Schumacher to concentrate on leading Infineon.

Dr. Ulrich Schumacher, currently president of Siemens Semiconductors and, since the beginning of 1998, member of the Managing Board of Siemens AG, will henceforth devote himself exclusively to his duties as president and CEO of Infineon Technologies AG, which was established on April 1, 1999. At its meeting, the Supervisory Board of Siemens AG has, accordingly, accepted Dr. Schumacher_s resignation as member of the Managing Board of Siemens AG, effective April 30, 1999. However, he will remain a member of Siemens_ top management as long as Siemens retains its majority stake in Infineon. As part of Siemens_ TenPoint Program, Siemens Semiconductors will be listed on stock exchanges in the U.S. and Germany. In preparation for this move, Semiconductors was spun off on April 1, 1999 to form a separate legal entity with the name Infineon Technologies AG. Schumacher will head Infineon_s Managing Board. Its other members will include Peter J. Fischl (Finance), Dr. Andreas von Zitzewitz (Operations), Dr. Sönke Mehrgardt (Technology) and Peter Bauer (Sales&Marketing). Dr. Volker Jung, who has special responsibility in Siemens Corporate Executive Committee for the Components segment as well as the Information and Communications segment, will be chairman of the Supervisory Board. Preparations for Infineon_s public listing will be completed in the summer. The exact date of the listing, which is slated for late 1999 or early 2000, will then be fixed. Developments in Siemens_ semiconductors business over the first six months of the current fiscal year have been gratifying. As indicated in the interim report, Semiconductors_ sales rose in the first half of the current fiscal year 13 percent to DM3.8 billion and new orders advanced 16 percent to DM4.4 billion. Earnings have also increased significantly. Siemens will publish details in the business segment section of its comprehensive Semiannual Report on May 17, 1999.