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MOTOROLA, NEXTEL AGREE TO SALE OF SMR FREQUENCIES

 SCHAUMBURG, Ill., Nov. 9 /PRNewswire/ -- Motorola, Inc. (NYSE: MOT), said today it has signed an agreement in principle with Nextel Communications Inc., Rutherford, N.J., under which Motorola will transfer its specialized mobile radio (SMR) service businesses, systems and licenses in 21 states to Nextel in exchange for 35.5 million shares of Nextel common stock.
 The Nextel announcement follows similar agreements by Motorola with Dial Page, Inc., and CenCall Communications, Inc., announced in October. SMR systems have evolved from the analog two-way dispatch systems used by transportation, commercial and industrial companies and public safety organizations.
 Under the agreement, Nextel (formerly Fleet Call) would receive Motorola 800 megahertz SMR systems in California, Nevada, Utah and Texas, as well as Northeast, mid-Atlantic and Midwestern states. Motorola would receive 35.5 million shares of Nextel, representing almost 20 percent of the company's shares on a fully diluted basis after Nextel's completion of its other announced transactions. The agreement in principle is subject to signing of a definitive agreement and approval by the boards of directors of both companies, Nextel stockholders and various government agencies. Under the agreement, Nextel will use Motorola Integrated Radio System (MIRS) equipment. Motorola already has shipped MIRS equipment to Nextel for its Los Angeles and San Francisco systems. Nextel also plans to install MIRS as its network architecture in New York, Chicago, Dallas and Houston. The MIRS products will offer dispatch, telephone interconnect and data capabilities.
 Morton L. Topfer, president and general manager of Motorola's Land Mobile Products Sector, said the agreement represents "a keystone in our efforts to harness the potential of digital technology for wireless systems that keep people in touch, wherever they are. We fully believe in the MIRS technology and in the ability to deliver compelling new wireless communications services based on our MIRS technology."
 Topfer said the agreement is consistent with Motorola's strategy of being primarily a technology supplier and equipment manufacturer, rather than a network systems operator in the United States.
 The companies said they are discussing a plan for the orderly migration of existing analog dispatch customers to digital service in an effort to minimize any disruptions. Nextel has agreed to pursue roaming agreements with other SMR operators using MIRS technology.
 Motorola is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems and services. Products include two-way radios, pagers, personal communications systems, cellular telephones and systems, defense and aerospace electronics, automotive and industrial electronics, computers, data communications and information processing and handling equipment. Sales in 1992 were $13.3 billion.
 -0- 11/9/93
 /CONTACT: George Grimsrud of Motorola, 708-576-2346/
 (MOT)


CO: Motorola, Inc.; Nextel Communications Inc. ST: Illinois, New Jersey IN: TLS SU:

TW -- NY021 -- 2089 11/09/93 09:05 EST
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Publication:PR Newswire
Date:Nov 9, 1993
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