Despite the recent erosion of equity values in high-tech or 'new economy' companies, we continue to believe that we will create shareholder value by being the leader in bringing wireless, broadband and the Internet to our target markets of the person, the work team, the home, and the car.

287

Through these propositions, we intend to gain market share in key businesses, such as digital cellular telephones, where significant new products are planned for introduction before the end of the third quarter, and embedded semiconductors.

222

We have been assessing the impact these factors have had on us, as well as on other companies, particularly in the last 30 days. We have begun to take additional actions to streamline our portfolio and reduce the cost of our operations.

204

At this stage, it appears that the momentum from our accelerated profit improvement effort will continue in the second quarter.

192

While we very much regret the impact this will have on certain employees, we must adjust our production capacity to the reality of current business conditions and reduce costs to improve overall financial performance.

185

This is our eighth consecutive quarter of delivering on our promises to achieve a significant turnaround, improved profitability and a strategic refocusing of Motorola around wireless, broadband and the Internet.

154

There have been periods in Motorola's history, including the early 1990s, when the sales growth rates and profitability of certain of our individual businesses were out of phase with each other.

124

These actions have been designed to adjust our costs to softening global market conditions and, as the market recovers, to restore the trend of improved profitability that we had achieved over the last two years.

118

We may do slightly better in sales and in profitability than present consensus expectations of the investment community. The longer-term business climate is improving, although we believe it is premature to increase consensus sales and earnings estimates for the full year of 1999 beyond their present levels.

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