U.S. Postal Service awards Siemens Contract expansion for mail sorting equipment

Siemens announced today that it has been awarded a USD 54.6 million contract modification from the United States Postal Service (USPS) for additional mail sorting equipment.

The award encompasses an additional 110 Delivery Bar Code Sorter (DBCS 6) machines to expand USPS’ existing fleet of letter sorting equipment. Siemens will provide installation and associated integrated logistics support services for the new machines in addition to carts used to transport trays of sorted mail. Production and installation of the DBCS 6 order is expected to be completed by April 31, 2008. This is the second order for the DBCS 6. In November 2006, Siemens was awarded a USD 109.4 million contract for 211 of those machines.

The DBCS is the most widely deployed mail-processing platform for letters within the Postal Service with more than 6,000 machines operating nationwide. Almost every letter will pass through these machines several times as it makes its way through the postal network. The need for additional equipment is driven by the 2 million delivery points, comprising U.S. households and businesses that the Postal Service will be adding to its service over the next year.

“The DBCS continues to be essential to Postal Service operations,” said Lukas Loeffler, vice president, Postal Automation of Siemens in the U.S. “We work closely with the USPS to adapt the machine to changes in the mail base and to greater productivity requirements.”

Siemens Postal Automation, a division of the Siemens Industrial Solutions and Services (I&S) Group, is a global market leader in mail sorting, reading and coding as well as parcel and freight handling solutions. In the U.S., Siemens Energy & Automation, Inc. represents the I&S Group within Siemens AG. I&S is the systems and solutions integrator for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation and operation across the entire life cycle. I&S uses its own products, systems and process technologies to enhance productivity and improve the competitiveness of companies in metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, airport logistics, postal automation, intelligent traffic systems and industrial services. In fiscal 2006 (to September 30) I&S employed a total of 36,200 people worldwide and achieved total sales of EUR 8.819 billion, according to U.S. GAAP. For more information, please visit www.sea.siemens.com or www.industry.siemens.com.

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