Siemens strengthens its position in the European Healthcare IT Market

Gesellschaft für Systemforschung und Dienstleistungen im Gesundheitswesen (GSD) acquired

Erlangen, Jan 17, 2007

On January 1, 2007, Siemens Medical Solutions took over Gesellschaft für Systemforschung und Dienstleistungen im Gesundheitswesen mbH (GSD), headquartered in Berlin. With more than 300 customers in 14 countries, GSD is a market leader in the area of health information systems (HIS). By taking over GSD, Siemens will strengthen its leading position in the healthcare information technology sector, especially in Germany and other European countries. The acquisition is still subject to approval by the antitrust authorities.

The acquisition complements Siemens Medical Solutions’ global growth strategy in the competitive healthcare information technology (IT) market, significantly growing its current installed base of health information systems in Germany and strengthening Siemens’ position as a leading provider of HIS. As a market leader, GSD will enhance Siemens’ global healthcare IT portfolio with its i.s.h.med and Ambulatory Care Management (ACM) product lines, while infusing additional industry expertise into its product and service offerings for the European market. The combined product portfolio is unique in its regional and functional market coverage. A company with more than 300 customers in 14 countries, GSD generated revenue of 25.6 million EUR and employed 168 people in fiscal year 2005 (ended December 31). GSD will be a wholly owned subsidiary of Siemens Medical Solutions as part of the Health Services division.

“To improve quality and efficiency in healthcare, we are putting our faith in optimized IT solutions such as our unique workflow management system, Soarian,” said Erich R. Reinhardt, member of the Managing Board of Siemens AG, and President and CEO of Siemens Medical Solutions. “GSD’s enormous expertise in the development and implementation of health information systems presented us with a convincing case. Accordingly, the future will see us achieve even greater joint success in this area – with innovative products, outstanding service and tailored solutions for our customers.”

Siemens Medical Solutions and GSD share a long-standing partnership and related synergies, which will be leveraged to ensure Siemens’ and GSD’s combined customers are optimally supported today and well-positioned for the future through strong commitment to innovation and R&D. For example, GSD’s expertise in developing and deploying i.s.h.med, its SAP-based clinical HIS, will serve to further strengthen Siemens’ global healthcare alliance with SAP.

In addition, GSD best practices and expert resources will play a key role in the further development of Siemens’ Soarian health information solution for the European market, while current GSD customers gain the opportunity to benefit from Siemens’ deep domain experience in clinical workflow improvement and process redesign. With the United States currently the largest market for Soarian, Siemens is gaining global momentum for the solution, customizing it for deployment in key international markets. More than 41 Soarian-based workflows are currently live in the US, UK, and Germany. Soarian’s core differentiator is its unique-to-healthcare workflow engine that facilitates and tracks technology-driven workflows designed to help users increase quality and efficiency, improve patient safety, and achieve desired clinical and financial outcomes.

“In examining our long-term strategic position and the intensive resources required to ensure a viable future in the global marketplace, we determined that pairing with a strong industry leader like Siemens would be the right approach to help protect our customers’ current investments and best position them for the future,” said Stefan Herm, Managing Director of GSD. “The shared synergies between our two companies allow us to provide an unmatched portfolio of offerings in our target markets. We look forward to being a key component of Siemens Medical Solutions’ growth strategy in Germany and throughout Europe,” added Herm.

“Siemens values the talent and expertise of our people as one of our greatest assets,” said Reinhardt. “The combined strengths of our Health Services (healthcare IT) division and the GSD team will help assure that our healthcare IT product and service innovation continues, as we work to reduce total cost of ownership for healthcare organizations worldwide.”

After Diagnostic Products Corporation (DPC) and Bayer Diagnostics, the takeover of GSD is Siemens Medical Solutions’ third acquisition in the past three quarters alone. In taking over GSD, Siemens is now also consistently pursuing its strategy of building the industry’s first fully integrated diagnostics company that combines diagnostic imaging, laboratory diagnostics and clinical information technology under one roof along the value chain. In doing so, the company is significantly strengthening its expertise profile, thus enhancing its leading role as a trendsetter in the healthcare sector.

Gesellschaft für Systemforschung und Dienstleistungen im Gesundheitswesen mbH (GSD) is one of Europe’s leading manufacturers and service providers of IT solutions for hospitals. Its circle of users comprises over 268 hospitals and hospital operators around the world and GSD provided support for over 54 hospitals in different SAP projects. For the past 25 years GSD’s has been providing the healthcare sector with all the IT solutions required to run a modern hospital: from software development to hardware solutions, over planning, support and implementation of networks, to the complete outsourcing of system operations. The company generated revenue of 25.6 million Euro and employed 168 people in the fiscal year 2005 (ended December 31). Further information at www.gsd.de

Siemens AG (Berlin and Munich) is a global powerhouse in electrical engineering and electronics. The company has around 475,000 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 over 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 2006 (ended September 30), Siemens had sales from continuing operations of €87.3 billion and net income of €3.033 billion. Further information is available on the Internet at: www.siemens.com

Siemens Medical Solutions of Siemens AG (NYSE: SI) is one of the world’s largest suppliers to the healthcare industry. The company is known for bringing together innovative medical technologies, healthcare information systems, management consulting, and support services, to help customers achieve tangible, sustainable, clinical and financial outcomes. Recent acquisitions in the area of in-vitro diagnostics – such as Diagnostic Products Corporation and Bayer Diagnostics – mark a significant milestone for Siemens as it becomes the first full service diagnostics company. Employing more than 41,000 people worldwide and operating in over 130 countries, Siemens Medical Solutions reported sales of 8.23 billion EUR, orders of 9.33 billion EUR and group profit of 1.06 billion EUR for fiscal 2006 (Sept. 30). Further information can be found by visiting www.siemens.com/medical


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Informationsnummer: Med BV 200701.019 e

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Axel Wieczorek

Siemens AG

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