ARQUES to acquire 80.2% of Siemens Home and Office Communication Devices

Siemens and ARQUES Industries AG have signed an agreement to transfer an 80.2% stake in Siemens Home and Office Communication Devices GmbH & Co. KG (SHC) to ARQUES as of October 1, 2008. “SHC is a very solid business with sound core operations and high value-creating potential. We intend to expand the company’s market leadership in the premium price segment, improve its market penetration worldwide and strengthen the successful Gigaset brand,” said ARQUES CEO Michael Schumann. With this step, Siemens is rigorously continuing its strategy of focusing on the three Sectors Energy, Industry and Healthcare. “In selecting a partner for SHC, measures to guarantee locations and employment were of particular importance to us,” said Siemens CFO Joe Kaeser. Regulatory approval is pending.

As part of the employment guarantee, ARQUES has contractually agreed to maintain SHC’s locations in Germany – Bocholt and Munich – for the next three years. The company will continue to be headquartered in Munich, Germany. ”During the negotiations, Siemens placed particular emphasis on our offering the employees a positive perspective in a strong company with a promising future,” said Schumann.

Under ARQUES management, SHC is expected to expand its position as best in class and market leader in the premium price segment. In this connection, the company’s product portfolio will be focused on high-margin business. A large number of product innovations – in the area of Voice over IP, for example – and an expansion of the company’s international business are expected to generate targeted growth. ARQUES also intends to intensify R&D investment at research locations in Germany and Poland. To continue placing innovative SHC products successfully on the market, ARQUES can continue to use the Siemens brand name for the next two years.

Siemens carved out SHC as a stand-alone company in October 2005. The company’s business focuses on cordless phones as well as broadband and home entertainment devices. Revenue in fiscal 2007 totaled €792 million. Two-thirds of SHC sales are generated by Gigaset cordless phones. In the cordless market, SHC is No. 1 in Europe and a leading supplier worldwide. In Germany alone, every second household boasts a Gigaset phone. In Europe, the figure is one in five. SHC products are manufactured primarily in Germany and meet the highest quality and environmental standards. With 2,100 employees, the company has locations in 17 countries and sells its products in around 70 countries. With 1,400 employees, SHC’s ultra-modern production facility in Bocholt, Germany is its largest location.

ARQUES, headquartered in Starnberg near Munich, Germany, specializes in acquiring non-core activities from companies in order to develop them into businesses with sustainable profitability.

ARQUES Industries AG, Starnberg, Germany, (www.ARQUES.de) is a business partner of conglomerates regarding company spin-offs and a turnaround specialist who focuses on the acquisition and the active restructuring of companies in transitional situations, in order to develop these, with its own team and own resources, to competitive enterprises with a positive yield. ARQUES revitalizes its subsidiaries' potential for creating value for the benefit of all its stakeholders, taking on the relevant social responsibility. The shares of ARQUES Industries AG are traded in the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the symbol "AQU" (ISIN: DE0005156004) and are listed in the SDAX.

Siemens AG (Berlin and Munich, Germany) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 400,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. In fiscal 2007, Siemens had revenue of €72.4 billion and income from continuing operations of €3.9 billion (IFRS).

Source: Siemens