Sagem buys broadband business of Gigaset

Sagem Communications has entered into an agreement to acquire the
Broadband and WiMAX business of Gigaset Communications GmbH, a
subsidiary of Arques Industries AG and Siemens AG.

This should be the first acquisition for Sagem Communications since
being acquired by The Gores Group, a US-based private equity firm, in
January 2008. The addition of the Broadband and WiMAX assets of
Gigaset should enable Sagem Communications, in accordance with its
strategy, to enhance its position as a leading global provider of
broadband products and to gain access to new technologies and
customers. Sagem Communications has 6,570 employees worldwide, and
posted sales of 1.3 billion euros in 2008.

Through the transaction, Gigaset Communications would strengthen its
core business as the European market leader for cordless DECT phones.

"This acquisition should reinforce Sagem Communications' objective to
become a world leader in broadband terminals, convergence and digital
home solutions" said Patrick Sevian, President of Sagem
Communications. "We firmly believe that the global customer footprint
and the excellent R&D capabilities of Gigaset will significantly
enhance our positioning and the value we provide to our customers".

"The voice business is our core competence and the foundation of our
market leadership. That is why we focus on our strengths as a well
established, modern and innovative manufacturer of telephones", says
Jose Costa e Silva, CEO of Gigaset Communications. "We are delighted
that with Sagem Communications we have found a proficient and well
positioned partner in the broadband business."

The transaction is subject to the prior consultation of Sagem
Communications' Workers Council and to the approval of the relevant
competition authorities.