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During fiscal 2005/2006, sales of our business and consumer mobile devices were booming. With a year-on-year increase of 27 percent, consumer notebook revenue fared particularly well. Main growth regions included Eastern Europe (up 108 percent), Iberia (up 75 percent) and the Middle East and Africa (up 51 percent), jointly accounting for nearly 23 percent of total consumer notebook revenue. This upturn consolidated our number one position in Finland, Sweden, Germany and Hungary.

Business notebook growth was almost as robust at 24 percent and handhelds were up 47 percent. Sales of handheld devices were particularly impressive given that the overall market shrank by 2.4 percent according to Canalys ¹. Tablet PCs topped the scales, recapturing the number one position in Europe, the Middle East and Africa (EMEA) with 44 percent year-on-year growth. According to Canalys ², the market for tablet PCs grew by 4.6 percent only.

Fiscal 2005/2006 was the year when the Dynamic Data Center (DDC) really took off at Fujitsu Siemens Computers. During the course of the year, we clearly showed our customers that our innovative approach creates real value in the data center, quickly turning concrete business cases into reality. A long line of innovations for the data center - ranging from FlexFrame for Oracle, Dynamic IT for Branch Office Connection through to PRIMERGY BladeFrame - provided convincing proof of our capabilities. They also strengthened the market perception of Fujitsu Siemens Computers as an innovation leader in the data center space.

Business was brisk for consumer and business PCs during fiscal 2005/2006. Total revenue rose to 1.76 billion euros, confirming the strategic role of desktop sales within the company. With unit shipments in the region of 3.01 million, we captured the number three position in Europe, the Middle East and Africa ³ (EMEA) and secured our leadership position in Germany. Despite an almost flat business PC revenue, regions such as Eastern Europe and the Middle East and Africa (MEA) performed much better, with revenue jumps of 47 and 35 percent respectively.

Consumer PC shipments rose 21 percent, which translated into a 7 percent revenue increase during the year under review. This consumer PC rebound was particularly strong in regions such as Iberia (up 41 percent), Italy (up 89 percent) and Eastern Europe (up 135 percent). We now head the market in Finland and Hungary 4.

During the year under review, we brought our customers closer to the digital home of the future, bringing a range of new and enhanced products to market. Our digital home concept allows users to dive into a world of fun and fascination. We achieve this by tying all personal computing and home entertainment devices into a seamlessly networked multimedia environment.

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1 PDA revenue in EMEA, fiscal year 2005/2006, Canalys 04/06
2 Tablet PC revenue in EMEA, fiscal year 2005/2006, Canalys 04/06
3 Source: IDC 05/06 Desktop PC unit shipments EMEA FY 05/06
4 Source: IDC 06/06 Consumer PC market in units and revenues FY 05/06