c o n d e n s e d   n o t e s   t o
c o n s o l i d a t e d   f i n a n c i a l   s t a t e m e n t s

(In millions, except as noted)                             Motorola, Inc. and Consolidated Subsidiaries 
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Industry segment information
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                                      Net Sales                            Operating Profit
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Years ended December 31          1996    1995    1994           1996            1995            1994
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General Systems Products      $11,324 $10,660  $8,613      $1,251  11.0%   $1,266  11.9%   $1,214  14.1%
Semiconductor Products          7,858   8,539   6,936         382   4.9%    1,218  14.3%      996  14.4%
Land Mobile Products            3,986   3,598   3,399         508  12.7%      324   9.0%      311   9.1%
Messaging, Information
  and Media Products            3,958   3,681   2,981          90   2.3%      310   8.4%      282   9.5%
Other Products                  3,560   3,346   2,660         107   3.0%      131   3.9%       97   3.6%
Adjustments and eliminations  (2,713) (2,787) (2,344)        (29)    --      (48)    --      (29)    --
                              -----------------------      ------          ------          ------
  Industry segment totals     $27,973 $27,037 $22,245       2,309   8.3%    3,201  11.8%    2,871  12.9%
                              -----------------------
General corporate expenses                                  (349)           (270)           (292)
Interest expense, net                                       (185)           (149)           (142)
                                                           ------          ------          ------
Earnings before income taxes                               $1,775   6.3%   $2,782  10.3%   $2,437  11.0%
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                                                               Fixed Asset              Depreciation
                                        Assets                Expenditures                Expense
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Years ended December 31          1996    1995    1994     1996    1995    1994     1996    1995    1994
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General Systems Products       $6,736  $6,118  $4,699     $709    $762    $621     $499    $450    $327
Semiconductor Products          7,889   7,938   5,886    1,416   2,530   1,640    1,160     909     683
Land Mobile Products            2,113   2,097   2,232      158     169     217      161     155     142
Messaging, Information
  and Media Products            2,506   2,527   2,087      275     357     270      243     204     167
Other Products                  1,851   1,839   1,470      161     285     320      197     154     143
Adjustments and eliminations    (262)   (224)    (72)       --      --      --       --      --      --
                              -----------------------   ----------------------   ----------------------
  Industry segment totals      20,833  20,295  16,302    2,719   4,103   3,068    2,260   1,872   1,462
General corporate               3,243   2,443   1,193      254     122     254       48      47      63
                              -----------------------   ----------------------   ----------------------
  Consolidated totals         $24,076 $22,738 $17,495   $2,973  $4,225  $3,322   $2,308  $1,919  $1,525
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Geographic area information *
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                                       Net Sales                           Operating Profit
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Years ended December 31          1996    1995    1994           1996            1995            1994
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United States                 $20,614 $19,187 $16,297      $1,249   6.1%   $1,681   8.8%   $1,932  11.9%
Other nations                  16,883  16,954  12,758       1,430   8.5%    1,901  11.2%    1,292  10.1%
Adjustments and eliminations  (9,524) (9,104) (6,810)       (370)    --     (381)    --     (353)    --
                              -----------------------      ------          ------          ------
  Geographic totals           $27,973 $27,037 $22,245       2,309   8.3%    3,201  11.8%    2,871  12.9%
                              -----------------------
General corporate expenses                                  (349)           (270)           (292) 
Interest expense, net                                       (185)           (149)           (142)
                                                           ------          ------          ------
Earnings before income taxes                               $1,775   6.3%   $2,782  10.3%   $2,437  11.0%
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                                                                                  Assets
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December 31                                                        1996            1995            1994
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United States                                                   $12,797         $12,552         $10,750
Other nations                                                     8,604           8,197           5,902
Adjustments and eliminations                                      (568)           (454)           (350)
                                                                ---------------------------------------
  Geographic totals                                              20,833          20,295          16,302
General corporate assets                                          3,243           2,443           1,193
                                                                ---------------------------------------
  Consolidated totals                                           $24,076         $22,738         $17,495
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* As measured by the locale of the revenue-producing operations.
1994 has been reclassified to reflect the realignment of various business units.


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Financial highlights || To our stockholders and other friends || Motorola at a glance || Condensed consolidated financial statements || Condensed notes to consolidated financial statements || Five year financial summary || Directors and management board of Motorola, Inc. || CEO quality awards and Dan Noble fellows || Stockholder reference information