Press Presse Prensa
		For the business and financial press Munich, May 12, 2004

Siemens expands position in the growing water market

Acquires US Filter Corporation’s systems and services businesses for $993 million

Siemens is expanding its activities in the rapidly growing market for water treatment and supply. As an important step in this strategy, the Industrial Solutions and Services Group (I&S) is acquiring the worldwide systems and services businesses of the US market leader, US Filter Corporation. The purchase price for the company — which employs around 5,800 individuals and has annual sales of some $1.2 billion — amounted to $993 million. A definitive agreement among Siemens and the French parent company Veolia Environnement, Paris, has now been reached. The transaction, which is expected to close before the end of September, is subject only to applicable regulatory approvals.

US Filter is headquartered in Palm Desert (CA) and Houston (TX) and consists of around 120 locations worldwide. It is the leading provider of municipal and industrial water treatment products and services in the North American market. The worldwide market for water treatment and supply as well as industrial wastewater treatment has a total annual volume of €290 billion. The industry’s size, coupled with an annual growth rate of more than six percent, makes it a particularly appealing business segment. The primary markets are in the United States and Europe.

For municipalities and industrial companies, water supply and treatment are critical topics for the 21st Century. Water belongs to the strategically significant and cross-Group areas in which Siemens is already well-positioned. The main activities are concentrated within the Groups Automation and Drives (A&D) and I&S. The I&S Group has the lead management for the water-related business. US Filter’s activities will also be organizationally led by this Group. The headquarter of the new I&S Group company will remain in Palm Desert.

I&S Group President Joergen Ole Haslestad said: “This acquisition is an important step in the framework of strengthening our Group portfolio. The growing water business will play a critical role within our industrial activities at Siemens. With it, we will be able to expand our product and service offerings for our customers, in particular within the world’s largest water market, the USA.”

Henri Proglio, Chairman of Veolia Environnement, said: “The sale of US Filter Corporation’s systems and services businesses generated significant interest from both strategic and financial investors. We found Siemens’ offer very convincing from all points of view: industrial, financial and strategic. This transaction will preserve the future and growth of these businesses and their teams, while providing attractive prospects for industrial and commercial cooperation with an important European group.”

The Siemens Industrial Solutions and Services Group (I&S) provides innovative solutions and services designed to improve competitiveness in processing and manufacturing industries and in infrastructure. Offerings cover the entire life cycle of industrial and infrastructure facilities, from consulting and planning through installation, operation, integration of MES-solutions, maintenance and modernization.

SIGNATURES

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