[China Unicom has awarded Motorola multiple contracts for CDMA2000 1X network expansion worth US $344 million.]

Beijing -- Motorola Inc. has been selected for a major Phase 3.2 CDMA2000 1X wireless network expansion for China United Telecommunications Corp. (China Unicom), one of the largest network operators in the world. Equipment for the new CDMA2000 1X network has been deployed and is expected to be fully operational by the end of 2004.

China Unicom awarded Motorola multiple contracts, which resulted in approximately US$344 million of orders, during the past six months. The majority of the revenue from these contracts, approximately US$271 million, already has been reported in 2004 quarterly earnings. The remainder will be reported in Q4.

These contracts cover expansion of the operator's CDMA2000 1X networks in 11 provinces including Beijing, Fujian, Gansu, Guangdong, Guangxi, Hebei, Jiangsu, Jiangxi, Jilin, Shanxi and Xinjiang. Motorola is providing equipment and global network services that will significantly enlarge network coverage. China Unicom estimates this expansion will enable it to grow the subscriber capacity of its 800 MHz CDMA2000 1X network by more than 5.4 million.

Motorola has been the largest mobile wireless system supplier to China Unicom since 1994 when it began supplying GSM solutions, and has played an integral role in China Unicom's migration to advanced CDMA technology. China Unicom today has over 110 million subscribers on its CDMA and GSM networks nationwide.

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