Motorola Reports Third-Quarter Financial Results

* Reuters is not responsible for the content in this press release.

Thu Oct 29, 2009 7:01am EDT

- Third-quarter sales of $5.5 billion

SCHAUMBURG, Ill., Oct. 29 /PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT)
today reported sales of $5.5 billion in the third quarter of 2009. The GAAP
earnings from continuing operations in the third quarter of 2009 were $12
million, or $0.01 per share. The GAAP earnings from continuing operations
include net charges of $0.01 per share from highlighted items, which are
outlined at the end of this press release.

Total cash* at the end of the third quarter was $7.2 billion, an increase of
$700 million compared to the end of the second quarter. The Company generated
$616 million of positive operating cash flow during the quarter and expects to
continue to generate positive cash flow in the fourth quarter.

Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, said, "We delivered
on our commitment to improve the financial performance of Mobile Devices and
to commercially launch two smartphones in time for the fourth- quarter holiday
season. The introductions of our new products powered by Android are important
milestones as we begin to address the mobilization of the Internet and the
growing demand for modern smartphones. Next year, we will continue to expand
our smartphone portfolio and deliver improved financial results."

Greg Brown, co-CEO of Motorola and CEO of Broadband Mobility Solutions, said,
"Broadband Mobility Solutions performed well during the quarter. We continued
to manage our cost structure and also delivered solid operating margins. We
secured additional contract wins and launched new devices, including the
MC9500, the industry's most rugged mobile computer. As the economic
environment improves, we believe our businesses are well positioned for
continued success."

Operating Results

Mobile Devices segment sales were $1.7 billion, down 46 percent compared to
the year-ago quarter. The GAAP operating loss was $183 million, compared to an
operating loss of $840 million in the year-ago quarter. The segment reduced
its operating loss by 28 percent sequentially from $253 million in the second
quarter of 2009.

Mobile Devices highlights:

    --  Shipped 13.6 million handsets; estimated global handset market share
of
        4.7 percent
    --  Announced Motorola's first two smartphones powered by Android:
        --  CLIQ(TM) & DEXT(TM), a 3G device powered by Android with
Motorola's
            innovative MOTOBLUR(TM) solution that automatically syncs and
            streams communications, contacts and content from today's most
            popular sources like Facebook®, MySpace®, Twitter®, Last.FM®,
            Gmail® and Yahoo!® Mail, and synchronizes work email from
            Microsoft Exchange® servers
        --  DROID(TM), the world's first smartphone to feature Android 2.0.
            Features include high-speed browsing and voice-activated search,
            3.7" wide screen, high-resolution display and the industry's
            thinnest full-QWERTY slider
    --  Extended Android product experience through announcement of new
partners
        for the Android ecosystem, including Accuweather, Amazon MP3, Barnes &
        Noble, CardStar, Comcast Entertainment Group, Hands On Mobile,
        Howcast.com, Midomi, MySpace, QuickOffice, QuickPlay Media, RJDJ,
        Superpages.com and Travel Channel

    --  Launched Debut(TM), the first iDEN® push-to-talk slider



Home and Networks Mobility segment sales were $2.0 billion, down 15 percent
compared to the year-ago quarter. GAAP operating earnings were $199 million,
compared to operating earnings of $263 million in the year-ago quarter.

Home and Networks Mobility highlights:

    --  Shipped 3.3 million digital entertainment devices
    --  Launched next-generation video platform for dynamically managing
        bandwidth, format and resolution to enable high-quality viewing
        experience on any device
    --  Shipped 1 millionth WiMAX device; expanded WiMAX CPE product portfolio

    --  Conducted world's first live 2.6GHz TD-LTE mobile demonstration for
        China Mobile



Enterprise Mobility Solutions segment sales were $1.8 billion, down 13 percent
compared to the year-ago quarter. GAAP operating earnings were $306 million,
compared to operating earnings of $403 million in the year-ago quarter.

