SCHAUMBURG, Ill., July 29, 2010 -- Financial Highlights:

• Second-quarter sales of $5.4 billion
• Second-quarter GAAP earnings of .07 per share, compared to GAAP
  earnings of .01 per share in second quarter 2009; non-GAAP earnings
  per share* of .09 compared to earnings of .03 per share in second
  quarter 2009
• Total cash** of $8.3 billion; completed $500 million debt
  tender offer
• Enterprise Mobility Solutions sales of $1.9 billion; GAAP
  operating earnings of $181 million; non-GAAP operating earnings of
  $292 million
• Mobile Devices sales of $1.7 billion; shipped 8.3 million
  handsets, including 2.7 million smartphones; GAAP operating
  earnings of $87 million; non-GAAP operating loss of $109
  million
• Networks sales of $967 million; GAAP operating earnings of $178
  million; non-GAAP operating earnings of $191 million
• Home sales of $886 million; GAAP operating earnings of $29
  million; non-GAAP operating earnings of $57 million
• Announced sale of majority of Networks business to Nokia
  Siemens Networks

Click here for printable press
release and financial tables.

Motorola, Inc. (NYSE: MOT)
today reported sales of $5.4 billion in the second quarter of 2010.
The GAAP earnings in the second quarter of 2010 were $162 million,
or .07 per share, which compares to GAAP earnings of $26 million,
or .01 per share, in the second quarter of 2009. Non-GAAP financial
information excludes after-tax costs of approximately .02 per share
in the second quarter of both 2010 and 2009 related to stock-based
compensation expense, intangible assets amortization expense and
highlighted items. Details on these non-GAAP adjustments and the
use of non-GAAP measures are included later in this press
release.

During the quarter, the Company generated positive operating
cash flow of $242 million, reduced long-term debt through a $500
million tender offer and ended the quarter with a total cash**
position of $8.3 billion. Net cash*** increased to $4.9 billion
from $4.6 billion in the first quarter.

Greg Brown, Motorola co-chief executive officer and CEO of
Motorola Solutions, said, In the second quarter, our Enterprise
Mobility Solutions and Networks businesses continued to deliver
best-in-class market leadership and financial returns, with strong
operating earnings and excellent cash generation.

"In addition, last week, we announced that Nokia Siemens
Networks will acquire the majority of our Networks business. We are
very proud of the operational and financial performance of our
Networks business and are excited to have reached this agreement to
combine our Networks team with such an industry leader," Brown
continued. "This is great news for our customers, our investors and
our people and will allow us to sharpen our strategic focus on
providing mission-and business-critical solutions for our
government, public safety and enterprise customers.

"The Droid X launch has been very well received and is seen as
one of the best smartphones in the market today with a 4.3 inch
high-resolution display, Adobe flash and an 8 megapixel
camera.  As we continue to execute on our business strategy,
we are in a strong position to continue improving our share in the
rapidly growing smartphone market and improving our operating
performance," said Sanjay Jha, Motorola co-chief executive officer
and CEO of Motorola Mobility. "The Mobile Devices and Home
businesses remain focused on developing next-generation products to
capitalize on the convergence of mobile experiences and home
entertainment.

Operating Results

Mobile Devices segment sales were $1.7 billion, down 6
percent compared with the year-ago quarter. GAAP operating earnings
were $87 million, which included income from a significant legal
settlement of $228 million, compared to an operating loss of $287
million in the year-ago quarter. The non-GAAP operating loss was
$109 million, compared to an operating loss of $239 million in the
year-ago quarter.

Mobile Devices highlights:

• Introduced DROID X, a pocket-sized home theater with a 4.3 inch
  high-resolution display and powerful 1 GHz processor, garnering
  excitement and attention among media and consumers
• Introduced i1, the worlds first push-to-talk
  Android-powered smartphone; Motorola FLIPOUT" with MOTOBLUR" and
   Motorola CHARM" with MOTOBLUR", bringing our current
  smartphone portfolio to 12 devices
• Broadened choice of Android applications for consumers in
  Argentina, Brazil and Mexico with the announcement of SHOP4APPS,
  Motorola's mobile application storefront

Home segment sales were $886 million, down 13 percent
compared with the year-ago quarter. GAAP operating earnings were
$29 million, compared to $18 million in the year-ago quarter.
Non-GAAP operating earnings were $57 million, compared to $49
million in the year-ago quarter.

