Siemens to invest more than US$ 110 million in research and development for Mobile Phones business in Brazil!

Manaus becomes fifth global R&D center for Mobile Phones ? Production of Cordless Phones successfully started ? Production of Wireless Modules starts in Autumn 2003

S?o Paulo, Brazil August 21 2003 via /Wi-Fi Technology News/- The mobile communication group at Siemens AG ? Siemens mobile for short - will invest more than US$ 110 million in research and development (R&D) for mobile phones in Brazil within the next five years. This is globally the fifth R&D center for mobile phones and will be fully integrated into the existing Global Network of Innovation. Siemens mobile is market leader for GSM phones and mobile infrastructure in Brazil and started local mobile phones production in the year 2000. A couple of weeks ago the production of cordless products has successfully started in the country as well. By Autumn 2003 the local wireless modules production will also start. With its regional strategy Siemens mobile plans to continue its success in Latin America.

Today, global R&D for mobile phones is done in Germany, Denmark, China and the United States. Over the next five years the R&D center based in Manaus will receive a major part of the US$ 110 million investments. Starting with 50 people in late 2002 to date 140 professionals are currently working on the development for mobile phones and mobile networks software in Brazil. Siemens expects the number of developers to evolve up to 200 in the whole country by the end of 2004.

?The Latin American market is very promising for Siemens mobile and we see Brazil as a driving force?, said Joe Kaeser, Board Member of the Siemens Information and Communication Mobile Group. ?The GSM technology has outpaced the rivaling CDMA efforts and we hold a clear No. 1 position in this market with our mobile phones and infrastructure business. To further speed up our business we integrate this region into our global network of innovation.?

In line with the strategy of local activities Siemens mobile successfully launched the production of cordless products in Manaus resulting from a US$ 4 million investment announced in spring this year. For the first time ever, the company produces the Gigaset cordless phones outside Germany aiming to become a major supplier in the region. Already, Siemens is worldwide leader in the DECT-field of digital cordless phones. With the launch of four new models exclusively for Latin America Siemens offers a portfolio targeting all market segments in the region.

?With a locally manufactured portfolio that has been specially adapted for the Latin American market we can precisely offer what the regional customers want ? attractive design and high quality at affordable prices?, said Kaeser. ?We also supply other markets in the Americas, such as Argentina and Mexico and thus want to utilize the enormous growth potential the region offers for cordless communication.?

To serve additional market segments more efficiently Siemens will start the local production of wireless modules in Manaus in Autumn 2003 making Siemens the first module supplier to manufacturing directly in Brazil. Siemens expects strong growth next year in this business, especially in the machine-to-machine business consisting of fleet management, track and trace services, car and home security, and metering.

The Siemens Information and Communication Mobile Group (Siemens mobile) offers a complete range of mobile solutions including mobile devices, infrastructure and applications. Devices include mobile phones, wireless modules, mobile organizers and cordless phones as well as products for wireless home networks. The infrastructure portfolio includes GSM, GPRS and 3G mobile network technologies from base stations and switching systems to intelligent networks, e.g. for prepaid services. Mobile Applications cover end-to-end solutions for Messaging, Location Based Services or Mobile Payment. For fiscal 2002 (September 30), Siemens mobile recorded sales of EUR 11 billion and employed approximately 28,600 people worldwide.

You can access further information about Siemens mobile on the Internet at http://www.siemens-mobile.com.

Source: Siemens mobile