Enterprise Mobility Solutions highlights:

    --  Announced the MC9500, Motorola's most rugged mobile computer and the
        first to provide 3.5G WAN with support for GSM-HSDPA and EVDO Rev A
        wireless broadband connectivity
    --  Launched the MT2000 series of mobile terminals to provide the power of
a
        mobile computer in a handheld, rugged bar code scanner - the
industry's
        first device of this kind
    --  Celebrated the 20th anniversary of the Project 25 (P25) standard and
        secured P25 public safety awards from Pima County in Arizona,
Baltimore
        County in Maryland, the City of Philadelphia, and the City of Virginia
        Beach

    --  Received TETRA awards in key developing countries' major airports and
        metros including Mumbai Metro, New Delhi Airport Express Link, and
        Urumqi Airport in the Xinjiang province in China



Fourth-Quarter 2009 Outlook
The Company's outlook for fourth-quarter earnings from continuing operations
is $0.07 to $0.09 per share. This outlook excludes charges associated with the
Company's operating expense reduction initiatives, as well as any other items
of the variety typically highlighted by the Company in its quarterly earnings
releases.

Consolidated GAAP Results
A comparison of results from operations is as follows:


                                                         Third Quarter
                                                         -------------
     (In millions, except per share amounts)           2009        2008
     --------------------------------------            ----        ----
     Net sales                                        $5,453      $7,480
     ---------                                        ------      ------
     Gross margin                                      1,808       1,803
     ------------                                      -----       -----
     Operating earnings (loss)                           128        (452)
     ------------------------                            ---        ----
     Net earnings (loss)**                                12        (397)
     --------------------                                 --        ----
     Diluted earnings (loss)** per common share:
     ------------------------------------------
         Continuing operations                         $0.01      $(0.18)
         ---------------------                         -----      ------

     Weighted average diluted common
      shares outstanding                             2,319.5     2,265.9
     ------------------                              -------     -------


Highlighted Items
Highlighted items totaling $0.01 per share in net expense include a charge for
an environmental reserve and costs associated with ongoing efforts to prepare
for separation into two independent public companies.

Conference Call and Webcast
Motorola will host its quarterly conference call beginning at 8:00 a.m.
Eastern Time (USA) on Thursday, October 29, 2009. The conference call will be
webcast live with audio and slides at www.motorola.com/investor.

Business Risks
This press release contains "forward-looking statements" as that term is
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to, statements about:
cost savings and financial impact from cost-reduction actions, levels of cash
generation and consumption in 2009, the timing and financial impact of the
launch of new products and Motorola's financial outlook for the fourth quarter
of 2009. Motorola cautions the reader that the risk factors below, as well as
those on pages 18 through 30 in Item 1A of Motorola's 2008 Annual Report on
Form 10-K and in its other SEC filings, could cause Motorola's actual results
to differ materially from those estimated or predicted in the forward-looking
statements. Factors that may impact forward-looking statements include, but
are not limited to: (1) the Company's ability to improve financial performance
in its Mobile Devices business; (2) the level of demand for the Company's
products, particularly in light of global economic conditions which may lead
consumers, businesses and governments to defer purchases in response to
tighter credit and negative financial news; (3) the Company's ability to
introduce new products and technologies in a timely manner; (4) the possible
negative effects on the Company's business operations, financial performance
or assets as a result of its plan to create two independent, publicly traded
companies; (5) unexpected negative consequences from the Company's ongoing
restructuring and cost reduction activities, including as a result of
significant restructuring at the Mobile Devices business; (6) negative impact
on the Company's business from the global financial crisis and tightening in
the credit markets, which may include: (i) the inability of customers to
obtain financing for purchases of the Company's products; (ii) the viability
of the Company's suppliers that may no longer have access to necessary
financing; (iii) reduced value of investments held by the Company's pension
plan and other defined benefit plans; (iv) fair and/or actual value of the
Company's debt and equity investments differing significantly from the fair
values currently assigned to them; (v) counterparty failures negatively
impacting the Company's financial position; (vi) difficulties or increased
costs for the Company in obtaining financing; and (vii) the inability of the
Company to sell accounts receivable and long-term receivables in volumes and
on terms comparable to historical practices; (7) the economic outlook for the
telecommunications and broadband industries; (8) the Company's ability to
purchase sufficient materials, parts and components to meet customer demand,
particularly in light of global economic conditions; (9) risks related to
dependence on certain key suppliers; (10) the impact on the Company's
performance and financial results from strategic acquisitions or divestitures,
including those that may occur in the future; (11) risks related to the
Company's high volume of manufacturing and sales in Asia; (12) the
creditworthiness of the Company's customers and distributors, particularly
purchasers of large infrastructure systems; (13) variability in income
received from licensing the Company's intellectual property to others, as well
as expenses incurred when the Company licenses intellectual property from
others; (14) unexpected liabilities or expenses, including unfavorable
outcomes to any pending or future litigation or regulatory or similar
proceedings; (15) the impact of foreign currency fluctuations, including the
negative impact of the strengthening U.S. dollar on the Company when competing
for business in foreign markets; (16) the impact on the Company from
continuing hostilities in countries where the Company does business; (17) the
impact on the Company from ongoing consolidation in the telecommunications and
broadband industries; (18) the impact of changes in governmental policies,
laws or regulations; (19) the outcome of currently ongoing and future tax
matters; and (20) negative consequences from the Company's outsourcing of
various activities, including certain manufacturing, information technology
and administrative functions. Motorola undertakes no obligation to publicly
update any forward-looking statement or risk factor, whether as a result of
new information, future events or otherwise.

