Industry News

Motorola, Inc. (NYSE: MOT) confirmed receipt of notice from certain Carl Icahn entities for the nomination of Carl C. Icahn to Motorola's Board of Directors at the Company's 2007 Annual Meeting of Stockholders. The notice contained no additional information regarding his intentions. The Company has not yet set a date for its 2007 Annual Meeting.

The notice states that the Carl Icahn entities "may be deemed to beneficially own, in the aggregate, 33,529,000 shares, representing approximately 1.39% of the Corporation's outstanding shares."

Motorola is reviewing the notice of nomination.

Motorola, Inc. (NYSE: MOT), a global leader in mobile communications and seamless mobility solutions, and Texas Instruments Incorporated (TI) (NYSE: TXN), a global leader in silicon solutions for wireless communications, today announced that the companies are expanding their strategic relationship to include 3G, WiMAX and OMAP(TM) technologies in the design and development of new, experience-optimized mobile devices. The expanded relationship covers current, emerging and next-generation wireless standards and leverages intellectual property from both Motorola and TI.

As part of the expansion, Motorola is developing 3G handsets based on a TI customized 3G solution that will include high-performance, power-efficient processors from TI's OMAP 3 architecture, as well as advanced, unique 3G and 3.5G building blocks from both Motorola and TI. New handsets using this solution are expected to be available to consumers as early as 2008.

Additionally, TI is supporting Motorola's mobile WiMAX initiative, including development of a customized Motorola WiMAX solution, and providing digital design elements, high-performance analog components, RF solutions, and manufacturing process and fabrication expertise. The solution will focus on core 802.16e mobile WiMAX functionality supporting voice, video and data for low-power mobile applications. The solution will be manufactured in 65nm and is expected to be ready to support production of new mobile devices that Motorola plans to launch during 2008.

"Motorola is working aggressively to design and deliver the world's most comprehensive portfolio of mobile devices that unite market-leading 'must have' design with fully optimized and unmatched 'must do' experiences," said Ron Garriques, executive vice president of Motorola and president of Motorola's Mobile Devices business. "TI is a highly valued supplier, and I am excited about the opportunities that we are pursuing together. Both of our companies are proven pioneers of innovation. Through our close collaboration on chipset technology, Motorola has developed mobile devices that are not only feature rich and affordable but also aspirational. Today's announcement significantly expands what Motorola will be bringing to market in the future."

To meet the growing need for affordable multimedia-rich capabilities in handsets, Motorola has also selected solutions from TI's OMAP 2 and OMAP 3 product portfolio and OMAP-Vox(TM) family, including the OMAPV1035 GSM/GPRS/EDGE single-chip solution from the "eCosto" platform and the OMAPV1030 GSM/GPRS/EDGE chipset. Motorola plans to use the OMAPV1035 solution, which leverages TI's innovative DRP(TM) technology, in new low-cost multimedia mobile devices expected to be in the market in 2008. Motorola also plans to use the OMAPV1030 chipset in new mid-range multimedia mobile devices expected to be in the market later this year.

"Motorola is a market leader committed to delivering innovative handsets that address the growing wireless landscape," said Rich Templeton, president and CEO of TI. "TI is delighted to expand its strong relationship with Motorola as we work closely with them to deliver the products and solutions they need. From 2.5G to 3G to the next generation of wireless standards such as WiMAX, Motorola's diverse market requirements fit well with the depth and strength of TI's proven product portfolio."

Motorola, Inc. (NYSE: MOT) today announced preliminary estimates of fourth quarter 2006 financial results. Although the company has not finalized its financial results for the fourth quarter, sales are now estimated to be in the range of $11.6 to $11.8 billion, versus the guidance given on October 17, 2006, of $11.8 to $12.1 billion. Fourth-quarter GAAP earnings per share are now estimated to be in the range of $0.13 to $0.16, which is below the company's internal forecast at the start of the fourth quarter. The estimated earnings per share range includes estimated net charges, primarily non-cash, of approximately $0.10 per share relating to items that are typically highlighted in the company's earnings press releases, including investment-related losses, stock compensation expenses, business reorganization charges and unusual tax expenses. The fourth quarter will represent Motorola's 24th consecutive quarter of positive operating cash flow.

The shortfall in both sales and earnings occurred in the Mobile Devices segment and is attributed to an unfavorable geographical and product-tier mix of sales as compared to the company's internal forecast. In the fourth quarter, Mobile Devices unit sales were approximately 66 million units, up 23 percent from the third quarter of 2006 and up 48 percent from the fourth quarter of 2005.

The fourth-quarter results for both the Networks & Enterprise and Connected Home segments are expected to meet or exceed the internal expectations of the company at the start of the fourth quarter.

"We are very disappointed with our fourth-quarter financial performance," said Ed Zander, chairman and CEO, "but we remain committed to the strategic direction and long-term financial targets we discussed at our annual analysts meeting in July 2006. We will discuss plans to improve operating profitability on January 19 when we announce fourth-quarter earnings."

LISBON, Portugal. Motorola announced today that it will deliver a managed multi-vendor network optimization service for TMN's 2G and 3G networks in Portugal. This service will help TMN improve the radio access network performance in a timely and cost-effective manner.

"Today's announcement reinforces the long-term relationship between Motorola and TMN in delivering the best quality user experience to our customers," said Joao Figueiredo, head of radio networks planning department of TMN Portugal.

Motorola's network optimization service utilizes market-leading tools and actual user data. It provides an innovative and proven alternative to traditional optimization methods and helps to improve performance in a multi- vendor environment, while ensuring that network operates at peak performance. Motorola's experienced, best-in-class professionals and technology enable service providers to maximize their infrastructure investment and allow them to focus on their core business objectives.

