Motorola acquires Modulus Video

Modulus Video will be acquired by Motorola and become a wholly owned subsidiary of the company. Details of the transaction were not disclosed. Modulus Video has been committed to MPEG-4 Advanced Video Coding (AVC) compression systems designed for delivery of high value video content in the IPTV, cable, broadcast and satellite marketplace. Modulus Video has partnered with Motorola for over two years bringing high-quality encoding solutions to key customers around the world.

“Through this acquisition, Modulus Video will become part of a
world-class organization in a highly strategic market segment. Our
team will benefit from Motorola’s rich heritage and leadership of video
delivery expertise,” said Bob Wilson, Chairman and CEO of Modulus
Video. “Modulus Video will bring to Motorola a software-centric
platform that ensures flexibility, reduced cost and fast development
time.”

This acquisition will complement Motorola’s recent acquisitions of Broadbus, Kreatel, Tut Systems and Netopia in the creation and delivery of an integrated, end-to-end video delivery system for multiple network architectures.

“Motorola is committed to offering an integrated, end-to-end video portfolio designed to meet the current and next-generation requirements of operators,” said Dan Moloney, President, Connected Home Solutions business, Motorola, Inc. “As consumers demand more high definition video and interactive services, the need for advanced compression technology is increasingly important. As part of its advanced real-time video encoding products, Modulus Video has a powerful architecture and product development framework that is well suited for continued technological advancement.”

Upon completion of the transaction, Modulus Video will become a wholly owned subsidiary of Motorola and will be integrated into the Motorola Home & Networks Mobility business. Motorola intends to maintain Modulus Video operations in Sunnyvale, California.

The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Modulus Video stockholders, and is expected to be completed in the second or third quarter of 2007.