Siemens Making IPTV a Reality for more than 75 U.S. Regional Operators

BOCA RATON, Fla - Siemens Communications, Inc., today announced that its SURPASS® Home Entertainment portfolio of broadcast server provider solutions has made IPTV a reality for more than 75 U.S. regional operators as well as many more worldwide. Siemens has the most IPTV deployments in the United States, with two-thirds of its customers making Internet protocol television solutions commercially available to subscribers. Globally, Siemens IPTV contracts now cover more than 38 million broadband lines.

“The operators supported by Siemens have IPTV up and running successfully today,” said Chris Coles, president and CEO of IPTV middleware leader Myrio Corp., now a Siemens company. “IPTV is already a blockbuster – for both customers and providers.”

Global IPTV revenues could top $17 billion by 2010, according to TDG Research. Research firm CreditSights estimates the market opportunity of the digital home at $250 billion in the United States and $1 trillion worldwide in three to seven years. In the United States and abroad, Siemens is supporting end-to-end IPTV solutions for providers such as Consolidated Communications, Inc., Pioneer Telephone Cooperative Inc., CT Communications, Inc., South Slope Cooperative Communications Company, as well as KPN Royal Dutch Telecom and Belgacom in Europe and Advanced Datanetwork Communications (ADC) in Thailand.

Siemens’ IPTV deployment success is built on delivering home entertainment solutions that are convenient, TV-centric and easy to use for consumers and, for operators, enabling the deployment of the most open, secure and scalable standards-based technologies that the market offers. The SURPASS Home Entertainment solution includes centralized back-office management platforms for service providers, complete branding control and tools for tailoring the look and feel of all user interfaces, including program guides and Web portals. Complete vendor interoperability is also provided for digital rights management and head-end components.

“Siemens brings a full range of next-generation IPTV systems and services to both wireline and wireless carriers globally,” said Bob Larribeau, senior analyst, Multimedia Research Group. “Siemens offers the full range of strategic technologies that will be required for the coming convergence of IP-based voice, data and entertainment technologies. This includes IPTV middleware, voice over Internet protocol (VoIP) and IP Multimedia Systems (IMS) that will bring together the home network with game consoles, mobile devices and Wi-Fi – services that will create significant new opportunities for carriers.”

With an initial goal to quickly enable service providers to get up and running with IPTV home entertainment and home network communication offerings, Siemens is now working to develop broader smart home networks that can be managed by users from anywhere and from any device. Siemens is now developing relationships in the health care and security industries to help operators launch home-based health care services, including video conferencing between patients and doctors as well as remote home control and surveillance capabilities. For example, Siemens’ smart home vision includes the use of a mobile device, from a remote location, to activate and set a DVR to record a show or even to turn off a stove or operate other home appliances.

User-friendly gateways of IPTV and smart home solutions are key components of the Siemens LifeWorks philosophy, a vision for anytime, anywhere digital media delivery without barriers. “Consumers will want to do everything, everywhere,” Coles said. “With IPTV and home networks in place, we’re ready for a quantum leap forward.”

About SURPASS Home Entertainment

Siemens makes Internet protocol-based IPTV services a reality today with a successful formula of industry-leading deployment processes, solutions and a thorough knowledge of broadband network infrastructures. Built on an open standards solution architecture, the Siemens SURPASS Home Entertainment solution provides rich user experiences, efficient back office management tools and supports the building blocks of the converged and connected life of the future.

About Siemens

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $91.5 billion in fiscal 2004. Founded more than 150 years ago, the company is a leader in the areas Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $16.6 billion and employs 70,000 people throughout all 50 states and Puerto Rico. Thirteen of Siemens' worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 430,000 people in 192 countries. For more information on Siemens in the United States: www.usa.siemens.com

About Siemens Communications, Inc.

Siemens Communications, Inc., offers its customers a broad portfolio of communication products and services and is a leader in convergent technologies, products and services for wireless, fixed and enterprise networks. The company’s portfolio ranges from devices for end users to complex network infrastructures and complementary services for enterprises, carriers and service providers. Siemens Communications, Inc., is headquartered in Boca Raton, Fla. For more information, visit www.usa.siemens.com/communications

Note: SURPASS is a registered trademark of Siemens AG, its subsidiaries or affiliates. All other company, brand, product and service names are trademarks or registered trademarks of their respective holders.

This release contains forward-looking statements based on beliefs of Siemens management. The words "anticipate," "believe," "estimate," "forecast," "expect," "intend," "plan," "should," and "project" are used to identify forward-looking statements. Such statements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.
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