The Joint Statement Between Siemens Switzerland and Leader Huaxin Electronic Co., Ltd.

                                                               JOINT PUBLIC STATEMENT

After conciliation, Siemens Switzerland Ltd. (referred to as "Siemens" hereinafter)and Beijing Leader Huaxin Electronic Co., Ltd. (referred to as "Leader Huaxin" hereinafter) hereby make a joint public statement on the patent infringement litigationtherebetween before the Beijing First Intermediate People's Court as follows:

1. Under the mediation of the People's Court, Siemens and Leader Huaxin havereached an agreement on the patent infringement litigation therebetween. 

2. Leader Huaxin admits that the point type photoelectric smoke alarm detectors ofJTY-GD/LD3000E, JTYB-GF/LD3000E(F) and JTYB-GM-LD3000E(Ex)(collectively referred to as "LD3000E detectors" hereinafter) manufactured, sold ordelivered from August 1, 2004 to November 30, 2005 have infringed on the patentrights of the Chinese patent ZL97190933.4 owned by Siemens.

3. Leader Huaxin has modified its "LD3000E detectors," and Siemens agrees that themodified LD3000E detectors no longer infringe on the patent rights of the Chinesepatent ZL97190933.4 owned by Siemens.

4. Leader Huaxin pay Siemens an amount of compensation for the infringementconducts that took place from August 1, 2004 to November 30, 2005.

5. Siemens is always active in promoting the development of high-tech in China andrespecting the intellectual property rights of other companies including Chineseenterprises. Moreover, Siemens praises the continuous progress of protection forintellectual property rights in China. Siemens and Leader Huaxin agree to advance theindependent innovation and the constant development of enterprises and industries inrespecting the intellectual property rights.