Multi-Year Contract for Smartcard-Based Badges to More Than 200,000 Users

BOCA RATON, Fla., Sept. 8 /PRNewswire-FirstCall/–Siemens Information and Communication Networks Inc., a subsidiary of Siemens AG (NYSE: SI), announced that The Boeing Company has awarded it a two-year contract, with extension options, to implement a smartcard-based identity management system. Over the next five years, more than 200,000 Boeing employees, contractors and partners are scheduled to receive a multifunction smartcard providing access to information systems and buildings.

Siemens ICN is assisting Boeing in designing, integrating and implementing its smartcard based infrastructure to support the Boeing goal of increased security access to information systems and buildings. HiPath™ Slcurity is at the core of this solution. It will also layer smartcard-based logical access and integrate software components from companies such as BellID and Gemplus on top of Boeing’s existing Public Key Infrastructure and physical security system. The smartcard solution integrates the current Boeing physical access control system, directory infrastructure, and web-based single sign-on portal.

The Boeing deployment of smartcard technology is the third phase of its SecureBadge initiative that began with Siemens Building Technologies implementation of a new proximity card system for building access. Boeing plans a full-function pilot implementation of the Siemens smartcard solution for the third quarter of this year. Production deployment is scheduled to start in early 2004 and will focus initially on authentication of users who access information systems.

“By marrying our efforts to enhance physical and information security, we improve our overall level of protection against intrusion while streamlining management of identity information,” said Sharon Lindley, SecureBadge program director in Boeing Shared Services Group. “We chose Siemens because it could deliver a global solution in a cost-effective and timely manner and offer technology that that fits into our future information technology architecture.”

As a global security systems integrator, Siemens delivers a standards- based identity management solution that will support biometrics or other technologies as they become available or practical. “The Boeing contract will be able to take advantage of Siemens ICN’s capabilities as a global systems integrator and security solutions provider,” said Joe Licata, president of the Enterprise Networks division of Siemens Information and Communications Networks Inc. “We have excellent HiPath SIcurity solutions and a team of security experts that can match the best technologies to the needs of existing infrastructures of enterprise customers.”

According to the Smart Card Alliance, a non-profit consortium of industries and government agencies working to accelerate the standardization and implementation of smartcard technologies, more than 160 million smartcards have been procured in North America since 1999, with shipments growing 34 percent in 2002 despite an otherwise slow technology market.

This increase has been driven in part by U.S. government security policies. The General Services Administration has initiated a 10-year, $1.5 billion Smart Access Card program, the Department of Defense announced a $4 million Common Access Card rollout, the Transportation Security Administration is targeting 15 million transportation workers with a “smart credentialing” project, and the Department of Homeland Security made smartcards one of its first-year priorities.

About The Boeing Company

The Boeing Company is the world’s leading aerospace company, with its heritage mirroring the history of flight. It is the largest manufacturer of satellites, commercial jet liners and military aircraft. The company is also a global market leader is missile defense, human space flight and launch services. Chicago-based Boeing has an extensive global reach with customers in 145 countries and close to 160,000 employees in more than 70 countries and 38 states. Total company revenues for 2002 were $54.1 billion. For more information: http://www.boeing.com.

About Siemens

Siemens AG (NYSE: SI), headquartered in Munich, is a leading global electronics and engineering company. Siemens and its subsidiaries employ 426,000 people in 190 countries and reported worldwide sales of $77.8 billion in fiscal 2002 (10/1/01–9/30/02). The United States is Siemens’ largest market in the world, with 11 of Siemens’ worldwide businesses headquartered here and annual sales of $21.5 billion in fiscal 2002. The Siemens companies in the U.S. employ approximately 70,000 people in all 50 states and Puerto Rico. Corporate headquarters for Siemens’ U.S. businesses are located in New York City. For more information: http://www.usa.siemens.com.

Siemens Information and Communication Networks Inc. is one of Siemens’ operating companies in the United States. ICN is a leading provider of integrated voice and data networks and solutions for enterprises, carriers and service providers. Based in Boca Raton, Fla., Siemens ICN’s two primary divisions, Enterprise Networks and Carrier Networks, deliver innovative answers to customers seeking to reduce operating costs and grow revenues. Efficient Networks, Inc., a Siemens-owned affiliate company, provides broadband Internet access products. For more information: http://www.usa.siemens.com/networks.

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.