Motorola to buy Symbol Technologies for $3.9 bn

Motorola recently announced that it has agreed to buy Symbol Technologies, a
maker of barcode and inventory scanning technology, for about $3.9 billion to
boost sales of wireless handheld devices to corporate customers.

Motorola, the world's second-biggest handset maker, said it would pay $15
per share, a slight premium over Symbol's closing price of $14.67 on the New
York Stock Exchange.

Symbol makes barcode scanners, such as those found in supermarkets, as well
as Radio Frequency Identification (RFID) tags that store product information in
tiny microchips that can be scanned to keep close track of inventory.

Motorola said it expected the deal to close in late 2006 or early 2007, and
to add to earnings in the first year following closing.

Analysts said Symbol's scanners; RFID tags and rugged handheld computing
devices would complement Motorola's computing systems for retail,
transportation and healthcare markets. Motorola said the acquisition of Symbol,
which will keep its Holtsville, New York, headquarters, would not affect the
pace of Motorola's share repurchase activity.

“This transaction significantly advances Motorola's enterprise mobility
strategy and is consistent with our focus on building on our already strong
intellectual property portfolio,” Ed Zander, Chief Executive, Motorola said in
a statement.

Motorola shares closed at $24.95, after hitting a nearly six-year high of
$25.55 earlier in the session.