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30th 3G Contract

3rd June , 2004

Europe : Italian telecom operator Wind has named the mobile communication group at Siemens AG (Siemens mobile for short) as one of the suppliers for its 3G/UMTS network. Under the terms of the agreement, Siemens mobile will supply and install 3G/UMTS network infrastructure and radio base stations. In addition, Siemens will also optimize Wind's existing mobile network and replace some of its present equipment. The first phase of the agreement will run for three years and involve a total business volume of more than 300 million Euros. Siemens is now supplying three of Italy's four mobile operators with 3G/UMTS network technology.

This is the third 3G/UMTS contract for Siemens in Italy and the 30th for Siemens mobile worldwide, confirming the company's leading position in next generation mobile network infrastructure. With a world market share of 23 percent, Siemens numbers among the leading equipment suppliers for 3G/UMTS. In Western Europe, Siemens has received more 3G/UMTS contracts than any other supplier. Furthermore, Siemens is the number one worldwide in terms of network launches. Of the 22 3G/UMTS networks already in operation, 12 were built by Siemens and its partner NEC.

"This latest agreement reinforces our strong number two position in Italy with a 30-percent market share of the mobile network market," said Lothar Pauly, a member of the Siemens mobile Group Board. "In deploying its 3G/UMTS network, Wind can count on the know-how of a partner with a strong Italian presence and leading expertise in 3G/UMTS worldwide."

Siemens mobile's operations in Italy include a total workforce of more than 2,800 people, as well as two manufacturing facilities and two R&D centers of excellence, with the one in Cinisello Balsamo focusing on 3G/UMTS mobile networks.

With this contract, Siemens is strengthening its partnership with Wind, which dates back to the late 1990s with the installation of Wind's GSM network. This latest 3G/UMTS contact also includes supply and installation of GSM equipment to complete and augment Wind's mobile communication infrastructure for 2G services.

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