Siemens AG — M&A Activity 2007

Jan 25, 2007

News Details

Ad-hoc | 25 January 2007 00:31

Siemens AG: Siemens A&D acquires software producer UGS for USD 3.5 billion. IPO for Siemens VDO Automotive planned.

Siemens Aktiengesellschaft / Strategic Company Decision

Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company
of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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With its acquisition of U.S. software producer UGS Corp., Plano, Texas, the
Siemens Automation and Drives (A&D) Group will expand its product spectrum
in automation technology to include industrial software for planning,
design and simulation in Product Lifecycle Management (PLM). As a
trendsetter in industrial automation, A&D will now be able to offer its
customers worldwide solutions for creating digitized factories. The
purchase price for the deal is around USD 3.5 billion including debt. The
transaction is subject to approval by the relevant authorities.

In addition, Siemens AG plans an IPO of its automotive supply business
Siemens VDO Automotive (SV), in which Siemens will hold a majority stake.
This move will give SV the necessary financial resources and greater
entrepreneurial flexibility for ensuring further sustainable and profitable
growth. Preparations for an IPO will be initiated immediately.

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Information and Explaination of the Issuer to this News:

UGS generated just under USD 1.2 billion in sales and an EBITDA of USD 241
million in fiscal 2005. The company is one of the world’s market leaders
for Product Lifecycle Management (PLM), which is a critical part of
industrial manufacturing that allows one to digitally control the
development and manufacture of products. The market for PLM software and
services has an annual volume of around USD 13 billion and growth rates
between 7 and 9 percent. Combining the PLM solutions of UGS with Siemens’
automation technology will enable Siemens to offer integrated offerings
covering the entire product life-cycle for the first time. Siemens is thus
the first company in the world able to offer its customers fully integrated
solutions for creating digitized factories that will give them decisive
competitive advantages by saving costs and time and improving quality
assurance.

At 8.30 a.m. CET on January 25, 2007, a conference call for investors and
analysts regarding the quarterly results as well as the above mentioned
topics with CEO Dr. Klaus Kleinfeld, CFO Joe Kaeser and Group President of
Siemens A&D Helmut Gierse will be broadcasted live on the Internet at
www.siemens.com/analystcall. The accompanying slide presentation and a
recording of the conference call will be available at
www.siemens.com/investorrelations.

This document contains forward-looking statements and information – that
is, statements related to future, not past, events. These statements may be
identified by words as ‘expects,’ ‘anticipates,’ ‘intends,’ ‘plans,’
‘believes,’ ‘seeks,’ ‘estimates,’ ‘will’ 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 its
operations, performance, business strategy and results and could cause the
actual results, performance or achievements of Siemens worldwide 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 worldwide;
changes in business strategy; the outcome of investigations and legal
proceedings as well as various other factors. More detailed information
about certain of these factors is contained in Siemens’ 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.

Irina Pchelova
+49 89 636 33693

DGAP 25.01.2007

Language: English
Issuer: Siemens Aktiengesellschaft
Wittelsbacherplatz 2
80333 München Deutschland
Phone: +49 (0)89 636-00
Fax: +49 (0)89 636-32908
E-mail: investorrelations@siemens.com
WWW: www.siemens.com
ISIN: DE0007236101
WKN: 723610
Indices: DAX, EURO STOXX 50
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard),
Hannover, München, Hamburg, Düsseldorf, SWX, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) London, NYSE

End of News DGAP News-Service

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