Siemens strengthens presence in China

Investment of 70 million euros planned for regional headquarters in Shanghai– completion scheduled for 2008

Munich/Shanghai, Nov 7, 2006 - Over the next two years, Siemens will invest approximately 70 million euros in building a center for regional headquarters in Shanghai. The center will be called Siemens Center Shanghai (SCS) and serve the eastern region of China. The aim is to consolidate all Shanghai-based Siemens business areas at SCS by the end of 2008. More than 2,000 employees in administration, marketing, sales, R&D, services and training and also regional executive management will work under one roof. “Siemens Center Shanghai is one of our largest real-estate investments worldwide. We’re confident that this move will strengthen Siemens’ position in one of the most important markets of the future. We’re also confident that the growth of our business there will continue to be above average,” said Klaus Kleinfeld, CEO of Siemens AG, on Saturday at the founding ceremony in the government building of the City of Shanghai.

Siemens is founding the SCS to meet the demand generated by the rapid growth in East China. The center will provide 35,000 square meters of office space and consolidate all the Shanghai-based business areas and functions of Siemens. This makes Siemens the first multinational company to choose the Shanghai district Yangpu as the location for its regional headquarters for East China. With over 100 research institutes and 14 universities, Yangpu is the innovation corridor of Shanghai. And East China, with the City of Shanghai and the provinces Jiangsu, Zhejiang, Anhui, Hu’nan, Hubei and Jiangxi, is of strategic importance to Siemens’ business in China.

Numerous large-scale projects make Siemens very visible in the region. For example, Siemens delivered a broad set of technologies to Pudong international airport, technologies such as building automation, alarm systems, the control system for baggage handling, the power distribution system, the flight information system and runway lighting. Siemens also provides the control technology for one of the largest sewage treatment plants in China. It’s located in Shanghai and treats 1.7 million tons of wastewater per day. With Siemens technology, the plant is 40 times more effective than one of the 30 other treatment plants scattered throughout the city. The world’s highest hotel, the Grand Hyatt in the Jin Mao Building, is equipped with automation and security technologies made by Siemens. In the area of healthcare, Siemens equipped hospitals in Shanghai with state-of-the-art technology, for example, the Huadong hospital: whether CT scanners or accelerators for nuclear medicine, almost every high-tech solution is from Siemens.

Because China is gaining importance in the worldwide operations of Siemens, the company has decided to establish a central research laboratory in the cities Beijing and Shanghai. This was announced at the end of October 2006. Siemens intends to invest around €80 million in this center by 2010. Over 300 scientists will develop new technologies for the environment, energy, healthcare and automation. With 31,000 employees, Siemens is one of the largest foreign employers in China.

About Siemens - Siemens (Berlin and Munich) is a global powerhouse in electrical engineering and electronics. The company has around 461,000 employees working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in 190 countries. Founded more than 155 years ago, the company focuses on the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal 2005 (ended September 30), Siemens had sales from continuing operations of €75.4 billion and net income of €3.058 billion. Further information is available on the Internet at: www.siemens.com.

Reference number: AXX 200611.17.e

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Monika Brücklmeier

Siemens AG

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