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I recieved my Annual Report on Friday. Seven days from my e-mail request to arrival from Munich. I'm impressed. A lot can be inferred about a company from its attitude towards potential shareholders and potential customers. I infer Siemens is doing some things very right.

I haven't had a chance to read it in too much detail yet(it's 106 pages long.) But I'll share some initial impressions.

Oliver, yes, Siemens has $4 billion. As of Sept. 30, 2000(the end of their fiscal year), liquid assets stood at 7.872 billion Euros. A lot. The prior year, liquid assets were only 2.451 billion. I like the move to cash, especially in the current economic environment.

In answer to an earlier question, Siemens still retains 71% of Infineon.

Dave, good observation on the Westinghouse factory in Orlando. Sales in 2000 for this unit were 3.278 billion Euros. The report credits the US demand for gas turbines for much of the growth of the Power Generation segment.(By the way, it's spelled haole).

The ICM division(Information and Communication Mobile), is obviously doing extremely well. Their goal is to be in the top three handset providers in the world, with a goal of 15% market share. Very achievable, I think. They will not unseat Nokia, and they don't expect to; this is not their goal.

Their goal is solutions for the business consumer. This is in contrast to Nokia's person-to-person philosophy. In this area they appear much stonger than Nokia or Ericsson, due to their very strong landline data background. They also claim to be forming alliances with NEC, Toshiba, Yahoo!(content), and Flextronics. Aren't they the company building the new Ericsson handsets? These connections to Ericsson are becoming a little too common.

Another thing I noted was a 1 billion Euro share buyback last year, executed between May and July 2000. The report doesn't state the outcome of these shares. Were they used for the NYSE listing? Something to look into.

Some final observations:

Osram has a large presence in the US, under the name Sylvania. Also in Latin America: Mexico, Brazil, and Argentina.

Infineon is very big in Singapore and Malaysia.

Siemens Financial Services largest revenue source is in the US - New Jersey!

I have a lot of reading to do. But my initial impressions of the company are very good. The stock price seems somewhat cheap now as well.

I'll keep digging.

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