1. Page 1 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Responding to Federal Mandates Jeff Adams Channel Manager John Lanzoni Global Account Manager Mayor’s Water Summit December 8 th, 2010

2. Page 2 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Municipal Water and Wastewater Leadership  6,000 water employees worldwide  4,000 in the US  150 R&D professionals Technical Expertise  More than 900 products and services  2100 patents and trademarks Broadest Product Offering  More than 200,000 installations  The industry’s most trusted brands Proven Performance

3. Page 3 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Comprehensive portfolio and technical expertise to resolve your compliance, cost, and capacity challenges Sedimentation Clarification BiologicalClarification Thickening / DigestionDewatering Service Disinfection Instruments & Control Filtration Residuals Management Odor Control Wastewater Path Sludge Path

4. Page 4 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Fruitland, MD 2000 design meeting even tougher nutrient standards in 2010  Population served: 5,000  Expand from 0.5 MGD to 1.0 MGD  Meet new nutrient discharge standards  Limited space – maximize use of existing structures Customer Perspective  New facility combining OMNIFLO SBR with Jet Aeration plus SCADA monitoring controls that allow remote management. Plant also includes traveling bridge filter and UV disinfection. Siemens Solution  Operative: 2002  Achieving: TN < 3.5 mg/L and P< 1 mg/L  Original design: TN = 8.0 mg/L and P =2 mg/L  Award: Maryland Rural Water Association Wastewater Plant of the Year 2004  Environmental Excellence Award: Salisbury CoC  1 st Place Clearest Effluent Contest: Maryland RWA Project Facts/Results

5. Page 5 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Elkton, MD Solution to meet Strict Chesapeake Bay Nutrient Limits  Need to meet new low level nutrient discharge standards  Aging plant  Reduce energy due to high power costs  Confidence of an experienced process supplier (via site visit references) Customer Perspective  Siemens Orbal with Smart BNR Process  Ave. TN of 2.1 mg/l vs. 3.0 mg/l permit  Ave. TP of 0.09 vs. 0.3 mg/l permit  Reduces effluent nitrogen by >90% and phosphorus by >80%  40% Power savings vs. old plant Siemens Solution/Value Provided  Project: Muni WWTP discharge to Chesapeake Bay  Population: 16,400  Capacity: 3.2 MGD  Operative: December 2008  Award: Maryland Rural Water Association Wastewater Plant of the Year 2010 Project Facts/Results

6. Page 6 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Gills Creek WWTP, Columbia, SC Solution to Minimize Waste, Energy and Improve Discharge  Population served: 140,000  Expand from 8 to 16 MGD  Meet new discharge standards (NH3-N, TP)  Limited space – maximize use of existing structures  Lower operational costs: Energy, Sludge, Polymer Customer Perspective  New High Performance Clarifiers into existing tanks, plus Verticel Aeration and Cannibal process Siemens Solution  Operative: 2006  42% less power than conventional alternative.  Greater than 50% reduction in solids wasted  $500,000 in annual savings Project Facts/Results VertiCel System Cannibal HP Clarifiers

7. Page 7 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Power costs are expected to rise; Today’s solutions need to account for the increases CA WA ID OR MT WY NV UT AZ NM CO KS OK TX NE SD ND MN IA MO WI IL AR LA MS AL GA FL SC TN KY NC VA MI IN OH WV PA NY NH RI NJ DE MA ME NH MA VT CT MD AK HI Power Rates 20-40 ¢ / kW-hr 12-20 ¢ / kW-hr > 40 ¢ / kW-hr 8-12 ¢ kW-hr < 8¢ / kW-hr Projected 20 year Power Costs: 12.97¢ / kW-hr (up from today’s national ave.: 6.5¢ / kW-hr)

8. Page 8 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Water Environment Federation Energy Conservation Task Force. Energy Conservation in Wastewater Treatment Facilities. 1997 Saving energy can free up revenue for projects: Aeration is the biggest energy user Clarifiers 3.1% Screens 0.1% Aeration 54.1% Lighting & Buildings 8.1% Grit 1.3% Chlorination 0.3% Belt Press 3.9% Anaerobic Digestion 14.2% Wastewater Pumping 14.3% Gravity Thickening 0.1% RAS Pumping 0.5%

9. Page 9 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Santa Rosa, CA WWTP Solution to Reduce Energy Costs and Provide Better Process Control  Wastewater Treatment and Pumping plants were the cities highest energy users  City Needed to upgrade aging Infrastructure and lower energy costs  City needed improved DO control for it’s WWTP aeration Basins Customer Perspective  Installed new Dual Air diffusers in the aeration basin.  Installed New Siemens Turbomachinery blowers.  Installed a new DO control system  Provided optimized controls to provide seamless Integration between the systems Siemens Solution  Energy savings of 1.2 million kWh a year  Cost savings near $150,000 a year.  Over the 20-year life of the new blowers, net savings will exceed $3 million Project Facts/Results

10. Page 10 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Financing for Water Treatment Facility Expansion  Colorado City needed to expand its water treatment facilities. The city sought an alternative to the delays and costs associated with acquiring funding from the state revolving fund. They needed a water treatment solution provider who could provide financing for third- party engineering, construction, and equipment costs. Customer Perspective  A pre-approval for tax-exempt financing from SFS increased planning efficiency  SFS financed $1.8 million for Siemens Water Technologies Memcor® equipment, third-party engineering, and construction costs  SFS financing helped the city avoid delays, saved taxpayer dollars, and accelerated the project. Siemens Solution Results Colorado City, Colorado “The built-in financing from Siemens saved taxpayer dollars and expedited the expansion of our drinking water treatment facilities needed to serve our growing population.” Bob Flinn, Board of Directors, Colorado City, CO

11. Page 11 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Three Questions for your Utility Director  What options are we evaluating to reduce energy use in the next 5 years?  What different options have we considered for achieving nutrient targets?  What considerations were given to the possibility of stricter standards and higher energy costs in the future?

12. Page 12 Water Technologies Copyright © Siemens AG 2010. All rights reserved. Contact John Lanzoni Director, Global Accounts Management Siemens Water Technologies 19 Colonial Road Wilbraham, MA. 01095 phone: 1.413.599.1689 john.lanzoni@siemens.com Jeff Adams Channel Manager Siemens Water Technologies 3200 Ash Grove Road Edmond, OK. 73003 phone: 1.913.904.8196 jeffrey.adams@siemen.com