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Siemens builds GSM mobile network for Tele2 in Russian Federation



RELATED SYMBOLS: (SI)(TLTOB)

MUNICH, Germany, Jan 14, 2003 (BUSINESS WIRE) -- The Sweden based telecom
operator Tele2 AB has awarded Siemens Information and Communication Mobile Group
(Siemens mobile) to build its GSM 1800 network throughout the Russian
Federation.

As per the contract Siemens mobile will provide Tele2 with the switching
network, radio base stations and microwave transmission systems.

This new contract further consolidates Siemens mobile's position as one of
Tele2's strategic suppliers. Tele2 and Siemens mobile today cooperate in eight
European countries, in the areas of GSM and GPRS technology and mobile services.

"Siemens is one of our long term strategic suppliers with a strong track record
and excellent operational performance. We are confident that this extended
partnership will allow Tele2 to successfully take the great mobile market
opportunity in the Russian Federation" said Johnny Svedberg, Executive Vice
President and Market Area Director Tele2 Eastern Europe and Russia.

"Setting up the GSM network for Tele2 in Russia will further strengthen our
position in the rapidly growing mobile radio markets of Eastern Europe. At the
same time, the order underpins our many years of successful co-operation with
Tele2," commented Lothar Pauly, board member of the Siemens Information and
Communication Mobile Group.

Compared to the rest of the world, the Russian mobile radio market, with a
penetration rate of around twelve percent, has enormous potential for growth.
Only about 17,8 million of Russia's 144 million inhabitants currently use mobile
telephones.

Tele2 AB (formerly Netcom AB), founded in 1993, is the leading alternative
pan-European telecommunications company. It supplies fixed networks and mobile
telephony, data networks and internet services to over 16,5 million customers in
21 countries. Siemens has been supplying mobile radio technology to Tele2 since
1991.

More than 740 million users are making GSM the world's most successful mobile
telephony standard. With currently more than 180 international customers in over
90 countries, Siemens mobile is the number three system supplier for GSM mobile
networks and is the market leader as a supplier for prepaid technology. The
Group also holds a top ranking in the area of GPRS and UMTS. In just one single
year, Siemens has advanced from sixth to third place worldwide among the leading
providers of mobile infrastructure. Thanks to this positive development, Siemens
mobile has done very well in a very difficult market environment.

The Siemens Information and Communication Mobile Group (Siemens mobile) offers
the complete range of mobile solutions including mobile devices, infrastructure
and applications. Devices include mobile phones, wireless modules, mobile
organizers and cordless phones as well as products for wireless home networks.
The infrastructure portfolio includes GSM, GPRS and 3G mobile network
technologies from base stations and switching systems to intelligent networks,
e.g. for prepaid services. Mobile Applications cover end-to-end solutions for
Messaging, Location Based Services or Mobile Payment. For fiscal 2002 (September
30), Siemens mobile recorded sales of EUR 11 billion and employed approximately
28.600 people worldwide.

You can access further information about Siemens IC Mobile on the Internet at
http://www.siemens-mobile.com

You can access press releases, photographs and further information on the
internet at: http://www.siemens-mobile.com/press


CONTACT: Siemens
Press Office
Christian Hoenicke
Tel.: [phone]; Fax: -44780
E-mail: [e-mail]

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KEYWORD: GERMANY INTERNATIONAL EUROPE
INDUSTRY KEYWORD: HARDWARE
TELECOMMUNICATIONS
SOURCE:
Siemens
AG

(Wall Street)




Daniel Nieves