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MOTOROLA CHANGES FINANCIAL REPORTING

SCHAUMBURG, Ill.-Motorola Inc. said it changed the operating segments it uses to report
financial figures to coincide with organizational changes in its communications equipment business.

Research and
development expenditures now will be included as a separate line item on the company’s consolidated operations
statements. The Cellular Products Segment, Messaging Information and Media Segment and the Land Mobile Products
Segment will no longer exist, said Motorola. The businesses included in the Other Products Segment also have
changed.

The Personal Communications Segment now includes the Cellular Subscriber Sector and the Messaging
Systems Products, Consumer and Retail Business Radio and iDEN Subscriber Groups.

The Network Systems
Segment is comprised of the Cellular, iDEN and Satellite Communications Infrastructure Groups. The Radio Network
Solutions, Radio Products and System Solutions Groups now make up the Commercial, Government and Industrial
Systems Segment.

The Semiconductor Product Segment was not affected and still includes the Wireless Subscriber,
Transportation, Network and Computing, Imaging and Entertainment and Semiconductor Systems Groups, and the
Other Products Section now encompasses the Integrated Electronic Systems Sector, the Internet and Networking and
Network Management Groups and Corporate Programs and Investments.

Motorola also restated segment sales, but
net sales were the same at $29.4 billion for 1998, from $29.8 billion for 1997. Its 1998 loss remained at $962 million,
compared with earnings of $1.2 billion the prior year.

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