  Modal description logics feature modalities that capture dependence of
knowledge on parameters such as time, place, or the information state of
agents. E.g., the logic S5-ALC combines the standard description logic ALC with
an S5-modality that can be understood as an epistemic operator or as
representing (undirected) change. This logic embeds into a corresponding modal
first-order logic S5-FOL. We prove a modal characterization theorem for this
embedding, in analogy to results by van Benthem and Rosen relating ALC to
standard first-order logic: We show that S5-ALC with only local roles is, both
over finite and over unrestricted models, precisely the bisimulation invariant
fragment of S5-FOL, thus giving an exact description of the expressive power of
S5-ALC with only local roles.