Home highlights:

• Launched 3D TV set-top solution in North America and a
  next-generation HD IP set-top that supports fixed-mobile
  convergence solutions with KDDI in Japan
• Introduced Motorola M3 Media Server family, which delivers
  multimedia content and services across television, PCs and mobile
  devices
• Introduced Medios suite of software solutions for content
  distribution across multi-screen environments and advanced
  on-demand services
• Launched DCX700, a next-generation, cost-effective HD set-top
  solution that supports applications for whole-home content
  sharing

Enterprise Mobility Solutions segment sales were $1.9
billion, up 10 percent compared with the year-ago quarter. GAAP
operating earnings were $181 million, compared to operating
earnings of $141 million in the year-ago quarter. Non-GAAP
operating earnings were $292 million, compared to $225 million in
the year-ago quarter.

Enterprise Mobility Solutions highlights:

• Achieved year-over-year sales growth in all four regional
  markets
• Received multi-million dollar contracts in North America,
  including P25 system wins for counties in Georgia, Maryland, New
  York and Washington
• Announced ES400, the smallest and lightest enterprise digital
  assistant, which provides field workers access to business-critical
  applications to overcome productivity challenges
• Awarded the first phase of a private broadband 700MHz LTE
  network for public safety in the San Francisco Bay area, the first
  of its kind in the United
  States                                       

Networks segment sales were $967 million, down 2 percent
compared with the year-ago quarter. GAAP operating earnings were
$178 million, compared to $92 million in the year-ago quarter.
Non-GAAP operating earnings were $191 million, compared to $147
million in the year-ago quarter.

Networks highlights:

• Announced sale of majority of Networks assets to Nokia Siemens
  Networks
• Completed Phase I TD-LTE field trials with China's Ministry of
  Industry and Information Technology
• Introduced unique, cost-effective common platform base station
  solution that can be used for both WiMAX and LTE
• Introduced software release for KDDI to reuse existing CDMA
  base stations for LTE

Third-Quarter 2010 Outlook

The Company's outlook for the third quarter of 2010 is for
earnings of .10 to .12 per share. This outlook includes the
Networks business and excludes stock-based compensation expense and
intangible assets amortization expense of approximately .04 per
share, as well as charges associated with items of the variety
typically highlighted by the Company in its quarterly earnings
releases.

Consolidated GAAP Results

A comparison of results from operations is as follows:

Highlighted Items, Stock-Based Compensation Expense and
Intangible Assets Amortization Expense

The table below includes highlighted items, stock-based
compensation expense and intangible assets amortization expense for
the second quarter of 2010.

Conference Call and Webcast

Motorola will host its quarterly conference call beginning at 8
a.m. (U.S. Eastern Time) on Thursday, July 29. The conference call
will be webcast live with audio and slides at www.motorola.com/investor.

Use of Non-GAAP Financial Information

In addition to the GAAP results included in this presentation,
Motorola has also included non-GAAP measurements of results.
Motorola has provided these non-GAAP measurements to help investors
better understand Motorolas core operating performance, enhance
comparisons of Motorolas core operating performance from period to
period and allow better comparisons of Motorolas operating
performance to that of its competitors. Among other things, the
Companys management uses these operating results, excluding the
identified items, to evaluate the performance of its businesses and
to evaluate results relative to certain incentive compensation
targets. Management uses operating results excluding these items
because it believes this measurement enables it to make better
period-to-period evaluations of the financial performance of its
core business operations. The non-GAAP measurements are intended
only as a supplement to the comparable GAAP measurements and the
Company compensates for the limitations inherent in the use of
non-GAAP measurements by using GAAP measures in conjunction with
the non-GAAP measurements. As a result, investors should consider
these non-GAAP measurements in addition to, and not in substitution
for or as superior to, measurements of financial performance
prepared in accordance with GAAP.

Highlighted items: The Company has excluded the effects
of highlighted items (and any reversals of highlighted items
recorded in prior periods) from its non-GAAP operating expenses and
net income measurements because the Company believes that these
historical items do not reflect expected future operating earnings
or expenses and do not contribute to a meaningful evaluation of the
Companys current operating performance or comparisons to the
Companys past operating performance.

Stock-based compensation expense: The Company has
excluded stock-based compensation expense from its non-GAAP
operating expenses and net income measurements. Although
stock-based compensation is a key incentive offered to our
employees and the Company believes such compensation contributed to
the revenue earned during the periods presented and also believes
it will contribute to the generation of future period revenues, the
Company continues to evaluate its performance excluding stock-based
compensation expense primarily because it represents a significant
non-cash expense. Stock-based compensation expense will recur in
future periods.

Intangible assets amortization expense: The Company has
excluded intangible assets amortization expense from its non-GAAP
operating expenses and net income measurements, primarily because
it represents a significant non-cash expense and because the
Company evaluates its performance excluding intangible assets
amortization expense. Amortization of intangible assets is
consistent in amount and frequency but is significantly affected by
the timing and size of the Companys acquisitions. Investors should
note that the use of intangible assets contributed to the Companys
revenues earned during the periods presented and will contribute to
the Companys future period revenues as well. Intangible assets
amortization expense will recur in future periods.

