Fujitsu and Siemens to Merge European Operations

Fujitsu Ltd and
Siemens AG Thursday announced that the two companies will merge their European computer operations in an extensive cooperative venture that will include PC and Internet plays.

The two companies will establish a joint venture company named Fujitsu Siemens Computers and try to capture a “top 3” industry position worldwide in specific markets.

Fujitsu and Siemens say they have signed a Memorandum of Understanding to establish an extensive development and mutual supply arrangement, building on the strengths of each partner.
The collaboration is aimed at capturing a top 3 position worldwide in personal computers, Intel based and UNIX servers and large-scale enterprise systems.

“The joint venture between Siemens and Fujitsu is a further important step in the implementation of our Ten-Point Program to achieve sustainable growth in profitability,” said Siemens CEO
Dr. Heinrich Pierer.

“Following the merger of our Information and Communications segments and the expansion of our Internet activities, we are now strengthening our competitive position in the strategically important field of computer systems. This new worldwide co-operation will give us a leading position in this rapidly growing market.”

“The collective development, manufacturing, sales and distribution capabilities of our two companies together with increased efficiency and economies of scale will give Fujitsu Siemens Computers a tremendous competitive advantage in Europe and be a great asset to the Fujitsu Group worldwide,” said Naoyuki Akikusa, president of Fujitsu Ltd.

Fujitsu and Siemens will each hold a 50 percent equity stake in the
newly-formed Fujitsu Siemens Computers. It will combine the current
operations of Fujitsu Computers (Europe) Ltd., with its annual revenues
of over 2 billion euros (US$2 billion) and 1,600 employees, with those of Siemens
Computer Systems, with revenues of 4 billion euros (US$4.1 billion) and around 8,000 employees.

The full details of the joint venture are still being worked out, according to a statement issued by the two companies. However, a definitive agreement based on the Memorandum of Understanding is
expected shortly.

If regulatory approvals are given, Fujitsu Siemens Computers will
begin operations on October 1.

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