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Last Updated: Friday, 4 August 2006, 05:42 GMT 06:42 UK
Motorola warns of Lebanon impact
Motorola handset
Motorola employs about 3,500 people in Israel
Motorola has warned that continuing hostilities between Israel and Hezbollah militants in Lebanon may disrupt its business.

The US phone giant could be especially affected by the ongoing conflict because it has sizeable manufacturing and engineering operations in Israel.

It has about 3,500 employees in Israel, including its Israeli headquarters in Tel Aviv, the country's largest city.

Motorola added that the conflict could also hit its sales across the region.

"We also sell our products and services throughout the Middle East and demand for our products and services could be negatively impacted by the hostilities," the firm said.

The company's comments came as the fighting between Israel and Hezbollah militants continued into its third week.

Motorola is the world's second-largest mobile phone manufacturer and has a global workforce of 69,000.

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