Committed to Good Corporate Citizenship in China

A strong commitment to good Corporate Citizenship is a core value of Siemens that is based on the recognition that the company's activities have a wider impact on the society in which it operates, and that developments in society in turn impact the company's ability to pursue its business successfully. Siemens therefore actively manages the economic, social and environment impact of its activities, and realizes long-term benefits by working with local communities, government organizations and other key stakeholders.

Examples of Siemens's early corporate citizenship activities in China can be traced back to the Second World War, when Mr. John Rabe, then Siemens business representative in Nanjing and Chairman of the Nanjing International Safety Zone, provided humanitarian aid and shelter for over 250,000 Chinese refugees at Siemens' property in Nanjing during the "Nanjing Massacre". Over the years, the company has been actively contributing to help construct a harmonious society in China by engaging in a large variety of corporate citizenship activities in six core areas including education and training, health care, environmental protection, public welfare, disaster relief as well as employee volunteering.

All of Siemens corporate citizenship activities are executed under the company's two global umbrella programs "Siemens Caring Hands" and "Siemens Generation21". "Siemens Caring Hands", comprises Volunteerism, Social Programs and Disaster Relief to show Siemens and its people as good corporate citizens. "Siemens Generation21", comprises education activities for pre-schools, schools and universities to help nurture tomorrow's scientists and engineers.

By supporting young people in education and training, Siemens paves their way to a better future. Over the years, the company donated teaching equipment, books and stationery as well as providing financial aid to many schools located in the poor rural areas of China. In 2004, on the occasion of Siemens 100th anniversary in China, Siemens sponsored the education of 100 children from poor and disadvantaged families. Siemens also supports university education in China. In 2005 and 2006, the Siemens Automation & Drives Group provided automation systems to 10 of China's leading universities worth over 10 million RMB for the construction of Automation System Engineer Accreditation Competence Centers. In November 2007, Siemens launched a nationwide Discovery Box roll out program in China. The box consists of experiment of Siemens topics on Energy & Electricity and Environment & Health, which was designed for use in kindergartens and preschools to awake the interest of preschool children in science and technology, and also supports the teachers by equipping them with material and know-how for this area. To date, thousands of discovery boxes have been donated to different cities and counties all round China.

Given the importance of healthcare in Siemens business activities, contributing to the development of healthcare in China and assisting those in need with donations of advanced medical equipment is a special priority. In April 2007, Siemens kicked off a 5-year rural healthcare project with a total investment volume of US$ 10 million. The project, supported by China's Ministry of Health, is part of Siemens' contribution of the Clinton Global Initiative to support the development of poorer areas in emerging countries. In July 2007, Siemens donated RMB 1 million worth of Siemens mobile Memcor Intensive water purifying system to Wuxi Red Cross. The system has been installed at Wuxi Maternity and Child Health Care Center. The device can produce standard-conforming and safe drinking water from the tap water in Wuxi City.

With a focus on sustainability and environmental protection throughout the entire business scope, Siemens works to protect the environment and contribute to sustainable development. For example, in November 2007, Siemens kicked off a three-year "Green Village" program in Guangzhou, Guangdong Province committed to provide safe daily water and energy saving solutions to improve the living conditions in the needy countryside. Under the program, Siemens will commit at least RMB 3 million to help needy villages to resolve the environmental problems seriously affecting daily lives of the villagers. In April 2007, on the occasion of Tongji University's refurbishment of its historical architecture "Wenyuan" building into Eco-building, Siemens donated RMB 2 million worth of energy-saving building automated management system and lighting products for the refurbishment.

Public welfare activities are manifold and aim to support equitable development and social stability. In August 2006, Siemens Automation and Drives Group (A&D) and its business partner Nanjing Langchi Group M&E Co., Ltd jointly donated RMB 166,000 to local social welfare entities. The donation will be used to help local people suffering from natural disasters in the Northern areas of Jiangsu province, to improve the life of elderly and orphans as well as to help university students from poor families. In December 2005, Siemens, Jiangsu BS Home Appliances Sales Co., Ltd., the Consulate General of the Federal Republic of Germany in Shanghai and Nanjing University jointly funded the renovation of the John Rabe House in Nanjing, which was officially open to the public on October 31, 2006. The total renovation cost amounted to RMB 2.25 million. Since 2002, Siemens Electrical Drives Ltd. donated more than RMB 1 million to an Elderly People's Home in Tianjin to ensure better service and care for senior citizens.

In the area of disaster relief, Siemens offers quick and effective aid in cases of acute need and emergencies. In 2003, during the battle against SARS, Siemens donated 17 medical ventilators and 200 mobile phones valued at 7 million RMB to China. In January 2008, Siemens Launched "We Are Together" donation campaign to snow-hit areas. Siemens is among the first multinational companies operating in China to take immediate actions to support the all-out efforts of the country to combat the blistering cold and help those affected in South China. Siemens and its staff immediately donated RMB100,000 in cash and quilt and winter clothes valued at around RMB 50,000...

Siemens encourages and supports employees to provide volunteering services to help those in need with their knowledge and skills. For example, in 2006 Siemens celebrated the 5th year anniversary of "Enlightening the Future" program, under which Siemens Guangdong volunteers helped to establish libraries and PC labs and provide PC and English training to both teachers and students in the under-developed areas of Guangdong for 5 years.

Siemens' engagement in corporate citizenship is publicly recognized through high profile awards like the "Guangming Corporate Citizenship Award" by Guangming Daily received from 2004 to 2007, "China Best Citizenship Conduct Award" by the 21 Century Business Herald received in 2005 and 2006, "The Best Enterprise Public Image Award" for two consecutive years from 2006 to 2007 by Guanghua Media.