Verizon Selects Motorola to Provide Optical Equipment for Deployment of Next-Generation Fiber-to-the-Premises (FTTP) Network

NEW YORK and SCHAUMBURG, Ill. - Motorola, Inc. (NYSE: MOT) and Verizon Communications Inc. (NYSE: VZ) today announced that Verizon has awarded Motorola a five-year contract to supply equipment in support of the deployment of next-generation fiber-to-the-premises (FTTP) networks. Motorola's FTTP technology will help Verizon deliver advanced services, including innovative broadband, video entertainment and quality voice services to the homes and businesses served by Verizon's all-fiber network. Terms of the contract were not disclosed.

Verizon is now deploying FTTP in half the states it serves, and has already begun to sell its FiOS broadband services over fiber. Motorola becomes the second company to supply Verizon with FTTP electronics and now joins a select group of primary suppliers of electronic and outside plant equipment for the project.

As previously announced in October 2004, in a separate multi-year contract, Verizon selected Motorola to help build the video network infrastructure portion of FTTP, providing head-end technology, digital set-tops and integration services.

Under the contract announced today, Motorola will provide Verizon with advanced electronic equipment that will be installed in Verizon central offices, as well as at customer locations, as the company deploys FTTP. This equipment includes high-density, multi-protocol Optical Line Terminals (Motorola AXS2200 OLT), intelligent Optical Network Terminals (Motorola residential and business ONTs) and video-optimized Optical Amplifiers (Motorola EDFAs).

"Motorola's technology will help us expand our strategic footprint in the entertainment services market and further enhance our ability to deliver voice, data and video services over fiber to our customers," said Paul Lacouture, president of Verizon's Network Services Group. "Motorola's ability to scale to match Verizon's FTTP deployment plans was a key factor in our selection of its next-generation FTTP technologies."

In 2004, Verizon began building its new all-fiber network, which uses hair-thin strands of fiber and optical electronics to replace traditional copper-wire connections and directly links homes and businesses to the Verizon network. Verizon's FTTP network currently passes more than 1 million homes and businesses across 14 of the 29 states the company serves. Verizon plans to double its FTTP network deployment in 2005, as well as launch its first television services on its new FTTP network in the second half of the year.

"This agreement extends Motorola's long-standing relationship with Verizon and underscores our ability to successfully deliver proven FTTP solutions that easily scale from thousands to millions of subscribers," said Adrian Nemcek, executive vice president, and president of Motorola's Networks business. "As users' demand for seamless mobility and converged services continues to increase, Verizon is well-poised to take a leading position as a next- generation service provider."

About Motorola

Motorola is a Fortune 100 global communications leader that provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. In your home, auto, workplace and all spaces in between, seamless mobility means you can reach the people, things and information you need, anywhere, anytime. Seamless mobility harnesses the power of technology convergence and enables smarter, faster, cost-effective and flexible communication. Motorola had sales of US $31.3 billion in 2004. For more information: www.motorola.com.

About Verizon

With more than $71 billion in annual revenues, Verizon Communications Inc. (NYSE:VZ) is one of the world's leading providers of communications services. Verizon has a diverse work force of more than 210,000 in four business units: Domestic Telecom serves customers based in 29 states with wireline telecommunications services, including broadband and other services. Verizon Wireless owns and operates the nation's most reliable wireless network, serving 43.8 million voice and data customers across the United States. Information Services operates directory publishing businesses and provides electronic commerce services. International includes wireline and wireless operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.

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