We describe the high-temperature superconducting (HTS) transformer project run by Siemens. The project started in October 1996 and ended in September 2001. The aim of the project was to show the future prospects for superconducting railway transformers. To study the principle behavior of such a transformer, the authors as a first step designed, constructed and tested a nominal single-phase, transformer 100 M, 50 Hz 5.5 kV/1.1 kV. After this was successfully tested, we started the design and construction of a single-phase transformer 1 MVA, 50 Hz, 25 kV/1.4 kV. This unit already has the full ratings of a commercial transformer in many respects, e.g., power range, nominal voltage, 2-limb core with horizontal orientation, two secondary windings and an impedance of 25% at nominal current. Further innovative features Are transposed conductor and a closed cooling cycle with sub-cooled nitrogen. The report describes the 1-MVA transformer's detailed design, and presents the results of electrical and thermal transformer routine tests (e.g., measurement of load losses and no-load losses). The conclusion highlights the future perspective of HTS transformers for railway applications.