SCHAUMBURG, Ill. -- Motorola, Inc. today reported sales of $7.0 billion in the

second quarter of 1998, down 7 percent from $7.5 billion a year earlier. In

the first half, sales declined 2 percent to $13.9 billion from $14.2 billion

in the first half of 1997.

Excluding special items, second-quarter earnings were $6 million, or 1

cent per share in 1998, compared with $392 million, or 64 cents per share in

the second quarter of 1997. Excluding special items, earnings for the six

months were $147 million, or 25 cents per share, compared with $678 million,

or $1.11 per share a year earlier.

The company recorded special items of $1.91 billion pre-tax, or $2.23 per

share after-tax, in the second quarter of 1998. These items include $1.98

billion of charges associated with a comprehensive series of manufacturing

consolidations, cost reductions and restructuring steps intended to improve

financial performance, as announced June 4, partially offset by gains on the

sale of assets. As a result, the second-quarter loss, including the special

items, was $1.3 billion, or $2.22 per share, compared with earnings of $268

million, or 44 cents per share, in the second quarter a year ago. The year-

earlier quarter includes special charges against pre-tax earnings of $190

million, or 20 cents per share after-tax, largely from the phase-out of the

dynamic random access memory (DRAM) business.

In the first six months of 1998, the loss, including special items was

$1.15 billion, or $1.92 per share, compared with earnings of $593 million, or

97 cents per share, in last year's first half.

Robert L. Growney, president and chief operating officer, said, "As we

indicated last month, the second-quarter results reflect further slowing of

demand and continuing global pricing pressure, principally in the

Semiconductor Products and Messaging, Information and Media segments and

driven primarily by economic conditions in Asia," he said.

"The goal of our renewal plan," Growney continued, "is to generate

annualized savings, once all actions have been implemented over the next 12

months, of more than $750 million. We expect to see the positive impact of

these savings to steadily increase over the next several quarters."

Growney reviewed the following results of Motorola's major operations for

the second quarter, compared with the second quarter of 1997:


Cellular Products Segment