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Motorola announces efforts to streamline operations

SCHAUMBURG, Ill.- Motorola Inc. is ditching its troublesome Communications Enterprise unit and streamlining its operations, creating three new units and promoting executives to head each unit in the company.

Under the new structure, the Communications Enterprise unit, which formerly included the Personal Communications sector, is being phased out. The Personal Communications sector now will operate independently. A new Networks sector and a Global Customer Solutions Operations unit was created.

“Freeing up PCS to stand alone and execute with … agility in the marketplace will be a major new contribution to our success,” said Christopher Galvin, chairman and chief executive officer of Motorola.

Merle L. Gilmore, former executive vice president of the Communications Enterprise unit, resigned his post in October following announcements the company was lowering its fourth-quarter and 2001 estimates. The Communications Enterprise unit comprised more than 70 percent of Motorola’s business.

Mike Zafirovski, president of the Personal Communication sector, now will report to the office of the chairman, directly to Motorola President and Chief Operating Officer Robert Growney, Motorola said. Zafirovsky previously reported to the president of the Communications Enterprise unit.

“A direct reporting structure, together with compelling products, will help PCS succeed while best serving customers of that business going forward,” Galvin commented.

Edward Breen, former president of the Broadband Communications sector, now is the president of the Networks sector. The Networks sector is comprised of the Global Telecom Solutions sector, the Commercial, Government and Industrial Solutions sector and the Broadband Communications sector.

Breen is being succeeded by Dave Robinson, senior vice president and general manager of digital network systems for the Broadband Communications sector.

Motorola’s former Integrated Electronics Systems sector President Joseph Guglielmi was promoted to president of Global Customer Solutions Operations.

That unit consists of Motorola’s regional organizations in Europe, the Middle East, Africa, the Asia Pacific, North America and Latin America; the new Internet software and content group; the chief marketing and government relations office; a soon-to-be-formed systems integration and services group; and a newly formed customer support management office.

Tom Lynch, senior vice president and general manager of Motorola’s satellite and broadcast and network systems, succeeds Guglielmi.

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