Siemans CEO Will Resign

Siemens AG President and CEO Klaus Kleinfeld will resign when his contract expires in October, the company announced today.

Kleinfeld "informed the supervisory board at its meeting today that he is no longer available for a renewed contract effective Oct. 1, 2007," the company said in a statement. "He based his decision on the current discussions about postponing his contract extension once again."

Kleinfeld said, "In times like these, the company needs clarity about its leadership. I have therefore decided not to make myself available for an extension of my contract.

"Siemens can show major business successes today, yet at the same time is in the midst of an intensive investigation of corruption. Especially in times of such challenges, employees, customers and the capital markets expect clear leadership more than ever. The company must have complete freedom of action."

Heinrich von Pierer announced he would quit as chairman of the supervisory board last week. The resignations are in the wake of corruption investigations into the Germany-based global electrical engineering and electronics maker. (See also: "Siemens Suspends Employee After Searches," and "Siemens German Offices Raided in Fraud Probe")

Siemens said Kleinfeld will stay on until Sept. 30.

Gerhard Cromme, who was elected Tuesday to succeed Pierer as chairman of the supervisory board, said, "Siemens is in a position to deal with past wrongdoing without compromise and to be a benchmark in transparency and compliance. To this end, Kleinfeld and the managing board established an effective project structure in which a team of excellent experts is driving the investigation with a clear strategy."

He said independent investigations to date by the law firm Debevoise & Plimpton have found no indications of personal misconduct or that Kleinfeld had any knowledge of events related to the investigations.

For more information, visit: www.siemens.com