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Siemens is ready for quick Cell C network roll-out

Johannesburg, 15 Jun 2001

The leading supplier of cellular infrastructure in Africa, Siemens Information and Communication Group (I and C Group), has been awarded a turnkey supply contract, valued at $221 million, for SA's third cellular operator, Cell C.

The contract will see Siemens as the full turnkey solutions provider of the dual band network infrastructure. The base contract for the main network and key options is valued at $206 million over 18 months.

This will include the Switching, Base Stations, GPRS (General Packet Radio Services), Prepaid Platforms, and VAS (Value Added Services) equipment.

In addition, Siemens has secured a support contract for all network elements. This contract also covers the installation and maintenance of all of Cell C's Business Communication equipment. Further options and operational support bring the overall contract value to $221 million.

Pete da Silva, Chief Operating Officer, said: "Siemens has been preparing for the opportunity for over two years. The site acquisition programme is well underway with site leases and contracts already in place. We are geared up for the countrywide network roll-out, and will ensure a smooth implementation for the commercial launch, planned for mid-December."

"Siemens is fully committed to Cell C and brings to the partnership a combination of global experience, substantial in-country presence, with a deep knowledge of the people, politics and procedures needed to establish a cellular operator in the country," Da Silva said.

Da Silva affirmed that the award of the third cellular licence will deliver a range of significant benefits for South Africans, in line with the broader aims of improving access to communication services and increasing empowerment. These include job creation, skills and knowledge transfer.

"Up to 2 000 new jobs will be created, directly and indirectly, by Siemens as a result of this project and we are committed to an aggressive programme of BEE subcontracting, with a significant percentage of materials for the project being procured locally. Cell C will thus receive the benefits of black empowered vendors providing managerial, technical and financial support."

Da Silva believes that Siemens, as the sole supplier for telecommunications equipment, and as a full turnkey partner, has all the key ingredients to succeed in the supply of the infrastructure solution for Cell C. "Securing the business was a significant step in affirming our position as the leading communications technology provider in Africa," he concluded.

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Siemens I and Group (Siemens Telecommunications Pty Ltd)

Siemens Information and Communications Group (I and C) in SA is a leading provider of voice and data networks with a comprehensive portfolio of IP-based products and solutions for enterprises, carriers and service providers. It is an integral part of the Information and Communications (I and C) business segment of Siemens AG, which also comprises Information and Communication Mobile and Siemens Business Services.

The I and C Group is divided into Carrier and Enterprise Solutions which focus on providing customised solutions, including the integration of products, systems and technology, to suit both business and individual needs. With a strong foundation in the mobile networks arena, which includes established GSM infrastructure, products, solutions and services for the Next Generation Internet, and electronic business solutions, Siemens provides the full spectrum of mobile business solutions, allowing users to communicate and be connected to information and services any time and any place.

Further information about Information and Communications is available at: http://www.ic.siemens.com/networks/index.htm

Carrier Solutions

Carrier Solutions supplies telecommunications infrastructure to a dynamic, converging market, which requires the seamless integration of data, voice, Internet as well as fixed-line and cellular networks.

The customer base comprises 300 network operators in 105 countries, including key telecoms players in SA, such as Telkom and Vodacom. Key technologies for this segment include the EWSD digital switching systems which enables 220 million connections worldwide as well as the SURPASS product range, offering customers a smooth transition to Internet-based networks.

With a strong foundation in the mobile networks arena, which includes established GSM infrastructure, products, solutions and services for the next-generation Internet, and electronic business solutions, Siemens provides the full spectrum of mobile business solutions, allowing users to communicate and be connected to information and services any time and any place.

Editorial contacts

Vanessa Cowan
Beachhead Media and Investor Relations
(021) 465 5504
Sharon Singh
Siemens Telecommunications
(012) 352 5671