Definitions
*"Total cash" equals Cash and cash equivalents plus Sigma fund (current and
non-current) plus Short-term investments.

**Amounts attributable to Motorola, Inc. common shareholders

About Motorola
Motorola is known around the world for innovation in communications and is
focused on advancing the way the world connects. From broadband communications
infrastructure, enterprise mobility and public safety solutions to
high-definition video and mobile devices, Motorola is leading the next wave of
innovations that enable people, enterprises and governments to be more
connected and more mobile. Motorola (NYSE: MOT) had sales of $30.1 billion in
2008. For more information, please visit www.motorola.com.


    Media contact:
    Jennifer Erickson
    Motorola, Inc.
    +1 847-435-5320
    jennifer.erickson@motorola.com

    Investor contact:
    Dean Lindroth
    Motorola, Inc.
    +1 847-576-6899
    dean.lindroth@motorola.com


MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark
Office. DROID is a trademark of Lucasfilm and its related companies. Used
under License. All other product or service names are the property of their
respective owners. © Motorola, Inc. 2009. All rights reserved.



                         Motorola, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Operations
                     (In millions, except per share amounts)

                                                 Three Months Ended
                                                 ------------------
                                        October 3,   July 4,   September 27,
                                           2009       2009         2008
                                       -----------  --------  --------------
    Net sales                             $5,453    $5,497        $7,480
    Costs of sales                         3,645     3,787         5,677
                                           -----     -----         -----
    Gross margin                           1,808     1,710         1,803
                                           -----     -----         -----

    Selling, general and
     administrative expenses                 800       822         1,044
    Research and development
     expenditures                            768       775           999
    Separation-related transaction
     costs                                    19         -            21
    Other charges                             24        33           111
    Intangibles amortization                  69        70            80
                                              --        --            --
    Operating earnings (loss)                128        10          (452)
                                             ---        --          ----

    Other income (expense):
       Interest income (expense), net        (49)      (30)           18
       Gain on sales of investments and
        businesses, net                       21        30             7
       Other                                 (64)       23          (167)
                                             ---        --          ----
    Total other income (expense)             (92)       23          (142)
                                             ---        --          ----
    Earnings (loss) before income
     taxes                                    36        33          (594)
    Income tax expense (benefit)              14        (2)         (203)
                                              --        --          ----
    Net earnings (loss)                       22        35          (391)

    Less: Earnings attributable to
     noncontrolling interests                 10         9             6
                                              --         -             -
    Net earnings (loss) attributable
     to Motorola, Inc.                       $12       $26         $(397)
                                             ===       ===         =====

    Earnings (loss) per common share
    --------------------------------
      Basic                                $0.01     $0.01        $(0.18)
      Diluted                              $0.01     $0.01        $(0.18)

    Weighted average common shares outstanding
    ------------------------------------------
      Basic                              2,299.6   2,293.9       2,265.9
      Diluted                            2,319.5   2,306.4       2,265.9

