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Ad-hoc announcement pursuant to section 15 of the German securities Trading Act (WpHG)

The Siemens Healthcare Sector will adjust goodwill of presumably up to €1.4 billion in the fourth quarter of fiscal 2010. This impairment is being made in connection with a reevaluation of medium-term growth prospects and long-term market developments of the laboratory diagnostics business. Siemens acquired DPC, Bayer Diagnostics and Dade Behring in 2006 and 2007, merging them to create one of the world’s leading provider of laboratory diagnostics. The impairment has no cash impact and leaves the company’s outlook for fiscal 2010 unaffected.

“Today, Siemens Healthcare is a worldwide leading company in imaging, healthcare IT and laboratory diagnostics. The acquisitions in laboratory diagnostics were key steps to this end, as the continuing high profitability of the business shows. Due to long-term changes in the overall healthcare market, it became necessary to reassess growth expectations,” said Peter Löscher, President and CEO of Siemens AG. Hermann Requardt, CEO of the Healthcare Sector, added, “While the cost targets associated with the integration of the three companies were completely met, we haven’t achieved our growth targets. We’re now resolutely tackling this challenge on the basis of an adjusted valuation which relates to our new business targets.”

The laboratory diagnostics business has been under new management since May 1, 2010, when Michael Reitermann – previously responsible for sales and service for Siemens’ healthcare business in the U.S. – was appointed CEO of the Diagnostics Division. “Our new management team is focusing its strategy on expanding the Division’s power of innovation – one of the traditional strengths of Siemens. This should enable laboratory diagnostics business to achieve the targeted high level of performance,” noted Requardt.

Source: Siemens Healthcare