Negotiations relating to the terms and
conditions of equipment supply, implementation and services are ongoing and
have not yet been finalized.

“We conducted an RFP process, and the winner both in terms of depth of
experience and quality of technology was Siemens,” said David Dobbin,
President, Toronto Hydro Telecom. “Siemens has global expertise in wireless
technology, and their proposal was based on leading-edge third-generation
wireless technology that more than meets our criteria for reliability, speed
and scalability. That’s exactly what a world-class city such as Toronto needs
in order to steer a course to greater competitiveness and productivity.”

The agreement with Toronto Hydro Telecom, which marks Siemens’ entry into
the Canadian wireless technology market, includes the use of a mesh Wi-Fi
network that will provide coverage for an area of up to ten square kilometres
and it is anticipated that it will be fully deployed in downtown Toronto by
year-end 2006. End-users will be able to access the Internet from
wireless-enabled laptop computers, mobile headsets and other mobile devices,
or simply place VoIP phone calls. High transfer rates (up to 54 megabits per
second) will mean shorter download times and faster surfing than what is
currently available today.

“We are extremely pleased to part of such an historic initiative in
Canada’s largest city,” said Prof. Dr. Albert Maringer, President and CEO,
Siemens Canada Limited. “Siemens has been intimately involved in building
Canadian infrastructure for over 80 years. With the completion of this project
with Toronto Hydro Telecom, the city of Toronto’s wireless connectivity will
be a benchmark for cities not only in Canada but across the world.”

As part of its deployment strategy, Toronto Hydro Telecom will use
Siemens’ “Wireless Integration(at)vantage” wireless integration platform which
provides features such as access control, authentication and accounting. The
software for this platform was developed by Garderos Software Innovations, a
wholly-owned Siemens subsidiary. The network nodes are from the “Siemens
Mesh(at)vantage MR” product family, based on industry-leading wireless mesh
technology from BelAir Networks.
“BelAir Networks is proud that our industry-leading wireless mesh
technology has been chosen by Siemens and Toronto Hydro Telecom for North
America’s largest municipal wireless network,” said Bernard Herscovich,
President and CEO, BelAir Networks.