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Optus Vision Announces $100 Million Agreement with Motorola.

SYDNEY, Australia--(BUSINESS WIRE)--March 15, 1996--The Motorola Multimedia Group has won a contract to provide Australia-based Optus Vision with over $100 million of telephony interface equipment.

Optus Vision's chief executive officer, Geoffrey Cousins, said that the agreement with Motorola re-affirms Optus Vision is on track to provide a local telephone service from the middle of this year.

"The Australian community can look forward to receiving cheaper local calls via one of world's most sophisticated telephone networks," he said.

Motorola will begin delivering its CableComm telephony equipment to Optus Vision in the second quarter of this year. It will provide access lines in one-, two- and eight-line units.

"The timing of delivery is designed to meet Optus Vision's mid-year telephony launch," Cousins explained.

The agreement establishes the Motorola Multimedia Group as a primary vendor of broadband network equipment for Optus Vision.

"We are extremely pleased the prestigious Motorola Multimedia Group will be playing such an integral role in the launch of Australia's first alternative local telephone service," Cousins said. "The combination of Motorola's CableComm technology with Optus Vision's advanced broadband network will ensure our customers have access to many of the benefits typically associated with increased competition," he said.

"From a technological standpoint, Motorola's CableComm System meets our stringent requirements for broadband interactivity," Cousins added. "It is a true end-to-end system designed for highly efficient installation and operation."

Optus Vision will begin commercial deployment of its Motorola-equipped broadband multimedia services in the second quarter of 1996. Australian cities targeted for the commercial roll-out of Optus Vision's telephony, video and data services include Brisbane, Sydney, Melbourne and Adelaide.

The chief executive officer of Motorola Inc., Gary Tooker, said: "The rapid deployment of CableComm remains a top priority for Motorola, as it effectively combines the core competencies we have developed in RF, semiconductors, modems and other technologies. This commitment from Optus Vision is a major step in our strategy to help create an entirely new industry and bring the full power of broadband networks to the marketplace."

James M. Phillips, corporate vice president of Motorola Inc. and general manager, Multimedia Markets Division, said, "Optus Vision has created one of the world's most advanced two-way broadband cable networks. Our CableComm technology will enable Optus Vision to immediately deliver true two-way telephone and video services to its customers."

Motorola's CableComm system enables cable network operators to fully exploit the two-way capabilities of hybrid fiber/coax networks and quickly deliver interactive and multimedia services over existing broadband networks.

"The system enables cable subscribers to make telephone calls using the cable network, access on-line services at much higher data rates than is currently practical or cost effective and enjoy high quality video conferencing at a fraction of the cost of current solutions," Phillips explained.

"To ensure system operators can effectively deliver the competitive advantages of its CableComm System, Motorola has designed CableComm to provide unsurpassed system reliability, superior bandwidth management, upstream noise abatement, complete encryption and many other features that are quickly establishing new industry standards," he said.

Optus Vision is a joint venture of Optus Communications, Continental Cablevision, Publishing and Broadcasting Limited and the Seven Network Limited. It is building a broadband cable network that will pass 2.3 million Australian homes by the end of 1996. It launched a cable television service in September 1995 and this year will introduce telephony and data services to the Australian community.

Motorola's Multimedia Group, a unit of the Messaging, Information & Media Sector, develops, manufactures and markets systems for the convergence of voice, video and data communications over advanced multimedia platforms. Motorola is one of the world's leading providers of wireless communications and electronic equipment, systems, components and services for worldwide markets. Products include two-way radios, pagers, personal communications systems, cellular telephones and systems, semiconductors, defense and aerospace electronics, automotive and industrial electronics, computers, data communications and information processing and handling equipment. Sales in 1995 were $27 billion.

CONTACT: Motorola, Inc.

Douglas M. Robertson, 847/632-6634

or

Optus Vision

Chris Muldoon, 011-61-2-775-9867

or

Phillips + Associates

Scott Phillips, 312/943-8858
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Date:Mar 15, 1996
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