Motorola Selects Swiss Firm for Key Technology for Global Broadband Celestri System; Oerlikon Contraves and German Partners to Develop Laser Links for Intersatellite Communications.

CHANDLER, Ariz.--(BUSINESS WIRE)--Feb. 24, 1998--Motorola, Inc. and Oerlikon Contraves AG have signed a strategic alliance agreement for optical communications equipment for Motorola's planned global broadband Celestri(TM) System.

Under the terms of the agreement, Contraves Space, a division of the Zurich-based Oerlikon Contraves Group, will design and produce the optical inter-satellite link (OISL) terminals that will allow the low earth orbit (LEO) satellites in the Celestri System to communicate with each other across multiple high-speed laser links. Contraves Space will work with its industrial partner Bosch Telecom GmbH and others, including the Carl Zeiss Group, to design, develop and produce the OISL equipment for Motorola.

Following an initial design phase that is planned to continue through 1998, Motorola intends to award a multi-year contract to Contraves Space in early 1999 that calls for the delivery of 456 OISL terminals and related equipment. The value of the contract is expected to exceed US$150 million.

"Our selection of Oerlikon Contraves for this critical subsystem was based on their demonstrated expertise in laser tracking and optical communications," said Myron Wagner, vice president and director of engineering for Motorola's Advanced Systems Division. "Their recent work for the European Space Agency also places them in a 'high state of readiness' to develop and deliver equipment that must meet the rigorous quality standards and aggressive production schedule we've set for the Celestri program."

Ernst Odermatt, president and CEO of the Oerlikon Contraves Group said: "We are very pleased to have been selected by Motorola to contribute to the development of an advanced space-based system that will help meet the world's broadband communications requirements in the next Millennium."

Contraves Space Vice President Dr. Umberto Somaini said, "Advanced optical space communications is a strategic business for Contraves Space, and we are pleased to have been entrusted by Motorola with development of a key subsystem for the Celestri program."

The Celestri System will rely on a constellation of 63 low earth orbit (LEO) satellites, nine geostationary orbit (GEOs) satellites, and a family of advanced ground systems and terminal equipment designed to deliver a wide range of broadband communications capabilities, virtually anywhere on earth, to include: telecom carriers and multinational corporations, as well as small businesses and consumer customers. The Celestri System is currently expected to be operational by 2003.

Each LEO satellite in the Celestri System is designed to have on-board switching and routing equipment, and six optical link terminals that will interconnect it to nearby satellites in the constellation. The constellation is designed to operate as a high-speed, highly resilient and seamless global intelligent communications network that will deliver interactive multimedia services, virtually on-demand.

The Oerlikon Contraves Group develops low-level air defense systems and fire control systems, as well as satellite payload fairings, space instrumentation and optical communications systems. The group had a 1996 turnover of approximately US$500 million.

Motorola's Space and Systems Technology (SSTG) is responsible for the research, design, and development of advanced communication and electronic systems for commercial and government customers. As prime contractor to the IRIDIUM(R) global personal communications system, Motorola SSTG is a leader in satellite communications technology that promises to revolutionize the way the world communicates.

Headquartered in Scottsdale, Ariz., Motorola SSTG is part of the Cellular Networks and Space Sector of Motorola, Inc., one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems, components and services. Motorola sales in 1997 were $29.8 billion. -0-

Note to Editors: Celestri is a trademark of Motorola, Inc. IRIDIUM is a registered trademark and service mark of Iridium LLC.

CONTACT: Motorola

Robert Edwards, 602/441-2885

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or

Contraves Space

Reinhard Czichy, 41 1 306 3004

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