Siemens expands global network outsourcing agreement with AT&T

Aug. 30, 2001--AT&T announced it has been awarded a six-year, $100 million contract by Siemens Business Services (SBS), a wholly owned subsidiary of Siemens AG, to manage the company's information technology network infrastructure throughout the U.S. and Canada.

Aug 30th, 2001

AT&T announced it has been awarded a six-year, $100 million contract by Siemens Business Services (SBS), a wholly owned subsidiary of Siemens AG, to manage the company's information technology network infrastructure throughout the U.S. and Canada.

The agreement represents the second phase of a global outsourcing agreement negotiated a year ago by SBS and AT&T to transform Siemens' global communications network to an advanced Internet Protocol (IP) network. The first phase of the contract, also for six years, was valued at Euro 250 million, and covered parts of Europe, Asia, Africa and South America.

By terms of the new agreement, AT&T Solutions, the company's networking professional services arm, will transform the IT infrastructure supporting nearly 500 sites at 18 Siemens operating companies in North America. AT&T Solutions will provide a full range of managed networking services, wide area networking management, and data and voice transport services. This enables SBS to offer its clients the full benefits of AT&T's advanced networking capabilities.

Parts of the global Siemens Communications Network already have been outsourced to AT&T, enhancing the performance and quality of service of Siemens' Data Communication Network, reducing the need for capital investment, cutting operating costs by pooling carrier purchases across the globe and expanding e-business capabilities.

SBS retains overall responsibility for network service and the customer interface to Siemens companies and its external customers. SBS also will continue provisioning value-added and consulting services on top of the network platform and network security services.

The contract calls for AT&T Solutions to integrate and manage global trans-border services provided by Concert, the global joint venture of AT&T and BT, and other carriers.

AT&T Solutions will manage Siemens' global network from its Global Client Support Center (GCSC) in Birmingham, United Kingdom, with regional support from GCSCs in the U.S. and Singapore, and a fault clearinghouse in Germany. The GCSCs feature AT&T's Global Enterprise Management System (GEMS), which provides seamless networking capabilities -- including predictive management -- by integrating proprietary AT&T software with best-in-class enterprise-management software. GEMS also can provide AT&T Solutions' clients with e-business applications management and analysis.

About Siemens Business Services:

Siemens Business Services (SBS) is a service provider in the area of electronic and mobile business. Siemens AG is a global electronics and engineering company. For more information, visit www.siemens.com.

About AT&T:

AT&T is a voice, video and data communications company, serving consumers, businesses and government. For more information, visit www.att.com.

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