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Siemens Announces La Mirada, California Facility Opening With It's Exclusive Custom LasR™ Lab

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Commitment to Customers and Creating Growth in the Hearing Market Remain Key Objectives to Meet Industry Needs

PISCATAWAY, New Jersey - Siemens Hearing Instruments, announced today that it will open a new state-of-the-art, 28,000 square feet manufacturing facility in La Mirada, California. The official opening is scheduled for late 2002. Designed for increased manufacturing capacity to serve the company's growth needs, the facility will deliver high quality products, and house Siemens exclusive LasR™ Lab to create more accurate and comfortably fitting hearing instruments.

Using highly advanced computer software and laser scanning technology, the new LasR process more accurately creates the outer case or shell of the hearing instrument.

As part of its ongoing commitment to better serve customers, Siemens will provide an audiology team, customer service, sales and manufacturing departments at the La Mirada facility. Additionally, the custom hearing instrument factory will utilize the latest in digital mechanical assembly technology to assure the highest quality product possible.

"The La Mirada facility will allow us to deliver the best products with World Class quality & reliability, customer service and quick turnaround, to continue to meet the needs of our Hearing Care Professionals and their patients," said William J. Lankenau, President & Chief Executive Officer of Siemens Hearing Instruments.

About Siemens Hearing Solutions:

Headquartered in Piscataway, New Jersey, Siemens Hearing Solutions (Siemens Hearing Instruments, Inc.), designs, engineers and manufactures advanced digital, digital, digitally programmable and advanced conventional hearing aids in all custom (ITC, ITE, and CIC) and behind-the-ear (BTE) models.

The Company also offers audiologic software along with a wide variety of equipment for Hearing Health Care Professionals, hearing aid batteries and a wide array of assistive listening devices (ALDs), such as amplified phones, which help improve the quality of life of the hearing impaired. Visit www.siemens-hearing.com for more information.

The Company operates as a subsidiary of Siemens Medical Solutions, of Siemens AG one of the largest suppliers of healthcare equipment in the world. Siemens AG (NYSE: SI), headquartered in Munich, is a leading global electronics and engineering company. It employs some 450,000 people in 193 countries, and reported worldwide sales of more than $74 billion in fiscal 2001 (10/1/00 - 9/30/01). The United States is Siemens' largest market, with nearly 80,000 employees and sales of $18.9 billion for fiscal 2001. For more information about Siemens in the U.S., visit www.usa.siemens.com.
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