Motorola to acquire private mobile radio - PMR - business from Bosch

Business Wire, March 12, 1997

SCHAUMBURG, Ill. and Hannover, Germany--(BUSINESS WIRE)-- March 12, 1997--Motorola, Inc. today announced that it has agreed to acquire the Private Mobile Radio (PMR) business of Robert Bosch GmbH, Germany. Terms of the agreement were not disclosed. The sale, which is subject to regulatory approvals, will take place promptly after these approvals have been obtained.

PMR technology is used by government and private customers such as fire, police and emergency services as well as industrial and commercial businesses like transportation, public utilities and service industries. As in all areas of telecommunications, PMR stands at the transition from analog to digital technology.

Eike Bar, Corporate Vice-President and General Manager, Radio Products Group, Europe/Middle East/Africa, said, "Motorola has a long history of commitment and service to the land mobile/PMR business -- spanning more than 50 years -- and we continue to see opportunities in this business worldwide, particularly as the industry transitions toward digital technology. Motorola's digital solution for the PMR market is TETRA, the open, pan-European digital standard, which will enable customers to use the RF spectrum more efficiently. This agreement gives us the opportunity to acquire a premier business in Germany that will improve our ability to serve the European PMR marketplace."

The acquisition will include development and manufacturing in Bosch's Berlin-Spandau plant, the Swiss Bosch subsidiary RadioCom AG, as well as Bosch's PMR sales organizations in Germany and operations in other European countries.

Norbert Quinkert, Motorola's Country Manager for Germany, commented, "Recently Motorola decided to construct a new manufacturing facility for mobile telephones in Flensburg and increased investment in three research and development centers in Germany. The Bosch PMR acquisition demonstrates yet another important investment by Motorola in German industry."

Eike Bar added, "It is recognized that Bosch's traditional strengths are in the systems business and their excellent relations with important European government customers. These ideally complement Motorola's strengths in the two-way radio business and in digital radio technology. Also, working alongside other manufacturers in the TETRA market, Motorola sees this acquisition as promoting the acceptance of TETRA in Germany."

Following an evaluation of the opportunities and resource requirements of PMR and its other communications activities, Bosch announced in 1996 that it was discontinuing work on digital PMR. With the currently planned sale, Bosch will withdraw completely from the business of PMR systems and products. Last year Bosch achieved PMR sales of approximately $200 million.

Motorola is one of the world's leading providers of wireless communications, semiconductors, and advanced electronic systems, components, and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Motorola semiconductors power communication devices, computers and millions of other products. Motorola's 1996 sales were $28 billion.

EDITOR'S NOTE: The name Eike Bar in this press release should have an umlaut over the "a" in Bar. The umlaut was deleted for transmission purposes.

CONTACT: Motorola, Inc., Schaumburg

Faye Bergemann, 847/576-6641