Siemens, DIA Team on $60M Financing Deal

December 8, 2003

Siemens, DIA Team on $60M Financing Deal
Denver Business Journal, CO


The City and County of Denver and Denver International Airport have structured 
a $60 million financing package with Siemens as part of the $74 million 
contract that Siemens was awarded in June to install and service inline baggage 
screening systems. 
  
The finance package, offered through Siemens Financial Services, will is 
designed to help DIA manage cash flow and initial construction costs, and 
complete the project quickly. It also avoids the cost of issuing a conventional 
revenue bond issue. 

The loan is expected to be repaid in five years. 

DIA is installing new baggage-handling systems to comply with federal security 
guidelines established in 2002 by the Transportation Security Administration, 
the agency that oversees security for the nation's transportation systems. The 
TSA will fund the majority of the project under a multiyear reimbursement 
program. 

"By contracting only with Siemens and building into the installation project a 
financing component, the airport could achieve its project goals in terms of 
quality, timing and cost," said Stan Koniz, DIA CFO, in a statement. "Siemens 
understood our concerns -- that we had limited funds and limited manpower. They 
developed a financing program that gave us greater flexibility to do more with 
fewer resources. Furthermore, the structure put in place for this deal will 
allow the financing for future projects with DIA to be accomplished in an 
expedient manner." 

Siemens Dematic reconfigured the first of six modules in the Jeppesen Terminal 
at DIA earlier this year, and began designing and installing the systems in the 
remaining five modules in September 2003. DIA will meet 100 percent compliance 
with the baggage screening guidelines by the end of 2004, and the entire 
project will be completed in March 2005. 

In response to the terrorist attacks of Sept. 11, 2001, Congress mandated that 
the nation's commercial airports install explosive-detection systems and 
explosives trace-detection machines to screen all checked baggage by the end of 
the year. 

Siemens AG (NYSE: SI), based in Munich, Germany, is a global electronics and 
engineering company. 

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