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18 MOTOROLA, INC.
IESS focuses on automotive electronic subsystems, embedded high-availability board-level computer systems
and portable energy systems. Sales increased 16% in 2000, while operating profit margin declined to 7%. IESS
is investing heavily in Telematics, which began as an automotive safety and security offering and is rapidly evolv-
ing into the fundamental way to seamlessly connect the vehicle to the rest of the world. Motorola has shipped
more than 1.5 million Telematics framework components since January 1999. Telematics can encompass
services ranging from voice portal Internet access to navigation. The sector’s Computer Group is a leader in the
embedded solutions telecom market segment. Its family of products provides manufacturers with high-reliability,
fault-tolerant systems for their customers who need continuous access, day or night.
Outlook Despite a sharp slowdown in the growth of the overall economy that began in the latter part of 2000,
we expect demand for wireless, broadband, and workgroup equipment and services to grow as individuals con-
tinue to be attracted to broadband’s triple play of voice, data and multimedia and the convenience of portable
communication products. Growth in embedded devices has slowed in most segments, but we believe the
demand for embedded systems that make our customers’ products simpler, safer, smarter and more synchro-
nized will remain strong in the long term. Business customers are assessing the recent changes in global debt
markets and capital availability as they determine their near-term capital investment plans. The level of busi-
ness activity for companies like Motorola over the next year will be determined largely by the success of further
change in fiscal, monetary and regulatory policy worldwide. We are still in the early phase of this change in the
economic cycle. Therefore, its pace and direction is not firmly predictable. Motorola has managed successfully
through economic cycles in every decade since its founding in 1928. We remain more enthusiastic than ever
about the benefits to society and our stockholders of wireless, broadband, Internet and embedded solutions
tailored for the person, workteam, home and automobile.
Christopher B. Galvin Robert L. Growney
Chairman of the Board and Pre s ide nt and
Chie f Exe cutive Office r Chie f Ope rating Office r
Christopher B. Galvin
Chairman of the Board and Chie f Exe cutive Office r
(right)
Robert L. Growney
Pre s ide nt and Chie f Ope rating Office r
(le ft)