Siemens wins USD 245 million order from USPS for 550 Mail Sorting Systems

Siemens announced today that it has been awarded a USD 245 million contract from the United States Postal Service (USPS) for 550 Advanced Facer Canceller Systems (AFCS) 200 to replace and modernize its existing fleet of AFCS. The AFCS currently being used has been in service for almost 20 years and is used by the Postal Service (TM) to cancel First-Class mail.

In addition to the design, build and installation of the replacement machines, the contract includes the delivery of ancillary equipment, spare parts, training and complete integrated logistics support services. Siemens and USPS engineers worked together to develop a system that integrated all the technical requirements of the USPS with the state-of-the-art developments in mail processing technology.

"We are delighted with the vote of confidence that the USPS has given us, continuing our many years of successful cooperation. The AFCS systems play an important role in mail processing and the new systems will help the U.S. Postal Service to further boost its productivity," said Hans-Jorg Grundmann, CEO of Siemens Mobility. "The AFCS remains an essential element in the automated mail process. Siemens has worked closely with the USPS to modernize and streamline the highly sophisticated technology in this machine to extend its useful life another 10 years."

The AFCS 200 will use the Siemens Advanced Color Reader (ACR) to detect and lift the address and other mail piece information for automatic reading. The ACR's greater capabilities will not only enable greater reading performance but also streamline the overall system design.

This will be the first system in the USPS fleet to use Siemens' channel gate technology. The channel gate improves on traditional diverters by actually modifying the path of the letter through the machine rather than deflecting it in a particular direction. The new technology greatly increases the throughput of the machine and will be a major contributor to the cost savings the USPS anticipates in the deployment of the AFCS 200.

Production and installation of the AFCS 200 order is expected to be completed by March, 2011.

The AFCS was initially deployed in the early 1990's and is primarily used to process First-Class mail sent by individuals. The AFCS 200 program responds to the decline in this mail type in recent years, allowing the USPS to improve the performance and maintenance characteristics of the system while reducing the total number of machines.

About Siemens

Siemens Energy & Automation, Inc. is one of Siemens' operating companies in the U.S. Headquartered in the Atlanta suburb of Alpharetta, Ga., Siemens Energy & Automation, Inc. manufactures and markets one of the world's broadest ranges of electrical and electronic products, systems and services to industrial and construction market customers. Its technologies range from circuit protection and energy management systems to process control, industrial software and totally integrated automation solutions. The company also has expertise in systems integration, technical services and turnkey industrial systems. For more information: www.sea.siemens.com.

Siemens AG (NYSE: SI) is a global powerhouse in electronics and electrical engineering, and operates in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. With nearly 400,000 employees in 190 countries, Siemens reported worldwide sales of USD 96.6 billion in fiscal 2007. With its U.S. corporate headquarters in New York City, Siemens in the USA reported sales of USD 19.8 billion and employs approximately 70,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit www.usa.siemens.com.

SOURCE Siemens Energy & Automation, Inc.

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