Motorola wins $54 million contract to provide cellular service for two circles in India; enhances its position as India's leading cellular provider.

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--Sept. 9, 1996-- Motorola's International Cellular Infrastructure Group (ICIG) today secured its position as India's leading cellular provider by announcing it has signed a nearly $54 million contract to deploy digital cellular telephone networks in two of the country's most important circles. Modicom Network Private Limited plans to launch Motorola's Global System for Mobile (GSM) Communications service for subscribers in Karnataka and Punjab by the end of 1996.

With a population of nearly 50 million, Karnataka is one of India's most progressive states. Bangalore, its capital, is often referred to as India's Silicon Valley and is fast becoming a major metropolitan area, drawing a large number of multinational companies to the region.

Punjab is one of India's most economically active states, with numerous industries such as sporting goods and personal wear based in the region. Initially, subscribers in the key cities of Chandigarh, Ludhiana and Jalandhar will be served by Motorola's GSM network equipment, with the remainder of the state to be added onto the network on a gradual basis.

"Providing the very best cellular service to these active regions of our country is the top priority for Modicom," said David White, managing director, Modicom. "We selected Motorola to help us deploy these networks because of its innovative and cost effective technical solutions for these truly diverse geographic areas, and because Motorola understands the local market and has extensive in-country service and support here for us as we move forward."

As part of the contract with Modicom, Motorola's ICIG will install its flexible InCell(TM) GSM base stations and will provide technical support for the networks.

Mandated by India's government, GSM is a digital cellular standard based on an open architecture network that uses the same number of frequencies as traditional analog, but in tighter re-use patterns and in more traffic-carrying capacity.

"We greatly respect the fact that Modicom is committed to bringing quality digital cellular service to India," said Pertti Johansson, senior vice president and general manager of ICIG. "India is an important and growing market and Motorola is proud to be its leading cellular infrastructure provider."

In India's initial round of licensing, Motorola won half of the contract awards and will serve about 65 percent of the subscribers in Bombay, Delhi and Calcutta.

Motorola, Inc. has significant investments in India including a paging manufacturing facility, two-way radio and cellular telephone sales and distribution centers, and a software research and development center. Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems and services. Its 1995 sales were $27 billion.

Modicom is a joint venture between Modi Wellvest Private Limited, Distacom Communications (India) Limited, and Motorola's Network Management Group.

CONTACT: Motorola CIG, Arlington Heights

Laura Cain, 847/632-3889