Motorola Announces Record Second-Quarter Sales and Earnings

July 20, 2006 – Motorola has announced it’s second-quarter Connected Home Solutions Segment sales at $803 million, up 8 percent compared with the year-ago quarter and up 10 percent compared with the first quarter of 2006. Operating earnings increased to $56 million, compared with operating earnings of $33 million in the year-ago quarter and an operating loss of $11 million in the first quarter of 2006.

Motorola continued to maintain and grow its market leadership with strong shipments of video, voice and data infrastructure and consumer devices.

During the quarter, the segment shipped a record 2.4 million digital entertainment set-top devices, including approximately 680,000 with digital video recorders (DVR), along with a record 900,000 voice-enabled modems.

Motorola also announced the world’s first commercial implementation of PacketCable MultiMedia™ (PCMM), through deployment of an end-to-end solution with StarHub of Singapore, also announcing that Sentivision of Japan would deploy Motorola’s IP video set-top platform.

The Motorola Follow Me TV solution was also introduced, enabling the seamless movement of multimedia content within the home and to the mobile device. The second quarter of 2006 also saw Cox Communications beginning field trials of Motorola’s Open Cable Applications Platform (OCAP) software.