Siemens and Serveron to Jointly Market Transformer Monitoring Systems To Help Protect Electric Utilities' Assets and Assist in the Prevention of Blackouts; Siemens Venture Capital Also Invests in Serveron

HILLSBORO, Ore.--(BUSINESS WIRE)--Jan. 30, 2006--Serveron Corporation announced today it signed an agreement with the Siemens Power Transmission and Distribution, Inc. affiliate of Siemens AG (NYSE: SI) to jointly market products and services that help prevent electric power outages.

In addition, Siemens Venture Capital has made an investment in privately held Serveron, which provides technology and services that enable electric utilities to continually monitor the performance and life expectancy of vital power distribution assets.

The marketing agreement provides for the integration of Serveron's transformer monitor product line into Siemens' transformer monitoring and diagnostics solutions, thereby permitting utilities to conserve physical as well as financial assets by prolonging the safe, efficient operating life of transformers. Replacing failed or at-risk transformers, which are among the most critical power distribution links between utilities and their customers, typically costs tens of millions of dollars every year.

"Reliability is a key measure for electric utilities, and improved transformer asset management is critical to their success," said Rodney Fickler, manager of business development services at Siemens Power Transmission and Distribution. "Serveron's transformer monitors, combined with our transformer asset management products and services, offer customers more options on how to best address asset risk mitigation for transformers, one of our customers' largest asset classes."

"Serveron has demonstrated leadership in the market for transformer asset condition and assessment tools. Siemens invested in, and teamed up with, Serveron to help grow the adoption rate of on-line monitoring," said Todd Jaquez-Fissori, a Siemens Venture Capital investment partner. "We see it as an obvious and necessary way to increase utility grid reliability while reducing maintenance costs and deferring capital expenditures."

Siemens Venture Capital led Serveron's most recent fund-raising round. Other venture investors in the company include Perseus 2000 LLC, Ventures West Management LLC, El Dorado Investment Company, Nth Power LLC, Cascadia Pacific Management and Oregon Life Sciences LLC.

"This two-pronged relationship with Siemens reflects the clear market opportunity represented by better transformer asset management," said Bart Tichelman, CEO of Serveron. "Serveron's proprietary gas chromatography technology enables virtually continuous measurement and assessment of a transformer's 'health.' This preventive capability will enable Siemens and Serveron to develop exciting new products and services to help utilities stretch their limited capital expenditure, operating and maintenance budgets while preventing avoidable power outages."

Power transformers are essential to reliable electric energy flow and are among the costliest assets in the electrical grid. Performing regular dissolved gas analysis (DGA) on a transformer - essentially checking its oil on site - provides the best indicator of its overall condition. DGA functions are traditionally performed off-site, manually and often only once a year by many electric utilities. Serveron's transformer monitors function on-line, essentially performing the DGA function many times each day. Serveron's on-line transformer monitors deliver the most comprehensive DGA transformer condition assessment available.

Serveron's field-proven gas chromatography technology reliably correlates DGA data to external events and has facilitated the prevention of many transformer failures. More than 45 major utilities already use Serveron's products and services. These products and services help utilities avoid what the industry refers to as "unplanned failures," thus enabling lower-cost, condition-based maintenance as well as the extension of the useful life of transformers.

About Siemens PT&D and Siemens Venture Capital

Siemens Power Transmission & Distribution, Inc., headquartered in Raleigh, NC, creates innovative product, system and service solutions for its customers - electric utilities, transmission organizations, Independent System Operators, and large energy consumers. It is a leading supplier of high and medium voltage power delivery equipment, energy management systems, network planning and power system engineering software for regulated and deregulated generation, transmission, and distribution markets. The company's products and systems are used to increase power system capacity and improve the reliability, stability and flexibility of power delivery and network control systems. It has operations in Wendell, NC; Jackson, MS; Minneapolis, MN; San Jose, CA; Schenectady, NY and Atlanta, GA. For more information visit: http://www.usa.siemens.com/energy

Siemens Venture Capital (SVC) is the EUR 700 million corporate venture organization for Siemens AG, one of the largest global electronics and engineering companies, with reported worldwide sales of EUR 75.4 billion in fiscal 2005. The goal of SVC is to identify and fund investments in emerging and innovative technologies that will enhance the core business scope of Siemens. To date, SVC has invested in more than 100 start-up companies and 30 venture capital funds, mainly in the U.S., Europe and Israel, thus playing a key role in the global network of innovation. SVC is located in Germany (Munich), in the U.S. (San Jose, CA and Boston, MA) and is active through Siemens regional units in Israel and China.

About Serveron

Reliability of the worldwide electrical grid is paramount, and Serveron asset condition assessment and management tools are critical to utilities in improving grid reliability while optimizing the management and economics of their asset base. Serveron develops, delivers and supports on-line transformer and battery monitor products as well as diagnostic services that are helping restructure the way utility assets are managed. Headquartered in Hillsboro, OR, Serveron serves major electric utilities in the United States and around the world. For more information, visit: www.serveron.com