Motorola Selects Freescale in Multi-Year Deal to Develop New 3G Platforms; Agreement Extends Strategic Partnership to Bring 3G Technologies to the Mass Market

AUSTIN, Texas & SCHAUMBURG, Ill.--July 12, 2005--Freescale Semiconductor has been selected by Motorola to develop new platform solutions for third-generation (3G) UMTS communication technologies for products that will reach the mass marketplace through 2008. This new award includes baseband, RF, power management and power amplifier components.

This new multi-year commitment builds on four years of ongoing collaboration between Freescale and Motorola in the drive to develop 3G/UMTS solutions. The work begun in 2001 has resulted in strong leadership positions for both companies in bringing advanced 3G/UMTS technologies to cellular markets.

"Freescale and Motorola will continue to set the pace for world-class 3G technology across multiple tiers," said Franz Fink, senior vice president and general manager of Freescale's Wireless & Mobile Systems Group. "We look forward to helping Motorola bring the benefits of 3G to consumers around the globe."

An estimated one billion subscribers will enjoy 3G services by 2010 with a compound annual growth rate of 71 percent over the next five years, according to research firm Strategy Analytics.

"Motorola and Freescale are driving innovation in 3G. With the industry's broadest portfolio of 3G devices, Motorola is the clear leader in 3G innovation and experience development," said Ron Garriques, president of Motorola Mobile Devices. "As a key partner, Freescale is helping us expand consumers' access to devices across price tiers, which will accelerate 3G proliferation in the global marketplace and transform the mobile experience for everyone."

Motorola will use Freescale's 3G platforms, featuring high speed download packet access (HSDPA) and its revolutionary single core modem architecture to bring high-performance, low power, and competitively priced phones to a mass market audience.

Terms of the agreement were not disclosed.

About Motorola

Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. In your home, auto, workplace and all spaces in between, seamless mobility means you can reach the people, things and information you need, anywhere, anytime. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication. Motorola had sales of US $31.3 billion in 2004. For more information: www.motorola.com.

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. www.freescale.com.

Freescale(TM) and the Freescale logo are trademarks of Freescale Semiconductor Inc. All other product or service names are the property of their respective owners. (C) Freescale Semiconductor Inc. 2005.