News Release

Alliance to create patient smart card deployment

Business Announcement

The Mount Sinai Hospital / Mount Sinai School of Medicine

A huge segment of the population in the New York City metropolitan area could soon benefit from a patient smart card technology program that will help make important health care information more accurate, more secure and more readily available. The new program is part of a strategic alliance announced today by Siemens Communications Inc., The Mount Sinai Medical Center and Elmhurst Hospital Center.

The Patient Health Smart Card initiative builds off the successful smart card pilot launched at Elmhurst Hospital in 2003, the first of its kind in New York City. Siemens brings a long history of successful patient smart card deployments to bear, including large-scale projects such as the Lombardy, Italy, regional patient card project. Together, Mount Sinai, Elmhurst and Siemens hope to expand smart card technology throughout the metropolitan area and create a regional health network for the benefit of their patients.

Rollout of the Patient Health Smart Card will occur in phases, with initial deployments of 100,000 smart cards to include Mount Sinai Medical Center and eight affiliated hospitals. The affiliated hospitals are: The Mount Sinai Hospital of Queens, Cabrini Medical Center, Elmhurst Hospital, Englewood Hospital, North General Hospital, Queens Hospital, St. John's Riverside Hospital, and Settlement Health. Overall, there are 45 affiliated and related health care facilities in the New York Metro area to be linked by the smart card initiative.

These institutions will issue their patients photo identification cards with embedded chips (smart cards) that can store patient information and will be routinely updated by health care professionals who are part of the regional smart card network. The Patient Health Smart Cards can be loaded with vital patient information such as demographics, allergies, current medications, laboratory results and more. The smart card is owned by the patient.

"This program has the potential to become one of the largest deployments of patient smart card technology in the United States," said Joe Licata, president of the Enterprise Division of Siemens Communications Inc. "With this innovative application of smart card technology, New York City patients can benefit from having direct control of key medical data on a highly portable, secure platform. This is essential in a metropolitan environment where people are always on the go and where a high density of health care facility options exist."

Siemens will provide technical and organizational services for the introduction of the Healthcare Patient Data Card. Siemens will deploy card management systems and software to help enable health care providers can maintain and update patient data throughout the card's lifecycle. Smart card technologies are part of the Siemens® HiPath® SIcurity® family of solutions that help enterprises protect information and communication via strong authentication, secure networks and identity management solutions.

The multi-year agreement between Siemens, Mount Sinai and Elmhurst also includes ongoing development of smart card technologies and integration with clinical and other information systems related to patient care.

"With Siemens, we are working with one of the world's best technology leaders to help improve patient care and provide hospitals with more readily accessible information in a secure and portable format," said Kenneth L. Davis, MD., President and Chief Executive Officer of the Mount Sinai Medical Center, and Dean of Mount Sinai School of Medicine. "Whether it's an emergency or routine visit, patient data is vital to ensuring the appropriate treatment in a timely fashion."

The chip-embedded smart cards – about the size of a credit card – provide access to medical information and help to reduce medical errors caused by misinformation or lack of patient data. When admitted, a patient would insert the card into a reader and enter their private Personal Identification Number (PIN) to unlock the card, giving the health care facility access to the information on the card such as patient demographics, chronic diseases, allergies, current medications, lab results, medical histories and other important patient information. Other smart card technology benefits include helping to decrease patient wait times and sharing of vital patient information between providers.

"With rising health care costs, these hospitals and Siemens are working together to deploy a Patient Health Smart Card that can fundamentally change health care delivery with more secure and cost-effective transfers of patient records", noted Alan D. Aviles, President, New York City Health & Hospitals Corporation (the parent corporation of two participating affiliates – Elmhurst and Queens Hospital Centers). "This first step is only the tip of the iceberg in terms of removing waste, duplication and errors in the health care equation."

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The Mount Sinai Hospital

The Mount Sinai Hospital is one of the nation's oldest, largest and most respected voluntary hospitals. Founded in 1852, Mount Sinai today is a 1,171bed tertiary-care teaching facility that is internationally acclaimed for excellence in clinical care.

Mount Sinai School of Medicine

Mount Sinai School of Medicine is internationally recognized as a leader in ground-breaking clinical and basic-science research, as well as innovative approaches to medical education. Mount Sinai ranks ninth among the nation's 125 medical schools in the percentage of graduates who go on to faculty positions in medical schools across the country.

New York City Health and Hospitals Corporation

The New York City Health and Hospitals Corporation (HHC) is the largest municipal healthcare system in the country and consists of 11 acute care hospitals, 6 Diagnostic and Treatment Centers, 4 long-term care facilities, a certified home health care agency, and more than 80 community health clinics, including Communicare Centers and Child Health Clinics. Through its wholly owned subsidiary, MetroPlus, HHC operates a Health Plan which enrolls members in Medicaid, Child Health Plus and Family Health Plus. HHC facilities treat nearly one-fifth of all general hospital discharges and more than one third of emergency room and hospital-based clinic visits in New York City.

Elmhurst Hospital Center

Comprised of 545 beds, a Level I Trauma Center, a 911 Receiving Hospital, and an Emergency Heart Care station; Elmhurst Hospital Center is a major tertiary care provider in the borough of Queens. With centers of excellence in Mental Health, Cardiology, Women's Health, Pediatrics, Rehabilitation Medicine, and Renal Services, Elmhurst Hospital Center offers a superior level of care, utilizing cutting-edge technology including laparoscopic surgery, kidney stone crushing ultrasounds, and the latest in radiation therapy for cancer. Elmhurst Hospital Center also extends its services into the community offering patients treatment at eight different offsite medical clinics and four school-based programs.

About Siemens

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $96 billion in fiscal 2005. Founded nearly 160 years ago, the company is a leader in the areas of Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $18.8 billion and employs approximately 70,000 people throughout all 50 states and Puerto Rico. Thirteen of Siemens' worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 460,000 people in 190 countries. For more information on Siemens in the United States: www.usa.siemens.com.

About Siemens Communications Inc.

Siemens Communications Inc., offers its customers a broad portfolio of communication products and services and is a leader in convergent technologies, products and services for wireless, fixed and enterprise networks. The company's portfolio ranges from devices for end users to complex network infrastructures and complementary services for enterprises, carriers and service providers. Siemens Communications, Inc., is headquartered in Boca Raton, Fla. For more information, visit www.usa.siemens.com/communications.

Note: Siemens, Hipath and SIcurity are registered trademark of Siemens AG or its subsidiaries and affiliates. All other company, brand, product and service names are trademarks or registered trademarks of their respective holders.

This release contains forward-looking statements based on beliefs of Siemens management. The words "anticipate," "believe," "estimate," "forecast," "expect," "intend," "plan," "should," and "project" are used to identify forward-looking statements. Such statements reflect the company's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens does not intend or assume any obligation to update these forward-looking statements.


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