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Den Haag, 17-12-04

The agreement entails Siemens Communications setting up a completely new IP environment for the whole of KPN, and will run for five years.

With this agreement, KPN and Siemens are laying the foundation for a new generation of communication services. These run on the basis of the 'Internet Protocol ' (IP), thus allowing the once separate worlds of ‘telephone’, ‘internet’ and ‘data traffic’ to converge. This opens the way for new and improved services such as 'Voice over IP' (VoIP), video conferencing and instant messaging, which in time should run both over the fixed and the mobile network. Siemens Communications will develop and implement network elements and application platforms based on its Fixed-Mobile Convergence solution (based on IMS, IP Multimedia Subsystem).

"In the years ahead KPN and its customers will be entering an IP world in which communication is set to change fundamentally", said KPN Management Board member Eelco Blok. "Siemens’ strength in fixed and mobile networks was obviously extremely important to us. After all, the added value for our customers rests primarily in what is known as converged service provision, allowing them to use the same services via their mobile phone, fixed line or PC."

"This contract means that Siemens will deliver a complete solution. KPN has not just chosen Siemens for the technology, but also for implementation, initial operation and maintenance. We are able to bring IP services – like VoIP and video telephony – within reach of the consumer", according to Martin van Pernis, chairman of the Board of Directors of Siemens Nederland. "This is a valuable contract for Siemens and a huge step forwards for the European market."

KPN is already a major supplier of IP-based services to businesses in the Netherlands and abroad, such as private telephone exchanges (IP-PBX) and closed data networks between business premises at different locations (IP-VPN). As of next year, the new IP solution from Siemens will enable KPN to introduce a new generation of services for both business and private customers.

About KPN Royal Dutch Telecom

KPN offers high quality and innovative telecommunication services to both consumers and businesses. KPN’s core activities are fixed network services in the Netherlands, mobile communication in the Netherlands, Germany (E-Plus) and Belgium (BASE), and IP/data services.

At the end of the third quarter of 2004 KPN had 7.6 million fixed telephone customers, 1.6 million Internet customers and 16.5 million mobile customers.

Siemens Communications

The Siemens Communications division is a major player in the global telecommunications industry. Siemens is the only supplier in the market to offer its customers a full range of products for end users, up to and including complex network infrastructures and services for public and private networks. Siemens Communications is a trend-setting international market leader in the field of voice and data, products and services for wireless, public and private networks. Communications is the largest division within Siemens and is active in more than 160 countries worldwide. In the 2003/2004 fiscal year Siemens Communications posted international sales of 17 billion euros and employed 60,000 people.