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Motorola to Acquire Winphoria Networks Acquisition Adds Next Generation
Packet-based Switching to Wireless Networking Solutions Portfolio
SCHAUMBURG, Ill., Apr 15, 2003 /PRNewswire-FirstCall via COMTEX/ -- Motorola, Inc. (NYSE: MOT) today announced it has entered into a definitive agreement to acquire Winphoria Networks, Inc., a core infrastructure provider of next generation packet based mobile switching centers for wireless networks, which Motorola plans to integrate into its Global Telecom Solutions Sector (GTSS) business unit. The completion of the acquisition is subject to customary closing and regulatory conditions and is expected to occur in the second quarter. Motorola intends to purchase the privately held concern in an all cash transaction. Additional terms of the agreement were not disclosed.
The acquisition will provide Motorola with additional capability to deliver on its strategy to provide complete networks to support operators' 2.5 Generation (2.5G) - 3rd Generation (3G) systems worldwide. GTSS will increase its technology capability, enabling it to develop better choices for cost- effective, enhanced featured mobile switching center solutions.
"In acquiring Winphoria, we will augment our strategic position by adding an innovative core telecom switching capability to our portfolio and by providing a competitive media gateway solution. These translate into direct benefits for our carrier customers and prospects by helping them reduce operating costs, and by offering them a software-driven switch that can be easily upgraded and enhanced at lower cost," said Christopher B. Galvin, chairman and chief executive officer, Motorola, Inc.
Adding the soft-switch will address a long-standing need in Motorola's network infrastructure solution. It will add core functionality in a way that complements Motorola's existing outsourced circuit-switching portfolio. Customers will still be able to make the choice to purchase traditional circuit switches based on our existing switch supplier relationships, however the addition of soft-switch technology will enable GTSS to provide less expensive, yet more versatile, switching solutions to operators as they migrate to technologies that will support integrated voice, data and video applications.
"We believe soft-switch technology has the potential to impact the wireless networking industry," said Adrian Nemcek, executive vice president of Motorola and president and chief executive officer of GTSS. "The acquisition of Winphoria -- and its more than 100 highly skilled associates -- will strengthen GTSS' value proposition by enabling us to offer operators an enhanced portfolio of network systems in addition to recently announced offerings of network management services and application and integration solutions."
"We are pleased and excited to join the Motorola GTSS unit," said Mike Champa, president and CEO of Winphoria Networks. "Our cutting-edge solutions and entrepreneurial spirit will benefit from Motorola's scale and market presence. We see this combination as the ideal way to bring our pioneering technology to the global marketplace."
Soft-switches have several significant advantages over traditional legacy circuit switches. They are particularly appealing in emerging markets and among early adopters in mature markets where operators find them an attractive option for upgrading network capacity. The efficient performance and affordability of the soft-switch, combined with the ability to support 2G and 3G networks simultaneously, is projected to dramatically increase demand so that they outnumber traditional circuit switches by 2012.
Soft-switches require less room, less power to operate, and can be deployed much more quickly than traditional legacy circuit switches. In addition, soft-switch architectures allow rapid feature development and high core networking flexibility. For example, Winphoria's soft-switch architecture, as it develops over time, will also allow for server-based applications such as Push-to-Talk solutions. These advantages translate into potential savings for operators including lower capital expenditures, and switch-operating costs associated with technology migration and transport costs.
Motorola GTSS announced an OEM agreement with Winphoria in August 2002. Through that relationship the first commercial trial of the Winphoria soft- switch, branded the Motorola Soft-Switch (MSS) began in Asia. CDMA 1X network customer trials are currently underway in North America and Asia, with limited commercial introduction slated for June 2003.
About Motorola
Motorola, Inc. (NYSE: MOT) is a global leader in providing integrated communications and embedded electronic solutions. Sales in 2002 were $27.3 billion. Motorola is a global corporate citizen dedicated to ethical business practices and pioneering important technologies that make things smarter and life better for people, honored traditions that began when the company was founded 75 years ago this year. For more information, please visit: www.motorola.com .
About Winphoria Networks
Winphoria develops a packet-based Mobile Switching Center that dramatically increases the capacity of wireless voice networks, decreases capital and operational costs, and supports both circuit and packet networks for 2G, 3G, and All-IP wireless technologies. Winphoria also develops mobile network applications like Push-to-Talk for CDMA, GSM and other wireless technologies. Winphoria is a private venture capital funded company based in Tewksbury, MA. Winphoria was founded in March 2000. For more information about Winphoria Networks, please visit http://www.winphoria.com/ .
Business Risks
The statements in this release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the timing of the transaction, the impact the acquisition will have on the company's capability to deliver complete networks, and the impact of soft-switch technology on the industry. These forward- looking statements are based on current expectations and involve risks and uncertainties. The company wishes to caution the reader that the factors below and those in the appendix to Motorola's Proxy Statement for the 2003 annual meeting of stockholders starting on page F-33 and its other SEC filings could cause Motorola's results to differ materially from those described in the forward-looking statements. Factors that could cause actual results to differ materially from such forward-looking statements include the timely completion of the transaction on the terms described, difficulties in integrating the operations of the newly acquired business and achieving strategic objectives, difficulties and delays in the development, production, testing and marketing of the technology, the uncertainties related to introducing new technologies, customer acceptance of the products and technologies, the ability to differentiate our products and compete with other companies in the same markets and the general outlook for the economy and the telecom industry.
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners.
SOURCE Motorola, Inc.


CONTACT: Media, Jennifer Weyrauch of Motorola, Inc., [phone], [e-mail] , or Steven Hendricks of Motorola Global Telecom Solutions Sector, [phone] (office), [e-mail] /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020307/MOTLOGO http://www.newscom.com/cgi-bin/prnh/20020415/MOTNOTAGLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, [phone] or [phone]URL: http://www.prnewswire.com" target="_new">http://www.motorola.comhttp://www.prnewswire.com
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