Siemens gains a 50% holding in Leipziger Infrastruktur Betriebe (LIB) GmbH - Previously LIB had been a wholly owned subsidiary of Leipziger Verkehrsbetriebe.

With its 50% holding in Leipziger Infrastruktur Betriebe (LIB), Siemens Transportation Systems (TS) has entered into yet another innovative joint venture with Leipzig's transit authority, Leipziger Verkehrsbetriebe (LVB). The two companies have gained a lasting stake in the expansion and reinforcement of Leipzig's role as a center of competency in infrastrucure for rail transportation in southern and eastern Germany.

Wolfgang Tiefensee, Mayor of Leipzig, underlined the point: "Demands from the EU for more competition and municipally-owned mass transit companies are not mutually exclusive. Leipzig has taken the opportunity. It was all made possible by the successful restructuring of Leipziger Verkehrsbetriebe into subsidiaries capable of entering into partnership. This time, with Transportation Systems of Siemens AG, LIB has landed a profitable partner with market experience. Leipzig is getting in shape for the European competition. The policy has the dual objective of enabling the Greater Leipzig area to benefit from a high-performance mass transit system in the future and to take part in a growth business. For Leipzig, this will mean sustainable jobs in an innovative company, greater economic clout, structural strength and, finally, tax revenue".

Wilhelm Georg Hanss, CEO of LVB, explains: "With Siemens TS' holding in LIB, we have landed a first-class, high-performance partner for LIB. That will secure the long-term future of companies here and Leipzig's role as a business center. That is why we are looking forward - fully prepared - to future Europe-wide competition. We are contributing many years of practical experience and local competency to the partnership - the service center Leipzig serving the city of Leipzig."

Hans M. Schabert, Executive Vice President of TS, called the foundation of the second joint venture a logical and forward-looking measure aimed at the German and international markets for mass transit, which are increasingly being deregulated. "Leipziger Verkehrsbetriebe can now call upon the highly specialized service providers, LFB and LIB. And the passenger will be able to benefit from this as well". Siemens TS has already been offering services for rolling stock and infrastructure worldwide for some years now and has concentrated this competency in a separate division called of "Integrated Services".

The business fields and core business of the joint venture LIB include complete service with maintenance, inspection, and fault rectification for railroad systems, incl. repair of roads near to tracks, state analysis of infrastructure systems, and control and implementation of optimization processes. In particular, that means analysis, construction, and maintenance of track systems and roads, of power supply systems and traction wires, signaling, and telecommunications, and building services and safety technology.

Since October 1, 2000, Siemens TS has had a 50% stake in Leipziger Fahrzeug-Service Betriebe (LFB) GmbH. By ceding a holding in LIB to Siemens TS, LVB is continuing its policy of founding subsidiaries and giving private investors access to the originally municipal service company LVB.

By again ceding a holding in a subsidiary to Siemens TS, LVB is anticipating a future development that will soon open Europe's market for rail traffic to private investors, too. The renewed collaboration shows that both partners judge their previous cooperation to have been very successful and future-oriented.

With Siemens TS' holding in LIB and the opening up of new business fields, LVB and Siemens TS also expect a positive impetus for jobs in the region. Both partners, LVB and Siemens gauge the growth potential of their joint venture to be very promising and positive.

Wilhelm Georg Hanss concludes "Leipziger Verkehrsbetriebe are convinced that the positive development of the subsidiaries with strong partners will not only benefit the LVB subsidiaries. The development will also have a positive effect on the core business of LVB, operation of a rail and bus service, and will bolster the competitive position of the LVB group as a whole. The bottom line for us at Leipziger Verkehrsbetriebe is still: consistent customer orientation in all areas."

LIB was founded as a subsidiary of LVB
on December 23, 1999.
Capital stock: 450,000 euros
Employees: 242
Sales: 24 million euros (2001)

Siemens AG
Corporate Communications
Press Office
D-80312 Munich
Germany

Information number:
TS IS 200201.013 e
Press Office Transportation Systems
Bernd Edelmann
P.O. Box 3240,
D-91050 Erlangen, Germany
Tel.: +49-9131-7 27338;
Fax: -7 24598
E-mail: bernd.edelmann@ts.siemens.de