Infineon Enables First VDSL2 Deployments in Korea: VINAX Selected by Hyundai Network Systems for National Roll-out

Munich, Germany, January 22, 2007 – Infineon Technologies, a leading provider of communication ICs, today announced that its South Korean based customer Hyundai Network Systems (Kyung Yong Park, CEO) will supply VDSL2 systems based on the VINAX™ chipset from Infineon to a major Korean Telecommunication carrier. Hyundai will supply the carrier with VDSL2 central office gear and customer premises equipment (CPE) based on VINAX.  This deployment, already under way, represents the first VDSL2 roll out in Korea, the country leading the world in terms of broadband penetration.  Powered by the chipset from Infineon, Hyundai’s VDSL2 solution, HVS-1000, provides unmatched bandwidth capacity and quality of service features that are essential for enabling such revenue generating services as IPTV and HDTV.  The VDSL2 solutions from Infineon are currently deployed in high volumes in Germany, enabling high-speed communication and entertainment services over Deutsche Telekom’s new hyper-speed network. According to research firm Point Topic, around 12.7 million households in Korea have access to broadband services, resulting in nearly 85% penetration rate.  While some subscribers receive their service via fiber-to-the-basement (FTTB) and Ethernet (CAT5), most lines are ADSL and VDSL1, now set to be replaced by VDSL2. “The demand for additional bandwidth in Korea is always on the rise and VDSL2 will be the solution to meet the demand,” said Kyung Yong Park, CEO of Hyundai Network Systems.  “The current market drivers in Korea are IPTV and HDTV, requiring higher data rates and extensive quality of service capabilities to ensure smooth transmission of video content.  Our VDSL2 platform powered by the Infineon chipset perfectly suits these market requirements.  We were especially impressed by the Infineon VDSL2 solution’s stability, the rich feature support and the excellent time to market their support team made possible for us.” “Korea is a major market for broadband communications solutions and we are extremely happy to enable the first roll out of next generation VDSL2 solutions together with our customer Hyundai,” said Christian Wolff, Senior Vice President of the Communication Solutions business group and General Manager of the Wireline Access business unit at Infineon.  “The success in Korea further underlines our tremendous achievement bringing VDSL2 ICs from concept to deployment in record time.  Leveraging our early market entry and mature technology we were able to secure more than thirty designs with leading market players, including several Top 10 line-card and customer premises equipment vendors.” The VINAX-CO (central office) chipset and the single-chip VINAX-CPE support line speeds of more than 100Mbit/s symmetrically over loop lengths up to 350 meters.  Longer reach, up to several kilometers, can be achieved with lower bit-rates.  The first chip solution to fully support the VDSL2 standard (ITU G993.2) and the entire frequency range up to 30MHz, VINAX is also backwards compliant with ADSL/2/2+.  As such it provides carriers with a perfect solution for ADSL/2/2+ line replacement,  allowing short loops to be served with high data-rate VDSL2 while maintaining service for remote customers by operating in ADSL mode.  With VINAX, a single line card can be used to serve diverse customer and network requirements.  Thus operators can win new consumers by offering higher bandwidths and exciting services, while maintaining their existing customer base, with a single hardware design.

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions addressing three central challenges to modern society including energy efficiency, mobility and security.  In fiscal year 2006 (ending September), the company achieved sales of Euro 7.9 billion (including Qimonda sales of Euro 3.8 billion) with approximately 42,000 employees worldwide (including approximately 12,000 Qimonda employees).  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 www.infineon.com.