SIEMENS NIXDORF

KKR ACQUIRES SIEMENS NIXDORF FROM SIEMENS AG SIEMENS NIXDORF TO OPERATE AS INDEPENDENT BUSINESS FOLLOWING TAKEOVER

Kohlberg Kravis Roberts & Co. L.P. and GS Capital Partners have agreed to acquire Siemens Nixdorf, soon to be re-named "Wincor Nixdorf".

Kohlberg Kravis Roberts & Co. L.P. ("KKR") and GS Capital Partners III, L.P. ("GSCP"), together with management, agreed to acquire 100% of Siemens Nixdorf Retail and Banking Systems GmbH ("Siemens Nixdorf"), Paderborn, a subsidiary of Siemens AG, Munich, with economic effect as of 1 October 1999. The acquisition is subject to anti-trust approval and certain other conditions. The purchase price on a debt free basis is DM 1,440 million. KKR, one of the world's largest and most active management buyout specialists, will own the majority of Siemens Nixdorf. GSCP is a private equity investment fund affiliated with the global investment bank Goldman, Sachs & Co. ("Goldman Sachs").

"Siemens Nixdorf represents a unique opportunity to acquire an established business with excellent management and attractive growth prospects. We are very impressed with the current management's achievements, and we look forward to working with them to grow this business on an international scale," said Ned Gilhuly, Managing Director of KKR in London.

Siemens Nixdorf is a leading provider of IT solutions and services for the retail and banking industry, with more than 3,400 employees and 21 subsidiaries worldwide. In the past five years, it has more than doubled its annual turnover to DM 2.6 billion. Today, the company ranks third worldwide in electronic point of sale systems (EPOS) for the retail sector and has moved up to fourth place in automated teller
machines (ATMs).

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Siemens Nixdorf
Retail and Banking Systems GmbH
Corporate Communications
Heinz-Nixdorf-Ring 1
D-33106 Paderborn
Germany
Postal Address:
D-33094 Paderborn
Telephone + 49 52 51/8-2 62 90
Telefax + 49 52 51/8-2 62 29
http://www.siemens-nixdorf.com
President and Chief Executive Officer:
Karl-Heinz Stiller
Chief Financial Officer:
Eckard Heidloff
Registered Office:
Paderborn
Information Number:
UK-221099/001e

"The decisive factor in considering this investment was the know-how and the strong reputation that the company has developed in information systems and solutions for the retail and banking industries," said Johannes Huth, Managing Director of KKR in London. KKR’s expertise in these sectors, developed through prior investments in companies such as Safeway and Fleet Financial Group, helped KKR to recognize the domestic and global potential of the business.

Alexander Dibelius, Managing Director of Goldman Sachs in Frankfurt, continued: "It is our objective to become the leading systems and solutions provider in the retail and banking industries by growing the company, both organically and through acquisitions." According to Mr. Huth, KKR has a strong track record in providing acquired businesses with the expertise and financial resources to build their businesses into global franchises.

"Our new owners will give us a good foundation on which to build a successful future for our company," said Karl-Heinz Stiller, President and Chief Executive Officer at Siemens Nixdorf. Mr. Stiller sees new opportunities for global expansion and further market share expansion. "Given the fact that we have grown much faster than the market, our desire to be the world's number 1 player in the field of information systems for the retail and banking industry is achievable".

October 22, 1999

For further information, please contact:

Kohlberg Kravis Roberts & Co. L.P.
Johannes Huth
Tel.: +44 (171) 839 9830
Goldman, Sachs & Co. oHG
Peter Dietlmaier (Corporate Communications)
Tel.:+49 (69) 7532 2644
Siemens Nixdorf Retail and Banking Systems GmbH
Andreas Bruck (Corporate Communications)
Tel.: +49 (5251) 8 26290
Penrose Financial
Andrew Nicolls
Tel.: +44 (171) 726 8686

Note to the editor:

Siemens Nixdorf

Siemens Nixdorf Retail and Banking Systems GmbH is a leading provider of IT solutions and services for the retail and banking industries. In banking systems, Siemens Nixdorf manufactures automated teller machines, automated teller safes, statement printers, multimedia information terminals and airline terminals. In retail systems, the company provides electronic point of sale systems and enterprise solutions. More information about Siemens Nixdorf and its products may be found on the World Wide Web at http://www.siemens-nixdorf.com.

Kohlberg Kravis Roberts & Co.

KKR was founded in 1976 and is one of the world’s oldest and most experienced private equity firms specializing in equity investments in management buyouts. KKR has offices in New York, London and Menlo Park. Over the past 23 years, KKR has invested more than US$ 13 billion of equity in more than 75 transactions with a total value in excess of US$ 94 billion across more than 25 different industries. KKR’s current fund has US$ 6 billion in committed capital. KKR’s investment approach is focused on acquiring attractive business franchises and working closely with management over the long term to design and implement value creating strategies. This transaction represents a further milestone for KKR in Europe. Other major European investments have included the acquisition of Willis Corroon plc, Reed Regional Newspapers to form Newsquest plc, and Rhine Reinsurance Company Ltd. In March 1999, KKR acquired a 4.9% stake in TI Group plc. In the US, KKR invested in the supermarket chain Safeway Inc., the battery manufacturer Duracell International Inc. and the packaging manufacturer Owen-Illinois Inc. KKR's investors are primarily US state and corporate pension funds, banks and university endowments.

Goldman Sachs

Goldman, Sachs & Co. is a leading global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is head­quartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. Investment partnerships affiliated with Goldman, Sachs & Co., including GS Capital Partners III, L.P., an approximately US$ 2.8 billion fund, invest in Siemens Nixdorf. Each of these affiliated investment partnerships is sponsored and managed by Goldman, Sachs & Co. Since 1986, the private equity funds managed by Goldman, Sachs & Co. have invested in excess of US$ 10.0 billion of equity in over 300 transactions worldwide. Goldman, Sachs & Co. has a team of over 150 professionals dedicated to the private equity business based in New York, Dallas, London, Paris, Tokyo and Hong Kong. The investors in the Goldman Sachs funds include pension funds, university endowments, foundations and high net worth individuals from around the world. Goldman, Sachs & Co. is the largest single investor in each of the funds.

Siemens Nixdorf Banking Systems is represented in Lithuania trough the company UAB ”Penki Kontinentai”, that is ”The Qualified Reseller” and ”Qualified Service Partner” of Siemens Nixdorf Banking Products.

All Lithuanian banks, that are using ATMs are Siemens Nixdorf clients. These are eight of the top banks in Lithuania. Some of them, that purchased more than 300 units of ATMs, are among the biggest Siemens Nixdorf clients in East Europe. Taking in account that from end of 1995 up to end of 1999 Siemens Nixdorf delivered 487 units of ATMs to Lithuania’s customers, Lithuania is among the most important countries for Siemens Nixdorf in East Europe.