First UMTS Order for Siemens in Asia - Mobile Radio Operator TCC Orders UMTS Infrastructure for Taiwan; Deliveries Start in This Quarter - Full Speed Ahead for UMTS Production.

Business Editors & Technology Writers

MUNICH, Germany--(BUSINESS WIRE)--Jan. 13, 2003

The Siemens Information and Communication Mobile Group (Siemens mobile) is starting 2003 with a new UMTS order - the first in Asia.

Mobile radio operator Taiwan Cellular Corporation (TCC) has commissioned Siemens mobile to supply and set up its UMTS network. Siemens mobile has been the sole GSM supplier for TCC for seven years. This successful partnership, founded on mutual trust, is now to be continued with the setting up of the UMTS network. Siemens mobile is already delivering the first components to TCC in the current quarter of 2003. They come from the Siemens UMTS factory in Durach (Germany), where production of third-generation (3G) mobile radio is in full swing.

For Siemens mobile the contract with TCC is the first UMTS order in Asia and is therefore of major significance. "Having established ourselves as one of the top 3 UTMS suppliers in Europe we were able to win orders in every major country in Europe, and now we have recorded our first UMTS success in the Asian market. We will continue to pursue our 3G strategy offensive for Asia," says Lothar Pauly, board member of the Siemens Information and Communication Mobile Group, underscoring the significance of concluding this most recent contract.

Siemens mobile is supplying TCC with the core and radio network, hardware and software components for location-based services, and is supporting the Taiwanese mobile radio operator in developing its GSM network. TCC is part of the Taiwan Telecom Group which has around eight million mobile radio customers and which, with a market share of some 33.5 percent, is the market leader in Taiwan. Taiwan is one of the most highly-developed mobile radio markets in Asia with a penetration rate of 100 percent. This means that there are mobile phone users who have several contracts.

With its first UMTS order in Asia Siemens mobile is establishing a further milestone in its 3G development. UTMS test networks are now in operation in 21 countries, with four in Asia in China, Taiwan, Malaysia and Singapore. Over the past year Siemens mobile has already started to deliver infrastructure components to customers for commercial networks: So far more than 6,000 base stations have been delivered worldwide. The lead production site is Durach in Germany, subsequently production will take place in further Siemens mobile factories in Italy, China and Brazil.

The Siemens Information and Communication Mobile Group (Siemens mobile) offers the complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. The infrastructure portfolio includes GSM, GPRS and 3G mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Mobile Applications cover end-to-end solutions for Messaging, Location Based Services or Mobile Payment. For fiscal 2002 (September 30), Siemens AG mobile recorded sales of EUR 11 billion and employed approximately 28,600 people worldwide.

You can access further information about Siemens mobile on the Internet at http://www.siemens-mobile.com A photograph accompanies this press release. You can access the photo on the Internet at URL: www.siemens.com/icm-picture/icm200301004

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Any statements in this document that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. Siemens AG undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.