Dear friends,

　　2008 is China’s Olympic year. Siemens Ltd. China Automation and Drives Group AS BU will adhere to its business philosophy—innovation. We will keep challenging the status quo, and striving to launch more innovative products to meet our customers’ needs.
Since the start of year 2007, Siemens has maintained a momentum of fairly rapid growth in Industrial Automation. Throughout the year, Siemens has led the pack of competitors and scored gratifying achievements. Progress was made in developing innovative products, increasing market share, promoting new products and improving customer service and training.

　　As for products, Siemens pushes innovation to shape the future. We developed creative products which complied with our customers’ requirements in Process Automation and Factory Automation. The launch of SIMATIC PCS 7 V7.0 in 2007 accelerated our growth in the DCS market together with our partners. The new S7-400 V5 CPUs enabled operation speed to improve by 30%. SIMATIC WinCC 6.2 Asia Version provided support to intelligent factory applications. Moreover, the launch of SIMATIC Technology CPUs and fail safe CPUs (SIMATIC Safety) completed the Siemens PLC portfolio.

　　Siemens emphasizes on the investment to the mainland market. In August, 2008, our Chinese SIMATIC factory SNC in Nanjing completed its third phase extension, which an investment of more than 300 million. After this investment, SNC tripled its capacity of production. The goal of these investments was to provide the latest and most innovative products and systems to customers out of China with the well known quality.
　　According to the statistics from Gongkong.com, in 2007, China’s automation market experienced a 12-14% growth rate. Siemens Automation clearly outperformed that growth rate. Particularly in the Process Automation market, Siemens grew over 40%. In 2008, China’s national economy will maintain a steady, rapid and sound growth, and Siemens Automation will continue to invest in China to contribute to the Chinese economy growth.

　　Siemens holds the philosophy of "Zero distance" when promoting new products to customers. We have organized a series of marketing activities like "2007 Siemens Innovation tour " covering more than 10 big cities in China within two months. And we explored applications in industries like power, transportation, and textile. We discussed in great details the solutions and methods. In 2008, Siemens will stick to the "Zero distance" philosophy and organize even more activities such as the “Mini Van” program.

　　Siemens attaches great importance to strengthen our partners and customers to increase their competitiveness. We aim to streamline our customers’ production lines, to increase their productivity. To provide better service to our customers, Siemens set up the 7*24 hour hot line service for our customers to provide immediate response and advice.

　　We’re deeply aware that the achievements we made in the past year would not have been possible without the big support of our customers. In the New Year, Siemens will continue to contribute to the development of the important industries in China.

　　The spring festival is coming. The Siemens team wishes you a happy New Year and also the best of health and success!