    Dividends paid per share                  $-        $-         $0.05
                                              --        --         -----


                                              Percentage of Net Sales*
                                              ------------------------
    Net sales                                100%      100%          100%
    Costs of sales                          66.8%     68.9%         75.9%
                                            ----      ----          ----
    Gross margin                            33.2%     31.1%         24.1%
                                            ----      ----          ----

    Selling, general and
     administrative expenses                14.7%     15.0%         14.0%
    Research and development
     expenditures                           14.1%     14.1%         13.4%
    Separation-related transaction
     costs                                   0.3%      0.0%          0.3%
    Other charges                            0.4%      0.6%          1.5%
    Intangibles amortization                 1.3%      1.3%          1.1%
                                             ---       ---           ---
    Operating earnings (loss)                2.3%      0.2%         -6.0%
                                             ---       ---          ----

    Other income (expense):
       Interest income (expense), net       -0.9%     -0.5%          0.2%
       Gain on sales of investments and
        businesses, net                      0.4%      0.5%          0.1%
       Other                                -1.2%      0.4%         -2.2%
                                            ----       ---          ----
    Total other income (expense)            -1.7%      0.4%         -1.9%
                                            ----       ---          ----
    Earnings (loss) before income
     taxes                                   0.7%      0.6%         -7.9%
    Income tax expense (benefit)             0.3%      0.0%         -2.7%
                                             ---       ---          ----
    Net earnings (loss)                      0.4%      0.6%         -5.2%

    Less: Earnings attributable to
     noncontrolling interests                0.2%      0.2%          0.1%
                                             ---       ---           ---
    Net earnings (loss) attributable
     to Motorola, Inc.                       0.2%      0.5%         -5.3%
                                             ===       ===          ====

    * Percentages may not add up due to rounding



                         Motorola, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Operations
                     (In millions, except per share amounts)

                                                      Nine Months Ended
                                                      -----------------
                                                 October 3,   September 27,
                                                     2009          2008
                                                 -----------  --------------
    Net sales                                      $16,321         $23,010
    Costs of sales                                  11,307          16,737
                                                    ------          ------
    Gross margin                                     5,014           6,273
                                                     -----           -----

    Selling, general and administrative expenses     2,491           3,342
    Research and development expenditures            2,390           3,101
    Separation-related transaction costs                19              41
    Other charges                                      215             261
    Intangibles amortization                           210             244
                                                       ---             ---
    Operating loss                                    (311)           (716)
                                                      ----            ----

    Other income (expense):
       Interest income (expense), net                 (114)              6
       Gain on sales of investments and
        businesses, net                                 31              65
       Other                                            29            (264)
                                                        --            ----
    Total other income (expense)                       (54)           (193)
                                                       ---            ----
    Loss from continuing operations before
     income taxes                                     (365)           (909)
    Income tax benefit                                (134)           (325)
                                                      ----            ----
    Loss from continuing operations                   (231)           (584)

    Earnings from discontinued operations, net
     of tax                                             60               -
                                                        --             ---
    Net loss                                          (171)           (584)

    Less: Earnings attributable to
     noncontrolling interests                           22               3
                                                        --              --
    Net loss attributable to Motorola, Inc.          $(193)          $(587)
                                                     =====           =====

    Amounts attributable to Motorola, Inc. common
     shareholders
      Loss from continuing operations, net of
       tax                                           $(253)          $(587)
      Earnings from discontinued operations,
       net of tax                                       60               -
                                                        --             ---
        Net loss                                     $(193)          $(587)
                                                     =====           =====

    Earnings (loss) per common share
    --------------------------------
      Basic:
        Continuing operations                       $(0.11)         $(0.26)
        Discontinued operations                       0.03               -
                                                      ----               -
                                                    $(0.08)         $(0.26)
                                                    ======          ======

      Diluted:
        Continuing operations                       $(0.11)         $(0.26)
        Discontinued operations                       0.03               -
                                                      ----             ---
                                                    $(0.08)         $(0.26)
                                                    ======          ======

    Weighted average common shares outstanding
    ------------------------------------------
      Basic                                        2,290.8         2,262.1
      Diluted                                      2,290.8         2,262.1

