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 SCHAUMBURG, Ill., Oct. 11 /PRNewswire/ -- Amid continued global growth in semiconductors, wireless communications and advanced electronic products, Motorola, Inc. (NYSE: MOT) today reported record sales and earnings in the third quarter and first nine months of 1993.
 Third-quarter sales rose 30 percent to $4.4 billion from $3.4 billion in the third quarter of 1992. In the first nine months, sales reached $12.0 billion, up from $9.6 billion a year ago.
 Third-quarter earnings were $254 million, or 92 cents per share, compared with $127 million, or 47 cents per share, in the third quarter of 1992. Earnings in the first nine months were $682 million, or $2.50 per share, compared with $395 million, or $1.48 per share, a year earlier, before the 1992 cumulative effect of a change in accounting principle involving postretirement benefits other than pensions. Fully diluted earnings per common and common equivalent share in the third quarter were 87 cents, compared with 46 cents, a year earlier. In the first nine months, fully diluted earnings per common and common equivalent share were $2.40, compared with $1.45, a year earlier.
 Net margin on sales was 5.7 percent in the third quarter, compared with 3.7 percent a year ago, while in the first nine months, it was 5.7 percent against 4.1 percent in the year-earlier period.
 Gary Tooker, president and chief operating officer, reviewed the following third-quarter results of Motorola's major operations, compared with the year-earlier quarter:
 Semiconductor Products Sector
 Segment sales rose 31 percent to $1.51 billion, the 19th consecutive quarter of growth. Orders rose 25 percent and segment profits increased.
 All major market regions posted double-digit order growth, led by Asia-Pacific. Among market segments, increases were highest in communications, followed by personal computer/workstation, automotive and industrial. Distributor orders also were stronger. By product category, order strength was highest for microcontrollers, microprocessors, mixed-signal (digital-analog), analog, memories and digital signal processors.
 The PowerPC(A) microprocessor family, being developed with IBM and Apple Computer, gained further momentum as IBM began volume production of the PowerPC 601. The PowerPC 603, which Motorola will manufacture, is being readied for introduction. It is a smaller, low-power design for portable computers.
 The sector introduced a radio frequency (RF) five-chip set for personal communications products, and a digital signal processor for digital cellular voice processing in U.S. and Japanese systems.
 Plans were announced for a new ultra large-scale integration (ULSI) laboratory and wafer fabrication facility in Austin, Texas.
 General Systems Sector
 Segment sales advanced 43 percent to $1.35 billion. Orders rose 58 percent and segment profits were higher.
 Motorola introduced the world's lightest GSM digital cellular telephone and won GSM infrastructure contracts from Austria, Portugal, the United Arab Emirates and Pakistan. In China, awards were received for 10 additional cellular systems and several system expansions. Motorola is sending a Wireless Local Loop system to India's Department of Telecommunications to support earthquake relief efforts.
 In the Pan American market, Motorola and Northern Telecom announced that the cellular infrastructure sales and service activities formerly handled through the Motorola Nortel joint venture are returning to the parent companies. Revised OEM and development agreements eventually will enable each company to sell integrated Motorola-Northern Telecom systems in worldwide markets that use American cellular standards.
 The Computer Group announced the Series 900 product line, the computer industry's first family of UNIX-based systems and servers with "snap-together" modularity. The Series 900, which incorporates Motorola's MC88110 microprocessor, can be employed as a multiuser system supporting more than 1,000 users, or as servers in a distributed environment.
 Communications Segment
 In this segment, composed of the Land Mobile Products Sector (LMPS) and the Paging and Wireless Data Group (PWDG), segment sales rose 20 percent to $1.18 billion. Orders increased 23 percent, and segment profits were higher.
 In Land Mobile Products, orders increased in the U.S. but were lower overall. International orders declined vs. a year ago, when the sector recorded its largest international order in history.
 Large U.S. orders for digital two-way radio systems were received from Suffolk County, N.Y., and the state of Delaware. Outside the United States, Motorola won contracts for digital systems in Austria and Switzerland, and for trunked systems in Hungary and Mexico. A two-way trunked radio network service joint venture began operating in the Czech Republic.
 In Paging and Wireless Data, paging orders again set records. The Asia-Pacific region led the international growth, while in the United States, the common carrier market was strong. Initial interest by paging service providers in the new FLEX; paging protocol has been enthusiastic. The protocol increases channel capacity five-fold and improves message reliability.
 The group introduced the first in a line of NewsCard; credit-card sized messaging receivers for use with handheld computers. The group also announced plans for a wireless personal communicator based on Microsoft At Work; software for handheld systems.
 Government and Systems Technology Group
 Segment sales rose 85 percent to $322 million. Orders were 141 percent higher. The group had a segment profit vs. a loss a year ago. GSTG recorded a $375 million order as part of the initial funding of the Iridium(B) global personal communications system program. On Aug. 2, 1993, Motorola, Inc. announced it had received initial cash payments and investor commitments totaling $800 million in the first-round offering of shares of common stock of Iridium, Inc., formerly a wholly owned subsidiary of Motorola, Inc.
 Information Systems Group
 Segment sales declined 8 percent to $142 million, and orders were up 4 percent. Segment profits were higher. At Codex, international orders were higher, particularly in Asia. New products included the Multimedia Periphery Router; and a digital service unit with synchronous data compression. UDS introduced a new multiprotocol dial up networking router. International demand for digital devices increased.
 Automotive and Industrial Electronics Group
 Segment sales rose 33 percent, orders were 27 percent higher, and segment profits were higher.
 The group's results, which are part of the "other products" segment, include Motorola Lighting, Inc., as well as two former Communications Segment businesses, Worldwide Energy Products Division and the Component Products Division. AIEG's performance was led by strong demand for component and energy products and growth in the U.S. automotive market.
 The group acquired Indala, Corp., which manufactures radio frequency identification cards, tags and readers. AIEG also announced it will manufacture PC multimedia communications hardware at its Stotfold, U.K., facility for BT (formerly British Telecom).
 Review and Outlook
 George Fisher, chairman and chief executive officer, said the third- quarter results reflect "a continuation of the trends we have seen over the last several quarters. We are experiencing growth throughout the world, led by the Asia-Pacific region," he said.
 "As digital computing and wireless communications technologies converge, we see this growth across a broad range of our semiconductor and equipment businesses," Fisher said. "To meet this demand, we are concentrating on quality, customer service and reducing cycle times, from product design to delivery. These programs are critical to our efforts to continue the improvement in our financial performance."
 Fisher said Motorola intends "to stay at the forefront of communications and electronics by providing products, systems and services that make our customers more productive."
 (A) -- PowerPC is a trademark of International Business Machines Corp.
 (B) -- Iridium is a trademark and service mark of Iridium, Inc.
 -0- 10/11/93
 /CONTACT: George Grimsrud of Motorola 708-576-2346/

CO: Motorola, Inc. ST: Illinois IN: TLS SU: ERN

CK -- NY055 -- 0830 10/11/93 18:06 EDT
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Date:Oct 11, 1993

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