Siemens Wins $245 Million Order from U.S. Postal Service(R) for 550 Mail Sorting...

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Tue May 20, 2008 8:22am EDT

Siemens Wins $245 Million Order from U.S. Postal Service(R) for 550 Mail
Sorting Systems

ATLANTA, May 20 /PRNewswire/ -- Siemens announced today that it has been
awarded a $245 million contract from the United States Postal Service (USPS)
for 550 Advanced Facer Canceller Systems (AFCS) 200 to replace and modernize
its existing fleet of AFCS.  The AFCS currently being used has been in service
for almost 20 years and is used by the Postal Service (TM) to cancel
First-Class mail.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20070904/SIEMENSLOGO )
    In addition to the design, build and installation of the replacement
machines, the contract includes the delivery of ancillary equipment, spare
parts, training and complete integrated logistics support services. Siemens
and USPS engineers worked together to develop a system that integrated all the
technical requirements of the USPS with the state-of-the-art developments in
mail processing technology.
    "We are delighted with the vote of confidence that the USPS has given us,
continuing our many years of successful cooperation. The AFCS systems play an
important role in mail processing and the new systems will help the U.S.
Postal Service to further boost its productivity," said Hans-Jorg Grundmann,
CEO of Siemens Mobility. "The AFCS remains an essential element in the
automated mail process. Siemens has worked closely with the USPS to modernize
and streamline the highly sophisticated technology in this machine to extend
its useful life another 10 years."
    The AFCS 200 will use the Siemens Advanced Color Reader (ACR) to detect
and lift the address and other mail piece information for automatic reading.
The ACR's greater capabilities will not only enable greater reading
performance but also streamline the overall system design.
    This will be the first system in the USPS fleet to use Siemens' channel
gate technology.  The channel gate improves on traditional diverters by
actually modifying the path of the letter through the machine rather than
deflecting it in a particular direction.  The new technology greatly increases
the throughput of the machine and will be a major contributor to the cost
savings the USPS anticipates in the deployment of the AFCS 200.
    Production and installation of the AFCS 200 order is expected to be
completed by March, 2011.
    The AFCS was initially deployed in the early 1990's and is primarily used
to process First-Class mail sent by individuals.  The AFCS 200 program
responds to the decline in this mail type in recent years, allowing the USPS
to improve the performance and maintenance characteristics of the system while
reducing the total number of machines.
    About Siemens
    Siemens Energy & Automation, Inc. is one of Siemens' operating companies
in the U.S. Headquartered in the Atlanta suburb of Alpharetta, Ga., Siemens
Energy & Automation, Inc. manufactures and markets one of the world's broadest
ranges of electrical and electronic products, systems and services to
industrial and construction market customers. Its technologies range from
circuit protection and energy management systems to process control,
industrial software and totally integrated automation solutions. The company
also has expertise in systems integration, technical services and turnkey
industrial systems. For more information: www.sea.siemens.com.
    Siemens AG (NYSE: SI) is a global powerhouse in electronics and electrical
engineering, and operates in the industry, energy and healthcare sectors.  For
more than 160 years, Siemens has built a reputation for leading-edge
innovation and the quality of its products, services and solutions.  With
nearly 400,000 employees in 190 countries, Siemens reported worldwide sales of
$96.6 billion in fiscal 2007.  With its U.S. corporate headquarters in New
York City, Siemens in the USA reported sales of $19.8 billion and employs
approximately 70,000 people throughout all 50 states and Puerto Rico.  For
more information on Siemens in the United States, visit www.usa.siemens.com.
SOURCE  Siemens Energy & Automation, Inc.

Michael Krampe of Siemens, +1-770-751-2211, michael.krampe@siemens.com
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