Motorola in Third Generation Mobile Network Deal With Turkey's Telsim.

Business Editors/Telecommunications Writers

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Oct. 31, 2000

Potential $2 billion revenue from market estimating

375% subscriber growth by year end

Motorola (NYSE:MOT) and Telsim, Turkey's fastest-growing GSM operator, have signed a Memorandum of Understanding (MoU) agreement for the supply and deployment of a third generation (3G) mobile network capable of providing advanced multimedia services. Motorola estimates that the potential value of the contract could be in excess of $2 billion.

The European member of the IMT2000 family of third generation (3G) cellular mobile standards is known as UMTS - Universal Mobile Telecommunications System. Telsim initially plans to deploy Motorola's UMTS solution in Turkey's capital city and economic centre Ankara, and in its largest city Istanbul. Telsim, which had two million customers at the beginning of the year and now has over five million customers, estimates its growth to be seven and a half million customers by the end of the year - a growth rate this year of 375 percent.

With the advent of UMTS, Telsim's customers can look forward to totally interactive services delivered to their 3G terminal of choice whenever, wherever and however required. Combining voice, video and data, 3G technologies will transform the Internet into a true mobile resource. Motorola, through its strategic alliance with Cisco Systems, Inc. (NASDAW:CSCO), is developing a common, IP-based architecture designed to integrate voice, data and multimedia communications networks.

In Europe, the new UMTS networks will build on the success of GSM, and on the GSM operators' existing investment in infrastructure. The first stage of 3G service and network evolution is from today's GSM systems, through the implementation of General Packet Radio Service (GPRS), to UMTS networks that are expected to begin deployment next year.

Telsim launched the first commercial GPRS network in Turkey in August, becoming one of the world's first cellular network operators to implement GPRS. The launch came just four months after the successful completion of the technology trials and the first live GPRS call in Turkey, enabled by the core GPRS network solution supplied by Motorola and its strategic alliance partner, Cisco Systems, Inc. Motorola, through its alliance with Cisco, is the only supplier worldwide with complete end-to-end GPRS solutions in commercial service.

In February this year, Motorola and Telsim announced an agreement for Motorola to provide infrastructure, handsets and associated services to expand Telsim's GSM network. Telsim said it chose Motorola based on its ability to provide market-leading solutions that could handle high capacity traffic on large subscriber-base networks. As part of the agreement, Telsim named Motorola as its exclusive regional supplier of GSM 900 equipment over the next three years. Motorola has estimated that revenues from this supplier agreement could be at least $1.5 billion.

Hakan Uzan, CEO of Telsim said: "The potential of the wireless Internet is now beginning to be fully recognised by the wider marketplace. Following our successful introduction of GPRS with Motorola and exceptional growth of our GSM network, the arrival of the third generation service will take both Telsim and our subscribers to the next level of personalized anytime/anywhere access to messages, telecommunications, data, multimedia and the Internet.

"Reliable, proven solutions and system dependability are the key to 3G success," said Mr. Uzan. "Motorola's successful track record in GSM, and its leading position in the commercial deployment of GPRS, will be the key factors in delivering a proven 3G technology. Motorola clearly has an industry edge."

Gene Delaney, Motorola senior vice president and general manager of the Telecom Carriers Solutions Group, said: "The commercial success of the next generation networks is related directly to their accessibility - determined by the communications infrastructure. The Internet has proven the value of a universal, accessible, versatile network, and Motorola is extending that vision to wireless with our Aspira(TM) architecture that develops total communications solutions specifically designed for 3G."

About Telsim

Telsim has established itself as one of the most successful GSM operators worldwide. Since its commercial launch in 1994, it has consistently delivered innovative services to its subscriber base, which is estimated to reach seven and a half million people by the end of 2000. Telsim was one of the first operators worldwide to introduce General Packet Radio Service (GPRS) high speed mobile data, and was one of the first recipients of the GSM Association `GSM in the Community Award', created to recognise and pay tribute to the many outstanding contributions made by GSM to saving lives and aiding communities and groups around the world. The award was made to Telsim at the GSM World Congress in France in February this year, in recognition of its efforts following the earthquake that hit Marmara in Turkey in August 1999. Telsim established a crisis communications room to restore the GSM network within 24 hours, deploying Mobile Support teams that worked in five regions, distributing over 500 free GSM phones and equipment to aid teams.

About Motorola

Motorola is a global leader in providing integrated communications solutions and embedded electronics solutions. Sales in 1999 were $33.1 billion.

For more information on Motorola's third generation network solutions, please visit: www.motorola.com/aspira

For more information on Motorola, visit: www.motorola.com

About Motorola's Aspira(TM) 3G Total Communication Solutions

Motorola's Aspira(TM) 3G total communications solutions will change the way the world communicates. The Aspira architecture combines voice, data, and multi-media into one broadband, IP-based network that encompasses access networks, applications, services and end-point devices to enable Internet services over wireless networks, voice over IP and global, feature-rich mobile services. For more information on Motorola's 3G total communications solutions, visit the Aspira solutions website at www.motorola.com/aspira.

About the Motorola/Cisco Alliance

The Motorola and Cisco strategic alliance delivers end-to-end wireless communications solutions to operators worldwide through a powerful combination of Motorola communications solutions and Cisco Internet technologies. Over the past year, the alliance has introduced an open IP network architecture that integrates data, voice and video services for mobile networks, and provides users with a broad range of wireless Internet access solutions. The alliance also has secured a leadership position in the deployment of GPRS systems worldwide and through these commercial launches is providing a critical path to 3G mobile communications. Motorola and Cisco continue to work together on joint development of IP network architecture and products, the promotion of open standards and the creation of joint ventures, such as the Invisix Centres of Excellence located in Tokyo; Sockley Park, UK, Fort Worth, Texas and San Jose, Calif.

About Cisco

Cisco Systems (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at www.cisco.com.

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