Motorola CIG Announces Contract to Expand GSM System in China's Sichuan Province.

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Sept. 16, 1998-- Motorola, Inc.'s Cellular Infrastructure Group (CIG) today announced the award of a $53 million contract to expand the digital Global System for Mobile (GSM) Communications cellular network in China's Sichuan province.

The contract is for the supply of Motorola CIG network equipment and services to cellular operator Sichuan Posts and Telecommunications Administration (PTA). The Motorola CIG network equipment and services are being provided to the Sichuan PTA through Eastern Communications Company Limited (Eastcom) as part of a $210 million contract awarded to Motorola CIG in June 1998.

Once installation has been completed early next year, network capacity will be increased by 300,000 subscribers. China has the third largest number of mobile phone subscribers trailing only the U.S. and Japan.

As part of the contract, Sichuan PTA will utilize Motorola CIG's state-of-the-art M-Cell(TM) base station equipment to expand the GSM network throughout the province. This is the sixth expansion of the GSM network since 1995, when Motorola CIG installed the original system.

"This contract, along with our recent GSM awards in Liaoning, Shandong, Zhejiang, and Jilin demonstrates Chinese operators' strong confidence in Motorola CIG and its GSM technology and services," said Tom Hinton, vice president and general manager of Motorola CIG's Greater China Cellular Infrastructure Division. "Our GSM solutions provide enhanced flexibility and network performance and we boast the best GSM engineering team and customer training service in China."

Eastcom has licensing and joint venture agreements with Motorola Investment Ltd. to manufacture, distribute and provide service for Motorola CIG's GSM cellular infrastructure products as well as its TACS and Code Division Multiple Access (CDMA) products within China. Eastcom has been a supplier of Motorola CIG cellular equipment in China since 1991.

Motorola CIG is a major GSM provider in China. Worldwide, Motorola CIG has won more than 80 GSM contracts in more than 40 countries.

Motorola is a global leader in software-energized wireless communications, semiconductors, and advanced electronic systems and services. Motorola creates cellular telephone, two-way radio, paging, data and satellite communications system and products that enable people to take their worlds with them. Motorola's embedded semiconductors are essential digital building blocks for consumer, networking and computing, transportation and wireless communications markets. Other businesses include automotive electronics, components, computing and energy products. Sales in 1997 were $29.8 billion.

For more information on Motorola CIG, please visit the web site at http://www.mot.com/cig/.