Motorola Investment in Digianswer Boosts Bluetooth and HomeRF Portfolio

Business Wire, Oct 26, 1999

SCHAUMBURG, Ill.--(BUSINESS WIRE)--Oct. 26, 1999--

Move Speeds Delivery of Affordable Local Area

Wireless Network Solutions to Customers

Motorola (NYSE: MOT) announced today that it has signed a definitive agreement to acquire a majority interest in short-range connectivity specialist Digianswer from Olicom A/S (Nasdaq: OLCMF) as an integral part of Motorola's strategy for delivering Bluetooth and HomeRF wireless products to the mobile and wireless networking markets.

Bluetooth and HomeRF are short-range wireless standards that allow quick, easy-to-use data transfers between mobile and home electronics products. In the near future, these products will have the ability to seamlessly exchange text files, photos, music and more without connecting cables or wires. Motorola will embed Digianswer's Bluetooth technology into its DigitalDNA(TM) product portfolio for wireless connectivity, portable computing and home networking platforms.

Motorola will also use Digianswer's integrated solutions in several product lines, including cellular phones, two-way radios, accessories, broadband home networking products and automotive solutions.

"Digianswer is an excellent choice to help Motorola rapidly provide personal connectivity to our customers across all of our product families," said Janiece Webb, senior vice president and general manager of the Personal Networking Group. "They have strong knowledge of our products and were the first to publicly announce several Bluetooth solutions. Our collective experience will speed the efficient integration of their technologies into our personal area network offerings."

In addition to delivering Bluetooth functionality via Motorola consumer products, Motorola's semiconductor operation will merge Digianswer's products into its product line.

"Motorola Semiconductor delivers embedded wireless solutions to customers around the world," said Mario Rivas, corporate vice president and general manager of the Wireless Subscriber Systems Group. "We will make Digianswer's products part of our portfolio of DigitalDNA solutions for wireless devices that think and link."

Under the terms of the agreement, Digianswer will provide Motorola with its Bluetooth wireless technology and will co-develop a HomeRF offering with Motorola. In addition to the broad technology agreement, Motorola will acquire a majority interest in Digianswer. Financial terms of the agreement were not disclosed.

"Motorola and Digianswer are the right team to provide consumers with Bluetooth and HomeRF solutions," said Ole Jensen, Managing Director of Digianswer. "Motorola has the brand recognition, the semiconductor expertise, and the market channels for the technology and Digianswer offers a working Bluetooth solution and short-range connectivity experience."

About Bluetooth

Bluetooth is a personal area wireless networking standard, which is low power, short-range wireless technology designed for local area voice and data communications. Bluetooth will eliminate the need for cabling between laptop PCs, personal digital assistants and cellular phones, and it will also free the consumer from having to deal with the inconvenience of transporting and connecting those cables. Wireless e-mail and Internet access, file transfer, wireless cellular and two-way radio headsets and cordless telephony are just the initial applications planned for Bluetooth. Motorola is one of the early adopter members of the Bluetooth Special Interest Group. For additional information on Bluetooth, visit the website at http://www.bluetooth.com.

About HomeRF

The Home Radio Frequency Working Group has developed a single specification (Shared Wireless Access Protocol-SWAP) for a broad range of interoperable consumer devices. SWAP is an open industry specification that allows PCs, peripherals, cordless telephones and other consumer devices to share and communicate voice and data in and around the home without the complication and expense of running new wires. The current membership group is made up of leading companies across the PC, consumer electronics, networking, peripherals and communications and semiconductor industries worldwide. For more information and a complete list of members, please visit the web site at http://www.homerf.org.

About Digianswer

In addition to being one of the most advanced implementers of Bluetooth technology and offering a comprehensive range of Bluetooth products, Digianswer A/S is the leading developer of DSP (Digital Signal Processing) based accessories for use with cellular phones for the major manufacturers of cellular handsets worldwide. For more information on Digianswer, please visit the website: http://www.digianswer.com/.> About Motorola

Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. These include: software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers. Sales in 1998 were $29.4 billion.