Gigaset AG

M&A Activity • Aug 1, 2008

News Details

Corporate | 1 August 2008 07:36

ARQUES to acquire 80.2% of Siemens Home and Office Communication Devices

ARQUES Industries AG / Acquisition

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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The issuer / publisher is solely responsible for the content of this announcement.

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Joint press release of Siemens and ARQUES

ARQUES to acquire 80.2% of Siemens Home and Office Communication Devices

Munich/Starnberg, August 1, 2008 - Siemens and ARQUES Industries AG have
signed an agreement to transfer an 80.2% stake in Siemens Home and Office
Communication Devices GmbH & Co. KG (SHC) to ARQUES as of October 1, 2008.
'SHC is a very solid business with sound core operations and high
value-creating potential. We intend to expand the company’s market
leadership in the premium price segment, improve its market penetration
worldwide and strengthen the successful Gigaset brand,' said ARQUES CEO
Michael Schumann. With this step, Siemens is rigorously continuing its
strategy of focusing on the three Sectors Energy, Industry and Healthcare.
'In selecting a partner for SHC, measures to guarantee locations and
employment were of particular importance to us,' said Siemens CFO Joe
Kaeser. Regulatory approval is pending.

As part of the employment guarantee, ARQUES has contractually agreed to
maintain SHC’s locations in Germany – Bocholt and Munich – for the next
three years. The company will continue to be headquartered in Munich,
Germany. 'During the negotiations, Siemens placed particular emphasis on
our offering the employees a positive perspective in a strong company with
a promising future,' said Schumann.

Under ARQUES management, SHC is expected to expand its position as best in
class and market leader in the premium price segment. In this connection,
the company’s product portfolio will be focused on high-margin business. A
large number of product innovations – in the area of Voice over IP, for
example – and an expansion of the company’s international business are
expected to generate targeted growth. ARQUES also intends to intensify R&D
investment at research locations in Germany and Poland. To continue placing
innovative SHC products successfully on the market, ARQUES can continue to
use the Siemens brand name for the next two years.

SHC Gigaset No. 1 in Europe’s cordless phone market

Siemens carved out SHC as a stand-alone company in October 2005. The
company’s business focuses on cordless phones as well as broadband and home
entertainment devices. Revenue in fiscal 2007 totaled €792 million.
Two-thirds of SHC sales are generated by Gigaset cordless phones. In the
cordless market, SHC is No. 1 in Europe and a leading supplier worldwide.
In Germany alone, every second household boasts a Gigaset phone. In Europe,
the figure is one in five. SHC products are manufactured primarily in
Germany and meet the highest quality and environmental standards. With
2,100 employees, the company has locations in 17 countries and sells its
products in around 70 countries. With 1,400 employees, SHC’s ultra-modern
production facility in Bocholt, Germany is its largest location.

ARQUES, headquartered in Starnberg near Munich, Germany, specializes in
acquiring non-core activities from companies in order to develop them into
businesses with sustainable profitability.

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ARQUES Industries AG, Starnberg, Germany, (www.ARQUES.de) is a business
partner of conglomerates regarding company spin-offs and a turnaround
specialist who focuses on the acquisition and the active restructuring of
companies in transitional situations, in order to develop these, with its
own team and own resources, to competitive enterprises with a positive
yield. ARQUES revitalizes its subsidiaries' potential for creating value
for the benefit of all its stakeholders, taking on the relevant social
responsibility. The shares of ARQUES Industries AG are traded in the
regulated market (Prime Standard) of the Frankfurt Stock Exchange under the
symbol 'AQU' (ISIN: DE0005156004) and are listed in the SDAX.

Siemens AG (Berlin and Munich, Germany) is a global powerhouse in
electronics and electrical engineering, operating in the industry, energy
and healthcare sectors. The company has around 400,000 employees (in
continuing operations) working to develop and manufacture products, design
and install complex systems and projects, and tailor a wide range of
solutions for individual requirements. For over 160 years, Siemens has
stood for technological excellence, innovation, quality, reliability and
internationality. In fiscal 2007, Siemens had revenue of €72.4 billion and
income from continuing operations of €3.9 billion (IFRS). Further
information is available on the Internet at: www.siemens.com.

This document contains forward-looking statements and information – that
is, statements related to future, not past, events. These statements may be
identified by words such as 'expects,' 'looks forward to,' 'anticipates,'
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'will,' 'project' or
words of similar meaning. Such statements are based on our current
expectations and certain assumptions, and are, therefore, subject to
certain risks and uncertainties. A variety of factors, many of which are
beyond Siemens’ control, affect our operations, performance, business
strategy and results and could cause the actual results, performance or
achievements of Siemens to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking statements. For us, particular uncertainties arise, among
others, from changes in general economic and business conditions (including
margin developments in major business areas); the challenges of integrating
major acquisitions and implementing joint ventures and other significant
portfolio measures; changes in currency exchange rates and interest rates;
introduction of competing products or technologies by other companies; lack
of acceptance of new products or services by customers targeted by Siemens;
changes in business strategy; the outcome of pending investigations and
legal proceedings, especially the corruption investigation we are currently
subject to in Germany, the United States and elsewhere; the potential
impact of such investigations and proceedings on our ongoing business
including our relationships with governments and other customers; the
potential impact of such matters on our financial statements; as well as
various other factors. More detailed information about certain of these
factors is contained throughout this report and in our other filings with
the SEC, which are available on the Siemens website, www.siemens.com, and
on the SEC's website, www.sec.gov. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in the
relevant forward-looking statement as expected, anticipated, intended,
planned, believed, sought, estimated or projected. Siemens does not intend
or assume any obligation to update or revise these forward-looking
statements in light of developments which differ from those anticipated.

ARQUES Industries AG
Investor Relations & Corporate Communication
Anke Lüdemann, CEFA/CIIA
Email: luedemann@arques.de
Public Relations
Christian Schneider
Email: schneider@arques.de
Tel.: +49 (0) 8151/ 651 0

01.08.2008 Financial News transmitted by DGAP

Language: English
Issuer: ARQUES Industries AG
Münchner Str. 15a
82319 Starnberg
Deutschland
Phone: +49 (0)8151 651-0
Fax: +49 (0)8151 651- 500
E-mail: luedemann@arques.de
Internet: www.arques.de
ISIN: DE0005156004
WKN: 515600
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, Düsseldorf, München, Stuttgart

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