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February 16, 2006

Siemens Introduces New Line of Energy Efficient Industrial Motors

Phase One of a Multi-million Dollar R&D Investment Designed to Lower Cost of Motor Ownership

ATLANTA — Siemens Energy & Automation, Inc., today introduced three new lines of AC motors designed to meet or exceed NEMA (National Electrical Manufacturers Association) standards. Offered in aluminum and cast iron frame configurations, these motors include high efficiency and industry-leading NEMA Premium® efficient designs to help motor users lower energy costs and extend service life. The unique die cast copper rotor and special stator designs provide the added efficiency of these motors.

The three new product lines include general purpose die cast aluminum, general purpose cast iron, and severe duty cast iron frame motors for use in a wide variety of industrial applications. Siemens die cast aluminum frame motors have been developed to provide a high degree of mounting flexibility for general purpose applications such as air handling, conveyors, pumps, and compressors. Cast iron frame motors are available for general purpose and severe duty applications. A definite purpose version, exceeding the demanding requirements of IEEE standard 841, also is available for durability and energy efficiency in critical petroleum, chemical, and paper processing environments.

“Siemens is committed to providing our customers with the finest technology available to help lower operating costs through superior motor performance,” said Anne Cooney, vice president of Siemens’ Power Conversion Division. “We are making a multi-million-dollar investment over the next few years to grow our NEMA motor business in North America. The features, functionality, operating efficiency, and service life that our products provide, will only translate to benefits for our distributors, OEMs, and end users.”

According to the U.S. Department of Energy, motor-driven equipment accounts for 64 percent of the electricity consumed in the U.S. industrial sector, and within the nation’s most energy-intensive industries, motor systems consume approximately 290 billion kWh per year.

“Siemens has more than 14 decades of motor design experience, and our latest NEMA motor innovations will provide significant energy and cost savings to these industries,” said John Caroff, Siemens marketing manager for low-voltage motors. “These savings can be realized simply by using energy-efficient equipment and sound energy management practices.”

All three lines of Siemens motors are available in either high efficiency or NEMA Premium “ultra” efficient designs, offering ratings up to 10 percent higher than NEMA Premium standards, to help users significantly reduce facility energy costs. For example, a five percent efficiency gain over a 20 horsepower motor’s 20-year life can yield $12,500 in energy savings. With tens to hundreds of motors in a single plant, the savings realized through added motor efficiency can have a significant impact on a company’s profitability.

The new motors offer unique benefits through:

The new lines of motors are available up to 20 horsepower, and future plans include expanding the die cast aluminum motor line to 30 horsepower. The cast iron frame motor line will be increased to 400 horsepower over the upcoming months, and definite purpose designs will be added such as U.L.® listed explosion-proof m

About Siemens

Siemens Energy & Automation, Inc. is one of Siemens' operating companies in the U.S. Headquartered in the Atlanta suburb of Alpharetta, Ga., Siemens Energy & Automation manufactures and markets one of the world`s broadest ranges of electrical and electronic products, systems and services to industrial and construction market customers. Its technologies range from circuit protection and energy management systems to process control, industrial software and totally integrated automation solutions. The company also has expertise in systems integration, technical services and turnkey industrial systems. For more information: www.sea.siemens.com.

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $96 billion in fiscal 2005. Founded nearly 160 years ago, the company is a leader in the areas of Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $18.8 billion and employs 70,000 people throughout all 50 states and Puerto Rico. Eleven of Siemens` worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 460,000 people in 190 countries. For more information on Siemens in the United States: www.usa.siemens.com.