"Motorola is committed to helping operators like TMN meet the challenge of developing and enhancing network assets while improving the end-user experience," said Eric Pradier, vice president and general manager for services, Motorola Networks & Enterprise EMEA & LAC. "We've leveraged decades of experience in network optimization and systems integration to create performance solutions for both 2G and 3G networks. Our industry-leading solutions give service providers the ability and flexibility to deliver optimal performance to their subscribers while introducing new services, allowing them to excel in today's multi-vendor and multi-technology environment."

On December 31st, Nokia New Year's Eve delivered on its promise to connect millions of people around the world through five spectacular events being held as part of the biggest New Year's party of 2006. Five party capitals -- Hong Kong, Mumbai, Berlin, Rio and New York -- all played their part to celebrate the beginning of 2007. Those in attendance at the live show, or watching the global broadcast on television or online saw some of the biggest names in music celebrating a truly unforgettable night.

Nokia New Year's Eve began at Hong Kong's Ocean Terminal with Atomic Kitten topping the bill and making their first international appearance since splitting in 2004. They performed hits such as Whole Again and Tide Is High after an impressive roster of local stars including DJ Jamaster A, Eason Chan, Grasshopper, Hacken Lee, Joey Yung, Josie Ho, Jun Kung, Paul Wong, Soler and Twins entertained the crowd throughout the evening. Despite the massive Internet challenges created by the recent earthquake in Taiwan, Hong Kong music fans were also able to stream the live concert footage directly to their mobile thanks to a select group of local operators.

Moving west, Mumbai's Andheri Stadium played host to a star-studded celebration that featured performances by Grammy Award-winning Nelly Furtado, Indian music maestro A.R. Rahman, and Bollywood superstars Priyanka Chopra, Shahid Kapoor, Koena Mitra, among others. Furtado, a Canadian performing in India for the first time, captivated the crowd by singing two Hindi ballads, Kabhi Kabhi and Yeh Sama, in addition to her international hits Powerless, Maneater and I Am Like A Bird. Nokia New Year's Eve also marked the public debut of the first English language composition by Indian musical legend A.R. Rahman - Pray For Me, Brother - an anthem dedicated toward the eradication of world poverty. As the clock closed on midnight, Rahman, also known as the "Mozart from Madras", got the crowd into the party spirit with his all-time hit Humma Humma as well as his Oscar-nominated single Khalbali.

"Thank you Nokia for making this happen. I have wanted to come to India all my life," said Nelly Furtado after the show. "The crowd was amazing and it was so much fun to perform on the same bill as so many talented Indian artists."

Berlin's Brandenburg Gate was the largest Nokia New Year's Eve celebration with an estimated 1.2 million party-goers in attendance. In front of this massive audience, headline act Scissor Sisters played their hit singles I Don't Feel Like Dancin' and Comfortably Numb in a ninety-minute set that wowed the audience before a spectacular 10-minute pyrotechnics display erupted at midnight. Sugababes then took to the stage to carry on the party well in to the night.

"This will be the biggest audience we've ever played to so we were really excited! We love coming to Berlin simply because nobody parties harder and longer than the Berliners," said Ana Matronic from Scissor Sisters before they took the stage. "After the show we plan on having an excessively fun and ridiculous evening which we hope will set the tone for the rest of 2007! Happy New Year everyone!"

In Rio, Brazilians showed that a bit of rain would not stand in the way of an amazing night. More than one million people celebrated Nokia New Year's Eve in a nine hour concert on Ipanema beach. The crowd was treated to unforgettable performances by the Black Eyed Peas, John Legend and Brazilian music legend Sérgio Mendes as well as local artists Funk'n Lata and DJ Marlboro, amongst others.

The Black Eyed Peas played all of their hits including Where Is The Love? and Pump It as well as an unforgettable collaboration with Sérgio Mendes for the hit song Mas que Nada. Sergio Mendes was making his first Brazilian live performance for 28 years and treated the crowd to a host of hits from his country's musical history. Speaking after the show, Mendes said "This was a night of magic. Sharing my music with the Brazilian audience was emotional and unforgettable. This was without a doubt one of the happiest days in my life".

The night rounded off in New York with performances from Rihanna, Ludacris and KT Tunstall appearing in "Dick Clark's New Year's Rockin' Eve 2007".

Each event offered more than just the very best in live music. Nokia also offered music lovers several innovative ways to use their mobile phones, including the opportunity to send in messages (and a few marriage proposals!) that were displayed on screens around each stage throughout the night. Party-goers could also send messages to the other Nokia New Year's Eve cities as well as use the bluetooth "beam-zones" on site to receive a host of free content including wallpapers, links, gig guides, ringtones and artist content.

Estimated Total Television and Internet Audience of 150 Million

Those unable to watch their favorite artists in person were able to view performances from the five Nokia New Year's Eve events via a global television broadcast, as well as online at www.nokianewyearseve.com. An additional global television program of musical highlights will be broadcast on January 1. To orchestrate this enormous global celebration, Nokia enlisted the services of Harvey Goldsmith CBE, the producer of Live Aid and Live8. The estimated total television and Internet audience is expected to be more than 150 million.

"With more than 2 million music lovers celebrating with us in person, and more than 150 million television and Internet viewers, Nokia New Year's Eve was certainly the biggest New Year's party of 2006," said Jo Harlow, Senior Vice President of Marketing for Nokia. "Nokia New Year's Eve clearly lived up to our mission of "Connecting People" and delivered on our promise of leveraging the power of television, the internet, live events and the world's most exciting music artists to get people talking, sharing and celebrating on one incredible night. Our thanks to the artists who performed -- and the millions of people who celebrated with us in person and around the world."