Motorola Wins China Mobile's GPRS Expansion Deal Includes Infrastructure Element From Alliance Partner Cisco Systems

Motorola, (NYSE: MOT), the world-leading provider of General Packet Radio Service (GPRS) end-to-end solutions, today announced the signing of a contract with China Mobile Communications Corporation (China Mobile) to expand China Mobile's GPRS network. Motorola was chosen as one of the suppliers to China Mobile's GPRS network last year. The financial details of the contract were not disclosed.

The contract calls for the implementation of the Motorola Global Telecom Solution Sector's (GTSS)/Cisco Systems, Inc. (Nasdaq: CSCO) GPRS network solution in seven major Chinese provinces and municipalities including Beijing, Tianjin, Zhejiang, Sichuan, Hunan, Jiangxi and Liaoning. The GPRS network infrastructure supplied by Motorola GTSS includes the Serving GPRS Support Node (SGSN), supplied by the Motorola Computer Group, and the Gateway GPRS Support Node (GGSN) from Cisco Systems. The Motorola GPRS solution can be implemented over an existing GSM network, enabling operators to use their existing infrastructure.

The agreement also provides that Motorola will significantly upgrade China Mobile's existing GSM networks in the above seven regions plus 10 other provinces and special municipalities in the country through the provision of Packet Control Units (PCU) including system equipment and software upgrades. The expansion program, scheduled for completion by the end of the year, will increase the network capacity in the seven provinces and municipalities by up to 350,000 subscribers.

"Motorola has a long-term business relationship with China Mobile, and as the leading company in providing GPRS equipment, we can ensure a quick and quality implementation of GPRS network infrastructure," said Ruey Bin Kao, Motorola vice president and general manager of the China Telecom Carrier Solutions Group.

"With GPRS, subscribers in these regions will be able to access high speed mobile data services and obtain Internet based content and services via their mobile phones. It will help to further simplify the way we communicate, and works as a key step in the smooth evolution of GSM networks to 3G capabilities," he said.

Kao said Motorola is also supporting rapid development of local third party applications and the China mobile Internet market through its newly established Invisix(TM) Beijing Center of Excellence. The Center, jointly owned by Motorola and Cisco Systems, drives the integration of innovative applications for high-speed data networks such as GPRS.

Motorola launched its first Chinese-language GPRS handset, the A6288, for the China market earlier this year. The A6288, known as A008 in other markets, is being manufactured in Motorola's factory in Tianjin, China. It offers unique functions including POP3 e- mail, Java(TM) 2 Platform, Micro Edition (J2ME(TM)), group short messaging and instant messaging. Following introduction of the A6288, Motorola launched two additional GPRS enabled handsets, the V60 and V66, in early August.

China Mobile, the leading China's mobile operator, is accelerating deployment of its nationwide GPRS network to meet demand of quality mobile Internet services in the fast-growing Chinese mobile market. According to the Chinese government, the number of mobile phone users in China reached 120.6 million by the end of July, making China the biggest mobile subscriber market in the world.


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