Fujitsu and Siemens Launch Major European Computer Power: Companies Sign Contract Establishing Fujitsu Siemens Computers; Management Team Appointed.

FRANKFURT/TOKYO--(BUSINESS WIRE)--Aug. 24, 1999--

Fujitsu Limited and Siemens AG today announced that they have concluded a formal agreement establishing a European joint-venture company, Netherlands-based Fujitsu Siemens Computers BV, to further expand and strengthen both parties' business in the worldwide computer market.

The move follows upon a Memorandum of Understanding between the companies announced in June. The joint-venture company, in which Fujitsu and Siemens each hold a 50% share, will be ranked second in the European computer market by unit shipments and third in terms of revenue; its goal is nothing less than to achieve the number 1 position in Europe. Pending required regulatory approvals, the new company will commence operations on October 1, 1999, and from April 1, 2000 it will operate Europe-wide as a single fiscal entity to develop, manufacture and market a full range of IT platforms -- from notebooks to mainframes -- for consumer and corporate markets.

Fujitsu Siemens Computers will have a twelve-member Board of Directors (four executive and eight non-executive members) headed by Rudi Lamprecht, Group President, Siemens Information and Communication Products, as its chairman, and with equal representation by both parent companies. Serving as executive members of the Board and leading business operations will be a management team comprised of Tetsuo Urano as Vice Chairman, Adrian von Hammerstein as CFO, and Winfried Hoffmann and Robert Hoog as co-presidents. Urano is currently joint president of Fujitsu Computers (Europe) Ltd. Hammerstein is CFO and member of the group board of Siemens' Information and Communications Products Group. Hoffmann, currently joint president of Fujitsu Computers (Europe), has been appointed President of Sales and Marketing for the new company. Hoog, who is president of Siemens' Computer Systems Division, will serve as President of Product Management and Supply. -0-

 Fujitsu Siemens Computers BV -- Company Profile  Operations start-up:
 October 1, 1999 Board of Directors (proposed):

    Non-executive (1)
     Chairman, Rudi Lamprecht

    Executive
     Vice Chairman: Tetsuo Urano
     President, Sales & Marketing: Winfried Hoffmann
     President, Product Management & Supply: Robert Hoog

     CFO: Adrian von Hammerstein
         (1)Other non-executive members will be decided soon.

  Head Office: The Netherlands
  Shareholders: Fujitsu Limited (50%), Siemens AG (50%)
  Scope of Operations: Development, manufacturing and sales of
                       information products

  Fiscal Period: April 1 - March 31
  Projected Sales: 7.6 billion Euros in FY2000
  Employees: 9,000

About Fujitsu

Fujitsu Limited (TSE: 6702) is a leading provider of comprehensive information technology and network solutions for the global marketplace. Comprising over 500 group companies and affiliates worldwide -- including ICL, Amdahl and DMR Consulting Group -- the Fujitsu Group had consolidated revenues of 5.24 trillion yen ($43.3 billion) in the fiscal year ended March 31, 1999. With world-class hardware and software technology in computers, telecommunications and microelectronics, and a corps of 55,000 systems and services experts around the world, Fujitsu is uniquely positioned to harness the power of the network to help its customers succeed. Altogether, the Fujitsu Group has 188,000 employees and operations in over 100 countries. Home page: http://www.fujitsu.co.jp/index-e.html

About Siemens

Siemens is undeniably a global powerhouse in electrical engineering and electronics. We have more than 400,000 employees around the world working to develop and manufacture leading-edge products, design and install complex systems and projects, and tailor a range of individualized services as varied as our customers' requirements. In fiscal 1998, ended September 30, Siemens had sales of 60,18 billion Euros (DM 117,7 billion).

The Information and Communications business segment is the only company in the world that can boast a complete portfolio of information and communication products, networks and services to provide innovative and seamless solutions that meet the challenges of the converging technologies. Information and Communications is one of Siemens most important business segments with sales of around 28 billion Euros and over 110,000 employees. Information and Communications consists of the three groups: Information and Communication Networks, Siemens Business Services and Information and Communication Products (33,000 employees, 11 billion Euros sales).