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Motorola Confirms Plans to Spin-off Semiconductor Operations

Citing its intention to increase its focus on communications and integrated electronic systems, Motorola announced plans to separate its semiconductor operations into a publicly traded company. Specifically, Motorola is considering an initial public offering (IPO) of a portion of its Semiconductor Products Sector (SPS) group, followed by a distribution of remaining shares to shareholders in a tax-free manner.

Motorola’s Semiconductor Products Sector is the leading producer of embedded processors. Its product line includes a its “DigitalDNA” system-on-chip solutions. Motorola’s worldwide semiconductor sales were $4.8 billion in 2002.

Motorola’s remaining portfolio includes:

http://www.motorola.com

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