---

Siemens Automotive Announces Second Detroit Area Campus

7 July 1998

Siemens Automotive Brings Support Closer to Customers With Second Detroit Area Campus

    AUBURN HILLS, Mich., July 7 -- Siemens Automotive will extend
its North American customer support, engineering and sales presence to
Dearborn, Michigan, effective September of this year when it becomes the
principal tenant of an existing three-story facility located at 17000
Executive Plaza Drive, just east of the Southfield Freeway and south of Ford
Road.
    As announced earlier, the company's Auburn Hills facility will also be
expanded.
    "We recognized that a second Detroit base of operations would allow us to
manage our current and projected growth while making our resources and
services more readily accessible to all of our Detroit-based customers," said
George Perry, President and CEO, Siemens Automotive Corporation.  "Over time,
the new Siemens Dearborn campus will be primarily dedicated to supporting our
growing business with Ford Motor Company," Perry said.
    The company's Auburn Hills facility is convenient to key Chrysler and
General Motors engineering and purchasing locations and will continue to serve
as Siemens' vehicle and engine test center.  Programs of other key OEM's and
Tier One customers can be supported out of either location.
    According to Perry, Ford's move toward full service suppliers and
expanding the role of key supplier partners, like Siemens, will require even
closer coordination and support from the supplier.  "As a key development
partner to Ford, we cannot just be in the same region anymore.  We need to be
just outside their door," Perry added.
    Since 1990, Siemens Automotive business with Ford has increased from
approximately $80 million annually to projected sales of $500 million by 2000.
Accounting for much of this growth with Ford are several new production
launches which include: electronic crash sensors (1997); passive anti-theft
systems (1998); a new generation of fuel injectors (1999); integrated air/fuel
modules (1999); electrical distribution systems (2000) and advanced navigation
systems (2000).
    As the primary tenant, Siemens Automotive will occupy approximately 70
percent of its new Dearborn facility, and anticipates attracting other Siemens
companies in the Detroit area in order to fill the remaining space.  The
facility encompasses 40,000 sq. ft. of office space and 5,000 sq. ft. of
vehicle and application engineering area.  Siemens expects to house 100
employees in Dearborn by the end of the year, eventually growing to more than
200 at that location.
    The establishment of the new Siemens Dearborn campus will take place in
addition to the 51,000 sq. ft. expansion scheduled to begin at the company's
Auburn Hills facility this summer.  "Both expansion initiatives are part of
our long-term strategy to be positioned to meet the more demanding role of a
systems supplier," Perry said.
    The Dearborn facility is vacant and will be ready for occupancy in
September.  It will be updated with the latest multi-media communications
technology developed by Siemens Business Communications Group to ensure
optimal lines of communication between the new campus and the company's Auburn
Hills headquarters.
    Other prospective Siemens tenants in the Detroit area include: Siemens
Energy and Automation; Siemens Electromechanical Components; Siemens Business
Communications; Siemens Components; Osram Sylvania; and Siemens Medical.
    Siemens Automotive is a tier-one supplier of automotive
electrical-electronic systems and components with applications covering
powertrain systems, safety and chassis systems, body electronics, electric
motor drives, driver information systems and diesel systems.  Siemens
Automotive generated $3 billion in sales in 1997, 10 percent of which was
reinvested in research and development.  The parent organization, Siemens AG,
the world's second leading manufacturer of electronics capital goods,
generated sales of $64 billion in 1997, and presently employs 386,000 people
around the world.
    For more information on Siemens Automotive growth and recent expansion
plans, please visit the media center of our web site: http://www.siemensauto.com