GENBAND Acquires Technologies from Siemens Networks.

GENBAND's Comprehensive Next-Gen IMS-Based Migration Solutions Now Available to DCO Installed Base and Siemens EWSD Customer Base

BOCA RATON, Fla. & PLANO, Texas -- Siemens Networks LLC and GENBAND Inc. today announced that Siemens has transferred its DCO (Digital Central Office) circuit-switch business and exclusively licensed other technology, enabling GENBAND to provide open interfaces for next generation network solutions to both the DCO and the Siemens North American EWSD installed base. Terms of the sale were not disclosed. Siemens will continue to service and support the installed base of 1,100 EWSD switching systems.

GENBAND, a long-time Siemens technology partner in which Siemens has an investment, will acquire the DCO business which includes personnel, the product portfolio as well as its service and support infrastructure for more than 2,500 DCO host and remote switches across North America.

"Our vision and mission relative to transitioning today's central office has been to deliver best-of-breed, standard-based, IP infrastructure products to service providers world-wide," said Charles D. Vogt, GENBAND's president and CEO. "We are excited about the opportunity we have to offer our products and solutions to an expanded base of customers. With our growing portfolio of IMS-based infrastructure products and multimedia applications, GENBAND is committed to providing service providers with flexible and cost-effective next-generation VoIP and multimedia solutions."

"GENBAND is a highly-respected industry leader that will provide DCO customers with a wide range of support and options to help keep them competitive and responsive to their market's changing needs," said Harald Braun, President and COO, Siemens Networks.

Both executives emphasized that their companies will continue working closely together, not only to ensure a smooth transition for customers but also to explore new market opportunities in the future.

About Siemens

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $96 billion in fiscal 2005. Founded nearly 160 years ago, the company is a leader in the areas Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $18.8 billion and employs approximately 70,000 people throughout all 50 states and Puerto Rico. Eleven of Siemens' worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 460,000 people in 190 countries. For more information on Siemens in the United States: www.usa.siemens.com

About Siemens Networks LLC

Siemens Networks LLC* engages in a dialog with its customers to create trendsetting communications solutions that help network operators and service providers achieve their business goals. Siemens Networks contributes its innovative strength, worldwide experience and unsurpassed implementation expertise in all areas of voice and data communications. As an innovation leader, Siemens Networks delivers customer value today and prepares customers for tomorrow with trendsetting solutions. Siemens Networks is a fully-owned subsidiary of Siemens AG and operates in about 100 countries. More about Siemens Networks at www.siemens.com/networks.

*Siemens Networks will merge into a 50-50 joint venture with the Nokia Networks Business Group, creating a telecommunications powerhouse that will be called Nokia Siemens Networks. The new company will be a global communications leader with strong positions in important growth segments of the fixed and mobile network infrastructure and services, featuring a world-class fixed-mobile convergence capability. The new company Nokia Siemens Networks is expected to start operations by January 1, 2007, subject to customary regulatory approvals, the completion of standard closing conditions, and the agreement of a number of detailed implementation steps.

About GENBAND

GENBAND is the leading supplier of IP multimedia application and infrastructure products and solutions for a diverse set of VoIP and IMS networks worldwide. These IMS-ready applications and solutions enable wireline, cable, and wireless service providers to rapidly deploy new multimedia services, while providing a foundation to transition legacy networks to next generation networks. GENBAND has deployed its IP Multimedia products and technology to over 125 customers with more than 750 deployments, across three continents. Headquartered in Plano, Texas, GENBAND has research and development facilities in Fremont, California; Austin and Plano, Texas; and New Delhi, India. Additional information is available at www.GENBAND.com.

Note: Siemens and DCO are registered trademarks of Siemens AG or its subsidiaries and affiliates. All other company, brand, product and service names are trademarks or registered trademarks of their respective holders.

This release contains forward-looking statements based on beliefs of Siemens management. The words "anticipate," "believe," "estimate," "forecast," "expect," "intend," "plan," "should," and "project" are used to identify forward-looking statements. Such statements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.