News Release

Siemens and Cisco Announce the First Results of Their Successful Collaboration In Mobile Communications

MUNICH, GERMANY & SAN JOSE, Calif., February 23, 2004 - The
Feb 23, 2004

MUNICH, GERMANY & SAN JOSE, Calif., February 23, 2004 - The Siemens Information and Communication Mobile Group (Siemens mobile) and Cisco Systems, Inc. are announcing the first successes of their strategic alliance, formed to accelerate the development and delivery of multimedia data applications and make it easier for mobile operators around the world to implement IP-based services and reap the full benefits of an integrated data, voice and video IP-based network. The two companies have already received 15 orders from carriers in Europe, Latin America, Asia and Africa.

Under the strategic alliance agreement, Siemens mobile and Cisco will collaborate on solution development, marketing and delivery of mobile communications solutions. Development plans include new mobile IP technologies for GPRS, UMTS (3G) and W-LAN networks, designed specifically to suit the requirements of businesses with mobile data services. With its mobile communication-specific integration concepts, Siemens will serve as systems integrator, ensuring that the IP-based components fit seamlessly into the customer's infrastructure and preparing the operator network for business with new data services.

"With this alliance, Siemens mobile is adding products for IP-based networks to its portfolio for mobile solutions," explained Christoph Caselitz, President of Networks within Siemens mobile. "On the strength of our extensive expertise in developing and integrating mobile networks and Cisco's leadership in mobile IP technologies, we can offer our customers a reliable, homogeneous overall solution for IP-capable mobile networks."

"In Siemens mobile we have gained a strategic alliance partner whose outstanding experience in mobile communication will help us to strengthen our position in the market for carrier networks," said Massimo Migliuolo, Vice President, Worldwide Mobile Operations at Cisco. "Together we will make mobile networks IP-capable and drive forward the market for data services."

As a result of this new strategic alliance, Siemens mobile and Cisco will offer mobile operators IP-based network solutions that integrate all available subscriber access networks into a single switched network. In addition, the operators can offer new data applications like video, messaging, calendar, address book and games much more quickly and efficiently to their customers across all network access technologies, and accommodate specific end-user requirements.

"As we evolve our mobile data network to provide our customers with an unprecedented level of service, it is pivotal to have a market leading team supporting us. Cisco and Siemens mobile have been able to deliver the technology and the know-how to take this exciting project forward, and their combined expertise has led to a great deal of flexibility and innovation ." Said Jon Eddy, Chief Technical Officer of DiGi, Malaysia.

At the 3GSM Congress 2004 in Cannes, the two companies are exhibiting their jointly developed Intelligent Packet Solution (IPS).With this system, hardware components analyze the data streams in real time according to criteria that can be flexibly adjusted by the operator for an optimized data flow through the operator's network. This solution also generates charging information that enables not only standard charging by time and volume, but also charging customized by content and user group. These innovative network functions offered by the IPS enable mobile communication operators to differentiate themselves from the competition and increase their sales revenue while at the same time reducing their operating costs.