Subject: [NEXTEL-1] Motorola Announces Settlement Of Lawsuits Filed By Chase Manhattan Bank Relating to Old Iridabomb (Iridium) Satellite Communications Company

From: Marcel <[email-masked]>
Date: Wed, 12 Mar 2003 23:30:30 -0500

Motorola Announces Settlement Of Lawsuits Filed By Chase Manhattan Bank Relating to Old
Iridabomb (Iridium) Satellite Communications Company
http://www.motorola.com/mediacenter/news/detail/0,1958,2468_2011_23,00.html
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Motorola Announces Settlement Of Lawsuits
Filed By Chase Manhattan Bank Relating to Old Iridium Satellite Communications
Company

Schaumburg, Ill., March 6, 2003 --
Motorola, Inc. (NYSE:MOT) announced today that it has reached an agreement to
settle out-of-court all remaining lawsuits filed against the company by Chase
Manhattan Bank relating to the Old Iridium satellite communications company,
Iridium LLC. Under the agreement, Motorola will pay Chase and Iridium’s
secured lenders an additional amount of approximately $12 million to resolve
five remaining legal disputes with the
lenders.

Covered under the agreement announced
today were pending claims filed by Chase, as agent for Old Iridium’s
secured lenders, and also by Motorola with respect to the Old Iridium’s
$800 million Senior Secured Credit Agreement. The five claims
include:

1: The lenders’ claim for a $300
million guarantee, filed in federal court in New York. That case led to a
judgment against Motorola in early 2002, which was still subject to appeal by
Motorola. As part of today’s agreement, Motorola will not pursue an appeal
of that judgment. The judgment, which totaled $371 million including interest,
was paid by Motorola in April 2002;

2:
Motorola’s $260 million counterclaim against Chase in that same
proceeding. Under the agreement, Motorola will not pursue its counterclaim
against Chase;

Also resolved were:

3: Claims against Motorola in a $50 million
reserve capital call complaint filed in federal court in
Delaware;

4: A new case the lenders had
recently filed against Motorola Canada in federal court in Delaware over an
Agreement of Indirect Owner that allegedly obligated Motorola Canada to
guarantee a portion of the capital call liability of Iridium Canada;
and,

5: A case filed in a New York state court
alleging that Motorola and Old Iridium had “fraudulently induced”
Chase and 17 other lenders of Old Iridium to enter into the Senior Secured
Credit Agreement, an allegation that was strongly denied by Motorola. That case
sought the entire unpaid balance of the $800 million loan plus interest and
expenses.

The settlement does not impact a
separate lawsuit filed in U.S. Bankruptcy Court in July 2001 by the Official
Committee of Unsecured Creditors seeking damages in excess of $4 billion from
Motorola. Motorola believes it has strong defenses to the Committee’s
claims and continues to defend that case. The settlement also does not impact
Motorola’s pending challenge to a settlement agreement between the secured
lender group and that committee.
The Old Iridium
satellite communications system was launched in November 1998 but failed to
attract a sufficient number of subscribers to remain in business. The company
filed for protection from its creditors in U.S. Bankruptcy Court in August 1999.
The company’s assets were purchased by the New Iridium Company in December
2000.

About Motorola

Motorola, Inc. (NYSE:MOT) is a global leader in
providing integrated communications and embedded electronic solutions. Sales in
2002 were $26.7 billion. Motorola is a global corporate citizen dedicated to
ethical business practices and pioneering important technologies that make
things smarter and life better for people, honored traditions that began when
the company was founded 75 years ago this year. For more information, please
visit:
www.motorola.com.

###

Media
Contact:
Jennifer
Weyrauch
1+847-435-5320
[email-masked]

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