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Motorola AIEG Wins Engine Controller Business from Major European Automaker

28 July 2000

Six-Year Deal Will Generate Estimated Lifetime Sales of $138 Million

     
    NORTHBROOK, Ill. - Under a new agreement, Motorola's Automotive and 
Industrial Electronics Group, a business unit of Motorola's Integrated 
Electronic Systems Sector, and a leading European automobile manufacturer will 
bring a new level of sophistication to automotive technology.  The companies 
have teamed up to design and develop the engine control module (ECM) hardware 
and software for a new engine and its management system that is slated for 
introduction in model year 2005.

    "Automotive OEMs are looking for innovation, and they're looking for
partners who can help them innovate," said Dave Melka, senior vice president
and general manager of Motorola AIEG.  "This project is an example of two
industry-leading companies coming together to approach the business in a new
way - to bring new thinking to bear on an important piece of the vehicle's
electronic architecture.  Both parties are better off for the collaboration,
but the big winner is the end customer."

    Motorola estimates the six-year deal on the Engine Management System (EMS)
and Engine Controller System (ECS) will generate lifetime sales revenues of
$138 million.  Estimated annual sales of $23 million could grow if the
automobile manufacturer expands the use of the systems to other vehicles.

    Production of the engine controller will begin in June 2004.  AIEG will
provide the engine control module, software and system design support.

    Motorola's Engine Control Units (ECUs) are custom designed to provide
automotive manufacturers with the tools to control all powertrain functions,
including OBDII diagnostics.  By integrating our automotive electronics and
microcontroller expertise into refined systems, Motorola creates the Digital
DNA(TM) technology to make our customers' products smarter, faster and more
reliable.

    Motorola AIEG

    Motorola's Automotive and Industrial Electronics Group (AIEG) researches,
develops and manufactures electronics and electronic systems for automotive
original equipment manufacturers and all tiers of automotive system suppliers
and industrial customers worldwide.  The group operates in four strategic
business arenas that include powertrain and powertrain systems, body
electronics, sensors and power controls, and chassis controls. AIEG is a part
of Motorola's Integrated Electronic Systems Sector (IESS).  AIEG is
headquartered in Northbrook, Ill.

    Motorola IESS

    The Integrated Electronic Systems Sector (IESS) is part of Motorola, Inc.
IESS designs and manufactures a broad range of electronic components, modules
and integrated electronic systems and products for automotive, industrial,
transportation, navigation, computer, telecommunications and energy system
markets.  IESS consists of four closely related business units that work
together to form a seamless partnership.  These units include the Automotive &
Industrial Electronics Group (AIEG), Telematics Communications Group (TCG),
Motorola Computer Group (MCG) and the Energy Systems Group (ESG).  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.

    Motorola, Inc. is a global leader in providing integrated
communications solutions and embedded electronic solutions. Sales in 1999 were
$33.1 billion.