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To: carranza2 who wrote (13557)	7/11/2001 5:57:22 PM
From: A.L. Reagan	Read Replies (2) \| Respond to of 34857

it ain't a pretty sight. Speaking of which, here's an extract from MOT's Q2 report: Personal Communications Segment Segment sales were $2.5 billion, down 25 percent. Orders were $2.9 billion, down 9 percent. The segment incurred an operating loss of $237 million versus operating earnings of $136 million a year ago. The decline in financial performance is due to lower worldwide demand for wireless telephones by service providers and average selling price declines resulting from substantial shipments of end-of-life products. In the Americas, sales and orders for wireless telephones were down. In Europe, sales were down very significantly and orders were significantly lower. In Asia, sales were lower, while orders were significantly higher. Shortly after the close of the quarter, Motorola and Hutchison Whampoa Group signed a Third-Generation (3G) handset contract that runs through 2003. Motorola was named a Hutchison “preferred supplier” of 3G, Universal Mobile Telecommunications Services (UMTS) devices in its key markets including Australia, Austria, Italy, Sweden and the United Kingdom. The contract has an estimated value of more than $700 million. Shipments are expected to begin in the second half of 2002. In North America, two new wireless telephones for Code Division Multiple Access (CDMA) technology, the V.Series™ 60c and V120c, became available nationwide in the United States. Motorola also began shipping its Timeport™ 270c phone in regional markets. All three CDMA devices are tailored to specific consumer segments and include Motorola's new and improved user interface. Motorola began U.S. shipments of its V.Series V100 personal communicator. Based on Global System for Mobile (GSM) Communications technology, the first-of-its-kind device includes a full keyboard and oversize display for fast and easy text messaging, plus a full-featured wireless phone. Motorola also began delivering its new, compact and easy-to-use Talkabout® 189 phone in Asia and began shipping to Korea its first 3G phone based on CDMA 1X technology. Motorola also shipped its one millionth Talkabout T900 2-Way text messaging device less than a year after its introduction. The first two Java™ technology-enabled wireless telephones in North America, the Motorola iDEN® i85s and i50sx models, were made available to subscribers. Global Telecom Solutions Segment Segment sales were $1.7 billion, down 14 percent. Orders declined 6 percent to $2.0 billion. Operating earnings declined to $47 million, compared with $258 million a year ago. Operating earnings declined due to a decrease in sales stemming from lower worldwide demand for wireless infrastructure equipment by service providers and an increase in manufacturing costs. In the Americas, sales and orders were lower. In Europe, sales and orders were down significantly. In Asia, sales were down while orders were up. Motorola won 11 contracts valued at $407 million as part of China Unicom’s nationwide deployment of CDMA digital network technology. Motorola also was awarded more than $600 million in additional contracts with China Mobile and China Unicom during the second quarter for GSM networks. Motorola will provide a 3G radio access network under a supply contract awarded by Hutchison Telecommunications for a UMTS network in Brisbane and Sydney, Australia. After the quarter ended, Motorola announced it had won its first two contracts to supply 3G CDMA infrastructure in Latin America. The contracts, awarded by Portugal Telecom and valued at approximately $147 million, are for its Brazilian cellular operators Telesp Celular and Global Telecom. Motorola also announced a $150 million GSM infrastructure expansion contract with BT Cellnet, a leading UK mobile operator.