Motorola Announces Fourth-Quarter and Full-Year Sales and Earnings

SCHAUMBURG, Ill. — Motorola, Inc. (NYSE: MOT) today reported sales, on a continuing operations basis, of $11.8 billion in the fourth quarter of 2006.

Connected Home Solutions segment sales were $980 million, up 39 percent compared with the year-ago quarter. Operating earnings were $118 million, compared with $52 million in the year-ago quarter. For the full year, sales increased 16 percent, and operating earnings increased 46 percent.

During the quarter, Connected Home Solutions:

• Achieved quarterly and annual record-shipment milestones of digital entertainment devices and modems
• Set record IP network infrastructure sales, including shipments to Comcast, Time Warner, NET (Brazil) and Starhub
• Shipped advanced IP digital entertainment devices to AT&T for AT&T U-verse™ digital video service deployment
• Time Warner is deploying “Start Over,” which allows consumers to pause and rewind live TV, leveraging Motorola’s On Demand Solutions next-generation video and software platform
• Starhub successfully launched our Channel Bonding (100Mbps) solution for high-speed Internet service in Singapore
• Announced its intent to acquire Netopia and Tut Systems