Music and Mobile Internet for Emerging Markets; Infineon Introduces 65-Nanometer Single-Chip Family for Low-cost Phones

Neubiberg, Germany – February 7, 2008 – Infineon enables advanced mobile phone features such as camera, mobile Internet and audio-entertainment to now be accessible in low-cost markets with the introduction of the X-GOLD™113 and X-GOLD™213, its third generation of single chips. The integration of these features allows customers to reduce the production cost of core mobile functions by up to 40 percent compared to more traditional solutions. The new chips are sampling now and a first call on air has already been successfully conducted. According to market analysts roughly half of the 6.6 Billion people worldwide have not made a phone call, not to mention having used a digital camera or an MP3 player. With the X-GOLD 113 and X-GOLD 213 single chips presented today, Infineon has paved the way for this target group to more mobile applications at an affordable price. As part of a complete mobile platform, this solution enables additional features in price-sensitive markets which previously were only offered in the high-tier segments. Users without personal computers can now access the Internet using their mobile phones while they are on-the-go – including news reports, weather forecasts, prices of goods, navigation or e-mail. In addition digital photos can now be taken and quickly shared. Radio programs or MP3 data, including podcasts, can now be availed of without any additional costs. With the new X-GOLD family, Infineon is taking a further step towards single-chip integration. The baseband, power management unit, RF transceiver and FM radio are now combined on one single die. An ARM11 processor provides the required performance and flexibility required for applications such as a music player, Java, multimedia messaging, e-mail and video functionality. “With the introduction of our new semiconductor chips manufactured on 65- nanometer process technology, we confirm once again our technology leadership in the area of true monolithic integration,” says Prof. Dr. Hermann Eul, Executive Vice President of the Infineon Management Board and President of the Communication Solutions business group. “With the X-GOLD 113 and the X-GOLD 213, we address new and growing markets where there is a strong demand for more features at an affordable price.” With the ULC1 (E-GOLDradio™) and ULC2 (XMM™1010 / X-Gold™101) platforms, which have accumulated shipment of more than 50 million units to date, Infineon has established itself as one of the leading solution provider of ultra low cost market. Handset manufacturers worldwide including Nokia, LGE, ZTE (supplier to Vodafone, among others), Sagem and Ningbo Bird have selected Infineon’s Ultra low cost platforms. The entry level phone segment is currently booming. According to forecasts from the market research company ABI Research, ultra low cost and entry phones had a market share of roughly 16 percent in 2007. This share should rise to nearly 28 percent by 2010. X-GOLD™113 / XMM™1130 Available in an 8 x 8 mm wafer level package, the X-GOLD 113 combines a GSM/GPRS modem and all necessary features for a music phone like an audio player, stereo RDS FM radio receiver, stereo headset, class-D amplifier, audio codecs, USB interface as well as interfaces for memory card and Bluetooth. The complete mobile functionality can be realized by the XMM 1130 platform on an area of less than five centimeters squared and with less than 50 components. X-GOLD™213 / XMM™2130 The X-GOLD 213 single chip combines the properties of the X-GOLD 113 in the same package size. The X-GOLD 213 chip offers additional functionality including an EDGE Modem, interface for up to 3-megapixel cameras, and additional connectivity for A-GPS, WLAN and Bluetooth. The EDGE functionality and the corresponding factor increase of three in the downlink channel data rates makes the XMM 2130 an ideal platform for real web browsing and messaging. Even when including Bluetooth the platform is still less than six centimeters squared, making it the smallest and most cost attractive browsing platform in the market. Availability The X-GOLD 113 and the X-GOLD 213 are sampling now and will be available in volume quantities in the first half of 2009. The packages will be produced on Infineon’s pre-announced innovative embedded wafer level ball grid array technology (eWLB). You can find out more about ULC-phones in our Podcast at: http://www.infineon.com/podcast

About Infineon Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2007 fiscal year (ending September), the company reported sales of Euro 7.7 billion (including Qimonda sales of Euro 3.6 billion) with approximately 43,000 employees worldwide (including approximately 13,500 Qimonda employees). With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, 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