Motorola and KDDI Sign a Contract For cdma2000 1x In Japan.

Business Editors, Telecommunications Writers

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Oct. 17, 2000

KDDI of Japan has awarded Motorola, Inc. (NYSE:MOT) a contract for cdma 2000 1x wireless network system that will cover the Tokyo, Tokai and Kansai regions.

The new 1x system will allow high-speed packet data service at 144 kilobits per second (Kbps) as well as significantly higher voice traffic capacity. 1x is one of IMT-2000 3G radio transmission technologies authorized by the International Telecommunications Union. Under the contract, Motorola will develop and introduce the 1x system for KDDI's 800 megahertz network, which is an expanded version of KDDI's cdmaOne system that allows data transmission at speeds up to 64 Kbps. The service is expected to start commercially in the fall of 2001.

"Motorola and KDDI have propelled the nationwide delivery of wireless packet data in Japan," said Simon Leung, Motorola corporate vice president and general manager of the Asia Pacific Region for the Telecom Carriers Solutions Group (TCSG). "We have demonstrated our leadership role in the data market with 64Kbps, and this 1x packet-based infrastructure contract will allow us to provide an advanced service," said Leung.

Motorola's 1x system will utilize advanced technologies to enhance efficiencies and place it in the forefront of innovative designs. For example, Motorola will utilize Cisco System's, Inc. MGX packet-based platform product. This high-density switching packet infrastructure can support 1xEV-DV and beyond.

"Japan is experiencing an explosion of wireless mobile users as more than 1 million people are subscribing to new services each month," said Shinji Ogura, vice president and general manager of TCSG operations in Japan. "Motorola is proud to play an integral role in KDDI's wireless mobile area, and we will continue to provide our valued customer a total communications solution, from infrastructure, to applications, services and hand-held devices," said Ogura.

Motorola in Japan

Motorola deployed its first cellular system, an analog Total Access Communications System (TACS) network in 1989 in Japan for DDI's Kansai Cellular Telephone Co. in the Osaka region. The other seven DDI regions and IDO followed later to provide nationwide coverage. In 1991, Motorola introduced NTACS (narrowband TACS) into Japan when DDI began NTACS service in Osaka and IDO later launched NTACS service in Tokyo and Nagoya.

In 1994, Motorola began deploying Personal Digital Cellular (PDC) systems for the service provider TU-KA at 1.5 GHz in the Tokyo and Tokai regions and at 800 Mhz with DDI's cellular telephone companies. Motorola completed the nationwide buildout of PDC in late 1996.

The massive, nationwide buildout in Japan of a Code Division Multiple Access (CDMA) digital cellular communications network was achieved in 1999 with the scheduled commercial launch of state-of-the-art cdmaOne cellular infrastructure designed, manufactured and installed by Motorola.

The all-Motorola cdmaOne network, operated by DDI and IDO, offers 98 percent coverage nationally to Japan's 126 million people.

Motorola, Inc., has been operating in Japan since opening its first office in 1962 in Tokyo. Motorola maintains sales, service and engineering support facilities in Japan, as well as a 3G research and development center.

About Motorola

Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1999 were $33.1 billion. For more information about Motorola, please visit www.motorola.com.

About KDDI

DDI Corp., KDD Corp. and IDO Corp., merged on Oct. 1, 2000. KDDI will pursue comprehensive telecommunications business globally and seamlessly in all areas of mobile, domestic and international markets with an axis toward "mobile & IP".

DDI Corp. was the second largest total telecom carrier in Japan and operates eight regional cellular companies that provide cdmaOne services.

IDO Corp. offered mobile phone communication services to areas that reach out from the heart of Tokyo and cover much of the central region of Honshu, the principal island of Japan and the nation's most densely populated area.

Motorola is a registered trademark. All other brands or corporate names are trademarks of their respective owners.