Shanghai, China  [2004-01-19]

AUSTIN, Texas, SHANGHAI and TIANJIN, China -- Jan 19, 2004 ?C Motorola China Electronics Ltd., a wholly owned subsidiary of Motorola, Inc. (“Motorola”), closed the sale of its MOS-17 wafer fabrication facility in Tianjin (“MOS-17”) to Semiconductor Manufacturing International Corporation (“SMIC”) in exchange for shares of SMIC. In connection with this sale, the parties also entered into a strategic foundry relationship.

SMIC will act as a strategic foundry partner to Motorola supporting Motorola in a full range of technologies from MOS-17 as well as other SMIC fabs. In addition, the two companies entered into strategic intellectual property agreements in areas of patents and advanced CMOS process technology.

Motorola has retained an interest in MOS-17 by becoming one of the significant equity holders in SMIC, and is entitled to a seat on SMIC’s board of directors. Motorola will continue to own and operate its nearby BAT-3 semiconductor assembly and test facility, which employs 1,200 workers.

Motorola built its Tianjin Integrated Semiconductor Manufacturing Complex, consisting of both MOS-17 and BAT-3, in 2000. The agreement between Motorola and SMIC will allow the MOS-17 factory to be fully utilized and continues Motorola’s chip production in China. SMIC has made employment offers to all employees associated with MOS-17.

The two companies did not disclose the financial terms of the agreement.


About Motorola
Motorola, Inc. (NYSE: MOT) is a global leader in wireless, automotive and broadband communications. Sales in 2002 were $27.3 billion. Motorola is a global corporate citizen dedicated to ethical business practices and pioneering important innovations that make things smarter and life better, honored traditions that began when the company was founded. For more information, please visit www.motorola.com.

About SMIC
As one of the most advanced foundries in China, SMIC provides integrated circuit (IC) manufacturing at 0.35-micron to 0.18-micron and finer line technologies. Established in April 2000, SMIC, a Cayman Islands company, operates three 8-inch fabs engaged in volume production in Shanghai and is constructing a 12-inch facility in Beijing. In May 2003, SMIC's Fab1 was named one of two "Top Fabs of the Year 2003" by Semiconductor International magazine, a leading industry publication. In addition to IC manufacturing, SMIC provides customers with a full range of services, including design services, mask manufacturing and testing. All three of SMIC’s fabs in Shanghai have obtained ISO9001 and ISO14001 certifications for high service quality and environmental protection standards. The three fabs have also been certified under the OHSAS18001 standard for health and safety. For more information, please visit www.smics.com.
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Media Contacts:

SMIC
Catherine Zhao
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Catherine_zhao@smics.com

Motorola
Scott Stevens
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scott.stevens@motorola.com

Asia-Pacific
Gloria Shiu
+852-2666-8237
gloria.shiu@motorola.com

Europe, Middle East and Africa
Regina Cirmonova
+41-22 -799-1258
regina.cirmonova@motorola.com