Infineon Promotes New CAT-iq Digital Cordless Standard with Advanced Chip and System-level Solutions for CAT-iq-Enabled Handsets and Residential Gateways

Munich, Germany, December 5, 2006 - Infineon Technologies (FSE/NYSE: IFX) today introduced a new range of products that support the recently announced CAT-iq (Cordless Advanced Technology) standard from the DECT Forum – a forum that promotes next-generation Digital Cordless technology. CAT-iq was defined to provide new product categories for residential gateways that enable fixed-mobile convergence through interoperability and seamless connectivity of communication services and devices. According to the DECT Forum, more than 200 million DECT devices are on the market today – and will nearly double by 2009. The Infineon solutions portfolio for the new CAT-iq standard includes COSIC™, a single-chip device for DECT and CAT-iq handsets and base stations. This solution is coupled with the Infineon advanced residential gateway reference design based on the Danube ADSL2+/VoIP IAD-on-a-chip. Unmatched by any other IC vendor on the market today, this unique combination features a variety of CAT-iq functionalities developed from broadband connectivity during its “first wave” through VoIP and wideband telephony to Internet radio over digital cordless handsets. “Infineon congratulates the DECT Forum for releasing the new CAT-iq standard which intends to promote better user experience and fixed-mobile convergence over the home network,” said Thomas Pollakowski, Vice President and General Manager of Business Unit Connectivity at Infineon. “Infineon is well poised to take a leading market position with our unique and comprehensive product offering. While other market players offer only stand-alone solutions either for the digital cordless or the residential gateway, Infineon is the only supplier to offer both. Our advanced DECT technology is combined with our proven broadband gateway design, currently shipping in volumes, to offer our customers a better value proposition.” With CAT-iq, DECT handset and home networking equipment manufacturers will be able to offer superior user-experience in next-generation devices. Better interoperability between terminals and gateways will enable users to browse the Internet, listen to online radio and make VoIP calls using their cordless handset and other CAT-iq devices. Enhanced voice quality resulting from the utilization of Wideband Telephony will enable superb quality sound whether a user is speaking on the phone or listening to online MP3 audio-clips. In addition, the Infineon CAT-iq ICs automatically adjust the power amplifier (PA) according to the link quality. The feature will reduce output power when the handset is close to the base and ultimately achieve better energy efficiency. Currently Infineon is the only semiconductor vendor with a highly integrated single-chip solution for DECT and CAT-iq handsets. For base stations, Infineon is the only IC vendor to embed a CAT-iq-enabled DECT base station seamlessly with Danube - an integrated ADSL2+ System-on-a-Chip device - in an ADSL2+ reference design, including 2 VoIP channels, WLAN, 5-port Ethernet switch and USB2.0 Host interface.

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions addressing three central challenges to modern society including energy efficiency, mobility and connectivity, and safety and security.  In fiscal year 2006 (ending September), the company achieved sales of Euro 4.1 billion with approximately 30,000 employees worldwide.  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.  Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com