Infineon Increases Energy Efficiency of Hybrid Drives - Less Room for More Powerful Electronics

Detroit, Michigan, and Munich, Germany – October 16, 2006 – With the need to conserve more energy and find ways to eliminate pollution, studies have shown that there will be a surge in demand for hybrid cars in the next couple of years.  Hybrid cars are vehicles equipped with a combustion and an electric engine.  Chip manufacturer Infineon Technologies (FSE/NYSE: IFX) plans to increase energy efficiency of hybrid drives with advanced electronics.  The company is demonstrating these products in Detroit at a major trade show for the automobile industry.  Based on Infineon’s power technology, the weight of the intelligent control system, which optimizes the interaction of the combustion of fossil fuels and use of the electricity stored in batteries, is much lower. Today’s electronic control systems for hybrid cars equal the size of two standard shoe boxes, weighing an average of 30 kilos. Infineon’s system, which uses its HybridPACK power module technology, only is half the size of this electronic control system, equal to one standard shoe box and weighing approximately 15 kilos. Infineon systems outperform existing systems by up to 20 percent using its worldwide-leading IGBT chip technology to enable maximum energy efficiency.  In comparison to today’s solutions, Infineon systems reduce electrical power losses by one fifth enabling simpler cooling systems. The saved energy can be used for driving. Already today, IGBT technology is responsible for maximum energy efficiency in locomotives and many other electrical drives. “We assume that hybrid cars that use Infineon’s electronic modules can now use up to 60 percent less fuel than a petrol-operated vehicle,” said Peter Bauer, Member of the Management Board, Executive Vice President and head of Automotive, Industrial and Multimarket (AIM) Business Group at Infineon Technologies. “In just two years, hybrid cars with our control modules will be available worldwide. Market experts are forecasting sales of more than 1.5 million hybrid cars for 2010 alone.” According to the US market research company Strategy Analytics, Infineon is the world’s #1 provider of automotive power semiconductors, with a market share of 22.5 percent in the calendar year 2005.

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products through its subsidiary Qimonda. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com. Further information on Qimonda is available at www.qimonda.com.