Transaction to Enhance Motorola’s 2-Way Radio Product Offering. Development Expertise and Channels to MarketSCHAUMBURG. Ill and TOKYO. JAPAN 5 November 2007 -- Motorola. Inc. (NYSE: MOT) announced today that its subsidiary. MI. Inc. will launch a tender offer to acquire a controlling interest in Vertex Standard Co.. Ltd. (JASDAQ: 6821) a global provider of 2-way radio communication solutions. Upon successful completion of the tender offer and subsequent restructuring process. Motorola will own 80% of Vertex Standard and Tokogiken a privately held Japanese company controlled by Jun Hasegawa current president and CEO of Vertex Standard will retain 20% forming a joint venture. On 5 November 2007 the Board of Directors of Vertex Standard expressed their support of the tender offer.“As a leading provider and pioneer in 2-way radio communication solutions. Motorola is an excellent strategic partner for our business,” said Jun Hasegawa president and CEO of Vertex Standard. “The joint venture will give Vertex Standard access to Motorola’s global distribution channels presenting considerable opportunities for Vertex Standard to drive growth. We also expect to reduce costs as we will benefit from Motorola’s global scale and resources. With Motorola. Vertex Standard will be stronger and better positioned to deliver new and innovative 2-way radio solutions for professionals and consumers around the world.”“This joint venture will enable Motorola and Vertex Standard to deliver an enhanced combined product offering to new regions and customers worldwide,” said Mark Moon senior vice president of Motorola’s Government and Commercial Markets. “We are extremely pleased to announce this transaction which will improve our ability to address the growing needs of our 2-way radio customers worldwide. We look forward to the continued leadership of Jun Hasegawa and making this new joint venture a success.” The tender offer price is ¥2,214 (approximately US $19.38) per share of common stock. This price represents:A premium of 38.4% over 1600 yen the closing price of Vertex Standard’s shares on the JASDAQ Securities Exchange. Inc on 2 November 2007 A premium of 40.8% over 1573 yen the average closing price of Vertex Standard’s shares on the JASDAQ Securities Exchange. Inc over the last three months to 2 November 2007The total purchase price for 80% of the outstanding shares on a fully diluted basis will be approximately ¥12.3 billion (approximately US $108 million). Vertex Standard is a leader within the Land Mobile Radio segment where the company continues to demonstrate particular brand strength in high value entry level solutions. The joint venture will develop and sell Vertex Standard branded products and develop select Motorola branded products. The Motorola brand will continue to focus on higher featured higher tier products and continue to utilize existing Motorola distribution channels. The joint venture will expand and develop a comprehensive suite of products to address the rapidly growing demand for 2-way radio solutions. Vertex Standard’s strength in the Amateur. Marine and Airband (Avionics) segments will also provide Motorola with access to new business opportunities. In addition. Vertex Standard’s solutions are highly complementary with Motorola’s products and will add greater depth and breadth to Motorola’s Government and Public Safety business. The venture will also provide additional engineering talent for Motorola. Additional Transaction DetailsUpon successful completion of the tender offer and subsequent planned restructuring. Vertex Standard will be de-listed from the JASDAQ. The joint venture company will continue to be called “Vertex Standard Co.. Ltd” and will become a subsidiary of Motorola with headquarters in Tokyo. The shareholders of Vertex Standard who do not tender their shares in the tender offer will receive cash consideration for the shares which they hold as a result of the restructuring following successful completion of the tender offer. The tender offer which is subject to regulatory and other customary conditions is expected to close in early January 2008. In addition. Motorola must complete the tender offer within 60 working days of its commencement as required by Japanese law. About MotorolaMotorola 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 connect 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 $42.8 billion in 2006. For more information about our company our people and our innovations please visit http://www motorola com. About Vertex StandardVertex Standard Co. Ltd is a company primarily engaged in radio communication products for land marine airband and amateur Since the company was incorporated in 1956. Vertex Standard has become a global two-way radio manufacturer with advanced technologies. With customer satisfaction as its number one priority the company has supplied products that meet the changing demands of the 2-way radio communications market. Sales for the fiscal year-ending March 2007 were approximately 21,983,000,000 yen. Details for Vertex Standard are available at http://www vxstd com/jp/.
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