Energy saving has emerged as one of the most critical elements of the environmental and Information Technology agendas - the unavoidable fact that many of our most significant environmental impacts occur during the product use phase. Rapidly rising energy costs and the climate damage caused by rising global CO2 emissions have placed the need for energy efficiency at the forefront of environmental care programmes within the IT and Technology sector. In fact recent figures make clear that for approximately each $1 currently spent on computer hardware, a further $0.5 will be spent on electricity. Over the next four years this figure is expected to rise by 54% . Since the introduction of the world’s first green PC in 1993, Fujitsu Siemens Computers has been recognised as a leader in the development of energy efficient professional products. We have adopted a company-wide strategy to define power requirements and save energy at every step of the development process. This strategy is enforced by our in-house development Guideline FSC03230. This guideline also mandates the business to source energy efficient components from suppliers. For instance the use of high performance processors such as Intel®Core™2Duo and AMD Athlon X2 together with Fujitsu Siemens Computers technology has enabled us to cut the energy consumption of professional PCs and professional notebooks by 50% in the past year. As energy ratings continue to grow in importance, magnified by the EU Energy using Products (EuP) directive due to be implemented as of spring 2008, our leadership approach has continued. We currently support the implementation framework for PCs, notebooks and computer displays. Our commitment to energy efficiency was reflected in November 2006 through our active contribution to the definition of energy efficiency measurements at the Club of Rome Symposium in Helsinki. In addition, we have also set up an internal energy-savings project group to look at innovative ways of reducing energy consumption through features such as intelligent power management. We have made good progress. Intelligent power management is in fact already implemented in DeskView Energy - our desktop management software for business clients. It saves up to 15% of energy within a network by actively enabling power management settings. Our progress in the development of energy efficient products is embodied by our ESPRIMO range introduced in 2005. By May 2007 our ESPRIMO E5615 EPA was Energy Star 4.0 compliant boasting a power supply efficiency of 80% and energy savings of up to 25% when compared to other non-compliant systems. ESPRIMO E5925/5720 and ESPRIMO P5925/5720 are now also Energy Star 4.0 certified. Additional savings can be made through the use of Fujitsu Siemens Computers’ switched monitor outlet reducing power consumption of the display by half. This means that choosing an ESPRIMO E series with a switched monitor outlet could save an organisation with 500 PCs € 21,500 over three years and the environment 70 tons of CO2. Our professional Notebook range is equally well equipped to save energy. The extension of battery run time has been a focus for years and has led automatically to lower energy consumption. All LIFEBOOK professional notebooks carry an EcoButton which automatically extends battery life by powering down energy consumption of key components and the brightness of the display. The LIFEBOOK C1410 and LIFEBOOK S7110 are the first and only notebooks to have been awarded the Nordic Swan certificate through their low energy consumption. Furthermore, the LIFEBOOK P7230 and LIFEBOOK Q series will carry the Energy Star 4.0 certification. Another example is our new TX 120, the most energy efficient server in the world. The TX 120 uses 40% less power than other standard tower servers with a maximum power usage of 163 Watts. This will be further improved in the near future. This server boasts a 33% reduction in environmental footprint, the world's smallest server footprint, and a 25% reduction in volume use compared to other current 1-socket servers in the market. Through advanced cooling technologies it also achieves a significant reduction in noise levels. Displays are also a consumer of energy and should be considered as part of any energy-saving initiatives. CRT monitors were phased out by Fujitsu Siemens Computers in 2006; the latest TFT displays consume only a fraction of the energy needed by these older models - on standby typically less than 1 Watt per day and in operating mode no more than 32 Watts per day. This could save a user up to €4.44 per year per monitor – which might not sound like much but just how many monitors do organizations have running today? All SCENICVIEW and SCALEOVIEW displays from Fujitsu Siemens Computers qualify for the Energy Star 4.0 Tier 2 certification (with the exception of the 24” model) and our LCD displays are TCO’03 certified. Our Premium and Business LCD monitors also comply with the standards set by the Blue Angel certification. Worldwide power requirements for data centers are rapidly growing and have now reached such levels that this can no longer be ignored. Power is emerging as an ever larger cost factor in terms of overall operating costs. It is vital that companies implement effective measures in order to sustainably improve energy efficiency in data centers. Environmental issues are increasingly becoming a core element within all IT purchasing decisions, a recent study indicating that some 50% of consumers have chosen a product over another because of its environment-friendly packaging, ingredients, or advertising in the last two years . This changing marketplace has presented Fujitsu Siemens Computers with a compelling business case to develop and expand its range of environmentally conscious products. Today our strategic focus and approach is underpinned by the view that environmental responsibility is compatible with improved business performance. As environmental awareness grows, so too will demand for environmentally responsible products. In fact the success of our Green business PC range was built upon the foresight that the business community would increasingly demand environmentally conscious IT products. Green PCs now make up some 75% of all our professional PCs sold. Fujitsu Siemens Computers is also taking the lead on driving best practice in the energy savings of data centers. Here for example a standard server costing 2,000 Euros will consume 350 Euros of energy per year. With energy resources growing scarcer, and energy prices rising, this means data center energy costs over the lifetime of a server could easily exceed hardware costs sometime in the future. We have therefore adopted a three-step data center strategy which seeks to: 1. Reduce Consumption

