1. Dean Lindroth Corporate Vice President, Investor Relations

2. Safe Harbor A number of forward-looking statements will be made during this presentation. Forward- looking statements are any statements that are not historical facts. These forward- looking statements are based on the current expectations of Motorola and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, Motorolas actual results could differ materially from these statements. Information about factors that could cause, and in some cases have caused, such differences can be found on pages 16 through 24 in item 1A of Motorolas 2006 Annual Report on Form 10-K and in Motorolas other SEC filings. This presentation is being made on the 7th of September 2007. The content of this presentation contains time-sensitive information that is accurate only as of the time hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Motorola will not be reviewing or updating the material that is contained herein. 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. Motorola, Inc. 2007 3. Ed Zander Chairman, Chief Executive Officer 4. Stu Reed President, Mobile Devices 5. Key Topics Market Share vs. MarginProduct Portfolio/RoadmapInventory SituationDouble-Digit Operating Margins Why Motorola and Mobile Devices? 6. Market Environment Margin Growth Multimedia Mass Market Feature Phones ProductivityLarge and growing market Shift towards experiencesRapidly migrating profit zonesPunishing without a comprehensive,constantly refreshed portfolio2007200820092010 Source: Motorola 7. Revenue Revenue $B1H07 By Region 2H$28.4B 1H Latin$14.8BAmericaAsia Pac16% $21.5B21% $12.2B$17.1B $9.0B $13.6BEMEA $9.7B $9.3B16%$8.1BNorth America 47% 2006 2007 2004 2005 8. StrategyStill all about PROFITABLE market share 9. Our PrioritiesWe will be the premier supplier of mobile devices and mobile experiences to customers globally. THREE FOCUS AREAS: Enhance the Product PortfolioSilicon/Software PlatformingGo-To-Market Effectiveness Drive Efficiency in the Business 10. Enhance the Portfolio 11. Ever Changing Regional + Segment Profit PoolsMass MarketFeature Phone Multimedia Productivity CommunicationIconicOptimized: voice + Mobile officeone extremeconnectivity for Centric, simpleHigh-end featureexperience prosumers and feature sets enabledbusinessesConverged: voice +multiple experiences Organization, investments, and brand franchises aligned to margin pools 12. New PortfolioMass Market Feature Phone Multimedia Productivity W Series RAZR2ROKR Z6 / Z8 Q8 / Q9h 13. New Portfolio Feedback/ResponseFeature Phoneone of the best voice phonesthis yearEditors Choice We came. We saw. We fell in love. we broke out the stopwatchRAZR2 beats iPhone on broadband speeds RAZR is reborn...a new level of usability 14. New Portfolio Feedback/ResponseMultimedia The Z8 movie phone is a blockbustera big screen idol.MOTO S9 kick out great waterproof sound Top 100 hottest gadgetsMOTOROKR is not just a few letters, it is spirit that symbolizes freedom and taste.A musical smartphone, aiming to increase the cool quotient 15. New Portfolio Feedback/ResponseProductivity a strong challenge to RIMs expanding family of BlackberriesEditors Choice (Q9 h) Revenge of the blackberry killer an excellent full QWERTY keypad.quot;Q9 beats them all on the strength of its keypad alone. It's one of the best we have ever used.quot; 16. More To ComeFall 2007Mass MarketFeature Phone MultimediaProductivityInnovation is alive and well at Motorola! 