Motorola plans to offer next-generation network infrastructure products with powerful HP technologies directly in the call path – including 64-bit HP Integrity servers, carrier-grade Linux and HP OpenCall signaling software

PALO ALTO, Calif. and SCHAUMBURG, Ill, Aug. 16, 2004 – Expanding upon a long-term relationship, HP and Motorola today announced a multi-year agreement under which Motorola plans to incorporate powerful, industry-standard HP technologies into its CDMA and iDEN® network infrastructure offerings. The resulting new, high capacity, scalable platforms in Motorola’s Radio Access Network will provide mobile operators with leading edge telecom network infrastructure solutions that can reduce cost and increase flexibility for operators.

Globally, mobile operators strive to generate new revenues and reduce network costs by replacing cumbersome network elements built on proprietary technologies with modular, industry-standard products. With the standards-based HP platforms, Motorola will continue to provide operators with the cost-effective, highly flexible and interoperable networks and network services they need to provide wireless voice and data services.

Using the new network products built with HP technologies, Motorola will be able to meet the needs of operators in mature markets while tailoring solutions that are attractive to smaller mobile operators in emerging markets.

“This collaboration between Motorola and HP is a significant development for standards-based network infrastructure,” said Keith Mallinson, executive vice president, Yankee Group. “Operators need flexible and scalable network infrastructure at lower and lower prices, allowing them to invest in new services. HP brings low-cost commercial IT while meeting rigorous specifications of carrier-grade networks. Motorola will focus on expanding capacity and lowering cost per subscriber with this standardized platform.”

Specifically, HP will deliver and support a complete hardware and software platform that will help manage key functions in the central call path of the network. The new platform will put Motorola and its customers on the leading edge of platform technology, and provide a stable, assured roadmap for the future. Motorola will have a powerful and flexible platform that can adapt to changing market needs. It consists of three elements:

• HP cx2600 64-bit rack-mount server, a carrier-grade version (NEBS Level 3 Certified) of HP’s commercial rx2600 server, a part of the HP Integrity server family which utilizes Intel® Itanium processors. The common platform for both telephony and IT networks will give Motorola added flexibility;
• The Linux operating system, with carrier grade features in line with OSDL specifications and hardened to meet telecom standards; and
• HP OpenCall Radio Signaling Controller software, a version of HP’s industry-leading implementation of the Signaling System 7 industry standard that handles all call signaling and connection in the core network.

Motorola, working closely with HP, will integrate its own high availability middleware and application software with elements of the HP platform to create the core infrastructure for its iDEN network, which will utilize the HP Integrity cx2600 server running Linux, and the Motorola CDMA radio access network, which will utilize all three elements of the HP platform.

“Motorola has been collaborating with HP throughout HP’s 25 years in telecom networks, and this new platform embodies the power of the convergence of IT and telecom,” said Ann Livermore, executive vice president, Technology Solutions Group, HP. “HP is committed to driving the benefits of its IT-based Adaptive Enterprise strategy into the telecom market, and these modular, standards-based platforms will enable Motorola customers to synchronize network resources to business need.”

“These new HP platforms will enable Motorola to give our customers exactly what they need in a fast-changing market -- world-class equipment, attractive return on investment, and the flexibility to adapt their networks as needed,” said Adrian Nemcek, executive vice president, Motorola, and president and chief executive officer of its Global Telecom Solutions Sector. “Motorola and HP have been cooperating for many years to deliver business value for operators, and this agreement will continue that track record of success.”

About Motorola

Motorola, Inc. (NYSE: MOT) is a global leader in wireless, broadband and automotive communications technologies that help make life smarter, safer, simpler, synchronized and fun. Sales in 2003 were US$27.1 billion. Motorola creates innovative technological solutions that benefit people at home, at work and on the move. The company also is a progressive corporate citizen dedicated to operating ethically, protecting the environment and supporting the communities in which it does business. For more information, please visit www.motorola.com.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended April 30, 2004, HP revenue totaled $76.8 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.