• Reduce power consumption of CPUs and I/O chips by improved chip technologies and manufacturing processes

• Improve computing performance per Watt of power dissipation

• Increase efficiency of server power supplies

2. Optimize Datacenter infrastructure

• Improve cooling concepts

• Improve power infrastructure

• Energy recovery in the data center

3. Effective use of resources

• Fully utilize existing computing power through consolidation onto fewer and higher performance systems

• Improve utilization of IT systems with virtualization technology

• Flexibly control power consumption by means of dynamic IT solutions

• Actively seek the appropriate balance between power costs and optimal server performance

Within this overarching strategy we are actively pursuing a number of micro tactics to increase the energy savings of data centers. This includes enhancing server technology through improved chip technologies and manufacturing processes. Optimizing the utilisation of existing hardware and datacenter infrastructure is a core element of our approach to energy reduction. Here we make sure that systems are fully utilizing existing computing power through the use of virtual machines. This enables close to a 100% power utilization rate. Systems to automatically turn off unused hardware have also been introduced combined with a reduction of CPU clock and I/O bandwidth, the elimination of power peaks in load profile and reduced dimensioning of cooling and power infrastructure within the datacenter. The final element of our approach to energy reduction involves the effective use of resources. This includes the recovery of energy within the datacenter; energy that would otherwise be lost. We aim to encourage the use of heat produced by our datacenters for office heating when needed, and the conversion of lost heat to electrical power. We also actively limit server power consumption accepting a loss in performance. Besides this three-step approach, we have also adopted a strategy for the Dynamic Data Center itself. Our approach aims to keep energy costs at a minimum by transforming static data centers into Dynamic Data Centers. We achieve this through a combination of methods including the creation of pools of computer and storage resources, better energy utilization through Blade Server and Virtualization Methods, and the integration of IT management tools in order to react faster to server resource allocation needs. Thermal control is another critical aspect of data center power management, the unavoidable fact that hot components fail more quickly than others. Fujitsu Siemens Computers has addressed this issue through its PRIMERGY RX300 S3 server, a radical, cool-safe design which cuts temperatures by ten degrees Celsius; doubling lifetime and stabilising performance. Services across the IT lifecycle help organizations to manage their IT operations and can assist in moving to a Green IT environment. Professional IT services help organizations to align their IT infrastructure with the business goals and ensure the most effective use of IT. Through effective management, complexity can be reduced and efficiency increased, for example, through better management of systems in use at non-peak times. Across the office our services can also aid in decreasing power consumption by managing the shut down of unrequired systems overnight and by reducing paper through our Print Lifecycle Management. All to the benefit of the environment, and the company.