17. Platforms Enable Quick Alignment Efficient Software and Silicon VisionSILICON DIRECTIONMultisource on a controlled architectureMultisource = competitivenessControlled architecture = flexibilitySOFTWARE DIRECTION Single, open platform for mid/high tier Single, open platform for lower tiers Short term resource shift to user interface Short term benefit from aggressivelymanaged spend on end of life platforms 18. Go-to-Market Effectiveness 19. Go-To-Market EffectivenessFocused, prioritized Focused, prioritizedregional engagement channel engagementDramatic operational Differentiated channelimprovement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN 20. Go-To-Market EffectivenessFocused, prioritized Focused, prioritizedregional engagement channel engagementDramatic operational Differentiated channelimprovement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN 21. Go-To-Market EffectivenessFocused, prioritized Focused, prioritizedregional engagement channel engagementDramatic operational Differentiated channelimprovement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN 22. Differentiated Channel Enablement FROMTO Collaborative planning/ Motorola owned inventory forecasting and OPERATORS Pay on consumption replenishment (CPFR) Sell-outCPFR to distributor Direct-to-retail Direct store delivery RETAIL Sell-in Sell-in with CPFR Ship direct / build to order DISTRIBUTOR 23. Go-To-Market EffectivenessFocused, prioritized Focused, prioritizedregional engagement channel engagementDramatic operational Differentiated channelimprovement in retail enablement FOCUS ON SELL-THRU, NOT SELL-IN 24. Retail Channel Management Example: ITFROMTOIn-house system Scalable commercial systemData collection Data collection + validationEnd-to-end analytics Limited analyticsReal-time reporting Daily reporting 25. Drive Efficiency in the Business 26. Drive Efficiency in the Business Value-chain Clarity andDefined, extension accountability repeatableprocesses Variable Lower the cost-structure break-even 27. Whats Next?TomorrowFuture Today (2008-2009) (2010+) (2007)Music PresenceMobile Community Experiences Imaging Mobile TV Video PlaybackVideo Editing Morphing UI Create + Share Mobile Search Fixed Mobile Convergence Web 2.0 Seamless 3G HSDPA, EVDOWiMAX Technology UMA LTE Bluetooth 4G Haptics WiFI Touchscreen Near-Field Communications Location-Based ServicesApplication Services 28. Key Topics Market Share vs. MarginProduct Portfolio/RoadmapInventory SituationDouble-Digit Operating Margins Why Motorola and Mobile Devices? 29. Why Motorola and Mobile Devices?Experience-driven portfolio to provide more balanced performanceProgress on transition to optimized platformFocused, prioritized approach to enhance existing customer baseMore efficient technology team to lower break-evenAll the above, without mortgaging the futureTools to Execute: Talent, IP, Design/Innovation leadership, Brand 30. Gene Delaney President, Government & Public Safety Kathy Paladino President, Enterprise 31. Gene Delaney President, Government & Public Safety 32. Enterprise Mobility Solutions 33. Enterprise Mobility Solutions Complementary product portfolios, customer segments and distribution channelsGovernment &GovernmentPublic Safety Mission CriticalPublic SafetySystemsDevicesApplicationsServicesEnterprise Retail & Wholesale Energy & Utilities Business CriticalTransportationManufacturingMobile Computing WarehousingAdvanced Data CaptureHealthcareMobile OfficeEnterprise Networks 34. World Class CustomersRetail &Transportation Utilities Manufacturing Other Government Wholesale 35. Enterprise Mobility Solutions Market of over $20B annually First half 2007 revenues of $3.6B Operating margin 12% 36. Government and Public Safety 37. Leadership Mobile DataBusinessTerminalDynaTAC 800xPageboy II iDEN i600 Dispatch Radio Mobile Data Paging CellularIDEN 2 Way RadioSolutions1960s1970s1980s1990s 20002010 2 Way RadioSemiconductor CellularGSMMobile DataSolutions Canopy Global System MC6800 ARDIS NetworkMesh for Mobile HT220Communications 38. Leadership1939 1944 1950 1964 1979 1981 1999 