    Dividends paid per share                         $0.05           $0.15
                                                     -----           -----


                                                   Percentage of Net Sales*
                                                   ------------------------
    Net sales                                          100%            100%
    Costs of sales                                    69.3%           72.7%
                                                      ----            ----
    Gross margin                                      30.7%           27.3%
                                                      ----            ----

    Selling, general and administrative expenses      15.3%           14.5%
    Research and development expenditures             14.6%           13.5%
    Separation-related transaction costs               0.1%            0.2%
    Other charges                                      1.3%            1.1%
    Intangibles amortization                           1.3%            1.1%
                                                       ---             ---
    Operating loss                                    -1.9%           -3.1%
                                                      ----            ----

    Other income (expense):
       Interest income (expense), net                 -0.7%            0.0%
       Gain on sales of investments and
        businesses, net                                0.2%            0.3%
       Other                                           0.2%           -1.1%
                                                       ---            ----
    Total other income (expense)                      -0.3%           -0.8%
                                                      ----            ----
    Loss from continuing operations before
     income taxes                                     -2.2%           -4.0%
    Income tax benefit                                -0.8%           -1.4%
                                                      ----            ----
    Loss from continuing operations                   -1.4%           -2.5%

    Earnings from discontinued operations, net
     of tax                                            0.4%            0.0%
                                                       ---             ---
    Net loss                                          -1.0%           -2.5%

    Less: Earnings attributable to
     noncontrolling interests                          0.1%            0.0%
                                                       ---             ---
    Net loss attributable to Motorola, Inc.           -1.2%           -2.6%
                                                      ====            ====

    * Percentages may not add up due to rounding



                       Motorola, Inc. and Subsidiaries
                    Condensed Consolidated Balance Sheets
                                (In millions)

                                          October 3, July 4,    September 27,
                                             2009     2009          2008
                                             ----     ----          ----
    Assets
       Cash and cash equivalents            $3,050  $2,881        $2,974
       Sigma Fund                            4,050   3,489         3,427
       Short-term investments                   15      45           735
       Accounts receivable, net              3,402   3,689         4,330
       Inventories, net                      1,523   1,660         2,649
       Deferred income taxes                 1,108   1,320         1,954
       Other current assets                  2,177   2,630         3,799
                                             -----   -----         -----
    Total current assets                    15,325  15,714        19,868
                                            ------  ------        ------

       Property, plant and equipment,
        net                                  2,224   2,280         2,505
       Sigma Fund                               75      72           483
       Investments                             491     446           715
       Deferred income taxes                 2,327   2,094         3,060
       Goodwill                              2,823   2,822         4,351
       Other assets                          1,784   1,676         2,137
                                             -----   -----         -----
    Total assets                           $25,049 $25,104       $33,119
                                           ======= =======       =======

    Liabilities and Stockholders' Equity
       Notes payable and current portion
        of long-term debt                      $24     $40          $189
       Accounts payable                      2,212   2,188         3,834
       Accrued liabilities                   5,364   5,956         7,850
                                             -----   -----         -----
    Total current liabilities                7,600   8,184        11,873
                                             -----   -----        ------

       Long-term debt                        3,901   3,899         3,988
       Other liabilities                     3,631   3,398         2,489

    Total Motorola, Inc. stockholders'
     equity                                  9,810   9,523        14,659
                                             -----   -----        ------

    Noncontrolling interests                   107     100           110
                                               ---     ---           ---

    Total liabilities and
     stockholders' equity                  $25,049 $25,104       $33,119
                                           ------- -------       -------

    Financial Ratios:
        Total cash*                         $7,190  $6,487        $7,619

     *Total cash = Cash and cash equivalents + Sigma Fund (current and
    non-current) + Short-term investments



                        Motorola, Inc. and Subsidiaries
                Condensed Consolidated Statements of Cash Flows
                                 (In millions)

