Motorola signs $200 million supply contract for cellular equipment and services in China.

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--April 16, 1997-- Motorola, Inc.'s Asia Pacific Cellular Infrastructure Group (APCIG) has signed a $200 million contract to supply cellular equipment and services in the People's Republic of China. Under the agreement, Motorola APCIG will provide Total Access Communications System (TACS) equipment and services to Eastern Communications Company Limited of China (Eastcom) and Zhejiang Technical Import and Export Corporation (ZTIEC).

The contract will enable Eastcom to expand its manufacturing and distribution of Motorola's TACS cellular infrastructure equipment, including the large capacity EMX(R) 2500E electronic mobile exchange switch and the ThinCell(R) and MICROC-I-T-E(TM) TACS base station equipment. As part of the agreement, Motorola APCIG will provide Eastcom with support services including training, installation and system design, all necessary to support the increased TACS activity in China.

"The signing of this contract is a new milestone in our cooperation. It symbolizes the continued success of our cooperation in the China market," said Mr. Xie Yupu, president of Eastcom.

"This is the seventh TACS contract between our three companies," noted Tom Hinton, vice president and assistant general manager of Motorola APCIG. "It's tremendously rewarding to see this relationship flourish since its formation in 1991. It's also a powerful testimony to the tremendous wireless growth that continues in China."

Since 1991, Motorola APCIG has entered into licensing and joint venture agreements with Eastcom and ZTIEC to manufacture, distribute and provide service for Motorola's TACS, Code Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM) cellular infrastructure products within China.

Earlier this year, Motorola APCIG announced a $58 million GSM contract with Eastcom and ZTIEC, and also announced that equipment production had begun on the CDMA joint venture with Eastcom in Hangzhou.

Eastcom became a publicly listed company in 1996. As China's largest mobile communications product manufacturer and supplier, Eastcom has become the largest state-owned company and reported a business volume of more than $490 million in 1996.

ZTIEC is a state-owned government entity that facilitates high technology import and export agreements for companies and factories located in Zhejiang province.

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 Cellular Infrastructure Group, visit the web site at "http://www.mot.com/cig" .

EDITORS' NOTES: There is an "at" symbol after "cain_laura" in the E-mail address below. This symbol may not appear properly in some systems.

Also, dashes have been substituted for bullet symbols in "MICROC-I-T-E" where it appears above; this was done for transmission purposes only.

CONTACT: Motorola CIG, Arlington Heights

Laura Cain, 847/632-3889

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