2005 39. Leadership1939 20072007 40. End-to-End PortfolioFire &CivilPoliceDefenseEMS Agency TECHNOLOGY THATS SECOND NATURESeamlessConnectivity Mission critical systems ServicesReal-timeInformation Mission critical applications In The HandsOf UsersMission critical devices 41. End-to-End Portfolio TECHNOLOGY THATS SECOND NATURESeamlessConnectivity Mission critical systems ServicesTechnology that is second natureReal-timeInformation Mission critical applications In The HandsOf Users Mission critical devices 42. End-to-End Portfolio TECHNOLOGY THATS SECOND NATURESeamlessConnectivity Mission critical systems so first responders can focus on ServicesReal-time MISSION, not technology theirInformation Mission critical applications In The HandsOf Users Mission critical devices 43. Profitable GrowthTotal Revenue $B$5.2B 2H$4.8B$2.8B1H $4.6B $2.6B$2.4B $2.6B$2.4B $2.2B$2.2B2005 2006 2007 2004 44. Revenues1H07 - By SolutionApplications 5%DevicePortfolio50%Services29% Systems 16% 45. Revenues1H07 - By RegionAsia7%EMEA23%North America 63%LatinAmerica7% 46. Attractive Market Market Drivers Mission Critical MarketHomeland security $11Binteroperability $1.5BDouble digit international $3.0B$8B+growth nationwide deals$1.0B$2.0B Video adoption $6.5Bbroadband growth$5.0BAnalog technology Asiagoing digital EMEA Americas 20062010 47. Winning 48. Winning Today Motorola Today Results (2007)Analog Systems 92% customer satisfaction P25 1st to market with digital radio Tetra Fixed Data & Wi4 Portfolio Wins: Portugal, Ireland, Norway, DenmarkIntl award backlog at an all time high Network Defined Radios Device MotoTRBO83% of U.S. Military bases Laptops Mobile Computing>$250M in annual WiBB revenuesVideo solution in 100 systems today Text Base Data Apps 87% statewide/province wide systems in North America Biometrics, location, CAD, RMS, E911, Video Services 49. Winning Tomorrow Tomorrow Motorola (2008-2009)Results P25 Phase II Systems NetworkState of Mississippi Tetra IIRiverside, CA High Speed Data ISSI (System Interoperability) Prince Georges Co,MD Next Generation Radios DeviceIndependence, MO Multi-mode Multi-band Norway Los Angeles PD Providence, RI Imaging Apps Next Gen 911 Multi-Network Routing Services Break/Fix | Integration | Managed 50. Winning the Future Future(2010+) Mission Critical BroadbandSystemsMission Critical IMSSmart RadiosDevice Converged Cognitive Software Defined Live ImagingAppsContent ManagementApplication Hosting Services Break/Fix | Integration | Managed | Hosted | Professional 51. Winning the FutureTomorrowFuture Today(2008-2009) (2010+) (2007) Systems Mission Critical Broadband Analog P25 Phase II Mission Critical IMS P25Tetra II TetraHigh Speed Data Fixed Data & Wi4 Portfolio ISSI (System Interoperability) Network Defined Radios Next Generation Radios Smart Radios Device MotoTRBO Multi-modeConverged LaptopsMulti-bandCognitive Mobile Computing Software Defined Live Imaging Text Base Data Imaging Apps Content Management Biometrics, Location, CAD, Next Gen 911 Application Hosting RMS, E911, Video Multi-Network RoutingServices Break/Fix | Integration | Managed | Hosted | Professional 52. Government and Public Safety Leadership End-to-End Portfolio Profitable Growth Attractive Markets Market Leader Today Solutions For Tomorrow 53. Enterprise 54. Kathy Paladino President, Enterprise 55. EnterpriseEnd-to-End Enterprise MobilityWhite Collar and Blue CollarIndoors and OutdoorsMotorola + Symbol + Good 56. Our Customers 57. The IT Evolution Age of CentralizedAge of PersonalAge of Computing ComputingMobility1960s 1970s 1980s1990s2000sAge of Distributed Age of NetworkedComputingComputing 58. Delivering Enterprise Anywhere to Enterprises Everywhere!Retail & WholesaleManufacturingTransportationWarehouse/Distribution from the shop