Freescale Named a General Motors Supplier of the Year; First Semiconductor Company Recognized for Outstanding Supplier Performance

AUSTIN, Texas--April 25, 2005--General Motors has honored Freescale Semiconductor with a 2004 Supplier of the Year award for its overall outstanding business performance in providing GM with world-class parts and services that meet high quality and availability standards. Freescale is the first semiconductor company to receive this recognition in the 13-year history of the award program.

"Our Supplier of the Year winners are the 'best of the best,' and Freescale is part of this elite group based on its outstanding performance in 2004," said Bo Andersson, vice president, GM global purchasing and supply chain. "Freescale's balanced focus on performance and behavior supports GM's priorities and makes it a role model for suppliers worldwide."

Freescale technology has been part of GM electronic control systems since 1979, when GM first used a Freescale microcontroller in its closed-loop carburetor controller. Today, GM uses Freescale's MPC5200 in its OnStar(R) telematics units, as well as a variety of Freescale microcontroller (MCU) and analog devices for body electronics and powertrain applications.

In 2004, the companies announced a landmark agreement for GM to use Freescale's 32-bit MPC5500 family of 32-bit MCUs in future GM Powertrain engine control systems around the world. Beyond the MCU selection, GM and Freescale also agreed to work together to tailor the microcontrollers used in GM engine control systems.

"In 2004, Freescale and GM reached a new level of cooperation between an auto manufacturer and a semiconductor company when we agreed to work directly with one another," said Paul Grimme, senior vice president and general manager of Freescale's transportation and standard products group. "Being the first semiconductor supplier to receive this award is a testament to the importance of Freescale's strategic relationship with GM, as well as our automotive innovation and leadership."

Freescale is the world's largest supplier of semiconductors to the automotive market. The company's microcontrollers act as the brains behind automotive electronic systems from remote keyless entry and infotainment to antilock braking and powertrain control.

Award Background

The General Motors Supplier of the Year award began as a global program in 1992. Winners are selected by a global team of GM executives from purchasing, engineering, manufacturing and logistics who base their decisions on supplier performance in quality, service, technology and price. This year, GM honored 78 of its more than 3,000 suppliers for their excellence throughout 2004. GM presented the awards during ceremonies Saturday, April 23, at the General Motors Vehicle Engineering Center in Warren, Mich.

About Freescale Semiconductor

Freescale Semiconductor, Inc. is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004 after more than 50 years as part of Motorola, Inc. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale, a member of the S&P 500(R), is one of the world's largest semiconductor companies with 2004 sales of $5.7 billion (US). www.freescale.com

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