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Motorola Growth in Digital Video, Wireless Broadband is Accelerating Delivery of Personal Media Experiences

New milestones in digital entertainment devices, IPTV and mobile broadband deployments lead Q1 2008 success with service provider customers

HORSHAM, Pa. – Motorola, Inc. (NYSE: MOT) announced significant milestones in the execution of its media mobility strategy. Motorola’s Home & Networks Mobility business has shipped more than 73 million digital entertainment devices and more than four million IPTV set-top devices, entered 80 WiMAX engagements worldwide and surpassed several other milestones in the first quarter of 2008.

“Changes in how much, how often and where content is delivered and consumed are fundamentally driving the convergence of wired and wireless broadband devices and networks,” said Dan Moloney, president of Motorola Home & Networks Mobility. “Motorola’s goal is to help our operator customers deliver the vision of media mobility to consumers. Leveraging advanced video delivery, wireless broadband access and other solutions, our technologies are delivering the personal media experiences today’s users demand.”

By focusing on solutions that address growing consumer trends — including the explosion of video content, the shift from primetime to “my time” and the desire for broadband on the go — Motorola Home & Networks Mobility continues be a market leader in the delivery of products and solutions that enable service providers to offer rich media experiences to consumers, both in the home and beyond.

The Video Explosion
Growing consumer appetite for high-definition (HD) video continued to drive growth in Motorola’s shipments of digital entertainment devices for the home. In Q1 2008, with home-related sales of nearly $1.2 billion, Motorola surpassed several notable milestones while maintaining its leadership in set-top boxes and other digital entertainment solutions. Milestones include:

The shipment of more than 73 million Motorola digital entertainment devices worldwide to date.
The shipment of four million digital entertainment devices (digital cable set-top boxes, HDTV set-tops, DVR devices and IPTV devices) during the first quarter.
The acquisition of the set-top portfolio assets of Dahua Digital to expand digital set-top box offerings in China, which is expected to have 165 million digital cable subscriptions by 2016.
The introduction of the DCX series of multimedia hubs, capable of advanced video services and video storage.
Motorola is also helping broadcasters and network operators address the challenges of expanding bandwidth needs as consumers demand more HD video and standard video content in the home. The requirements of MPEG-4 capable network equipment are increasing with the delivery of more HD content, and Motorola recently shipped its 1,000th MPEG-4 encoder channel.
From Primetime to “My Time”
With more video content comes demand for greater levels of choice, customization and control over the time and place in the consumer experience. Motorola’s IPTV devices, digital video recorders (DVRs), video-on-demand (VOD) solutions and mobile TV devices are helping service providers meet these demands for customization, time-shifting and “place-shifting.” Milestones include:

The shipment of four million IPTV devices to date.
The shipment of more than 10 million DVRs worldwide to date.
The introduction of the new DH series of personal mobile TV devices for on-the-go multimedia entertainment and navigation.
As service providers continue to offer a broader array of content, Switched Digital Video technologies are increasingly being deployed to manage the delivery of HD and standard definition (SD) content. Motorola’s Switched Digital Video solutions currently pass content to more than 24 million homes – twice as many as our nearest competitor.

Broadband on the Go
As broadband connections, compelling video and personalized content grows, so does user demand for full access anytime, anywhere. Motorola had more than $1.2 billion in wireless network sales in Q1 2008 and reached new milestones in both in-home broadband solutions and new technologies to take service providers beyond 3G into full mobile broadband offerings.

In the home, where consumers are expecting increasingly fast and uninterrupted broadband service, Motorola continues to be a leading supplier of access solutions. Milestones include:

The shipment of more than 58 million data/voice modems worldwide to-date.
The rollout of new femtocell customer premise equipment (CPE) devices, including the first 3G UMTS femtocell CPE.
Motorola also continues to lead the development and deployment of mobile broadband solutions, including WiMAX and Long Term Evolution (LTE). Milestones include:

The introduction of new WiMAX engagements in Saudi Arabia and Taiwan, bringing Motorola to a total of 80 WiMAX engagements — 19 for commercial systems — in 43 countries around the globe.
The launch of a common wireless broadband platform supporting both WiMAX and LTE deployments.
The demonstration of the industry’s first packet-switched network handoff from CDMA/EV-DO Rev-A to LTE during VoIP calls and streaming video.
The deployment of more than 3,600 access points and 120,000 CPE devices around the world to-date.
In a virtual roundtable today, Moloney discussed these growth milestones as well as key trends in the delivery of rich media content and home broadband access with Ruchir Rodrigues, vice president of Product Design and Development for Verizon Communications, and Patti A. Reali, research director, Technology & Service Provider Research with Gartner, Inc. An audio replay of the roundtable is available by clicking here.

"The greater availability of rich media content, from HD and video-on-demand to Web video and downloads, is driving unprecedented demand for greater bandwidth as well as personalized broadband experiences," said Rodrigues. "The Verizon networks – the all-fiber-optic FiOS network, our next-generation wireless network and our dynamic broadband networks – provide a great platform for high-speed access and delivery of the types of content that consumers want, and give us the opportunity to focus now on integrating the toolkit of solutions needed to offer consumers more choice, more customization, and ultimately more mobility than ever before."

“Broadband connections around the world continue to grow and will surpass half a billion by 2012 and that's only increasing competition for service providers of all types to put in place the tools and technologies that will keep them ahead of the competition," said Reali. "At the network level, transformation to next generation platforms that meet consumers' needs for increased digitization, capacity, and control of converged voice, video and data services is already underway. But success with consumers will require service providers and their technology suppliers to enable, manage and make transparent the increased complexity of delivering ultra high-speed broadband services and applications, high quality HD content and others services in an on-demand environment throughout the home and on the go."

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