floorat the loading dock on the road to the corner office Financial & Energy & UtilitiesHealthcareProfessional Services 59. End-to-End Solutions ConnectCommunicateControl CaptureMobile Advanced Enterprise ComputingData Capture NetworksMessaging | Management | Security Services | Repair & Maintenance | Professional Services | Managed Services 60. Our Go-to-Market Partners Retail & Wholesale Manufacturing Transportation Healthcare 61. Profitable Growth Total Revenue $B2H 1H$1.9B $1.8B$1.7B$970M$880M $880M $1.0B$898M$885M $853M2004 2005 20062007 Symbol Technologies, Inc. Motorola EnterpriseThe 2004-2006 results from Symbol Technologies, Inc. have not been included in Motorola's financial statements and are shown here for reference only. 62. RevenueKey Drivers 1H07 By Region Refresh & new business investment EMEA Mobility outside the 28%Americas four walls65%Emerging growth marketsAP7% Motorola 63. RevenueBusiness Mix 1H07 By Product10% Margin rich66%Mobile Computing Attractive to partners 24% Enterprise Networks Attractive to carriersAdvanced Data CaptureIndustry leader 64. Expanding MarketKey Drivers Total Available Market $14.1BCAGR 14% Enterprise mobility momentum$2.9B $12.4B$2.2B$10.8B Growing mobile workforce$11.2B$9.6B $1.6B $10.2B $1.2B$9.2B $8.4B New markets; new opportunitiesCAGR 10%Expanded products & Voice & Messaging solution portfolio CoreConsumerization of the Enterprise 2008 2009 20102007 65. Success in the Enterprise Enterprise OpportunityGrowing TAM Unique position Solid growth & marginsOur PrioritiesCustomer success Profitable growth Business expansion What You Can Expect From EnterpriseIntegration efficiencies Double-digit growth Double-digit OM 66. Enterprise Mobility Solutions 69 67. Enterprise Mobility SolutionsGrowing TAM Industry Leadership Mid-to-high Double-digit OM single-digit sales growth70 68. Dan Moloney President, Home & Networks Mobility 69. Home & Networks Mobility Market Landscape Newly Aligned End-to-End Portfolio Delivery and Performance Consumer/Market Growth Drivers Market Opportunity Focused Approach Keys to Success 70. Market Landscape Customer and Technology Convergence At Home Mobile /Internet Wireless Video DBSMSOsConsumer CEServices DataMuni WiFi Voice TelcosCellular VoIP Providers 71. Market Landscape Customer and Technology Convergence At HomeMobile /Internet 1Wireless Telefonica, SingTel, BT, Verizon, AT&T video launches Video DBS MSOsConsumer CE 2 Services MSOs launch triple play bundle 1 Telmex launches VoIP in BrazilData34 Muni WiFi Sprint/Cable JV begins offering mobile voice service (Pivot)43 Voice Verizon launches mobile video broad- Telcos Cellular VoIP castProviders2 KDDI announces plans to launch IP video 72. End-to-End Solutions & Expertise Customer Customer AccessHome-to-Go Home-to-Go Seamless Premises Premises TechnologiesTechnology Experiences Mobility Technology Experiences Core MPEG4 IP InfrastructureFollow Me TVTM Video Entertain-Media Gateways Anywhere, Anytime ment Devices Access SwitchedFTTx, HFC, Seamless Voice Portable Media Digital Video Voice GatewaysPlayersMedia Mobility XDSL,Time Shifting Fixed MobileData GatewaysVideoNXT Generation Remote Home Control Wi4/WiMAX Convergence Handsets Converged MediaPersonalizedM-Wallet Cellular Network Gateways Content /Mobile TV Management AdvertisingEnd-to-End Services and Experience Management 73. Home & Networks Mobility Performance Revenue $B $9.2B$9.0B$8.2B$4.7B $4.4B $4.2BMaintain marketleadership acrosskey technology$4.9Bcategories $4.6B$4.5B $4.0B2005200620072004 2H1H 74. Revenue Home Revenue $B 1H07 - By SolutionVideo Solutions: 75%$3.3BAccess Networks: 12% $2.9B $1.8BBroadband Solutions: 13% $1.5B$2.3B$1.3B$2.2B 1H07 - By Region $1.5B $1.4B North America: 83% $1.0BAsia: 3%EMEA: 7%20052006 20072004 Latin