Motorola to Acquire Modulus Video

SCHAUMBURG, Ill. and SUNNYVALE, Calif., May 17 /PRNewswire-FirstCall/ --
Motorola, Inc. (NYSE: MOT) and Modulus Video, Inc., a privately-held company,
announced the signing of a definitive merger agreement, under which Motorola
will acquire Modulus Video. The terms of the transaction were not disclosed.

Modulus Video is a leader and innovator in MPEG-4 Advanced Video Coding
(AVC) compression systems designed for delivery of high value video content in
the IPTV, cable, broadcast and satellite marketplace. Modulus Video has
partnered with Motorola for over two years bringing high-quality encoding
solutions to key customers around the world.

This acquisition will complement Motorola's recent acquisitions of
Broadbus, Kreatel, Tut Systems and Netopia in the creation and delivery of an
integrated, end-to-end video delivery system for multiple network

"Motorola is committed to offering an integrated, end-to-end video
portfolio designed to meet the current and next-generation requirements of
operators," said Dan Moloney, President, Home and Networks Mobility business,
Motorola, Inc. "As consumers demand more high definition video and interactive
services, the need for advanced compression technology is increasingly
important. As part of its advanced real-time video encoding products, Modulus
Video has a powerful architecture and product development framework that is
well suited for continued technological advancement."

"Through this acquisition, Modulus Video will become part of a world-class
organization in a highly strategic market segment. Our team will benefit from
Motorola's rich heritage and leadership of video delivery expertise," said Bob
Wilson, Chairman and CEO of Modulus Video. "Modulus Video will bring to
Motorola a software-centric platform that ensures flexibility, reduced cost
and fast development time."

Upon completion of the transaction, Modulus Video will become a wholly
owned subsidiary of Motorola and will be integrated into the Motorola Home and
Networks Mobility business. Motorola intends to maintain Modulus Video
operations in Sunnyvale, California.

The transaction is subject to customary closing conditions, including
regulatory approvals and the approval of Modulus Video stockholders, and is
expected to be completed in the second or third quarter of 2007.

About Modulus Video

Since its founding in 2002, Modulus Video has been the only company to
focus 100 percent of its efforts on perfecting the use of the MPEG-4 AVC video
compression standard. As a result, Modulus Video's powerful MPEG-4 AVC
encoders are now a critical component behind today's most compelling IPTV
deployments around the world, providing the most efficient use of available
bandwidth and delivering outstanding standard definition and high definition
television services over new and existing broadband infrastructure. Its
products meet the needs of the broadcast, narrowcast and video-on-demand
markets. For more information, please visit

About Motorola

Motorola is known around the world for innovation and leadership in
wireless and broadband communications. Inspired by our vision of Seamless
Mobility, the people of Motorola are committed to helping you get and stay
connected simply and seamlessly to the people, information, and entertainment
that you want and need. We do this by designing and delivering "must have"
products, "must do" experiences and powerful networks -- along with a full
complement of support services. A Fortune 100 company with global presence and
impact, Motorola had sales of US $42.9 billion in 2006. For more information
about our company, our people and our innovations, please visit

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