68505--3/2/2006--MOTOROLA

related topics

{tax, income, asset}

{personnel, key, retain}

{cost, operation, labor}

{competitive, industry, competition}

{system, service, information}

{product, candidate, development}

{regulation, government, change}

We operate in highly-competitive markets and our financial results will be affected if we are not able to compete effectively. Our success is dependent, in part, upon our ability to form successful strategic alliances. If these arrangements do not develop as expected, our business may be adversely impacted. We have taken, and continue to take, cost-reduction actions. Our ability to complete these actions and the impact of such actions on our business may be limited by a variety of factors. The cost reduction actions, in turn, may expose us to additional production risk and have an adverse effect on our sales and profitability. We have deferred tax assets that we may not be able to use under certain circumstances. It may be difficult for us to recruit and retain the types of highly-skilled employees that are necessary to remain competitive. Our large system contracts for infrastructure equipment and the resulting reliance on large customers may negatively impact our business. Regulatory changes impacting our cable products may adversely impact our business.

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68505--3/2/2006--MOTOROLA_INC