 2004 and a record for the business

  • Grew market share to an estimated 19%, up approximately 5.5 percentage points versus the year-ago quarter and approximately 1 percentage point versus second quarter of 2005

  • Awarded the second tender of the GSM Association's program to "Connect the Unconnected" in the high-growth markets (Middle East, Africa, India and Southeast Asia)

  • Tremendous global demand for the Motorola RAZR -- the world's best- selling clamshell mobile handset, with more than 6.5 million units sold during the quarter and more than 12 million units sold to date

  • Launched 13 new mobile devices -- four new handsets for CDMA networks, five for iDEN and four for GSM networks, including the eagerly anticipated Motorola ROKR E1 mobile handset

  • Integrated new R&D teams in Europe and Asia to deliver value-added services that leverage software platforms such as i-mode(TM)

  • Began shipping the Motorola PEBL U6 and the Motorola SLVR L6 after the quarter ended

Networks Segment sales were $1.6 billion, up 7 percent compared with the year-ago quarter. The segment continued to deliver a comprehensive value proposition in access, core, platforms and services for wireless and wireline carriers. Operating earnings increased to $268 million, compared with $159 million in the year-ago quarter.

Motorola Inc.

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