Freescale Semiconductor and CSI Wireless Close Communication Gap in Emerging Markets

[August 25, 2004]

Freescale Semiconductor and CSI Wireless Close Communication Gap in Emerging Markets

AUSTIN, Texas --(Business Wire)-- Aug. 25, 2004 -- Comprehensive 2.5G Platform Helps CSI Wireless Serve Landline Customers Over Traditional Cellular Networks

Millions of people around the world were unable to make a phone call until CSI Wireless Inc. (TSX:CSY) made fixed wireless phones available to emerging markets. Using the i.250 GSM/GPRS platform from Freescale Semiconductor Inc. (NYSE:FSL), CSI Wireless introduced its new "410 Series" of fixed wireless phones, enabling carriers to overcome expensive or non-existent landline infrastructure in both developing and developed countries.

Fixed wireless phones plug into standard electrical power outlets and resemble wall-mount or desktop phones. They communicate over existing cellular networks instead of traditional landline systems. Carriers are able to increase revenues by maintaining high-quality cellular voice and data services to consumers that otherwise would not be available. Simultaneously, carriers can reduce costs through economies of scale and optimization of costly infrastructure.

Features such as two watt power output, broad signal range and enhanced voice quality enable fixed wireless phones to provide service in rural or under-developed areas, where portable, battery-powered handsets often perform poorly. Fixed wireless is not limited to developing countries; its other applications include motor homes, vacation resorts, offices, or any situation in which people require seamless mobility.

Stephen Verhoeff, CSI Wireless' president and CEO, stated "We chose Freescale's i.250-21 cellular platform because it is comprehensive and flexible. Its high level of integration decreased our development time and increased our speed to market. That is evident in the fact that we were able to announce our 410 Series GSM product line only five months after we selected Freescale's platform."

"In Latin America alone, there are more than 60 million homes without landline service and almost every city has cellular coverage," said Franz Fink, wireless and mobile systems group vice president and general manager at Freescale Semiconductor. "Our i.250 platform acts as a catalyst to bridge the communications gap in environments where landline infrastructure replacement is currently the only way to make a call."

Wireless technology from Freescale and CSI Wireless is providing affordable, feature rich phones to millions of consumers in regions where current conditions make conventional products unaffordable or inoperable. The 410 Series features a leading product feature set, with customized models that reflect the languages and frequencies of specific countries and regions. The i.250-21 platform is quad band capable, enabling deployment in the Americas, Asia, Africa, Europe and the Middle East. Additionally, Freescale reference designs and development tools provide a head-start on design.

About CSI Wireless

With offices in Calgary, Silicon Valley, and Phoenix, CSI Wireless designs and manufactures innovative, cost-effective, wireless and GPS products for mobile and fixed applications in the agriculture, marine, automotive and other markets. CSI is a leader in several emerging high-growth markets including Fixed Wireless Telephones, Precision Guidance in Agriculture and Consumer Telematics. The Company owns numerous patents and intellectual property relating to wireless and GPS technologies. It has licensed its cellular technology to GPS, cellular handset, and chipset manufacturers. The company's common shares trade on The Toronto Stock Exchange under the trading symbol "CSY," with approximately 33 million outstanding. For more information about CSI Wireless and the 410 Series of fixed wireless phones, go to www.csi-wireless.com.

About Freescale Semiconductor

Freescale Semiconductor Inc. (NYSE:FSL) is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004 after more than 50 years as part of Motorola Inc. (NYSE:MOT). The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale Semiconductor's 2003 sales were $4.9 billion (US). For more information: www.freescale.com.

Freescale(TM) and the Freescale logo are trademarks of Freescale Semiconductor Inc. All other product or service names are the property of their respective owners.

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