MUNICH -- Siemens Information and Communication Networks Group (ICN) will strengthen its position in the digital subscriber line (DSL) broadband access market through the acquisition of Efficient Networks, Inc. (Nasdaq: EFNT). Siemens and Efficient Networks today announced that they have entered into a definitive merger agreement, subject to regulatory clearances and approvals. Pursuant to this agreement Siemens will commence a cash tender offer for all of Efficient Networks' shares, for $23.50 per share or a total fully diluted consideration of approximately $1.5 billion. Efficient Networks is a global leader in DSL customer premises equipment (CPE) for the broadband access market. With this important acquisition Siemens ICN enhances its position as one of the top worldwide broadband access equipment suppliers.

Efficient Networks posted revenues of $394 million for calendar year 2000. Efficient Networks' DSL CPE enables communication service providers to offer broadband access services to small and medium-size businesses, branch offices of large corporations and residential customers. Efficient Networks' product line includes DSL modems, routers, integrated access devices (IADs) supporting voice and data services, as well as management systems and software. The transaction will enable Siemens and Efficient Networks to offer innovative DSL solutions to the market more quickly by leveraging their complementary technologies.

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