SIE Siemens N Ord

RNS No 3510q
SIEMENS AG
24th June 1998


Siemens restructures its telecommunications activities in the UK:
GPT stake sold to GEC - Siemens acquires GEC's stake in Siemens GEC
Communication Systems - Siemens receives #610 million as a balancing payment 
Two new companies formed: Siemens Telecom Networks and Siemens Newbridge
Networks.

          Siemens AG, Berlin and Munich, and The General Electric Company plc.
          (GEC), London, have reached agreement on the future of their joint
          ventures in the British telecommunications market.  Siemens will sell
          to GEC its 40% stake in GPT, its joint venture with GEC in public
          communications systems.  At the same time, Siemens will acquire the
          remaining 50% (less one share) of the equity of Siemens GEC
          Communiction Systems Ltd., its joint venture with GEC in private
          communications systems.  In addition, GEC will make a balancing
          payment of #610 million (more than DM 1.8 billion) to Siemens.  In a
          step to focus its telecommunications activities for public network
          operators in the UK, Siemens has formed two new companies, Siemens
          Telecom Networks and Siemens Newridge Networks.

In 1989, Siemens and GEC teamed up to take over the British company Plessey.
Siemens subsequently acquired a 40% stake in the GEC subsidiary GPT (GEC Plessey
Telecommunications Holding), the leading manufacturer of communications systems
in the UK.  The move gave Siemens and GPT, together with Siemens' Italian joint
venture Italtel, worldwide a leading market position in synchronous digital
switching systems for public communications networks.  In the past,
collaboration between Siemens and GPT concentrated on this market segment, and
this will contine following the signature today of a new long term cooperation
agreement.

Roland Koch, member of the Managing Board of Siemens AG and President of the
Public Communication Networks Group, commented: "With this move, Siemens is
sharpening the focus of its telecommunications activities in order to achieve
clear market positions.  Our long-term interest lies in high-growth telecom
fields such as mobile telephony and broadband data transmission technology - and
this on a worldwide basis.  Our global competitiveness depends on these growth
sectors and on our position as a global player capable of providing
comprehensive systems.  This is why we are intensifying our involvement in these
high-growth telecom fields, and pushing development in promising global telecom
fields to reflect market trends, like the increasing convergence of voice and
data transmission technology and the booming mobile telephony sector."

As previously announced, Siemens is currently restructuring its information and
communications business segments.  Slated to take effect on October 1, 1998, the
reorganization aims to better exploit synergy potentials by clearly focusing the
expertise of both segments.

At the beginning of 1997, Siemens and GEC also merged their private
communications systems and networks activities in the UK to form the 50/50 joint
venture Siemens GEC Communication Systems Ltd. (SGCS), comprising GPT's Business
Systems Division, GPT Communication Systems Ltd., and Siemens Business
Communication Systems Ltd.  With some 3,000 employees, SGCS is succesful both in
international markets and in the UK, posting worldwide sales of roughly DM700
million in fiscal 1997.

SGCS, henceforth a wholly-owned Siemens subsidiary, offes a broad spectrum of
solutions and services and has succeeded in expanding its position in the
private telecommunications sector to become the second-largest provider of
private communications systems in the UK.  As a complete solution provider, SGSC
offers turnkey telecommunications systems, corporate networks, and innovative
applications such as call centers, mobility solutions for corporate campuses,
and video conferencing systems.  SGCS will continue to sell Hicom, Siemens'
globally successful product family, and to support GPT's iSDX/Realitis product
families, which already have extensive installed bases.

"The new constellation will allow Siemens to further strengthen the company's
presence in the very attractive British telecommunications market", said Koch.
"The formation of the new companies Siemens Telecom Networks and Siemens
Newbridge Networks will enable Siemens to expand its business with public
network operators in the UK."


END

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