Siemens Continues Its Product Drive in the North American Market - New Mobile Models Presented - Successful Entry into the US Market.

Business Editors/High-Tech Writers

CTIA Wireless 2003

NEW ORLEANS--(BUSINESS WIRE)--March 17, 2003

At the US CTIA Wireless 2003 trade fair in New Orleans, Siemens Information and Communication Mobile (Siemens mobile) today presented three new mobile phones (SL56, M56 and SX1) for the US market featuring color displays and camera functionality. By taking this step, Siemens mobile is further reinforcing its product and marketing drive in the USA. With the introduction of a total of eight models since October 2002 developed specially for the USA, Siemens mobile has managed to double its market share for GSM mobiles in the USA within about a year. All GSM carriers - AT&T Wireless, Cingular Wireless, and T-Mobile (Voicestream) - are now customers of Siemens mobile. Furthermore, AT&T Wireless today announced it would be marketing two more Siemens mobiles: the S56 and C56.

With its expanded product range, Siemens mobile is aiming to gain a stronger foothold in the fast-growing North American market for GSM, whose pace is far outstripping that of the competing CDMA and TDMA standards. Over 16 million people now use GSM cellular services in the US, representing an approximately 13 percent share of the overall market digital cellular systems. This share is expected to grow up to 40 percent of the cellular services market in the USA by 2007. According to the GSM Association, GSM accounts for over 70 percent of the world market with about 824 million users.

The new mobile phone models presented today at CTIA all support the GSM/GPRS mobile radio standard and will be commercially available starting in the third quarter of this year. The compact SL56, a dual band (GSM 850/1900) slider phone with a keypad that can be opened when needed represents extravagant design and individualization. Buyers of the eye-catching M56, also a dual band device for GSM 850/1900, or the SL56 can use a clip-on camera to send photos over MMS (Multimedia Messaging Service).

Both the M56 and SL56 feature a brilliant color display with 4096 colors and support Java technology. Furthermore, the M56 offers "Cubasis" DJ software from Steinberg, allowing users to produce even more individual polyphonic ringtones. The M56 also signals incoming calls with dynamic light effects on the side of the phone.

The SX1, the first Siemens smartphone with the "Series 60" software platform based on the open operating system Symbian OS is suitable for global use thanks to its triband functionality (GSM 900/1800/1900). The SX1 also has an integrated camera for taking photos and making short video clips. A high-resolution color display with more than 64,000 colors, an MP3 music player, FM radio, Bluetooth and GPRS round out the feature list of the SX1.

Siemens mobile wants to further expand its US business in the wake of the network switchover from TDMA to GSM undertaken by AT&T Wireless and Cingular Wireless, two of North America's biggest mobile radio operators, and the launch of the new mobile phone models. Both operators already market Siemens mobiles. On the occasion of CTIA Wireless, AT&T Wireless and Siemens announced that two dual band (GSM 850/1900) models, the C56 and S56 would soon be available to consumers. The C56 will be available this month from AT&T Wireless; the S56 is expected to be available during the second quarter of this year.

"We've succeeded in entering the US cellular market," said Rudi Lamprecht, Member of the Managing Board of Siemens AG. "We've gained the favor of all GSM carriers and have doubled our market share in the mobile phones sector within just one year. The GSM standard for mobile communication and GPRS for wireless data transmission are undergoing meteoric development in the USA from what was once a niche market to becoming a real mass market. We aim to secure above-average benefits from this development, and we're offering products developed especially for the US market to achieve this."

A photograph accompanies this press release. You can access the photos on the Internet at URL:

www.siemens.com/icm-picture/icm200303053

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 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

You can access press releases, photographs and further information on the Internet at:

http://www.siemens-mobile.com/press