Motorola signs $4 million contract to expand GSM Digital Phone Network in China.

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--July 25, 1996-- Motorola's Asia/Pacific Cellular Infrastructure Group (APCIG) has been awarded a contract worth four million dollars to expand Guangdong Mobile Communications Corporation's (GMCC) digital cellular phone system in Zhuhai City, China. When this second phase expansion project is completed by year end, the Global System for Mobile (GSM) Communications network will have a subscriber capacity of 43,000.

As part of its efforts to broaden cellular telephone coverage throughout Guangdong province in the south of China, GMCC has ordered the installation of additional Motorola InCell(TM) and TopCell(TM) GSM cellular base stations. The GSM network for GMCC was originally deployed by Motorola in May, 1995 and currently has a capacity of 20,000 subscribers.

"Motorola has made tremendous strides in recent years to expand cellular phone coverage in China, and our relationship with GMCC is a strong demonstration of this commitment," said Richard Sell, corporate vice president and general manager of Motorola's APCIG. "We have been able to help GMCC provide its subscribers with the benefits of a GSM digital network -- including roaming capabilities and clear voice quality -- to take them into the next century of cellular phone service."

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's Cellular Infrastructure Group has won more than 60 GSM contracts in Europe, Asia, Africa and the Middle East, including 13 GSM networks in China.

GMCC operates mobile communications services of the Guangdong PTA. Guangdong PTA is a government-owned enterprise operating posts and telecommunications services in Guangdong province. Guangdong now has a total of 1,205,000 mobile subscribers, which is about one-fourth of the country's five million subscribers, making the province the largest in China in terms of subscribers.

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

CONTACT: Motorola CIG, Arlington Heights

Mary Anne McAndrew, 847/632-2775