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Motorola IESS Forges Strategic Alliance with Saturn

29 March 2000

Motorola IESS Forges Strategic Alliance with Saturn Electronics & Engineering To Generate Virtual Vertical Integration

   Alliance Designed to Drive Business and Create Value for Both Companies


    NORTHBROOK, Ill., March 29 Motorola's Integrated
Electronic Systems Sector (IESS), a leader in the development of electronic
components and integrated electronic system design and manufacturing, today
announced a strategic alliance with Auburn Hills, Michigan-based Saturn
Electronics & Engineering (Saturn).  Saturn, a leading supplier of electronic
systems and components in the electronics manufacturing services industry,
will provide Motorola with a highly respected manufacturing partner.  In
return, Saturn becomes aligned with a top-tier marketing partner with the
potential for increasing revenue and value.
    "This agreement with Saturn is part of a long-term Motorola strategy to
seek out partnerships with the best suppliers in the automotive industry,"
said Joseph Guglielmi, Executive Vice President and President Integrated
Electronic Systems Sector.  "We are actively pursuing opportunities to work
with industry innovators -- global companies that are compatible with
Motorola's strategy and approach to the marketplace -- and commitment to ever
improving service to our customers.  That's the case with Saturn.  This
agreement will provide long-term value to both Motorola and Saturn -- a
win-win scenario for everyone involved."
    Through its partnering strategy with key suppliers in a number of
industries, the automotive segment in particular, Motorola is able to achieve
"virtual vertical integration" thanks to its ability to outsource select
component manufacturing.  Saturn, a minority-owned, QS 9000-certified company,
will provide this outsourced manufacturing.
    An interesting aspect to this agreement between Motorola and Saturn is
that it is structured as an equity incentive program.  This means that
Motorola has obtained warrants to acquire equity in Saturn and therefore has
the strong initiative to give new business to Saturn on a cost-competitive
basis.  This offers Motorola the opportunity to leverage a key manufacturing
resource but also share in the value created through Saturn's growth.
    Both companies expect that their alliance will be attractive to OEMs that
are looking for high-quality, high-tech suppliers and are committed to
increasing the opportunities and visibility of minority-owned companies.  With
new business and input from Motorola, Saturn can increase the scope of its
product offering to the OEMs.  The Motorola-Saturn alliance serves the needs
of not only Motorola's strategic outsourcing activities and Saturn's growth
targets, but also the OEMs' minority-owned supplier commitments.

    Motorola IESS
    The Integrated Electronic Systems Sector (IESS) is a division of Motorola,
Inc. .  IESS designs and manufactures a broad range of electronic
components, modules and integrated electronic systems and products for
automotive, computer, industrial, transportation, navigation, energy system
and consumer markets.  IESS consists of four closely related business units
that work together to form a seamless partnership.  These units include the
Energy Systems Group (ESG), Motorola Computer Group (MCG), Automotive &
Industrial Electronics Group (AIEG) and the Telematics Communications Group
(TCG).  IESS is a leading provider of advanced electronic products and systems
for customers integrating electronics into their products.  Motorola IESS
solutions provide the brains -- the DigitalDNA(TM) -- that make electronic
systems smart, powerful and easy to use.

    Saturn Electronics & Engineering
    Saturn Electronics & Engineering, Inc. is a supplier of electronic systems
and components in the electronics manufacturing services (EMS) industry.  Its
highly innovative products are designed, engineered and manufactured worldwide
for the communications, automotive, computer, medical and military industries.
Saturn operates manufacturing facilities in five countries serving the North
American, European and Asian markets.  It is a value-added supplier that
supplies Fortune 100 companies worldwide.  Saturn works closely with its
customers to provide integrated solutions to complex design, engineering and
manufacturing problems.  Its products and capabilities are strategically
aligned into three operating divisions:  electronic, electromechanical and
electrical.

    For more information, contact Jon Nelson of Motorola, 847-480-6844, or
email, G16075@email.mot.com, or Steve Wilcox of Ogilvy PR for Motorola, 312-
397-6011, or email, steve.wilcox@chi.ogilvypr.com.