                                              Three Months Ended
                                              ------------------
                                    October 3,   July 4,   September 27,
                                        2009       2009         2008
                                    -----------  --------  --------------
    Operating
    Net earnings (loss)
     attributable to Motorola, Inc.      $12       $26         $(397)
    Less: Earnings attributable to
     noncontrolling interests             10         9             6
                                          --        --            --
        Net earnings (loss)               22        35          (391)
    Adjustments to reconcile net earnings
     (loss) to net cash provided by
     operating activities:
      Depreciation and amortization      189       192           208
      Non-cash other charges
       (income)                           49        (9)          480
      Share-based compensation
       expense                            75        74            54
      Gain on sales of investments
       and businesses, net               (21)      (30)           (7)
      Deferred income taxes              (79)      162           (27)
      Changes in assets and liabilities,
       net of effects of acquisitions
       and dispositions:
        Accounts receivable              287         1           171
        Inventories                      136       408          (183)
        Other current assets             453       290            76
        Accounts payable and
         accrued liabilities            (579)     (848)          271
        Other assets and
         liabilities                      84      (125)         (472)
                                          --      ----          ----
          Net cash provided by
           operating activities          616       150           180
                                         ---       ---           ---
    Investing
      Acquisitions and
       investments, net                   (9)       (6)           (6)
      Proceeds from sales of
       investments and businesses,
       net                                54        89            12
      Distributions from
       investments                         -         -            30
      Capital expenditures               (52)      (66)         (156)
      Proceeds from sales of
       property, plant and
       equipment                          21         3           116
      Proceeds from sales
       (purchases) of Sigma Fund
       investments, net                 (572)     (649)          335
      Proceeds from sales
       (purchases) of short-term
       investments, net                   29       (26)         (140)
                                          --       ---          ----
        Net cash provided by (used
         for) investing activities      (529)     (655)          191
                                        ----      ----           ---
    Financing
      Net proceeds from (repayment
       of) short-term borrowings,
       net                               (17)      (23)           44
      Issuance of common stock            54         -             4
      Payment of dividends                 -         -          (113)
      Distributions to
       discontinued operations             -         -           (16)
      Other, net                           -         6            (2)
                                         ---        --            --
        Net cash provided by (used
         for) financing activities        37       (17)          (83)
                                          --       ---           ---
    Effect of exchange rate
     changes on cash and cash
     equivalents                          45       138           (71)
                                          --       ---           ---
    Net increase (decrease) in
     cash and cash equivalents           169      (384)          217
    Cash and cash equivalents,
     beginning of period               2,881     3,265         2,757
                                       -----     -----         -----
      Cash and cash equivalents,
       end of period                  $3,050    $2,881        $2,974
                                      ------    ------        ------



                         Motorola, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                  (In millions)


                                                      Nine Months Ended
                                                      -----------------
                                                  October 3,   September 27,
                                                     2009          2008
                                                 -----------  --------------
    Operating
    Net loss attributable to Motorola, Inc.         $(193)        $(587)
    Less: Earnings attributable to
     noncontrolling interests                          22             3
                                                       --            --
      Net loss                                       (171)         (584)
      Earnings from discontinued operations,
       net of tax                                      60             -
                                                       --           ---
        Loss from continuing operations              (231)         (584)
    Adjustments to reconcile loss from continuing
     operations to net cash provided by (used for)
     operating activities:
      Depreciation and amortization                   571           624
      Non-cash other charges                           44           596
      Share-based compensation expense                225           220
      Gain on sales of investments and
       businesses, net                                (31)          (65)
      Gain from extinguishment of long-term debt      (67)            -
      Deferred income taxes                          (114)         (497)
      Changes in assets and liabilities, net of
       effects of acquisitions and dispositions:
        Accounts receivable                            84         1,044
        Inventories                                 1,126           (46)
        Other current assets                          960          (194)
        Accounts payable and accrued liabilities   (2,782)         (524)
        Other assets and liabilities                  (33)         (533)
                                                      ---          ----
          Net cash provided by (used for)
           operating activities                      (248)           41
                                                     ----            --
    Investing
      Acquisitions and investments, net               (30)         (180)
      Proceeds from sales of investments and
       businesses, net                                280            83
      Distributions from investments                    -           112
      Capital expenditures                           (189)         (387)
      Proceeds from sales of property, plant
       and equipment                                   27           121
      Proceeds from sales of Sigma Fund
       investments, net                                98         1,122
      Proceeds from sales (purchases) of short-
       term investments, net                          209          (123)
                                                      ---          ----
        Net cash provided by investing
         activities                                   395           748
                                                      ---           ---
    Financing
      Repayment of short-term borrowings, net         (71)          (37)
      Repayment of debt                              (130)         (114)
      Issuance of common stock                        110            86
      Purchase of common stock                          -          (138)
      Payment of dividends                           (114)         (340)
      Distributions to discontinued operations          -           (26)
      Other, net                                        7             1
                                                       --            --
        Net cash used for financing activities       (198)         (568)
                                                     ----          ----
    Effect of exchange rate changes on cash and
     cash equivalents                                  37             1
                                                       --            --
    Net increase (decrease) in cash and cash
     equivalents                                      (14)          222
    Cash and cash equivalents, beginning of
     period                                         3,064         2,752
                                                    -----         -----
      Cash and cash equivalents, end of period     $3,050        $2,974
                                                   ------        ------



