Cerner and Siemens Nixdorf Information Systems form strategic partnership for international marketplace.

KANSAS CITY, Mo.--(BUSINESS WIRE)--June 11, 1996--Cerner Corp. (Nasdaq:CERN) today announced it has signed a strategic partnership agreement in which Siemens Nixdorf Information Systems will market, implement, and support Cerner's clinical information solutions in the international marketplace.

The agreement allows Siemens Nixdorf's Worldwide Health Systems Solutions Group, based in Stockholm, Sweden, to market and distribute Cerner products in Europe on an exclusive basis and to participate jointly with Cerner on a non-exclusive basis in other regions, including Asia Pacific, India, and Africa. This agreement gives Cerner broad representation in a number of new markets. The agreement also provides Cerner with significantly greater penetration in its German and United Kingdom markets. Under this initiative, Cerner and Siemens Nixdorf will work closely in areas such as product development and product adaptation for these markets.

The agreement reflects the strengths and the high degree of compatibility of the two companies' respective organizations and solution sets, as well as the minimal overlap in their respective product offerings. Cerner Corp. is a leading developer of clinical and management information solutions for healthcare. Cerner systems implement a process-based approach to managing health that is applicable across geographic and cultural boundaries. Siemens Nixdorf is the largest European information technology firm. Its Worldwide Health Systems Solutions Group has grown by providing solutions for the administrative and financial areas of healthcare, domains which cut across market boundaries but which also require a high degree of market-specific expertise. The combination of the Cerner and Siemens Nixdorf solution sets will create an information systems offering that can cover the breadth of the health enterprise in the international marketplace.

Under this agreement, Cerner will provide its clinical software products, and Siemens Nixdorf will configure them to meet the functional, governmental, business process, and language requirements of all target markets. Along with marketing and installation, Siemens Nixdorf will be responsible for maintenance, support, consulting, and training with respect to the Cerner solutions in those markets. Siemens Nixdorf also has committed itself to substantially increase its investment in organizational resources to support these initiatives.

The agreement establishes two International Competence Centers for Cerner products: one based in Munich, Germany; the other in London, United Kingdom. From the outset, these centers will be staffed by Cerner-experienced personnel to focus on developing skills in Cerner's Health Network Architecture (HNA) and to provide on-going support to existing clients. The activities of these centers will include marketing information and support, product requirements evaluation, and training with respect to product implementation and support.

Richard Roy, Siemens Nixdorf's Member of the Executive Board, Public Sector and Telecom, said, "The healthcare sector is a key growth area for Siemens Nixdorf, and a strategic market for Siemens as a whole. The agreement with Cerner strengthens Siemens Nixdorf's healthcare offering, and confirms the Siemens Group as a leading supplier of information technology, medical systems, networking, telecommunications, and finance to the healthcare sector."

Clifford W. Illig, Cerner's President and Chief Operating Officer, said, "We see Siemens Nixdorf as an emerging global force in healthcare information systems and as a complementary partner for our own distinctive health solutions strategy. The partnership will greatly enhance Cerner's opportunity to increase our business in new as well as established markets, particularly in Europe. As one of the world's leading information technology and healthcare systems suppliers, Siemens Nixdorf is well-placed to help Cerner achieve its goal of implementing a new generation of solutions that automate the full spectrum of managing health."

Illig continued, "Contributions from this strategic partnership will build gradually over the course of the next year and will not impact the current quarter's results. We suggest investors do not change their overall growth assumptions for Cerner's operating results in the short term. We look forward to the substantial contribution we expect this strategic partnership will afford both Siemens Nixdorf and Cerner in the years ahead."

Alfred R. Sondern, President of Cerner International, said, "With the significant changes that have been occurring in the purchasing behavior of government-funded health systems in Europe, Cerner has moved aggressively to a collaborative strategy for maximizing the opportunities that are emerging in Europe and elsewhere. Our agreement with Siemens Nixdorf will allow us to have an immediate and substantial presence with a motivated and highly-qualified systems partner who can maintain high levels of client satisfaction and effectively manage the business-establishment and governmental acquisition processes in expanding markets."

Siemens Nixdorf's Worldwide Health Systems Solutions Group is a part of the company's Public Sector and Telecom Line of Business. As such, it is positioned to bring a broad solution to both public and private healthcare enterprises: telecommunications, networks, computer hardware, and open operating systems, in addition to medical systems, finance, and consulting.

Siemens Nixdorf Informationssystems A.G., is based in Munich, Germany, and is the largest European information technology firm with annual revenues of over $8 billion. It is part of the Siemens Group, which has annual revenues of approximately $60 billion. Siemens Nixdorf employs approximately 37,000 people in over 30 countries. Siemens Group employs a total of 373,000 people worldwide.

Cerner Corp. is a leading developer of clinical and management information systems that support evolving relationships between providers, purchasers, payors, and consumers of health services. Health organizations worldwide use Cerner's comprehensive Health Network Architecture (HNA) to make more effective decisions, streamline processes, reduce costs, and deliver higher quality care more efficiently across multiple clinical disciplines and care venues within the community.

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