Motorola awarded more than $63 million to deploy seven GSM networks in China.

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--March 4, 1996-- Motorola's North Asia Cellular Infrastructure Division (NACID) has been awarded contracts worth more than $63 million to deploy seven new Global System for Mobile Communications (GSM) telephone networks in China. Combined, the digital cellular phone systems will have the capacity to serve 295,000 customers in seven provinces of China.

The contracts, with Fujian Post and Telecommunications Administration (PTA), Hunan PTA, Sichuan PTA, Fujian Unicom, Yantai Unicom, Nantong Unicom and Shenzhen Unicom, mark the first Motorola GSM system for each of the customers. As part of the contracts, Motorola will install its self-contained compact InCell(TM) digital cell site equipment.

"With the explosive growth of the Chinese cellular market, Motorola has planted a strong foothold in the country as an equipment provider of both analog and digital technology," said Richard Sell, vice president and general manager of Motorola's NACID. "GSM continues to build momentum in China as a digital technology providing high traffic-carrying capacity and open architecture benefits."

Motorola has more than 12 GSM contract awards in China and more than 55 worldwide.

The contract with Fujian PTA includes deployment of base stations to serve 35,000 subscribers in Longyan, Sanming, Nanping and Ningde areas of Fujian province. Motorola plans to complete installation of the GSM system for commercial service by June of this year.

With commercial service expected in the first half of this year, the Hunan PTA system will be deployed in two phases with a total capacity of 75,000 subscribers. The network will cover the entire province, including the cities of Changsha, Hengyang and Changde cities.

Sichuan PTA has contracted with Motorola to deploy a GSM system during the second half of this year which will provide mobile phone service for up to 75,000 customers throughout most cities of the province.

The Fujian Unicom network will serve 55,000 subscribers in the province's three major cities of Fuzhou, Xianmen and Quanzhou. Commercial service of this GSM system is expected in the first half of 1996.

As part of its contract with Yantai Unicom, Motorola will install a GSM network for 15,000 subscribers in Yantai, a city located in China's northeastern province of Shandong. The system will be ready for commercial use in the 3rd quarter of this year.

Nantong Unicom has ordered deployment of a GSM system to serve 10,000 subscribers in Nantong, Jiangsu province, an eastern city located near Shanghai. Customers in this area should expect initiation of digital phone service in March.

Shenzhen Unicom's system will have the capacity to provide service to 30,000 subscribers starting in the first half of 1996.

GSM is a digital cellular standard based on an open architecture network that allows operators to combine equipment from a variety of suppliers and gives subscribers the ability to roam between countries. Adopted internationally, GSM uses the same number of frequencies as traditional analog, but in tighter re-use patterns and more traffic-carrying capacity.

To date, Motorola has been awarded public cellular system contracts for China in more than 170 cities, covering a total population of more than one billion people. Motorola installed the industry's first systems in Beijing and Shanghai in 1986.

Motorola is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems and services. Motorola's 1995 sales were $27 billion.

CONTACT: Motorola CIG, Arlington Heights

Mary Anne McAndrew, 847/632-2775