( BW)(SIEMENS)(SI)(SIE.FK) Saudi Arabian Carrier Modernizes
Telecommunications Network with Next Generation Optics Technology From
Siemens

    Business Editors/High-Tech Writers

    MUNICH, Germany--(BUSINESS WIRE)--July 8, 2004--Saudi Telecom
Company (STC), the largest telecommunications provider in Saudi
Arabia, has signed a further contract with Siemens IC Networks
(NYSE:SI) (FWB:SIE) for delivery and installation of optical
transmission technology. The framework agreement, worth a double-digit
million euro figure, primarily encompasses the newly developed
multi-service provisioning platform SURPASS hiT 70xx. A first tranche
of the contract has already been ordered for building an SDH-based
transmission ring in the eastern province of the country. The new
route is planned to go into operation in July 2004.
    Through the use of this state-of-the-art transport technology, the
Saudi Arabian carrier will in future, alongside the classical SDH
services, also be able to offer its customers data services based on
Ethernet and storage area networks (SAN) services. The various
integrated technologies will be controlled by the TNMS network
management system from Siemens already being used by STC, for which
only a software update is required. STC can hence migrate smoothly and
cost-effectively to a convergent, IP-optimized network.
    Further information about ICN is available at:
http://www.siemens.com/icn-press

    --30--ZT/uk*

    CONTACT: Siemens AG                          
             Press Office Information and
             Communication Networks
             Harald Hassenmueller
             Tel.: +49-89 722-27558; Fax: -28365
             harald.hassenmueller@siemens.com