Boston, MA - 26 March 2008 - According to Strategy Analytics, Motorola's decision today to break the company up into two separate entities is a step in the right direction. This move will enable Motorola to focus on two of its core competences-in mobile handsets and the digital home. However, this short-term financial fix must not distract Motorola from its long-term operational problems.

Peter King, Director of the Connected Home service at Strategy Analytics, said, "We have long argued that Motorola remains less than the sum of its parts, as far as its consumer strategy is concerned. With leading positions in mobile and connected-home, the company should in theory be driving the market forward with original consumer technology concepts. But we see little sign that it is maximizing that potential. Separation should help the company direct its efforts more effectively towards broadband and digital opportunities. This announcement is a step in the right direction."

Bonny Joy, Wireless Analyst at Strategy Analytics, added, "A spin-off of the mobile division will enable Motorola to focus on its core competence in cellular handsets. However, we emphasize that this short-term financial fix must not distract Motorola from its long-term operational problems. Motorola Mobile still badly needs to address its core problems of an ineffective supply chain, a weak 3G component strategy and an unattractive 3G handset portfolio."