Motorola Wins Austrian GSM Expansion Contract Worth $38 Million.

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Sept. 17, 1997--Motorola Inc.'s Cellular Infrastructure Group (CIG) has been awarded a contract worth more than $38 million by Mobilkom Austria AG for the Phase 3 expansion of Austria's GSM digital cellular network.

The award gives Motorola CIG responsibility for approximately 70 percent of Mobilkom's GSM network infrastructure. The expansion will increase the subscriber capacity up to 900,000 by the end of the Phase 3 period -- scheduled for the fourth quarter of 1998.

Motorola CIG will deploy its new generation M-Cell(TM) GSM base transceiver stations -- M-Cell6 and M-Cell2 for dense and focused wide area coverage, and the discreet M-Cellcity for urban microcellular coverage in high subscriber traffic areas. The expansion contract also includes the provision of network management services.

The Phase 3 installation will increase coverage of the Mobilkom A1 GSM network on a national scale, building on the successful Motorola CIG digital cellular system already in place, in Vienna, Lower and Upper Austria, Burgenland, Salzburg, Tyrol and Vorarlberg.

Announcing the award, Mobilkom Austria's Technical Director, Mr. Ernst Tallowitz, said: "Mobilkom is continuing to enhance its world-class network and, with the support of our supply partners, we can continue to build to the highest possible standards. This new expansion phase, utilising the latest GSM technology, will ensure that our subscribers, and visitors to our country, continue to receive the service they expect."

Mobilkom Austria AG was founded in April 1996 -- previously the cellular business was part of the Austrian PTV. Motorola has worked with PTV since 1989.

Pertti Johansson, Senior Vice President and General Manager of Motorola CIG's International Cellular Infrastructure Division, said: "We are proud that the relationship we have built with Mobilkom has lead to the chose of Motorola to expand the Austrian GSM network. Motorola's dominant mix of proven advanced technology will continue to deliver focused solutions to suit the Austrian market."

Motorola CIG is one of the world's leading providers of GSM systems and infrastructure equipment. To date, CIG has won more than 80 contracts to deploy GSM at 900 and 1800 MHz worldwide. Motorola CIG is the only infrastructure vendor that provides the three fastest-growing digital technologies, GSM, CDMA (Code Division Multiple Access) and PDC (Personal Digital Cellular), for cellular and PCS (Personal Communications Systems) worldwide.

Motorola, Inc. is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Motorola's 1996 sales were $28 billion.

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

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