Siemens Challenges U.S. Mobile Phone Market With GSM/TDMA Handset to Capitalize on Carriers' Interest in Globally Dominant GSM Standard.

Busines Editors & High-Tech Writers

CTIA WIRELESS 2001

LAS VEGAS--(BUSINESS WIRE)--March 21, 2001

Siemens today revealed preliminary details about its first mobile phone designed expressly for the U.S. market, the S47.

Announced at the Cellular Telecommunications & Internet Association (CTIA) Wireless 2001 Show, the new dual-mode GSM/TDMA handset gives consumers the freedom of domestic and international roaming and is GPRS-enabled to support high-speed wireless data access.

The S47, targeted for availability in the fourth quarter of 2001, is the first phone to support two TDMA (Time Division Multiple Access) and two GSM (Global System for Mobile Communications) frequencies, giving both carriers and consumers unprecendented flexibility in where the phone can be used. It complements Siemens' S40 triple-band GSM phone that will be available in the United States beginning next month. Adding a TDMA phone enables Siemens to provide its phones to more U.S. carriers, many of whom are also transitioning to GSM technology. GSM is the current mobile phone technology in most regions of the world outside the United States.

The S47 is also GPRS (General Packet Radio Service)-enabled. GPRS is an upgrade to GSM that enables high-speed wireless Internet access of speeds up to 115 Kbps. It is considered an important step towards ultimate third-generation

(3G) wireless services and uses packet switching to transfer data at higher speeds.

Additional smart-phone functionality will include a personal organizer, mobile Internet access via a WAP (Wireless Access Protocol) browser, and voice-activated dialing. In addition to its unique technical capabilities, the phone will feature an extremely appealing design in a small, lightweight size. The S47 will support TDMA 800 MHz and 1900 MHz frequencies as well as GSM 900MHz and 1900 MHz, making it the first global phone of its type.

"The S47 is a remarkably flexible phone that powerfully illustrates Siemens' long-term commitment to the U.S. mobile market, and it gives us the opportunity to be a significant player in the dual-mode GSM/TDMA space," said Florian Seiche, vice president and general manager of the Mobile Phones unit within Siemens Information and Communication Mobile. "With our global track record of success with GSM, we believe we can take advantage of the accelerating growth of GSM networks in North America. Many of the top carriers in the U.S. currently have TDMA networks, so this dual-mode phone gives Siemens a strong position to supply phones that meet the demand of carriers and their customers as the transition from TDMA to GSM is made."

GSM/TDMA Subscription Background

The subscription base for GSM is picking up strong momentum in North America. Additionally, several operators in the U.S. and Mexico have announced plans to install GSM/GPRS overlay networks in addition to their existing TDMA voice networks. The second and seventh largest U.S. carriers, Cingular Wireless and VoiceStream Wireless, respectively, have already deployed GSM technology. AT&T Wireless, the third largest U.S. carrier, has announced plans to overlay its existing TDMA/CDPD network with a GSM/GPRS platform.

About Siemens Information and Communication Mobile

The Siemens Information and Communication Mobile Group (IC Mobile) offers the complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers, cordless and corded phones as well as products for wireless home networks. The infrastructure portfolio includes the complete range of mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Applications cover UMTS services for Unified Messaging, Location Based Services, and Mobile Payment. For the fiscal year 2000 (which ended Sept. 30, 2000), IC Mobile recorded sales of $8.23 billion and EBIT of $693 million. The group employs 27,450 employees worldwide. For further information about Siemens IC Mobile, please visit our home page at http://www.icm.siemens.com.

Any statements in this document that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. Siemens AG undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.