Motorola to Enhance Digital Cable Set-Top Box Portfolio through Strategic Acquisition...

Motorola to Enhance Digital Cable Set-Top Box Portfolio through Strategic
Acquisition in China

SCHAUMBURG, Ill., Feb. 24 /PRNewswire-FirstCall/ -- Motorola, Inc.
(NYSE: MOT) today announced that it has acquired the assets related to digital
cable set-top products of Zhejiang Dahua Digital Technology Co., LTD and
Hangzhou Image Silicon (collectively, Dahua Digital). Terms of the transaction
were not disclosed.
Dahua Digital is a privately held, developer, manufacturer, and marketer
of cable set-tops and related low cost integrated circuits for the emerging
Chinese cable business. Dahua Digital's leading set-top portfolio includes
basic set-tops, two-way interactive set-tops and the high-end media-center
class of products. Dahua Digital also has a substantial China cable operator
customer base. Its strong, established support infrastructure for digital
cable customers includes focused development resources, a direct sales force
for the existing regional customers, an established field engineering team and
an integration team to ensure that customer requirements are met rapidly.
The transaction will expand Motorola's digital set-top box offerings in
China and significantly improve Motorola's time to market in the region.
Further, Dahua Digital's low-cost chipset solution, designed specifically for
the Chinese set top business, will enhance Motorola's product line. With Dahua
Digital's extensive R&D network, strong, locally focused set-top solutions,
and industry expertise, Motorola will enhance its ability to meet customer
demands in the dynamic and rapidly evolving China set top business.
"We are very pleased to announce this transaction with Dahua Digital,
which will significantly expand our existing capability in China and position
Motorola well to address the tremendous growth opportunities this market
presents," said Dan Moloney, president of Motorola's Home & Networks Mobility
business. "Dahua Digital's strong time to market advantage, R&D capabilities
and sales reach are a compelling fit with Motorola's strategy in China. We
look forward to teaming with Dahua Digital's experienced employees, whose
expertise in the China digital cable market will be an invaluable asset to us
in this important emerging business."
"Chinese digital cable is rapidly growing, presenting an important
opportunity for Motorola to extend its existing business in set-tops," said
Simon Leung, president of Motorola Asia Pacific. "130 million Chinese
households currently subscribe to cable, and as customers make the transition
from traditional analog solutions to digital cable, digital cable
subscriptions in China are expected to grow from 10 million in 2006 to over
165 million by 2016. With this transaction, Motorola will be well-positioned
to capitalize on increasing demand for digital cable solutions in China."
"This is tremendous opportunity for Dahua Digital," said Zhu Jiangming,
chairman and general manager, Dahua Digital. "By joining forces with Motorola,
an established global industry leader, we will enjoy technological benefits
and have the resources to enhance our distribution capabilities throughout
China. As part of Motorola, we will be well-positioned to deliver even more
compelling digital set-top box solutions and outstanding service to our
customers."
Dahua Digital will be integrated into Motorola's Home & Networks Mobility
business. Motorola intends to maintain Dahua Digital in Hangzhou, which will
be an integral component of Motorola's China digital cable market operations.
Motorola is a leading supplier of set tops, having shipped over 50 million
worldwide. The company also leads in IPTV set tops with shipments in excess of
two million to date.
About Dahua Digital
Zhejiang Dahua Digital Technology Co., Ltd. is a reputable, hi-tech
company focusing on R&D, manufacturing, marketing and services of digital TV
set-top boxes (STB). With leading market share among other industry players in
China, Dahua Digital is committed to providing high quality and cost-effective
products through innovative technology, aiming to promote the development of
digital TV in the market. Dahua Digital has a strong team of engineers and
experts with rich experience in STB research. Dahua Digital provides
comprehensive, wide-ranging end-to-end products and solutions, helping
operators to deliver innovative services.
About Motorola
Motorola is known around the world for innovation in communications. The
company develops technologies, products and services that make mobile
experiences possible. Our portfolio includes communications infrastructure,
enterprise mobility solutions, digital set-tops, cable modems, mobile devices
and Bluetooth accessories. Motorola is committed to delivering next
generation communication solutions to people, businesses and governments. A
Fortune 100 company with global presence and impact, Motorola had sales of US
$36.6 billion in 2007. For more information about our company, our people and
our innovations, please visit www.motorola.com.
Business Risks
Certain statements contained in this press release, including future
financial and operating results, benefits and synergies of the transaction,
future opportunities for the combined company and products, any other
statements regarding Motorola's or Dahua Digital's future expectations,
beliefs, goals or prospects and any statements that are not statements of
historical facts might be considered forward-looking statements. While these
forward-looking statements represent managements' current judgment of future
events, they are subject to risks and uncertainties that could cause actual
results to differ materially from those stated in the forward-looking
statements. Important factors that could cause actual results or events to
differ materially from those indicated by such forward-looking statements,
include: (i) the possibility that the parties may be unable to achieve
expected synergies and operating efficiencies within the expected time-frames
or at all; (ii) Motorola's ability to successfully integrate Dahua Digital's
operations and technology into those of Motorola and the possibility that such
integration may be more difficult, time-consuming or costly than expected;
(iii) revenues following the transaction may be lower than expected; (iv)
operating costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with employees,
customers, clients or suppliers) may be greater than expected following the
transaction; (v) the retention of certain key employees of Dahua Digital; and
(vi)the other factors described in Motorola's Annual Report on Form 10-K for
the year ended December 31, 2006 and its subsequent reports filed with the
SEC. Motorola assumes no obligation to update or revise any forward-looking
statement in this press release, and such forward-looking statements speak
only as of the date hereof.
MOTOROLA and the Stylized M Logo are registered in the US Patent &
Trademark Office. All other product or service names are the property of their
respective owners. (C) Motorola, Inc. 2008. All rights reserved.
SOURCE Motorola, Inc.

Media, China, Guo Tian, + 8610-6564 2599, w22130@motorola.com, or Asia
Pacific, Mary Lamb, + 852-2966-3717, mary.lamb@motorola.com, or Jennifer
Erickson, +1-847-435-5320, jennifer.erickson@motorola.com, all of Motorola,
Inc.; or Walter Lee of Fleishman Hillard Hong Kong, +852-21113574,
walter.lee@fleishman.com, for Motorola, Inc.; or Investors, Dean Lindroth of
Motorola, Inc., +1-847-576-6899, dean.lindroth@motorola.com