                      Motorola, Inc. and Subsidiaries
                             Segment Information
                                (In millions)

    Summarized below are the Company's Net sales by reportable segment for the
    three and nine months ended October 3, 2009 and September 27, 2008.

                                              Net Sales
                                              ---------
                         Three Months Ended   Three Months Ended
                              October 3,         September 27,  % Change from
                                 2009                2008             2008
                                 ----                ----             ----

    Mobile Devices              $1,692               $3,116            -46%
    Home and Networks Mobility   2,007                2,369            -15%
    Enterprise Mobility
     Solutions                   1,770                2,030            -13%
                                 -----                -----            ---
       Segment Totals            5,469                7,515            -27%
    Other and Eliminations         (16)                 (35)           -54%
                                   ---                  ---            ---
       Company Totals           $5,453               $7,480            -27%
                                ------               ------            ---


                                               Net Sales
                                               ---------
                          Nine Months Ended    Nine Months Ended
                              October 3,          September 27,  % Change from
                                 2009                 2008             2008
                                 ----                 ----             ----

    Mobile Devices              $5,322               $9,749            -45%
    Home and Networks Mobility   5,999                7,490            -20%
    Enterprise Mobility
     Solutions                   5,054                5,878            -14%
                                 -----                -----            ---
       Segment Totals           16,375               23,117            -29%
    Other and Eliminations         (54)                (107)           -50%
                                   ---                 ----            ---
       Company Totals          $16,321              $23,010            -29%
                               -------              -------            ---



                        Motorola, Inc. and Subsidiaries
                              Segment Information
                                 (In millions)

    Summarized below are the Company's Operating earnings (loss) by
    reportable segment for the three and nine months ended October 3,
    2009 and September 27, 2008.

                                          Operating Earnings (Loss)
                                          -------------------------
                                  Three Months Ended   Three Months Ended
                                    October 3, 2009     September 27, 2008
                                  -------------------  -------------------

    Mobile Devices                        $(183)               $(840)
    Home and Networks Mobility              199                  263
    Enterprise Mobility Solutions           306                  403
                                            ---                  ---
       Segment Totals                       322                 (174)
    Other and Eliminations                 (194)                (278)
                                           ----                 ----
       Company Totals                      $128                $(452)
                                           ----                -----



                                          Operating Earnings (Loss)
                                          -------------------------
                                   Nine Months Ended    Nine Months Ended
                                    October 3, 2009     September 27, 2008
                                   ------------------   ------------------

    Mobile Devices                        $(945)             $(1,604)
    Home and Networks Mobility              467                  661
    Enterprise Mobility Solutions           689                1,030
                                            ---                -----
       Segment Totals                       211                   87
    Other and Eliminations                 (522)                (803)
                                           ----                 ----
       Company Totals                     $(311)               $(716)
                                          -----                -----




SOURCE  Motorola, Inc.

Media, Jennifer Erickson, +1-847-435-5320, jennifer.erickson@motorola.com, or
Investors, Dean Lindroth, +1-847-576-6899, dean.lindroth@motorola.com, both of
Motorola, Inc.
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