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Motorola Announces Plan to Phase Out its Mac OS-Compatible Business Response to Apple's Recent Decisions Limiting Licensing

Tempe, AZ September 11, 1997 Motorola Computer Group (MCG), a unit of Motorola Inc., today announced its plan to discontinue its Mac OS-compatible system business in response to Apple's recent decisions to limit the introduction of its new technology and phase out future licensing. Under the new plan, Motorola StarMax systems will be available for sale until the end of 1997. Known worldwide for its commitment to quality and reliability, Motorola assured the Mac OS community that all warranty and support commitments will continue.

To underscore its support to the Mac OS community through this transition, Motorola today also announced enhancements to its industry-leading StarMax five-year warranty. Motorola will now provide existing and new StarMax buyers with one full year of current telephone support up from 90 days.

Motorola had been negotiating with Apple since February of this year and had reached essential agreement on new licensing terms in June. Given Apple's recent decision to phase out its support for long term licensing, the agreement could not be implemented.

Joe Guglielmi, corporate vice president and general manager of MCG concluded "This announcement brings to an end our effort to reach agreement with Apple on terms that would have supported our continued Mac OS investments. Now that we have arrived at this juncture," he added, "we will concentrate our resources on emerging opportunities in the market and on strengthening our profitable embedded and technical systems business, where we remain market leaders."

The company will communicate individually with its partners and customers to assist with their future plans.

Motorola Computer Group is a leading worldwide supplier of embedded and technical systems and Mac OS-compatible computer hardware and software solutions. MCG corporate headquarters, along with regional headquarters for Pan America, are located in Tempe, Arizona. Information about MCG's products is available on the World Wide Web at or 800-551-1016.

Motorola, Inc. (NYSE:MOT) is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems, components, and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Motorola semiconductors power communication devices, computers and millions of other products. Motorola's 1996 sales were $28 billion.

# # # Motorola and the Motorola logo are registered trademarks of Motorola, Inc. StarMax is a trademark of Motorola, Inc. PowerPC is a registered trademark of International Business Machines Corp. and is used by Motorola, Inc. under license from International Business Machines Corp. Apple, Mac and Macintosh are registered trademarks of Apple Computer, Inc. Other brand or product names are registered trademarks or trademarks of their respective holders.