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To: frank/fla. who wrote (37743)	3/5/1998 8:35:00 AM
From: Glenn D. Rudolph	Respond to of 61433

Siemens-Nixdorf says PC outlook unchanged Reuters Story - March 05, 1998 06:58 %DE %HOT %DPR %RESF %US %ELC %ELI %ENT SIEG.F INTC V%REUTER P%RTR AUGSBURG, Germany, March 5 (Reuters) - Computer group Siemens Nixdorf Informationssysteme AG [NIXG.CN] said on Thursday it continued to expect almost 30 percent growth in PC sales in the current business year, despite yesterday's earnings warning from chip giant Intel Corp . SNI, a unit of Siemens AG , expected PC sales to reach 1.4 million units in the year ending September 30, compared to 1.1 million units for the year-ago period, worldwide PC marketing director Ernst Holzmann told Reuters. In Thursday's electronic trading, Siemens shares were at 110.30, down 1.90 marks or about two percent, slightly more than the overall market's 1.7 percent decline. In floor trading Siemens shares were three marks weaker at 110.20 marks. Intel said its first-quarter chip sales would fall 10 percent from the fourth quarter because of a softening in demand, sparking a sell-off in U.S. technology shares and raising concerns about PC makers. With 15.4 billion marks in sales, SNI is Siemens' largest division, but its profit level is one of the weakest. In 1996/97, pre-tax profit was 105 million marks, less than one percent of sales. Although Asian financial crisis would dampen demand, SNI saw no reason to change its outlook, Holzmann said. In the October to February period, PC shipments rose about 20 percent to 550,000 units, he said. Siemens' semiconductor unit has also had profit difficulty as a result of declining memory chip prices. It reported 1996/97 pre-tax profit of 109 million marks, down from 603 million the year before.