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Technology Stocks : Motorola (MOT) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Mordis who wrote (1006)	4/29/1998 8:55:00 PM
From: Investor2	Respond to of 3436

Wednesday April 29, 4:52 pm Eastern Time Motorola sells Transmission Products unit CHICAGO, April 29 (Reuters) - Motorola Inc.'s Information Systems Group (ISG) said Wednesday it signed a definitive agreement to sell its Transmission Products Division located in Huntsville, Alabama, to an international group of investors. The transaction is expected to be completed on or about May 8, 1998. The new business, to be named CPATH Inc., will be based at the site of the existing Motorola division, and Motorola will retain an equity interest in it. A spokesman for Motorola said the company could not disclose the names of the international investors until the deal is completed. He could not say what stake Motorola would hold in the new company, but said Motorola would be represented on the board. ''We're looking to ensure a smooth transition,'' said the spokesman, Bott Ikeler, in a telephone interview. The Transmissions Products Divison provides Motorola's SURFR line of computer modems for consumers. Motorola said it will continue to provide customer service for modems previously sold by the unit, and, as previously announced, it plans to release software to upgrade SURFR modems to the 56-K standard in the second quarter. Motorola said it will continue to develop corporate, cable and software modems at other facilities. In addition, other Motorola products produced in Huntsville, including terminal adapters and some modem lines, will remain in the Motorola portfolio and will still be produced there. Motorola did not disclose the sale price or terms of the deal. Although CPATH plans to expand its product portfolio, it will continue to manufacture and distribute the SURFR series, which is used in homes and businesses for Internet access, telecommuting and other computer communication applications. ''We believe our customers will be pleased with the services and quality products CPATH will offer as we expand into the consumer electronics market,'' said Rick Lane, vice president and general manager of the division's Mass Market business, and future chief executive officer of CPATH. ''We will market our successful SURFR series of communication products, and will also capitalize on our manufacturing and customer service competencies to provide even more value for the customer,'' he said in a statement received here. Motorola had said last October that it was reviewing the business as one which was not meeting expectations. Modems generate only a small percentage of the technology giant's $30 billion in annual revenues. ''It's a good move,'' said Mona Eraiba, an analyst with Gruntal & Co. ''This (business) required a lot of support from them and had limited potential. It's a highly competitive market.'' Motorola provides wireless communications, semiconductors, and advanced electronic systems, components, and services. Shares of Motorola were off 7/16 at 55-1/2.