CANCOM ACQUIRES MOTOROLA'S CANADIAN VANNE DIVISION.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Aug. 1, 1995--CANCOM (TSE,ME:SAT) Cancom (Canadian Satellite Communications Inc.) has contracted to acquire all of the Canadian Vanne Network of Motorola Information Systems and, with this purchase, Cancom has become one of the major alternative data carriers in the country.

With the addition of the Vanne Network, Cancom can now provide a total data network solution offering design and management of interactive two-way data communications through the integration of Motorola's terrestrial type network into its own existing VSAT satellite services.

The acquisition which was made by Cancom's Business Division (CBD) includes customer lists, cash flow and marketing agreements. The portfolio of clients represents a wide variety of mid-size manufacturers, trucking firms and retailers situated in major centres across the country. Altogether, the new Cancom network will provide coverage in over 1000 sites across Canada and network access for thousands of computer devices.

"Cancom is very pleased by the agreement reached with Motorola, a company renowned world wide for the quality of its products and services. This acquisition supports an important element of our company's strategy which is to focus on total network provision and management capability in the development of wide area services for our business clients," said Alain Gourd, Cancom's President and CEO. "With the Vanne Network, we are acquiring important value added expertise and knowledge in Frame Relay terrestrial communications, as well as a satisfied client base and solid marketing agreements. This will make us a One-Stop service for numerous small and medium size clients who are looking for a single source of supply for all their data network facilities and management," Gourd concluded.

Roy Willcocks, Motorola Information Systems' General Manager stated, "Motorola entered into an understanding with Cancom because we recognized Cancom's expertise in data delivery as well as the quality client service it offers. This recognition is based on a long term relationship which we have enjoyed through the supply of Motorola equipment for Cancom network infrastructure and also via co-marketing alliances to provision value added data networking services to our mutual clients."

"In deciding to focus on our networking products business rather than network service business, the acquisition of Vanne by Cancom represents a logical extension of our successful relationship. We are confident that the present agreement will be beneficial to all of our clients," Willcocks added.

Cancom's new and existing Business clients will gain from the expansion in its network capabilities which combine this acquisition with its existing satellite and active extension into Frame Relay services. By introducing a Frame Relay-ready terrestrial backbone into its satellite network services, Cancom's Business Division is becoming a single source of supply for network design and management for a broader market base. Cancom's new network will ensure broad coverage, high transmission speeds, low network delay, high connectivity/availability and efficient low cost bandwidth use. Customers will also have one single price structure for the use of this integrated terrestrial and satellite link service.

Cancom is a Canadian controlled and publicly traded company on the Toronto and the Montreal Stock Exchanges. Its Business Division offers digital networks for data and voice through VSAT technology and its Mobile Unit provides two-way data messaging and vehicle tracking to 6,000 vehicles in the transportation industry. Cancom's Business Television unit provides end-to-end satellite broadcast services to businesses as well as interactive distance learning facilities. Cancom's Broadcasting Division, first licensed in 1981, provides radio and television programming distribution services to more than 2,600 cable operators across the country, mostly in remote and underserved communities. 53 percent of its shares are held by WIC Western International Communications Ltd. and 20 percent by Rogers Communications Inc.

Motorola is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Communication devices, computers and millions of consumer products are powered by Motorola semiconductors. Motorola's 1994 sales were $22.2 U.S. billion.

CONTACT: Cancom

Patricia Dumas, 905/272-6602

or 613/232-4855

Internet: [e-mail]

or

Motorola

Sharron Elliott, 905/507-7200

Internet: [e-mail]