America: 7% 2H1H 75. Revenue Networks Revenue $B 1H07 - By Solution GSM / UMTS: 34% $6.1BCDMA: 33%$5.9B $5.9B iDEN: 17% $2.9B $2.9B$2.9B Wireless Broadband: 3%ECC / Core: 13% 1H07 - By Region $3.2B$3.0B $3.0B$2.7B North America: 39%Asia: 31%EMEA: 25%2005 200620072004 Latin America: 5%2H1H 76. The Next Wave Media Mobility 77. Consumers Demanding Media MobilityMainstream Cutting EdgeTomorrow Personalized Content Bundles Services Blended Services on DemandConverged Platform Content as a Service Fixed Mobile Dans Media Internet on TV Fixed VoiceInternet Susans MediaSocial TV Mobile TV Marks MediaVideoWireless Angies Media 78. Driver #1: Video Explosion 79. Video Explosion Trend Total HD Total HD STB & Households DVR Shipments Impact (M, WW)(M, WW) 148M 106M Added complexity in video delivery architecture 74M 51M 48M Increased demand for bandwidth 38M 35M27M Requirement for deploying advanced compression technology13M 18M 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 IMS, Motorola 80. Video Explosion Motorola SolutionsAcquisitionCustomerSolution IPTV MPEG-4 Encoding, Compression, Transcoding Extending Switched-Digital Video (SDV)Cable Trials Advanced Bandwidth Solutions - Cable PON, Cable Trials GPON, 1GHz Network Management and Reliability Multimedia Over Multiple Networks and Devices 81. Driver #2: From Prime Time To My Time 82. From Prime Time To My Time Trend Cable VOD DVR Impact Advertising Subscribers Households Revenue (M, WW) (M, WW)165M$42B ($B, US)Changing TV viewing habits what, when, whereIncreased personalized and $27B localized content65M $21B 58M Local and networked DVRs become extended video libraries 33M25M More powerful solutions for14M voice & data bundle 2005 2007 20112005 2007 20112005 2007 2011 Forrester, Kagan, ABI, Motorola 83. From Prime Time To My Time Motorola SolutionsAcquisition CustomerSolutionPersonalized and Targeted Advertising; First-to-Market in Digital Ad InsertionStart Over Time-Shifted TV Home Media DVR Motorola Follow Me TV Solution MediacipherDRM Unparalleled Content Security Need For Speed - Ultrabroadband DOCSIS 3.0 84. Driver #3: Broadband On The Go 85. Broadband On The Go Trend Mobile VideoMobileImpact Mobile VOD Messaging Infotainment(Users - M, WW) (Users - M, WW) (Users - M, WW)596M Media mobility driving incumbent operators to WiMAX or LTE (1,295 WiMAX licenses globally) 398M Incentive for new entrants to enter and289M compete quickly 254M 168M Momentum in WiMAX embedded devices 83M 53M 28M Greater focus on fixed mobile 14M convergence20112005 2007 20112005 2007 20112005 2007 Motorola, Strategy Analytics 2006 86. Broadband On The Go Motorola Solutions Acquisition Customer SolutionLeadership in WiMAX End-to-End SolutionsBroad CPE Portfolio - Anywhere, Anytime AccessComplete Services PortfolioMobile TV Solutions Devices and Applications 87. Motorola WiMAX Leadership30 Active Trials Worldwide20 Additional Trials Pending EuropeRussia & CIS 2.5, 3.5 GHz2.3, 2.5,3.5 GHzCanada NetherlandsCanada2.5, 3.5 GHzRussiaAustriaUnited States Ukraine USAFranceChina 2.3, 2.5 GHzJapanUAEIsrael TaiwanBangladeshPakistan MexicoMiddle East &Asia PacificBrazilAfrica2.3, 3.3, Malaysia Central & 2.5, 3.5 GHz 3.5 GHz South America2.5, 3.5 GHzAustralia South Africa ChileDeployments Trials Wateen SprintClearwireAgniVTR Neckarcom WorldmaxTDF Mena Softbank MaxisNeotelTVA PakistanUSA Global Bangladesh ChileGermanyNetherlandsFranceBahrain Japan MalaysiaS. Africa Brazil 88. The Opportunity 89. Market Opportunity Home and Networks Mobility TAM $B Converged Solutions 100 Voice & DataVideo Systems & Solutions 80 WiMAX 60LTEUMTS / HSDPA 40 CDMAiDEN 20 GSM 06 07 08 09 10 11 12 13 14 15 90. Focused Approach Expanded Leadership in End-to-End Video Next generation technology and applications IPTV and MPEG4 