Year 2002 Motorola ESG supplier day aims at radiating advanced Supplier Chain Management (SCM) conception to all suppliers, passing through mutual co-operation between Motorola and supplier to achieve " Win-Win " strategy.

In this seminar, Mr. Percy Lam, operation manager of Asian and Pacific delivered an opening address about ESG prospects and strategies. He pointed out in his report that, in the near future, Motorola ESG will make a significant strategy barycenter adjustment. Asia-Pacific region, especially China, will become Motorola ESG business, manufacturing, purchasing, sales and R&D center for the first time. In the recent 15 years, Motorola ESG, as the largest and independent supplier for the portable electronic products, has conveyed 500M energy system products, and established world famous brand of the laptop and cellular phones. Our future objective is that ESG will transform from the supplier for energy solution to the portable electronic products to the problem-solving pioneer to the integrated electronic products, such as electronic platform etc. We could supply with multiple solution packages for energy transformation, energy conveyance, and energy storage. Wisdom shines everywhere. Our customers are the leading electronic companies in the world; our production has an extremely rapid growth. Faced with the attracting market opportunity, we urgently need the top-ranking suppliers with the best quality, lowest-price, promptest-delivery. Later Mr. John Brinkmanas briefed the ESG course of development.

In the current society, only the company that fits the intense competition could survive, while the unique method to be the winner is to reduce cost and increase profit continually. As to this subject, Mr. Fred Pourmh, sourcing manager of ESG global advanced a new concept about improving quality and reducing cost. Mr.J.T.Ooi, general manager of ESG Tianjin plant gave a pithy introduction about Motorola Six-Sigma Culture, along with the plan of enhancing production capacity and technology ability through training suppliers and launching Black Belt Project, and put it as a criteria for the qualified suppliers. Mr. CP Lim, Electronics operation manager introduced the E-Auction in the Internet, which has been put into practice among the ESG suppliers, will be forwarded into a larger scope. This project is an important strategic method for purchasing raw material, embodying the fair, open and transparent principle. It will simultaneously lower purchasing cost effectively and elevate ESG production competition. The strategy provided the totally fresh opportunity to the suppliers, as well as the stricter request, which was completely indicated the subject "survival of the fittest". Furthermore, other managers also presented in the subjects of IT control and supplier crisis management, such as improving effectiveness of the chain management to suppliers and lowering cost.

Green Point Company, which had won the PCS TFE campaign, gave a brilliant presentation along with ESG high-ranking manager speech. TFE is an essential company culture. It emphasized to solve problem with the team-work spirit, to provide total customer satisfaction service. Hence it could reach a higher standard to fit for the market competition and strengthen the cooperation with Motorola.

After wonderful TFE show, On Semi, Toshiba and other 9 excellent suppliers, which certified by ESG in year 2001, got awarded, to commend their outstanding contributions to ESG last year. This award is a symbol to express our thanks and affirmation to this 11 vendors in light of their standout performance on service, quality and cost support to ESG during the last year. After award, all attendances in succession took photos with ESG top management as a souvenir, promoting seminar's atmosphere to the climax, which leads to a successful and satisfactory convention.

Attendances widely express their positive response to the forum after the day. Lots of delegates carried out impassioned discussion and communication by utilizing time-out during the meeting. Via the meeting, suppliers fully realized the important significance of Motorola strategy decision-making and strategy transfer, better understood our topic " Survival to the fittest ". Attended companies one after another declared their confidence and decision to be Motorola certified supplier, to gain "Win-Win" target and refulgent together with Motorola.

Be worthy to be indicated, total 36 domestic suppliers with 79 representatives attended this supplier day. We believe, along with Motorola localization strategy's continuously development, more and more domestic suppliers will become Motorola's cooperative business friend.

About Motorola

As the world's #1 producer of embedded processors, Motorola's Semiconductor Products Sector creates DigitalDNA(tm) system-on-chip solutions for a connected world. Our strong focus on wireless communications and networking enables customers to develop smarter, simpler, safer and synchronized products for the person, work team, home and automobile. Motorola's worldwide semiconductor sales were $4.9 billion (USD) in 2001. http://www.motorola.com/semiconductors/

Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2001 were $30 billion. http://www.motorola.com/