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Press Release

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25th February 2000, Hanover Germany

Siemens and Proxim Partner to Develop Wireless Home Networking Solutions for Home and Small Office

Major Technology Players First to Develop Integrated Wireless Voice and Data Solutions for Home and Small Office Users

Siemens and Proxim, Inc.announced today that the two companies have entered into a partnership to jointly develop integrated wireless voice and data network solutions for home and small office users.

This alliance of two major global players in the cordless telephony and wireless LAN fields comes on the heels of Siemens' announcement in January of its contributions to the HomeRF(TM) Working Group, and its intent to develop voice products based on the group's SWAP specification.

Siemens and Proxim are clear global leaders in their fields, with each bringing award-winning product portfolios, intellectual capital, industry and channel relationships and brand power to the partnership.

The joining of the two powerhouses is expected to catapult the HomeRF standard -- which brings the power of broadband voice and data networking within the affordable grasp of consumers -- to the forefront of home networking technologies. Siemens will provide the core voice capability for the technologies and products resulting from the partnership, while Proxim will focus on the wireless data elements of the converged voice and data solutions.

Results and Benefits of the Siemens and Proxim Partnership

Multi-PC environments, rapidly increasing Internet connectivity, accelerating deployment of broadband services, and the proliferation of cordless phones and other mobile devices in the home are driving the demand for integrated voice and data wireless networking. Adding to the attractiveness of home networks is Siemens' and Proxim's wireless approach, which eliminates the limitations of existing home wiring and avoids the cost and inconvenience of installing new wires.

The partnership between Siemens and Proxim will spur more rapid adoption of integrated voice and data solutions, resulting in greater flexibility and convenience for home network users. HomeRF-standardized solutions will usher in a new era of simplified communications and location independence for people in and around the home or small office.

"Home connectivity is moving beyond simple PC-to-PC data communications toward the integration of voice and data services,'' said Mike Wolf, home networking industry analyst at Cahners In-Stat Group. ``The Siemens and Proxim announcement of joint development of products and technology that allow for wireless high speed data and voice communications is an exciting step forward in this move toward integrated home services.''

Imagine Internet-enabled appliances that can receive a phone call, and cordless phone handsets that can interact with PCs and other devices for a variety of applications. Home and small office users will be able to seamlessly network and integrate diverse wireless devices throughout their environments facilitating shared access to dial tone, the Internet and bandwidth.

End users will benefit from a standardized, integrated solution with lower costs and more efficient resource utilization than is currently possible with separate voice and data networks. The wireless approach eliminates the need to hard wire new devices and services, making it quicker, simpler and more economical to expand the networks. The integrated solution will provide secure, high-quality connections for both voice and data, and users will be able to choose from a wide variety of HomeRF-compatible devices.

Telecommunications services providers stand to benefit as well. Solutions developed by Siemens and Proxim will help drive broadband services into more homes at low entry costs, and open the way for new services and revenue streams. Service providers can deliver complete voice and data solutions throughout the home simply and cost effectively, and increase the likelihood of controlling the ``last mile'' amid competitive pressures.

Two Established Technology Leaders Equal a Powerful Partnership

Siemens is recognized throughout the telecommunications industry for its extensive experience in DECT (digital enhanced cordless telephony), key to HomeRF technology.

A proven innovator in cordless telephony, Siemens introduced U.S. cordless phone consumers to the 2.4GHz frequency and brought to market its highly acclaimed Gigaset® -- the first line of expandable, multi-user cordless 2.4GHz phone systems for the home and small office. To date, the company has sold more than 20 million Gigasets worldwide.

"As the leader in DECT-based cordless telephony, we sought to partner with the undisputed leader in wireless data transfer in pioneering a complete voice and data wireless networking solution for home networks,'' says Noel Schnell, vice president of Digital Products for Siemens Communication Devices.

"This is a significant milestone for Siemens and Proxim, the HomeRF community, end users and those developing products and services tailored to the rapidly growing home networking market.''

Proxim is the leading worldwide supplier of 2.4GHz wireless LAN technology to both OEMs and end users. It has established itself as a leader in the emerging home networking market with its award-winning Symphony(TM) suite of cordless networking products for home and small office environments.

In the mobile computing arena -- which will figure prominently in home networks -- Proxim has led the way in wireless communications with a number of industry firsts, including being first to market with wireless LAN adapters, Ethernet bridges, and wireless LAN connectivity support for wireless Windows CE and palmtop devices.

"Our two companies are working with a common vision to offer the most viable solution for marrying high quality voice and higher-speed data into wireless networks for the home and small office,'' said Kurt Bauer, Proxim vice president of Marketing. "Together, we will deliver powerful communications solutions optimized for consumer and SOHO applications faster to market than any two companies could deliver independently.''

The companies will leverage their existing distribution channels and partner relationships and will also establish new alliances to support the technology and products produced by the partnership.

HomeRF -- The Leading Wireless Standard for the Home and Beyond
The HomeRF standard is an open specification supported by more than 100 member companies to deliver a broad spectrum of affordable, interoperable consumer devices capable of both toll-quality voice and high-speed data networking. Current supported applications include cordless voice telephony, in-home distribution and sharing of broadband data services, and file and print sharing.

Seven leading companies -- Cayman Systems, Compaq, IBM, Intel, MobileStar Network, Motorola and Proxim -- have recently announced specific plans to launch HomeRF products beginning in Q1'00.

Siemens has announced that it will deliver the voice element of the standard. Planned HomeRF technology enhancements for 2H'00 and beyond will support higher data rates; isochronous voice, audio and streaming video communications; and broadband wireless Internet access outside the home.

These enhancements will enable a whole new class of applications, including cordless telephony, streaming music and video, and broadband wireless Internet connectivity in airports and other public ``hot spots.''

Siemens -- A Global Leader in Innovative Communication Technology
For more than 150 years, Siemens has been well-known in Europe and around the world for high quality and finely engineered telecommunications products. Siemens Communication Devices (CeBIT Hall 26, Stand D40, Island 14), a division of Siemens Information and Communication Products LLC, develops, manufactures and markets feature-rich, digital cordless products for the North American market.

Siemens is a principal member of the HomeRF Working Group's technical standards committee and has a leading role in the marketing committee.

Proxim -- The Leader in Wireless LANs
Headquartered in Sunnyvale, Calif., with European offices in Paris, Berlin and Oxford, UK, Proxim, Inc., has more than 15 years of experience in the wireless LAN market. Today Proxim is the world's leading supplier of spread spectrum wireless LAN products to OEMs and wireless solutions providers.

In 1994, Proxim was first to market with its industry-leading RangeLAN2(TM) 2.4 GHz frequency hopping wireless LAN product family, which has attracted more than 100 OEMs and wireless solutions providers worldwide. In 1999, Proxim established itself as a leader in the emerging home networking market with its award-winning Symphony(TM) suite of cordless networking products for home and small office environments.

Proxim is a founding member of the Wireless LAN Interoperability Forum (WLI Forum), established to deliver and test interoperable wireless LAN products and services. Proxim is also a core member of the Home Radio Frequency Working Group (HomeRF), which is committed to providing a broad range of interoperable cordless consumer devices.

Note to Editors: Gigaset is a registered trademark of Siemens AG. RangeLAN2 and Symphony are trademarks of Proxim, Inc. HomeRF is a trademark of the Home Radio Frequency Working Group. All other trademarks used herein are the property of their respective owners.

Further Information

Karen O'Brien}
Tel		1 512 990 6463 
Dan Spalding
Tel		1 408 731 2619

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