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Siemens Information and Communications (IC) demonstrates Convergence in Action

· GartnerGroup research confirms IT as main Convergence driver among major
corporates
· Siemens Computer Systems to double European PC market share by 2001


Berlin - The Siemens Information and Communications (IC) Group has announced
its intention to become the world leader in Convergence - the most important
technology direction of the 21st century. As part of this, the company will
unveil a wide range of innovative products and services - including a major
new PC line, a range of new Intel-based UNIX servers and the prototype for a
Personal Intelligent Communicator combining cell phone and PC functions - at
CeBIT '99 in Hanover, Germany from March 18-24.

"IT department is driving Convergence" - GartnerGroup
At an International Siemens Press Conference held in Berlin from 8-9
February, GartnerGroup presented the findings of its new "Information and
Communications Convergence" survey, which polled 120 major corporates across
the UK, Germany, the US and France. GartnerGroup found that the IT
department is clearly driving the take-up of Convergence, and is providing
the budget for the implementation of converged Information and Communication
solutions. 85 per cent of respondents considered Convergence to be
"important" or "very important" to their future business strategy.

According to Volker Jung, Member of Siemens' Corporate Executive Committee
with special responsibility for the IC segment, Siemens Information and
Communications is in a unique position to exploit the opportunities offered
by Convergence: "Information and Communications technology already cuts
across all the company's business segments. For example, our new PIC
Personal Intelligent Communicator integrates Windows CE and GSM technology
to combine communication and information management functions in a single,
compact unit. We have one mission in mind: to be 'Siemens, the network and
solutions provider'. No other company can match Siemens' expertise in
information and communications technology or its experience in all
infrastructure sectors and applications."

In Berlin, Siemens also unveiled its strategy and its new Information and
Communications products and applications. Volker Jung stressed that, with
its three IC Groups - Products (ICP), Networks (ICN) and Services (SBS) -
Siemens now has the clear structure needed to be successful in the growth
markets of the future. "The convergence of applications and technologies is
the driving force behind our reorganisation," said Jung. 

"Information and Communications is the fastest growing market in the world.
Five years from now, the world IC market will be worth over EUR1.4 trillion
- or more than DM2.7 trillion. It will have left major industries like
machine tools, automobiles and chemicals far behind," continued Jung.

Siemens to double European PC market share by 2001
With a completely new PC range, Siemens intends to win additional market
share in the highly competitive professional market. The product spectrum
ranges from a new high-performance network computer to two new Intel-based
high-end workstations. These new PC models are being introduced to drive a
major Siemens Computer Systems growth initiative, and will help the company
to almost double its share of the European PC market from about five per
cent last year to around nine per cent by 2001. The new Siemens PC ranges
will be launched in the UK on 24 February.

New servers from Siemens Computer Systems
Siemens will also demonstrate major new server models at CeBIT, including
the PRIMERGY 670-40 business server based on the latest Intel Pentium® II
Xeon™ processor technology, four new RM series UNIX-based models and a brand
new high-end S160 BS2000/OSD server which, for the first time, breaks the
1,000 RPF performance barrier.

In Berlin, Siemens also unveiled new applications for the Fingertip, a tiny
sensor microchip that can verify a person's identity in a fraction of a
second using only a fingerprint. The Fingertip is expected to make a
significant impact in the consumer arena, where use in cars, PCs and credit
cards could soon make keys, PIN numbers and personal codes obsolete.

Personal Intelligent Communicator
The prototype for Siemens' Personal Intelligent Communicator (PIC) - also
exhibited for the first time in Berlin - integrates cell phone and PC
functions in one device. The PIC prototype is based on the Microsoft Windows
CE operating system, and features an integrated GSM module that allows users
to take full advantage of international GSM call roaming. In addition, Rudi
Lamprecht, Group President, Siemens Information and Communication Products,
also previewed a new type of pocket-sized personal organiser which, for the
first time, integrates a high performance information terminal possessing
virtually every tool needed for professional communication - via both
wireless and wired networks.

Siemens Computer Systems is the leading European supplier of information
technology, and forms part of the Siemens Information and Communications
Product Group. The company offers the industry's broadest range of computer
systems from a single supplier, ranging from home computers and Net PCs
through to notebooks, desktops, workstations, high-end servers and mainframe
systems. In addition to its comprehensive range of hardware products,
Siemens Computer Systems is focused on delivering platforms for solutions in
key business areas including e-commerce, data warehousing and SAP R/3.

The Siemens Information and Communication Products Group is part of the
major DM50 billion turnover Siemens Information and Communications business.
This new business was formed on 1 October 1998 in response to the growing
requirement for converged IT and communications products and services.
For more press information

Please contact: Rebecca Hartley
                Press Relations
                Siemens Computer Systems
                Tel:  01252 555396
                rebecca.hartley@siemens.co.uk

For further information about Siemens Computer Systems, please visit our web
site at www.siemens.co.uk/cs

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