SIE Siemens N Ord

RNS Number:2222O
Siemens AG
5 December 2001


Siemens deconsolidates Infineon immediately

Siemens AG, Berlin and Munich, has reduced its ownership interest in Infineon 
AG, Munich, to under 50 percent through the sale of shares. In addition, Siemens
irrevocably transferred 200 million shares of Infineon into a non-voting trust. 
Following these steps, Siemens will no longer consolidate the results of 
operations and assets and liabilities of Infineon into its financial statements.
Siemens will account for its investment in Infineon using the equity method of 
accounting.

With the sale of the Infineon shares on the open market, Siemens reduced its 
stake in Infineon from about 50.4 percent to less than 50 percent. In addition, 
Siemens irrevocably transferred 200 million shares of Infineon into a non-voting
trust. Under the terms of the trust agreement, the trustee may not vote the 
Infineon shares it holds. This gives third-party Infineon shareholders the 
majority of the voting rights. Siemens, however, will retain economic ownership 
of the shares held by the trust. The trust agreement gives Siemens the right to 
sell the shares from the trust to third parties. The trustee will pay any 
proceeds from the sale and all cash dividends of the Infineon shares to Siemens.

Under the equity method of accounting, Siemens' net investment in Infineon will 
be included in "Investments" in its balance sheet. Siemens' share of the net 
results of Infineon will be included as part of "Income from investment in other
companies, net" in its statement of income.

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