10/11/2007

Siemens AG, Medical Solutions

Siemens Medical Solutions Increases Presence In Japan

Joint Venture With Kameda Healthinformatics Institute for Healthcare IT

Siemens Medical Solutions and Kameda Healthinformatics Institute Inc. announced the establishment of a joint venture company which will be named Siemens Kameda Healthcare IT Systems K.K., effective today. Siemens Medical Solutions will hold two-thirds ownership and Kameda Healthinformatics Institute will hold one-third ownership of the newly formed company.

The establishment of Siemens Kameda Healthcare IT Systems K.K. strengthens Siemens’ position in the highly dynamic and rapidly growing Japanese healthcare IT market, thus further advancing the availability of innovative information technology (IT) solutions and clinical systems in the country. According to YANO Research, Japan is currently the second largest healthcare information systems market.

“Siemens Medical Solutions has been exploring ways to increase its presence in the growing Japanese healthcare market for a few years now. We are certain that entering into this joint venture with such a reputable partner as Kameda will provide us with many opportunities. By further strengthening our global presence in the healthcare IT sector, we are continuing to deliver as one of the world’s largest suppliers to the healthcare industry,” stated Janet Dillione, president, Health Services, the Healthcare IT Division of Siemens Medical Solutions. “We look forward to collaborating with Kameda to continue introducing the Japanese market to innovative technologies that can help to improve the quality of patient care and reduce costs associated with care delivery through the creation of greater efficiencies.”

The newly formed company will focus on enhancing Kameda Healthinformatics Institute’s clinical informatics system, KAI, which encompasses electronic medical record, computerized physician order entry and nursing documentation functionalities. The system is being used by nearly 30 hospitals in Japan to assist in managing the workflow of patient care delivery at their facilities.

“We feel extremely privileged to be entering into a joint venture with Siemens Medical Solutions, the global leader in the healthcare IT industry,” explained Toshitada Kameda, chairman, Kameda Healthinformatics Institute. “We have seen great success with KAI, and we are confident that Siemens’ expertise will help us to further develop this solution. We believe that with the help of Siemens, we will continue to find ways to help hospitals here in Japan improve their delivery of care.”

Also effective today, Janet Dillione will be appointed chairperson of Siemens Kameda Healthcare IT Systems K.K., and Toshitada Kameda will be appointed as vice-chairperson. Additionally, Shinji Tanaka, who currently serves as president of Kameda Healthinformatics Institute, will also serve as president of Siemens Kameda IT Systems K.K.

The Siemens group in Japan consists of 14 companies that center on the holding company Siemens K.K., with sales of 115 billion yen and about 1970 employees in fiscal year 2006. Medical Solutions is the core business and accounts for about 60% of total turnover in Japan. Siemens is active in various fields in Japan like Automation & Drives, Power Generation, Automotive Systems, Lighting and so forth. With the establishment of a new company Siemens Medical Solutions Diagnostics K.K. by integrating Bayer’s Diagnostics Division, Siemens has around 2300 employees in Japan now.

Siemens Medical Solutions of Siemens AG is one of the world’s largest suppliers to the healthcare industry. The company is known for bringing together innovative medical technologies, healthcare information systems, management consulting, and support services, to help customers achieve tangible, sustainable, clinical and financial outcomes. Recent acquisitions in the area of in-vitro diagnostics – such as Diagnostic Products Corporation and Bayer Diagnostics – mark a significant milestone for Siemens as it becomes the first full service diagnostics company. Employing more than 41,000 people worldwide and operating in over 130 countries, Siemens Medical Solutions reported sales of €8.23 billion, orders of €9.33 billion and group profit of €1.06 billion for fiscal 2006 (Sept. 30), according to U.S. GAAP. Further information can be found by visiting www.siemens.com/medical.

Kameda Healthinformatics Institute Inc. is one of the group companies of Kameda Medical Center (KMC), which is a leading private hospital in Japan with more than 3,000 out-patient visits everyday. Kameda Healthinformatics Institute is known as a pioneer in the area of supplying electronic medical record (EMR) systems in Japan. The company has been developing a healthcare information system with advanced functionalities that addresses the needs in clinical scenes, based on the first Japanese EMR system that was introduced in KMC in 1995. The company-developed system, which is known as an “Integrated Healthcare Information System”, has been introduced to many major healthcare providers in Japan. The company also holds numbers of Japanese and foreign patents in the area of healthcare information technology, and have granted patent licenses to some major vendors in Japan. The company employs 40 people, and ranked number 5 in terms of the member of EMR customers as of October 2006.