Details of the above items and reconciliations of the non-GAAP
measurements to the corresponding GAAP measurements can be found at
the end of this press release.

Business Risks

This press release contains "forward-looking statements" within
the meaning of applicable federal securities law. These statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and generally include
words such as believes, expects, intends, anticipates, estimates
and similar expressions. We can give no assurance that any future
results or events discussed in these statements will be
achieved.  Any forward-looking statements represent our views
only as of today and should not be relied upon as representing our
views as of any subsequent date. Readers are cautioned that
such forward-looking statements are subject to a variety of risks
and uncertainties that could cause our actual results to differ
materially from the statements contained in this release. 
Such forward-looking statements include, but are not limited to,
statements about the timing and financial impact of the launch of
new products and Motorola's financial outlook for the third quarter
of 2010. Motorola cautions the reader that the risk factors below,
as well as those on pages 17 through 29 in Item 1A of Motorola's
2009 Annual Report on Form 10-K and in its other SEC filings
available for free on the SECs website at www.sec.gov and on
Motorolas website at www.motorola.com, could cause
Motorola's actual results to differ materially from those estimated
or predicted in the forward-looking statements. Many of these risks
and uncertainties cannot be controlled by Motorola and factors that
may impact forward-looking statements include, but are not limited
to: (1) possible negative effects on the Company's business
operations, financial performance or assets as a result of its plan
to create two independent, publicly traded companies; (2) the
economic outlook for the telecommunications and broadband
industries; (3) the Company's ability to improve financial
performance in its Mobile Devices business, including the success
of its smartphone strategy; (4) Mobile Device's dependency on
third-party operating systems and software, including Google's
Android operating system; (5) the level of demand for the Company's
products, particularly if consumers, businesses and governments
defer purchases in response to tighter credit; (6) the Company's
ability to introduce new products and technologies in a timely
manner; (7) unexpected negative consequences from the Company's
restructuring and cost reduction activities, including as a result
of significant restructuring at the Mobile Devices business; (8)
negative impact on the Company's business from global economic
conditions, which may include: (i) the inability of customers to
obtain financing for purchases of the Company's products; (ii) the
viability of the Company's suppliers that may no longer have access
to necessary financing; (iii) changes in the value of investments
held by the Company's pension plan and other defined benefit plans;
(iv) fair and/or actual value of the Company's debt and equity
investments differing significantly from the fair values currently
assigned to them; (v) counterparty failures negatively impacting
the Company's financial position; (vi) difficulties or increased
costs for the Company in obtaining financing; and (vii) the
inability of the Company to sell accounts receivable and long-term
receivables in volumes and on terms comparable to historical
practices; (9) the Company's ability to purchase sufficient
materials, parts and components to meet customer demand,
particularly in light of global economic conditions; (10) risks
related to dependence on certain key suppliers; (11) the impact on
the Company's performance and financial results from strategic
acquisitions or divestitures, including those that may occur in the
future; (12) risks related to the Company's high volume of
manufacturing in Asia and business operations in foreign countries;
(13) the creditworthiness of the Company's customers and
distributors, particularly purchasers of large infrastructure
systems; (14) variability in income received from licensing the
Company's intellectual property to others, as well as expenses
incurred when the Company licenses intellectual property from
others; (15) unexpected liabilities or expenses, including
unfavorable outcomes to any pending or future litigation or
regulatory or similar proceedings; (16) the impact of foreign
currency fluctuations, including the negative impact of a
strengthening U.S. dollar on the Company when competing for
business in foreign markets; (17) the impact on the Company from
continuing hostilities in countries where the Company does
business; (18) the impact on the Company from ongoing consolidation
in the telecommunications and broadband industries; (19) the impact
of changes in governmental policies, laws or regulations; (20) the
outcome of currently ongoing and future tax matters; and (21)
negative consequences from the Company's outsourcing of various
activities, including certain manufacturing, information technology
and administrative functions. Motorola undertakes no obligation to
publicly update any forward-looking statement or risk factor,
whether as a result of new information, future events or
otherwise.

Definitions

* Non-GAAP earnings per share excludes from GAAP earnings
per share the effects of stock-based compensation expense,
intangible assets amortization expense and highlighted items

** Total cash = Cash and cash equivalents + Sigma Fund (current
and non-current) + Short-term investments

*** Net cash = Total cash - Total debt (Notes payable and
current portion of long-term debt + Long-term debt)

**** Amounts attributable to Motorola, Inc. common
shareholders

***** Due to rounding, EPS impact may not be equal to the sum of
individual items