Motorola, Inc. announced contracts worth US $394 Million with China Mobile Communications Corporation (CMCC) for GSM network expansion. The multiple contracts were signed in the first half of 2007 and reflect Motorola’s ongoing leadership in providing comprehensive telecommunications solutions. Approximately 60% of the Revenue from these contracts was recognized in the first half of 2007.

Pursuant to the contracts, Motorola supplied CMCC with GSM infrastructure equipment such as its Horizon II base stations, in addition to value added services. The expanded networks are now successfully deployed across 16 provinces and municipalities, including Beijing, Tianjin, Si Chuan, Zhe Jiang, Hunan, Guangdong, Yun Nan, Fu Jian, Hu Bei, Shan Xi, Jilin, Liaoning, Jiang Xi, Anhui, Guizhou and Inner Mongolia. The network expansion and services will enable China Mobile to not only grow its subscriber base, but better manage its complex network to provide users with more attractive high-quality services, such as multimedia functionality.

“Today’s announcement clearly illustrates Motorola’s continued success in the GSM market and its position as one of the leading equipment and services suppliers in China,” said Ruey-Bin Kao, president of Motorola China. “Our goal is to continue to provide China Mobile with a state-of-the-art GSM network that enlarges its network coverage, maximizes investment and delivers the best services to its customers.”

Li Yue, executive vice president of China Mobile, said, “As China Mobile strives to create quality of excellence, Motorola, with its advanced technologies and services, has been involved in building high-performance and cost efficient infrastructure networks for CMCC. We look forward to continued cooperation with Motorola in the future.” Mr. Li further highlighted the quality and reliability of Motorola’s solutions and services, and the company’s rapid response time in expanding the China Mobile networks.

Motorola and China Mobile have worked together for over 20 years. As of April 2007, China Mobile counted more than 330 million wireless subscribers on its nationwide network.