Exhibit 99.1
Xxxxxx Xxxxxxxx
(000) 000-0000
FOR RELEASE
November 5, 1998
MOTOROLA DECLARES QUARTERLY DIVIDEND,
REPLACES EXISTING PREFERRED SHARE PURCHASE RIGHTS AGREEMENT
SCHAUMBURG, Ill. -- Motorola, Inc. (NYSE: MOT) declared a regular quarterly
dividend of 12 cents per share, payable January 15, 1999 to stockholders of
record December 15, 1998. This will be Motorola's 207th consecutive
quarterly dividend.
The company also announced today that its Board of Directors adopted a
new Preferred Share Purchase Rights Agreement to replace the existing plan
that expires November 20, 1998. Under the plan, rights will attach to
existing shares of common stock at the rate of one right for each share of
common stock held by shareholders of record November 20, 1998. The rights
will expire in November 2008.
The plan is designed to help ensure that all Motorola shareholders
receive fair treatment in the event of an unsolicited attempt to gain
control of the company. The new plan has not been adopted in response to
any specific takeover threat, and the Board of Directors is unaware of any
effort by a third party to acquire control of the company.
Each right will entitle a shareholder to buy, under certain
circumstances, one unit of preferred stock for $200. The rights generally
will be exercisable only if a person or group acquires 10 percent or more
of the company's common stock or begins a tender or exchange offer for 10
percent or more of the company's common stock. If a person or group
acquires beneficial ownership of 10 percent or more of the company's common
stock, all holders of rights, other than the acquiring person or group,
will be entitled to purchase the company's common stock (or, in certain
cases, common equivalent shares) at a 50 percent discount. Motorola may
redeem the new rights at a price of one cent per right at any time before a
person or group becomes a 10 percent beneficial owner. A summary of the
new rights plan will be mailed to shareholders.
Motorola is a global leader in advanced electronic systems and
services. It liberates the power of technology by creating software-
enhanced products that provide integrated customer solutions and Internet
access via wireless and satellite communications, as well as computing,
networking, and automotive electronics. Motorola also provides essential
digital building blocks in the form of embedded semiconductors, controls
and systems. Sales in 1997 were $29.8 billion.
