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Siemens anticipates massive investments worldwide in sustainable urban infrastructure

Although cities cover only one percent of our planet’s surface, they consume 75 percent of our available energy and emit around 80 percent of all harmful greenhouse gases. Over half of humanity now lives in cities, and an end to urban growth is not in sight. By 2050, roughly 70 percent of the world’s population will live in urban centers, and urban economic output and energy needs will soar. In response, cities will massively invest in modernizing and expanding their infrastructures and increasingly depend on sustainable and ecofriendly solutions in order to reach their own climate goals and those of their respective country.
The Institute of German Business in Cologne expects “immense investments” to be made in urban infrastructures and predicts that strongly positioned international infrastructure providers will have “huge market potential.” According to an analysis by consultants Booz, Allan & Hamilton, cities worldwide will invest around €27 trillion in expanding their water, power and transportation systems over the coming 25 years. The German Institute of Urban Affairs forecasts communal investments of more than €700 billion will be made in Germany alone by 2020, and talks of an “investment backlog” in the roughly 2,000 German cities that together invest an average of only around €20 billion a year.
Siemens sees itself optimally positioned for climate-friendly urban infrastructure solutions. In fiscal 2009, the company generated roughly €23 billion with its Environmental Portfolio. Throughout the world, solutions from Siemens are already making life more comfortable and greener. In Norway’s capital Oslo, the new Siemens Metro uses around 30 percent less energy than the previous trains and 95 percent of the Metro’s components are recyclable. In the streets of London, hybrid buses equipped with Siemens technology reduce CO2 emissions by 30 percent compared to conventional buses, and Siemens’ road-toll system helps the City of London breathe more easily. Traffic signals in Berlin, Budapest, Vienna and many other cities use 80 percent less electricity after having their standard lights replaced with Osram LEDs. A city with 700 intersections with traffic lights can save more than €1 million euros annually.
In the center of Anaheim, California, Siemens relocated a complete transformer substation beneath a park. And because San Francisco had no space left to build a new power plant, the city will soon receive additional electricity with virtually no losses via a Siemens transmission line from Pittsburg, 90 kilometers distant. High-voltage, direct-current (HVDC) power lines efficiently bridge long distances: The 1,000-kilometer HVDC line planned by Siemens between Gujarat and Mohindergarh, India, will save 1.5 million tons of CO2 a year.
By upgrading lighting, heating and air conditioning systems, Siemens has improved energy efficiency in a total of about 1,000 hospitals, universities, schools, public swimming pools and administrative buildings. These measures enable the Siemens customers to reduce their energy costs by an average of 40 percent over the duration of the contract and achieve savings totaling over €2 billion. At the same time, their CO2 emissions are being slashed by more than 1.4 million tons.
In times of tight budgets, Siemens’ Energy Saving Contracting helps make many green projects a reality. With this business model, communes needn’t make investments of their own in the consulting, installation and financing package for their projects. They merely pay installments generated by energy savings that have been guaranteed by contract and achieved with the contracting. “In effect,” commented Peter Löscher, “this is climate protection at no cost for the communities.” 
Munich, Germany, aims at cutting its CO2 emissions in half by 2030. A study conducted by the Wuppertal Institute and Siemens indicates that a reduction of 90 percent would in fact be possible by mid-century without losing any quality of life. Working with the “Economist Intelligence Unit,” Siemens is currently preparing a further study – the European Green City Index – that will be presented on December 8, 2009 during the UN Climate Conference in Copenhagen. The study’s independent ranking of the ecofriendly and sustainable infrastructure of 30 cities in 30 European countries is unique as a comprehensive and standardized environmental analysis of cities to date.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 410,000 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 technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS). Further information is available on the Internet at:

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Siemens, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments in major business areas and recessionary trends); the possibility that customers may delay the conversion of booked orders into revenue or that prices will decline as a result of continued adverse market conditions to a greater extent than currently anticipated by Siemens’ management; developments in the financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and a further deterioration of the capital markets; a worsening in the conditions of the credit business and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; future financial performance of major industries that Siemens serves, including, without limitation, the Sectors Industry, Energy and Healthcare; the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies; a lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings and actions resulting from the findings of these investigations; the potential impact of such investigations and proceedings on Siemens’ ongoing business including its relationships with governments and other customers; the potential impact of such matters on Siemens’ financial statements; as well as various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens’ other filings with the SEC, which are available on the Siemens website,, and on the SEC’s website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
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Alexander Becker

Siemens AG

Wittelsbacherplatz 2
80333 Munich

+49 (89) 636-36558