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Motorola Leads the Pack in the Automotive Market Race

28 July 1999

Motorola Leads the Pack in the Automotive Market Race
    AUSTIN, Texas, July 27 -- Making tracks in the transportation
industry, Motorola today cited a report from Selantek Inc. that indicates its
worldwide market share lead has reached 19% of the automobile industry's total
semiconductor and software systems solutions, 3 times larger than their
nearest competitor.  This represents another year of record growth in
transportation for Motorola having increased its lead from 17% share.
    Motorola has been the leading supplier of semiconductors for the
automotive industry since the infusion of semiconductors into the automobile.
According to recently released information from Selantek Inc., a leading
marketing research organization, Motorola's automotive worldwide market share
increased in 1998 from 17% to 19% -- up 2%.
    In 1998, Motorola had the number one share in the four major equipment
categories that dominate automotive applications.  The market share is broken
out into the following categories: powertrain (22.2%), body electronics
(18.4%), safety (22.4%), and instrumentation (16.4%).  This breaks down even
further, according to Selantek, when looking at the Motorola semiconductor
sales per automotive application area: 54.8% of all semiconductor sales in
powertrains; 14.7% in body electronics; 18.9% in safety, and 11.6% in
Intelligent Transportation Systems (ITS).
    In 1998, the automotive market segment enjoyed the fastest rate of growth,
achieving an 8% growth rate to $8.2B in an overall semiconductor market that
fell slightly by 0.2%, according to Dataquest.  The automobile is the consumer
product with the highest number of semiconductors in any market, more than the
personal computer market.  Global demand for automotive electronics that rely
on semiconductors, like those from Motorola, will continue to grow, reaching a
projected 61% growth to $13.3B by 2002, according to projections from
Dataquest.
    "Motorola works closely with virtually every car manufacturer supplier so
we are very pleased that all our efforts in the automotive market have been
rewarding.  We take pride in our leadership position and will continue to work
hard for our customers," stated Scott Anderson, corporate vice president and
general manager, Motorola's Transportation Systems Group (TSG). "We are
dedicated to creating value-added relationships with automotive suppliers to
understand their unique needs and anticipate the desires of their customers,
in order to provide the industry's most innovative and compelling solutions.
By understanding our customer's system needs, Motorola can offer system
solutions based on a broad range of technologies including:  microprocessors,
microcontrollers, digital signal processors, SmartMOS, sensors, non-volatile
memories, software, and development platforms."
    "Motorola has been number one in providing semiconductor solutions to the
automotive market as long as we have been tracking market share numbers for
this industry," said Charles Mantel, Selantek Inc.  "New automobiles have an
average of $165 worth of semiconductors in them, and that number has been
growing with each new model year.  This number will increase as new models
become more intelligent to meet the drivers' demand for smarter and safer
cars."
    "As drivers expect more in terms of performance, comfort, safety and in-
car information, car manufacturers will rely increasingly on their
relationships with technology suppliers," said Hans Gustavsson, senior vice
president, research and development at Volvo Car Corporation.  "Motorola is
the car industry's number one supplier of silicon.  What Volvo and Motorola
have developed together is the technology that can bring the digital world to
the driver and allows us to meet our customers' personal demands."
    "DigitalDNA(TM) is the term we use to define Motorola's leadership in
embedded solutions, represented through products, partnerships and
connectivity.  DigitalDNA powers the SMART products that make life better.
DigitalDNA is helping cars automatically adjust to the way you drive," said
Hector Ruiz, president of Motorola Semiconductor Product Sector (SPS).
"DigitalDNA combines the integration of our ideas and technologies with those
of our OEM customers to create everyday miracles."
    "Closer partnerships with car manufacturers, like Volvo, and with third
parties, early in the design process, are essential," said Anderson.  "Using
Motorola's DigitalDNA technologies, auto manufacturers are able to deliver
smart cars that use fewer mechanical systems and use more electronics to
provide economical, reliable, and personalized vehicles."

    About Motorola
    Motorola is the world's largest producer of embedded processors and
controllers, with over 17 percent market share according to In-Stat, and one
of the clear leaders in microcontrollers with embedded flash technology
according to Semico Research.
    As the world's #1 producer of embedded processors, Motorola's
Semiconductor Products Sector offers multiple DigitalDNA solutions which
enable its customers to create new business opportunities in the consumer,
networking and computing, transportation, and wireless communications markets.
Motorola's worldwide semiconductor sales were $7.3 billion (USD) in l998.
    Motorola is a global leader in providing integrated communications
solutions and embedded electronic solutions.  Sales in 1998 were $29.4 (USD)
billion.  http://www.motorola.com/

    Motorola is a registered trademark, and DigitalDNA is a trademark of
Motorola, Inc.  All other tradenames, trademarks, and registered trademarks
are the property of their respective owners.