Globalization of video businessCapture Broadband Network Expansion WaveGlobal leadership in end-to-end WiMAX GPON for wireline operators globally Cable bandwidth expansion Position for LTE migration Optimization of 2G/3G/iDEN portfolioGrowth in Service and Experience ManagementLeverage organic and acquired services solutions 91. Keys to SuccessDeliver Manage and next-generation exploit the portfolio solutions Exceed customer Deliver expectationsdouble-digit OE 92. Greg Brown President, Chief Operating Officer 93. Our MarketsIndustry Sales $B$328BCAGR 8% $302B $282B $260B $239B Enterprise MobilityHome and Networks MobilityMobile Devices2006 2007200820092010 94. Our Financial PerformanceTotal Revenue $B1H07 - By RegionLatin 2H $42.8BAmerica 11% 1H $22.4B$35.3BAsia $29.7B $19.1B 17% $15.6BNorth $20.4BAmerica$18.2B54%$16.2B $14.1B EMEA 18% 2005 2006 20072004 95. Our ProgressCustomer-Focused StructureNew Operating Leadership TeamGross Margin ExpansionLower Cost StructureReduced SIC and Channel RationalizationSymbol Integrated and Performing WellCash Conversion Cycle A Top PriorityMargin-Driven vs. Revenue Orientation 96. Pillars for Sustainable Growth InnovationEconomic Value DrivesOperational Discipline ShareholderValueExecution 97. ChallengesConsistent Innovation and Financial Performance in MDBMDB Silicon and Software PlatformsiDEN DeclineGSM Infrastructure 98. Leveraging Our StrengthsBrand and Global DistributionDesign LeadershipComprehensive Video AssetsCarrier and Enterprise Customer RelationshipsIndirect Channels and Growing Retail PresenceEnd-to-End OrientationWiFi, WiMAX, Cellular Experience and IP 99. GoalsSustainable Profitability in MDBExpand MDB Product PortfolioImprove Operating MarginsLower Cost StructureLeverage Leadership Position in VideoExtend Category Leadership in Enterprise MobilityLead in 4G 100. Operating Business Model Segments Mid-to-high single-digitRevenue growth Single-digit sales growth EMS H&NMMDB sales growth Profitability High single-digit OM Solid double-digit OM improves to double digitsEMBNetworks GPSHome Declining sales Mid-to-high Double-digit Double-digit Gain profitable share in mature single-digit salessales growth insales growth over time technologies, growthcore marketsDouble-digit OMImproved gross margin partially offset by Continued strongDouble-digit OM contribution by product WiMAX and LTE double-digit OM as they scale Lower overall cost Continue to Focused structure optimize mature investments, Minimize operating technologies to further margin swings fund 4G international expansion Sales growth momentum 2009 and beyond 101. The quality of ourexpectations determines the quality of our action. - Andr Godin 102. Tom Meredith Executive Vice President, Chief Financial Officer 103. Value is created when a company performs at a level IN EXCESS OF WACC 104. AgendaBalance Speed Agility Liquidity Cash Conversion Business Model Profitability Value Chain GrowthLinearity 105. Balance 106. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Liquidity Profitability Growth 107. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Operating Cash Flow ($M)2,000 Liquidity1,800 2,600 1,400 1,200 1,000800600400200 Profitability Growth0-200Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22004200520062007 108. