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Siemens to Provide Centerpoint Energy's Electric Transmission and Distribution Subsidiary Its First Flexible AC Transmission Systems

Siemens Power Transmission & Distribution, Inc. has been awarded a contract to provide CenterPoint Energy Houston Electric, LLC, a transmission and distribution subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), with its first Flexible AC Transmission Systems (FACTS).

The turnkey contract for the FACTS projects will include all equipment and civil works for two Static VAR Compensators (SVC) of 0/+140 Mvar each for the Bellaire and Crosby 138kV Substations in Houston, Texas. Beta Engineering, LLC of Pineville, LA, will provide the site installation, engineering and construction service.

Siemens and Beta Engineering were able to offer a highly innovative and competitive proposal that was compliant with CenterPoint Energys technical and commercial requirements.

Within the power transmission and distribution sector of its business, Siemens is a well-established manufacturer and highly regarded contractor in the specialized field of FACTS and has multiple references in the United States. Numerous comparable systems were installed within the last years. In addition, over the last 16 years, Siemens and Beta have combined to successfully design and build 18 highly reliable reactive power compensation projects for customers in the U.S.

Static Var Compensators provide dynamic voltage support for credible contingencies and help to ensure that electrical supplies are maintained during worst case credible fault outages on the transmission system.

About Beta Engineering

Beta Engineering, located in Pineville, LA, is an EPC contractor specializing in engineering, procurement and construction of electrical substations, transmission lines, distribution systems and FACTS projects throughout the United States. Beta has been delivering turnkey high voltage power systems for more than 30 years. For more information, visit www.BetaEngineering.com.

About Siemens Power Transmission & Distribution (USA)

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 companys 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; Jackson, TN; Heber Springs, AR; and Atlanta, GA. For more information visit us at: www.usa.siemens.com/energy.

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $107.4 billion in fiscal 2006. Founded 160 years ago, the company is a leader in the areas of Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $21.4 billion and employs approximately 70,000 people throughout all 50 states and Puerto Rico. Eleven of Siemens' worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 480,000 people in 190 countries. For more information on Siemens in the United States: www.usa.siemens.com.

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