Siemens Acquires Home Entertainment Software Company Myrio.

BOCA RATON, Fla. -- Siemens Communications, Inc. (Siemens), announced that it has acquired leading Internet protocol television software company Myrio to increase its commitment to the rapidly growing home entertainment market. Myrio specializes in middleware and applications for home entertainment solutions, which includes components to create a compelling consumer experience and provide network operators with the management systems for pricing, packaging and applications development. The acquisition means that Siemens will now further enable network service providers to deploy integrated home entertainment solutions as part of a growing set of products and services.

According to market researchers, home entertainment is among the fastest growing consumer market segments. The business centers on new applications for the television, and the expanding interaction with other devices and media types in the home. These include interactive television with options for calling up movies, personal video recording services, online services, and communication applications such as Multimedia Messaging Service, Short Messaging Services and video telephony. Market analysts estimate the potential for advanced video services - including video telephony, audio, video and games on demand - to be in excess of 20 billion euros by 2006. Siemens AG is already a leader in this segment as a system supplier and integrator, winning customers in Europe (Belgacom) and Asia (ADC Thailand).

Siemens is taking the strategic step of acquiring Myrio, a long standing partner, after an initial investment by Siemens Venture Capital in late 2003. Myrio, a specialized 75-person software firm headquartered near Seattle, has been the software partner of choice for Siemens AG in the home entertainment solutions for more than a year. In addition to the account successes with Siemens AG in Europe and Asia, Myrio also has more than 65 other customers globally.

"Myrio's middleware is the foundation for developing additional new services in home entertainment," said Andy Mattes, president and CEO, Siemens Communications, Inc. "The acquisition means we can focus even more closely on our customers needs and realize our vision of offering a universal platform for managing customer services."

"We have enjoyed a productive sales and joint development relationship with Siemens AG for more than two years now, and we view this transaction as the next logical step in building service provider centered applications to leverage their broadband IP networks," said Chris Coles, president and CEO of Myrio Corporation. "I expect this will accelerate and expand our product plans, as well as better support our continuing objective of interoperating with the multitude of vendors that typify these networks around the world."

Background information

Home entertainment ranks among the most rapidly growing market segments, with the confluence of digital media and broadband IP networks. With the Siemens solution, the television set is transformed into an entertainment and communications platform. Network operators can use it to offer their customers new communications services and entertainment on the home television via DSL. It is simplicity itself to retrieve the latest films, music videos and games from the network and watch them on the television; in addition, Internet access, e-mail, SMS/MMS and video telephony via the TV are also anticipated.

Myrio's middleware handles the navigation to content and services directly from the network service provider. They are made available to the customer's television set over a broadband connection via Internet Protocol (IP). The middleware essentially comprises two components: servers running on the network and client software that runs in a set top box. Both software components have to work hand-in-hand and control the requisite, sometimes very complex network functions so that the desired services such as video on demand, gaming or video telephony are delivered flawlessly. This is why middleware is considered the "brain" of home entertainment. The quality of the middleware is also important because it is the interface with the customer - on whose acceptance the value of home entertainment ultimately depends. Users should be able to select every service on their television set as simply as possible using a remote control, with all of the complex communication between the client and server components being handled by the service provider. This is the essence of the Siemens solution.

About Siemens

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $91.5 billion in fiscal 2004. Founded more than 150 years ago, the company is a leader in the areas of 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 $16.6 billion and employs 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 430,000 people in 192 countries. For more information on Siemens in the United States: www.usa.siemens.com

About Siemens Communications, Inc.

Siemens Communications, Inc., offers its customers a broad portfolio of communication products and services and is a leader in convergent technologies, products and services for wireless, fixed and enterprise networks. The company's portfolio ranges from devices for end users to complex network infrastructures and complementary services for enterprises, carriers and service providers. Siemens Communications, Inc., is headquartered in Boca Raton, Fla. For more information, visit www.usa.siemens.com/communications

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.