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MOTOROLA AND NORTHERN TELECOM FORM NEW JOINT VENTURE

 MOTOROLA AND NORTHERN TELECOM FORM NEW JOINT VENTURE
 NEW YORK, Feb. 10 /PRNewswire/ -- Two of the world's leading communications companies, Motorola, Inc. (NYSE: MOT) and Northern Telecom (NYSE: NT), today announced an agreement to form a joint venture that will sell and service cellular telephone networks throughout the U.S., Canada, Central and South America and the Caribbean.
 The joint venture, to be named MOTOROLA-NORTEL Communications Co., will be jointly owned by the two partners, with equal representation on its board.
 The joint venture will sell and service cellular system products from both Motorola and Northern Telecom in the Americas and Caribbean, and will offer customers a unified product line following development work by Motorola and Northern Telecom.
 MOTOROLA-NORTEL Communications will be headquartered in the Chicago metropolitan area, with a major facility in the Dallas metropolitan area and offices in Toronto; Atlanta; Marlton, N.J.; Miami; Los Angeles and Mexico City. Motorola and Northern Telecom will both invest in MOTOROLA-NORTEL Communications and will initially staff the joint venture with more than 900 employees.
 The joint venture will become operational in the second quarter of 1992, subject to standard closing conditions.
 Members of the board of directors will be Jack Scanlon, corporate vice president and general manager, Cellular Infrastructure Group, Motorola; Edward E. Lucente, executive vice president, Northern Telecom Limited; Keith J. Bane, senior vice president and director of strategy, Motorola; Martin G. Mand, senior vice president, finance, and chief financial officer, Northern Telecom Limited; Steve Earhart, corporate vice president and director of finance, General Systems Sector, Motorola; and John A. Roth, senior vice president, Northern Telecom Limited, and president, Northern Telecom Wireless Systems.
 MOTOROLA-NORTEL Communications will draw on the research, manufacturing and marketing expertise of both companies. It combines the recognized leadership of Motorola's cellular radio and Northern Telecom's digital switching technologies. Motorola and Northern Telecom have more than 550 cellular systems installed around the world.
 William E. Spencer, corporate vice president and general manager, joint venture operations at Motorola's General Systems Sector, will be president and chief executive officer of MOTOROLA-NORTEL Communications and Robert M. Neumeister, vice president, finance and information systems, Northern Telecom Canada, will be chief financial officer.
 "This union of Motorola's strength in wireless communications technology with Northern Telecom's broad telecommunications technology expertise will create an entity with an unparalleled technological strength to better serve current and new customers," Spencer said at a New York press conference, where the agreement to form MOTOROLA-NORTEL Communications was announced today. "This demonstrates an even stronger commitment by both companies to jointly participate in the cellular infrastructure business, and emphasizes their mutual vision in the robustness of the cellular market.
 "Today's announcement brings the wireless vision closer to reality," he added. "The customer-driven partnership between Northern Telecom and Motorola promises to bring the benefits of cellular technology to much broader markets throughout the Americas and Caribbean."
 "As wireless technology becomes the driving telecommunications force of the future, MOTOROLA-NORTEL Communications and our strong partnership with Motorola will expand the reach of our acknowledged networking expertise," said Paul G. Stern, chairman and chief executive officer of Northern Telecom. "MOTOROLA-NORTEL Communications will bring together the leaders in the field, enabling it to provide customers throughout the Americas with world-class radio and switching equipment."
 George Fisher, chairman and chief executive officer of Motorola, said, "As a pioneer and leader in wireless communications, we at Motorola are proud to have this partnership with a telecommunications company of the stature of Northern Telecom. Over the years, our two companies have developed a high degree of respect for each other, and we are excited about the prospects for the future."
 MOTOROLA-NORTEL Communications will sell and support Motorola's current EMX and Northern Telecom's DMS-MTX product portfolios. This includes Motorola's EMX 2500, which is supplied by Digital Switch Corporation and is installed worldwide. Motorola and Northern Telecom will develop an interface between Northern Telecom's DMS-MTX portfolio, which includes the industry's highest capacity cellular switching system, and Motorola's HD-II cell site equipment. Future development will allow the joint venture to offer a unified product line that supports current and emerging cellular standards.
 MOTOROLA-NORTEL Communications' product portfolio does not include Motorola's cellular subscriber products.
 Motorola is one of the world's leading providers of electronic equipment, systems, components and service for worldwide markets. Products include two-way radios, pagers, cellular telephone systems, semiconductors, defense and aerospace electronics, automotive and industrial electronic equipment, computers, data communications and information processing and handling equipment. Sales in 1991 were $11.3 billion.
 Motorola was a winner of the first Malcolm Baldrige National Quality Award in 1988, in recognition of its superior company-wide management of quality processes. The Malcolm Baldrige National Quality Award is presented annually to select, qualified U.S. companies.
 Northern Telecom is headquartered in Toronto, Canada, with corporate offices in McLean, Va., near Washington. Northern Telecom is the leading global supplier of fully digital telecommunications switching systems, providing products and services to telephone operating companies, corporations, governments, universities and other institutions worldwide. Northern Telecom has 57,000 employees and had 1991 revenues of $8.18 billion.
 -0- 2/10/92
 /CONTACT: David Pinsky of Motorola Inc. Cellular Group, 708-632-2841; or John Callahan of Northern Telecom Limited, 919-992-4172; or Preston Peek of Northern Telecom Limited Canada, 416-238-7140; or Alain Bourget of Northern Telecom Canada Central, South America & Caribbean, 514-876-1600; or Ian Morris of Northern Telecom Europe, 44-753-81-3190; or John Tucker of Northern Telecom Asia/Pacific, 61-2-428-8451; or Richard Lowe, 615-734-4576, or Brian Murphy, 214-301-8589, both of Northern Telecom, or Julian Long of Motorola Europe, 44-793-54-1541/
 (MOT NT) CO: Northern Telecom; Motorola, Inc. ST: New York IN: TLS SU: JVN


TS -- NY012 -- 8122 02/10/92 08:36 EST
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