SIE Siemens N Ord

    Siemens AG

Joint Venture

Siemens AG: Nokia and Siemens to merge their communications service provider
businesses. New global network leader for fixed-mobile convergence.

Nokia and Siemens today announce that they intend to merge the Networks Business
Group of Nokia and the carrier-related operations of Siemens into a new company,
to be called Nokia Siemens Networks. The 50-50 joint venture will create a
global leader with strong positions in important growth segments of fixed and
mobile network infrastructure and services.

The combined company is positioned to lead the development and implementation of
revenue-generating and cost-saving products and services via its scale and
global reach. Nokia Siemens Networks will have one of the world's best research
and development teams, with the ability to invest in next generation fixed and
mobile product platforms and services. The new company will have a world-class
fixed-mobile convergence capability, a complementary global base of customers, a
deep presence in both developed and emerging markets, and one of the industry's
largest and most experienced service organization.

- The transaction closing is expected to take place before January 1, 2007 and
is subject to customary regulatory approvals, the completion of standard closing
conditions, and the agreement of a number of detailed implementation steps.

- After closing, the financial results of Nokia Siemens Networks will be
consolidated by Nokia and accounted for at equity by Siemens.

- Simon Beresford-Wylie, currently Executive Vice President and General Manager
of Networks at Nokia, will assume the position of CEO immediately upon the
closing of the merger. Peter Schoenhofer will assume the position of CFO.
Schoenhofer is currently Member of the Executive Board of Siemens AG Austria.

- Based on the 2005 calendar year, the combined company had EUR 15.8 billion in
pro forma annual revenues and is expected to start operations with 60,000
employees.

- Estimated cost synergies of EUR 1.5 billion annually by 2010.

- Nokia Siemens Networks will have its operational headquarters in the
metropolitan area of Helsinki, Finland, and will have a strong regional
headquarters in Munich, Germany, where three of the future five divisions of the
new company will be based. Nokia Siemens Networks will be registered in the
Netherlands.

- Both Nokia and Siemens expect the impact of the partnership on their
respective EPS, on a pro forma basis excluding restructuring charges, to be
accretive by the end of 2007 assuming a closing by January 1, 2007.

Furthermore, the Siemens managing board has decided to actively pursue the
consolidation in the Enterprise Networks industry. Siemens is in negotiations
with several interested parties to execute this strategy.

The Wireless Modules business will be integrated into the Siemens group
Automation and Drives as of October 1, 2006.

End of ad hoc announcement

Information and Explanation of the issuer to this news:

Nokia and Siemens will hold a press conference today, Monday, June 19, 2006 at
11:00 a.m. Central European Summer Time at the Hotel InterContinental,
Wilhelm-Leuschner Strasse 43, 60329 Frankfurt am Main. The press conference will
be webcast at www.siemens.com/press and
www.nokia.com/press/pressconference19062006.

A conference call for financial analysts will take place at 3:00 p.m. Central
European Summer Time. The analyst call can be accessed by calling
+44-207-365-8426 (UK dial-in) or +1-617-597-5329 (US dial-in). The participant
code is 'Siemens'. The conference call can also be accessed via internet at:
www.siemens.com/analystcall and www.nokia.com/investors. A replay of the call
will also be available until June 26, 2006 by calling +44-207-365-8427 (UK
dial-in) or +1-617-801-6888 (US dial-in). The passcode is: 22951950.

Irina Pchelova
+49 89 636 33693

Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jun 2024 to Jul 2024

Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jul 2023 to Jul 2024