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Operating Margins %Liquidity20% 15% 10% 5% 0%Profitability Growth-5% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22004200520062007 109. Delivering Economic Value All About Delivering Balance and Cash Conversion Cycle Sales Growth % 40% Liquidity30%20%10% 0%-10%-20% Profitability Growth-30% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004200520062007 110. Speed 111. Cash Conversion Cycle DSO + DSI - DPO = CCC 112. Cash Conversion Cycle GAAP 80Days Sales 56Outstanding 6050 Days Sales38 40 36of Inventory35 3531 26 20Days PayableDAYS Outstanding0Cash ConversionCycle-20 -40 -60Q3 Q4Q1 Q2Q3Q4Q1 Q2 2005 2006 2007117 113. Cash Conversion Cycle GAAP 90 Mobile Devices 8070 Home & Networks60 Mobility50 DAYS40 Enterprise Mobility30 Solutions2010 Total Motorola 0Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20052006200719 13 18 26 21 26 48 49 Mobile Devices 72 65 77 67 73 62 71 50 Home & Networks Mobility 54 40 38 57 60 65 65 53 Enterprise Mobility SolutionsTotal Motorola35 26 31 36 35 38 56 50 114. Cash Conversion Cycle The Best of the Best30 Dell 20 10 Apple0DAYS -10 -20 Amazon -30 -40 Ebay -50 2004 2005 2006 Q2 07Dell-39-36-33-33 Apple -26-19-27-42 Amazon-23-23-18-11 Ebay16 18 21 22 115. Cash Conversion Cycle85M$Improving Motorolas CCC by1 day would increase cash by: 116. Cash Conversion Cycle Improving Motorolas 2007 CCC to: 25 Days 0 Days-25 Days2.0B 4.0B ~ 6.0B $$$ ~~ 117. Value Chain1.6 Months 0.6 Months 3.3 MonthsTotal SupplierIn- EMS SupplierMotorola Plants Plants In- Distribution In- KeyInventory Inventory Transit ODM Owned Buy / Sell PieceWIPTransit Center Transit CustomersInvestment SpecificInventoryParts& Inventory For Hubbing Finishedin Channel MOT Goods 4-6Points OE SupplyDemandClosed Feedback Loop 118. Value Chain Assembly by EMS XCVRPacking &Total C/TMDO ShippingFlip Assy PackingBuildingShipping0.5 days LCD/Housing = II Ship to Flip PackingXCVR XCVRFlip AssyMaterialinternal/ & Shipping PackingAssembly in EMSPicking externalfrom EMSOnlineTest Flip in Moto customerHubWH69 Capacity 5.5K/Shift(Supperlin)ne DJ qty 600 2hrs .5hrshours 30hrs12hrs 12hrs 12hrs .5hrsTotal C/T Flip BE Packing One Piece Flow MDOShipping One Piece Flow = I IMaterialPallet &In-houseFlip Assy/XCVR Assembly & Packing Online Picking &Shipping Unpacking PieceMotopart15.5WH inHub Capacity 5.5K/Shift(Supperlin)neDJ qty 60025hrs .5hrshours 12hrs.5hrs 78% Cycle Time reduced by 119. Linearity Enterprise Mobility (EMB)What Does Linearity Mean? To evenly distribute over the period measured (quarter) Objective is to 60% by end of week 8 Why Is Linearity Important? Improves margins Improves working capital Why Is EMB Good at It? Performance tracked and reported weekly Component of sales comp Sales commissions paid monthly 120. Agility 121. Business Model SalesGrossR&D asSG&A as OE as Growth Margin % Sales% Sales% Sales 8-10% 32-34%9%11% 12-14% 122. Operating Business Model MOTFor 2008, expect: CCC of 20-30 days Profitable in all businesses Significantly improved cash flowand ROIC 7,500-head reduction planimplemented $1B cost savings in place netof acquisitions and investments,expect $500M reduction in Opex,2008 vs. 2007 123. Q&A quot;Winning isn't everything,but wanting to is.quot;- Vince Lombardi 124. Safe Harbor A number of forward-looking statements will be made during this presentation. Forward- looking statements are any statements that are not historical facts. These forward- looking statements are based on the current expectations of Motorola and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, Motorolas actual results could differ materially from these statements. Information about factors that could cause, and in some cases have caused, such differences can be found on pages 16 through 24 in item 1A of Motorolas 2006 Annual Report on Form 10-K and in Motorolas other SEC filings. This presentation is being made on the 7th of September 2007. The content of this presentation contains time-sensitive information that is accurate only as of the time hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Motorola will not be reviewing or updating the material that is contained herein. 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. Motorola, Inc. 2007