RELEASE: Motorola acquires Netopia for $208M

Motorola Acquires Netopia, Extending Portfolio of Voice and Data Solutions for the Connected Home November 14, 2006 - Motorola and Netopia have announced the signing of a definitive merger agreement, under which Motorola will acquire all of the outstanding shares of Netopia common stock. The acquisition is expected to be completed in early 2007. Netopia provides broadband customer premise equipment (CPE), remote management software and broadband services to telecom operators. The company provides products designed for DSL networks, including wired and wireless modems, routers, and gateways. They deliver voice, video, data, and other advanced services to residential and business customers. The acquisition enables Motorola to further address the global broadband DSL and thus the Connected Home opportunity. Netopia’s portfolio of products and technologies claim to extend Motorola’s current solutions for the emerging IPTV opportunity. Motorola will now offer a full suite of home CPE for copper-based telecom networks – including home media hubs, voice gateways, and IP set-tops. This will complement the leading video, voice, and data portfolio Motorola already provides for HFC and optical network operators worldwide. Motorola will make use of Netopia’s software solutions, which will provide for the centralized management of IP-based gateways, modems, and voice-over-IP equipment. Netopia will eventually become a wholly-owned subsidiary of Motorola and will be integrated into Motorola’s Connected Home Solutions business. "Motorola and Netopia share a common vision of the connected home as the hub for seamless mobility. This acquisition advances our vision by strengthening the Connected Home Solutions business position as a leading supplier of technology and services to telecom providers worldwide," said Dan Moloney, President, Motorola Connected Home Solutions. "We look forward to adding the great people, technology and telecom marketing expertise of Netopia to the Motorola Connected Home Solutions team." "This transaction represents an outstanding opportunity for us to deliver significant value to the stockholders, employees, customers, and strategic partners of Netopia," said Alan Lefkof, President and CEO of Netopia, Inc. "We are confident that combining Netopia’s expertise in telecom CPE products with Motorola’s proven track record of delivering connected home solutions to broadband providers worldwide will create exciting future growth opportunities for both companies. My team is committed to working closely with Motorola to ensure a rapid and seamless transition."