Symbol Provides Status of Telxon Litigation Update.

Business Editors/High-Tech Writers

HOLTSVILLE, N.Y.--(BUSINESS WIRE)--Oct. 10, 2003

Symbol Technologies, Inc. (NYSE:SBL) today provided an update to the status of the case involving Telxon Corporation, a wholly owned subsidiary of Symbol, and Smart Media of Delaware, Inc.

The Summit County Court of Common Pleas in Ohio held a status conference on October 9, 2003, and, as a result, Symbol expects that the briefing on post judgment motions will take at least a month, and may take longer. No judgment has yet been entered in the case, and Telxon has filed a motion for judgment notwithstanding the verdicts and for a new trial.

The following addresses the status of the Telxon case:

Q1:     What is the background of the litigation between Telxon and
        Smart Media, et al.?

A1:     The litigation between Telxon and Smart Media began in
        December 1, 1998, prior to Symbol's acquisition of Telxon,
        when Telxon filed suit against Smart Media in the Court of
        Common Pleas for Summit County, Ohio. The suit filed by Telxon
        was for a declaratory judgment that, contrary to the position
        of Smart Media and several of its shareholders, Telxon neither
        agreed with nor promised Smart Media to develop a product or
        to provide financial support for the development of a product.
        Smart Media denied Telxon's suit for declaratory judgment and
        claimed that it suffered substantial damages because of
        Telxon's alleged failure to provide funding of several million
        dollars. The damages claimed by Smart Media are for allegedly
        lost profits.

Q2:     Is there a judgment against Telxon at this point?

A2:     No. No judgment has been entered at this time.

Q3:     What are the next procedural steps, and the timing, relating
        to the case?

A3:     The parties had a conference with the judge on October 9,
        2003, that addressed, among other matters, the next steps in
        the case. Symbol and Telxon believe that post trial motion
        practice will take at least a month and that no judgment will
        be entered until the Court rules on the parties' post trial
        motions. Symbol and Telxon cannot predict when the Court will
        render its decision.

Q4:     Has Telxon made any post trial motions?

A4:     On October 7, 2003, Telxon made a motion to impound and secure
        the trial record of certain exhibits, and on October 8, 2003,
        Telxon made motions for judgment in its favor notwithstanding
        the jury's verdicts, and for a new trial. In the event this
        relief is not granted, Telxon requested that the amount of the
        jury's verdicts be reduced. Also, Telxon requested that the
        execution of any judgment against Telxon entered by the Court
        be stayed without the posting of a bond, or in the
        alternative, that a bond be set at a maximum of $3.7 million.

Q5:     What arguments has Telxon made to support its motion?

A5:     Telxon, among other arguments, has argued that the jury's
        verdicts were based upon inadmissible evidence being
        improperly provided to the jury during its deliberations; that
        the absence of liability on the part of Telxon was
        conclusively established by the documents in evidence; and
        that the amounts awarded to Smart Media were based on legally
        irrelevant projections, and are wildly speculative,
        particularly given that Smart Media never had any revenue or
        profits. In addition, Telxon argued that the jury verdicts
        incorrectly awarded damages more than once for the same
        alleged injury by adding together two separate awards for lost
        profits, and by improperly combining different measures of
        damages.

Q6:     Has Smart Media made any post trial motions?

A6:     As previously reported, Smart Media made a motion to join or
        substitute Symbol as a defendant. In addition on October 7,
        2003, Smart Media made a motion for prejudgment interest in
        the amount of approximately $146 million based upon a 10
        percent per annum rate on the aggregate amounts of the jury's
        verdicts from October 23, 1996, to September 17, 2003. Symbol
        and Telxon believe these motions are without merit and intend
        to oppose them vigorously.

Q7:     If the Ohio trial court judge enters a judgment on the jury's
        verdicts, would Telxon have a right to appeal?

A7:     Yes, Telxon may appeal the jury's verdicts as a matter of
        right to the Ohio Court of Appeals for the 9th District.
        Following that appeal, any party could petition the Ohio
        Supreme Court to hear the case, but Ohio Supreme Court review
        is not an appeal as a matter of right.

Q8:     How long could the appeal process last?

A8:     The length of the appeals process is uncertain. It could last
        a number of months, and perhaps more than a year.

Q9:     Pending the appeal, can Telxon stay execution of any judgment
        against it?

A9:     Yes, if Telxon posts a bond, if one is required, as determined
        by the Ohio trial court.

Q10:    In the event of an enforceable judgment against Telxon that
        it was unable to satisfy, could Symbol be responsible for the
        judgment?

A10:    Under such circumstances, Smart Media may pursue various
        legal theories and tactics to try to recover from Symbol or
        otherwise obligate Symbol to provide funds to Telxon to
        satisfy a judgment against Telxon. While Symbol will
        vigorously oppose such efforts, there can be no assurance that
        Symbol will not be liable for or otherwise be obligated to
        provide funds to Telxon to satisfy any judgment against
        Telxon.

Q11:    Could the litigation between Smart Media and Telxon, or even
        a bankruptcy of Telxon, have an impact on Symbol's credit
        facility?

A11:    The credit facility remains in place at this time. Whether
        the credit facility could be impacted will depend on
        developments in the litigation. At the present time, Symbol is
        not borrowing under its credit facility.

Q12:    Will the amount of the jury verdicts be reserved against on
        Symbol's balance sheet?

A12:    At this time, Symbol believes that the amounts indicated in
        the jury verdicts are not probable and estimable. Therefore,
        Symbol has not recorded any reserves in its balance sheets.

Q13:    Ultimately, if Symbol were found liable for the entire amount
        of the verdicts, does Symbol have adequate liquidity and
        capital resources to satisfy that amount?

A13:    Symbol believes that it could satisfy the entire amount with
        a combination of internal funds and funds obtained from the
        public and/or private capital markets, although access to the
        public markets will be subject to Symbol completing the
        pending restatement of its financial statements. In addition,
        Symbol's ability to access the capital markets would be
        subject to market conditions, industry conditions and the
        financial condition and prospects of Symbol at the time the
        capital markets are accessed.

About Symbol Technologies

Symbol Technologies, Inc. delivers enterprise mobility solutions that enable anywhere, anytime data and voice communication designed to increase productivity, reduce costs and realize competitive advantage. Symbol systems and services integrate rugged mobile computing, advanced data capture, wireless networking and mobility software for the world's leading retailers, transportation and logistics companies and manufacturers as well as government agencies and providers of healthcare, hospitality and security. More information is available at www.symbol.com.

This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include litigation developments, price and product competition, dependence on new product development, reliance on major customers, customer demand for our products and services, control of costs and expenses, international growth, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Symbol with the Securities and Exchange Commission. Symbol disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.