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Record Sales and Earnings per Share for the Second Quarter of 2011

Zebra Technologies Announces Record Sales and Earnings per Share for the Second Quarter of 2011
Strong sales growth in international regions leads to margin improvement and record earnings per share from continuing operations

Lincolnshire, IL, August 4, 2011─Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2011 second quarter income from continuing operations of $33,169,000, or a record $0.60 per diluted share, compared with $22,185,000, or $0.38 per diluted share, for the second quarter of 2010. Net sales for the quarter ended July 2, 2011, increased 12.3% to $245,541,000 from $218,558,000 for the corresponding period for 2010. Results for 2010 have been adjusted to account for the sale of Navis Holdings LLC, which was sold on March 18, 2011, and other immaterial
operations which have been accounted for as discontinued operations.

"Our investments to extend geographic reach, accelerate the cadence of new product introductions and build more formidable go-to-market channels helped support Zebra's second quarter results," stated Anders Gustafsson, Zebra's chief executive officer. "More Zebra sales representatives in emerging regions enabled us to meet more customers' needs to identify, track and manage valued assets in complex supply chains. With its scale and multiple competitive advantages, Zebra is extending its global industry leadership. We are optimistic about our further success and capacity for creating greater shareholder value."

As of July 2, 2011, Zebra had $342,878,000 in cash and investments, and no long-term debt. Net inventories were $118,109,000, and net accounts receivable were $145,991,000.

Discussion and Analysis

  • Net sales for the second quarter of 2011, compared with the same quarter for 2010, benefited from strong sales growth in all international geographic regions. The addition of Zebra sales representatives placed in high-growth countries and regions over the past twelve months, and other initiatives as part of the company's growth strategy, complemented improved business conditions in these territories. Quarterly sales increased 8.0% on a constantcurrency basis from a year ago.
  • Gross margin of 49.6%, versus 45.5% a year ago, reflects lower costs for raw materials, higher volumes, lower freight charges and favorable movements in foreign exchange rates.
  • Operating expense growth of 11.2% includes higher employee-related payroll and benefit costs, in part related to geographic expansion and other growth initiatives.

Stock Purchase Update

During the second quarter of 2011, Zebra repurchased 1,000,000 shares of Zebra Technologies Corporation Class A Common Stock. At July 2, 2011, the company had 2,750,000 shares remaining in its stock buyback authorization, and 54,170,138 shares of common stock were outstanding.

Third Quarter Outlook

Zebra announced its financial forecast for the third quarter of 2011. Net sales are expected within a range of $245,000,000 to $255,000,000. Diluted earnings per share from continuing operations are expected within a range of $0.57 to $0.64.

Conference Call Notification

Investors are invited to listen to a live webcast of Zebra's conference call discussing the company's financial results for the second quarter of 2011. The conference call will be held at 11:00 AM Eastern Time today. To listen to the call, visit the company's website at http://www.zebra.com.

Forward-looking Statement

This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company's financial forecast for the third quarter of 2011 stated in the paragraph above captioned "Third Quarter Outlook." Actual results may differ from those expressed or implied in the company's forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.

These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra's hardware and software products and competitors'  product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit, capital markets volatility, may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships.

Profits and profitability will be affected by Zebra's ability to control manufacturing and operating costs. Because of a large investment portfolio, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results because of the large percentage of our international sales. The outcome of litigation in which Zebra may be involved is another factor. These and other factors could have an adverse effect on Zebra's sales, gross profit margins and results of operations and increase the volatility of our financial results. When used in this release and documents referenced, the words "anticipate," "believe," "estimate," and "expect" and similar expressions, as they relate to the company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company's future operations and results can be found in Zebra's filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra's Form 10-K for the year ended December 31, 2010.

About Zebra Technologies

Zebra Technologies Corporation (NASDAQ: ZBRA) gives customers visibility of critical assets, people and transactions through a broad range of printing and location technologies. Our barcode, card, kiosk and RFID printers as well as real-time location solutions have made us a recognized global leader in providing enabling solutions that identify, track, and manage critical assets, people and transactions for improved business efficiencies.

For more information about Zebra's solutions, visit http://www.zebra.com.

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