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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (2172)	7/13/1999 5:47:00 PM
From: Marty Rubin	Read Replies (1) \| Respond to of 2693

MOT released its financials and made this part of their statement (http://biz.yahoo.com/bw/990713/il_motorol_1.html 5:17PM EDT): "Motorola publicly endorsed the new Iridium LLC go-to-market plan which focuses on vertical and industrial market segments. Motorola also made many thousands of phones available for sale and received positive reports about the performance of this satellite technology when used in its intended applications. For the second quarter, Motorola continued to defer recognition of profits from the operations and maintenance contract with Iridium LLC, because of Iridium LLC's current financial condition. In addition, Motorola recorded a special charge of $126 million (in the ''Other Products'' segment) to write down the value of Iridium LLC bonds that it owns to a level which reflects the decline in the value of Iridium LLC's public high-yield debt. Also, given prior commitments, Motorola may be required to fulfill prior contractual guarantee obligations if Iridium LLC does not meet its obligations under certain of its bank financing, although Motorola will not provide any further support beyond existing contractual commitments unless there is substantial participation in the Iridium LLC restructuring from all parties with a significant financial interest. In the longer term, the company has several contracts with Iridium LLC, primarily for the operation and maintenance of its global personal communications system, which may be impacted depending on the outcome of Iridium LLC's financial restructuring. That could impact the value of Motorola's investments in assets related to these contracts, such as inventory, manufacturing equipment and buildings, as well as create other various potential obligations in connection with these contracts. The impact on Motorola of an Iridium LLC restructuring may become clearer in the third quarter, and may necessitate an additional special charge at that time. The previously announced sales of several businesses and assets are expected to generate significant gains and significant cash inflows in the third quarter, enabling Motorola to maintain a strong financial position, even with the negative impact of charges that may need to be absorbed by Motorola in the financial restructuring of Iridium LLC." Contact: Motorola, Inc. George Grimsrud, 847/576-2346