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Personal Communications Sector(PCS) The Global Telecom Solutions Sector
(GTSS)
Semiconductor Products Sector(SPS) Commercial, Government and Industrial Solutions Sector(CGISS)
Broadband Communications Sector(BCS) Integrated Electronics System Sector
(IESS)

Motorola's PCS China has a staff of more than 4,000 people full of creativity and originality, who are responsible for production, sales, research and development and after-sale services. In 2002, Motorola maintained the largest handset market share in China, and in terms of both the GSM and CDMA cell phone market, Motorola had the largest market share both across the country and in all the provinces, autonomous regions and municipalities.

Since Motorola entered the Chinese market in 1987, PCS China has constantly kept its wireless communications customers satisfied by providing them with products ranging from pagers and analog mobile phones at the initial stage to GSM and CDMA phones at present. As a most important part of Motorola's R&D global network, PCS China's R&D center has developed a series of innovative PDA handset models, that are very popular in business circles. PCS China has introduced a variety of mobile phone models to the market, including A6288, 388, T191, C289, C300, V8088, V60, V66, V70,V8060 and V730, which have successfully met the diverse requirements of consumers.

In early 2002, PCS China shook up the market with a brand-new "MOTO--All for You" marketing strategy, which has further enhanced its ties with consumers and helped people become more familiar with "MOTO".

PCS China has developed the leading edge in the handset service market in China, by way of its unique concept of Total Solution Service Centers and powerful capabilities. So far PCS China has set up a nationwide service network of 40 authorized Total Solution Service Centers and 500 service offices.

The Global Telecom Solutions Sector (GTSS) provides global operators with infrastructure, network services, and software, and provides them with a path to migrate to next-generation networks that will enable them to offer innovative applications and services to their customers.

HorizonMicro is a multi-functional micro-cell product manufactured by GTSS for telecommunications in urban and rural areas. Motorola's CDMA technologies boast many unique advantages that help to avoid connection failure and outside interruption, and thus improve voice quality. The world's first GPRS networks were deployed by GTSS.

Motorola has developed a broadband communications network frame based on the IP protocol, which integrates voice, data, and multimedia to realize the wireless Internet, voice over IP, and other global mobile services. Motorola also participates actively in formulating 3G system standards to ensure smooth transformation to the next generation of communications network. Motorola's network optimizing solution, dubbed MotoVIP, helps consumers enjoy high-quality phone call communications.

The Semiconductor Products Sector (SPS) focuses on building value for customers and shareholders by providing integrated communications and embedded electronic solutions centered on three high-growth markets: wireless, broadband and automotive. Value is created by offering solutions in the form of embedded systems-on-chip, modules, complete end-to-end networked systems and standard products. SPS gained 50% increase in sales in China last year.

The Innovative ConvergenceTM platforms support a complete range of voice-centric, voice-data and data-centric products, and offer a low component count -- cutting the total number of components to 125 (from about 250), which sharply reduces cost and space. On top of that, Motorola bundles an integrated chipset, software and development tools so that handset designers and manufacturers can quickly build in their own feature sets and focus on the handset's look and feel. Since venturing into the merchant market with these wireless device solutions, SPS has announced 12 customers for Innovative Convergence platform solutions. Among the companies in China that have selected the platforms for their 2.5G and 3G GSM handsets are Eastcom and TCL.

Motorola Qiangxin (Tianjin) IC Design Co. Ltd. was established last year under an agreement of Motorola (China) Investment Ltd. and Tianjin Qiangxin Semiconductor Chip Design Co. Ltd. The two sides will build a long-term, stable and all-round cooperative relationship to contribute to China's IC design industry, by fully utilizing their advantages in capital, technology and management.

CGISS is a leading provider of two-way radio products, systems integration and information technology systems for business and government applications. It designs, manufactures and distributes analog and digital two-way voice and data radio products and systems for on-site to wide-area communications. Motorola's two-way radio and wireless products are widely used in the public security, rail transportation, airport, public utility, petrochemical and other fields.

Main Products & Services

In 2002, CGISS received the Malcolm Baldrige National Quality Award for manufacturing, the premier US national award for performance excellence and quality achievement. In China, CGISS has also achieved the following achievements: the first TETRA system was successfully accepted by the Ministry of Public Security, city emergency response solutions were applied in e-government, and CGISS maintains the largest share in the two-way radio market over the past few years.

The Broadband Communications Sector provides a scalable, integrated end-to-end system for the delivery of broadband services that keep consumers informed, entertained and connected. Its technology enables network operators and retailers to execute and profit from new business strategies by providing innovative products and services to the home.

IESS, formerly known as ACCES (automotive, computer, communications components and energy sector), consists of two parts: the Energy System Group (ESG) and the Automotive and Industrial Electronics Group (AIEG).

The ESG Tianjin factory has several SMT (surface mount technology) assembly lines. With its high-precision mounting capability and speed, the factory is capable of producing a wide range of PCB electronic products to meet the growing requirements of customers. Automated testing, assembly and packaging have been implemented for some ESG products.

The ESG Tianjin factory now produces nearly 100 types of batteries of various types for Motorola's Accompli series, V series, Timeport, Talkabout, two-way radio products and other portable electronic devices. The factory is playing an important role in Motorola's development strategy.

The factory won ISO9002 quality certification in December 1998, passed ISO14001 examination and verification in April 1999, and was awarded ISO9001 quality certification in April 2000 and QS 9000 quality certification in November 2000.

Motorola AIEG focuses on supplying and developing production application powertrain systems in the Electronic Fuel Injection (EFI) system and Full System Calibration. Its main customers include Beijing Futian Automotive Co. Ltd., SGMW, Chery and FAW-Xiali.

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