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June 9, 2005
BenQ acquires Siemens' entire mobile phone business

GERAMNY -- The Taiwan-based BenQ Group, which also produces mobile phones in addition to other consumer electronic products like digital cameras, scanners and LCD screens, will acquire Siemens' entire mobile phone business with more than 6,000 employees worldwide. The business will be headquartered in Munich. The closing of the deal is expected in the fourth quarter of Siemens' fiscal year 2005.

K.Y. Lee, chairman and CEO, BenQ, added: "With the acquisition of Siemens's mobile phones business, we are rapidly approaching our goal to become one of the world's leading players in the mobile phone industry. Our expansion strategy will be strongly supported by this deal, as we can rely on a global organisation with excellent employees, a well-established blue-chip customer base in the mobile business and a strong brand with high impact."

Klaus Kleinfeld, CEO, Siemens, said: "With this partnership, we have found a sustainable perspective for our mobile phones business. BenQ and Siemens complement one another ideally. We will be uniting our strengths with BenQ's highly successful consumer business. In addition, we also complement one another perfectly in terms of geography. This will give BenQ, which up until now has been very strong in Asia, access to the European and Latin American markets where we hold leading positions. Siemens AG will invest in BenQ by purchasing shares of the company. The transaction also includes the rights to the brand and name, which BenQ will be allowed to use for a total of five years."

Lothar Pauly, CEO, Siemens Communications Group, commented: "Siemens will continue to offer its customers in the telecommunications industry one-stop shopping for all their needs. With BenQ, we have found a partner who will supply us with the corresponding products. In addition, we will be collaborating closely in the R&D. We also intend to utilise synergies in jointly addressing customers and in our selling operations."

Contact:
Siemens

Tel: +49-89 636 33470
eberhard.posner@siemens.com at
www.siemens.com







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