EXHIBIT 99.1
SIEMENS ANNOUNCES JOINT VENTURE WITH BROKAT
A STRATEGIC COOPERATION IN THE FIELD OF MOBILE BUSINESS; JOINT PRODUCT MAKES THE
USE OF MOBILE TELEPHONES TO MAKE PAYMENTS IN REAL TIME POSSIBLE; SIEMENS TAKES
STAKE IN BROKAT
MUNICH / STUTTGART, OCTOBER 2, 2000. Siemens AG and Brokat AG, the software
company which is a world leader in e-services platforms, today announced the
companies have signed a strategic cooperation for joint development and
distribution in the mobile business field. The objective of the cooperation is
to develop a joint product for mobile payment transactions, which makes payment
for purchases via a cell phone possible in real time. The cooperation provides
both partners with new competitive opportunities in a market that is growing
rapidly.
Within the framework of the cooperation, Siemens AG will acquire a 3% share in
Brokat AG. This corresponds to a capital inflow of approximately Euro 72
million. In exchange, Brokat will issue shares to Siemens from the capital
already authorized. In addition, Siemens will be granted a seat on the
supervisory board of Brokat AG. Within the framework of the transaction, Siemens
will also acquire extensive software licenses from Brokat.
The joint solution proposed by Siemens and Brokat will enable the end user to
pay instantly for reservations, orders and purchases via a cellular phone. The
payment amounts are entered in real time and the payment receipt will be
indicated on
1
<PAGE>
the cell phone display. The ordering and payment processes are thus combined
into one process. This makes additional invoices as well as the time-delayed
transfer of invoice amounts and the subsequent entry into the recipient's books
unnecessary. The cooperation between Siemens and Brokat thus opens up new
services and business opportunities to end users and providers.
The new product is based on the e-Services Platform Twister developed by Brokat
and on the prepaid technology developed by Siemens. Brokat is a worldwide
leading provider of e-services platforms. Twister integrates the various
distribution channels of a company and offers the technical requirements for
integrating the mobile channels into the total value-adding chain of e-commerce.
Siemens is a leader in the area of prepaid technology, which is already used by
more than 40 mobile cellular phone net providers for calls with prepaid cards.
The market volume for the joint venture segment is estimated by market analysts
to reach approximately $ 4 billion (US) by 2005.
Brokat and Siemens will establish a joint team, which will initially be made up
of 50 employees and is expected to be continually expanded. Brokat is expected
to use the capital generated by Siemens` participation mainly to further develop
its strategy in the mobile commerce area. The profits are to be used for
marketing as well as for product development in the mobile commerce area. "The
market for mobile business, in particular the mobile payment segment, will
develop exponentially in the coming years", says Stefan Rover, Chief Executive
Officer of Brokat AG. In addition, Rover emphasized, "Siemens will cooperate
with us in this market. This shows that we are on the right track with our
2
<PAGE>
strategy where technical direction is concerned, as well as with the product."
"With the investment in Brokat we are realizing another portion of our mobile
business strategy. By combining the cellular phone and the Internet we are
creating a new type of mobility", said Rudi Lamprecht, member of the managing
board of Siemens AG and President of the Siemens Information and Communication
Mobile Group. Mr. Lamprecht further states that "The Mobile Payment Solution by
Siemens and Brokat creates the digital equivalent of a wallet which is easy to
handle and safe".
BROKAT AG
Globally, Brokat is among the leading suppliers of software for e-commerce
solutions. The company is the global leader in the Internet banking market. The
modular E-Services platform Twister is the key product. This global software
integrates existing IT-systems and applications in companies and links them
securely to various electronic channels, such as the Internet or mobile
telephony. Twister makes extensive functionalities for Customer Relationship
Management and Enterprise Application Integration available. Already, more than
2,000 clients use Twister-Solutions, e.g., Allianz, Axa, Deutsche Bank 24, ABN
Amro, Cable & Wireless HKT, Consors, DBS-Bank Singapur, debitel, Schweizer Post,
SE-Banks, Toronto Dominion Bank and Union Bank of California. Brokat was founded
in 1994 and currently employs more than 1,200 people in 16 countries. In 1999
the company had revenues of DM 94 million. Brokat AG is headquartered in
Stuttgart, Germany. Further information about Brokat and its products can be
found on their website: WWW.BROKAT.COM.
3
<PAGE>
SIEMENS INFORMATION AND COMMUNICATION MOBILE
The Siemens Information and Communication Mobile Group (26,000 employees, sales
of 6 billion EUR in first 9 months of FY 2000) offers a complete range of mobile
telephone products including devices, infrastructure and applications. Devices
include mobile phones, ISDN phones, mobile organizers, cordless and corded
phones. The infrastructure portfolio includes the complete range of network
technologies from base stations and switching systems to applications and
intelligent networks. For further information about this Siemens group, please
visit our home page: http://www.siemens.de/ic/mobile
YOUR INFORMATION CONTACTS:
Reiner Jung Markus Hermsen
Company Spokesman Hiller, Wust & Partner GmbH
Brokat AG Wei(beta)enburger Str. 30
Industriestr. 3 63739 Aschaffenburg
70565 Stuttgart T: 06021/38 666-15
T: 0711/ 78 844-311 T: 06021/38 666-30
F: 0711/ 78 844-772 E-Mail: [email protected]
E-Mail: [email protected]
Siemens Information and Communication Mobile
Public Relations
Axel J. Schafmeister
T: 089 636 51675
E-Mail: [email protected]
4
