Infineon Enters Machine-to-Machine Applications; Introduces Family of Security Microcontrollers

Neubiberg, Germany – February 8, 2008 – Infineon Technologies AG (FSE/NYSE: IFX) today announced a new family of security microcontrollers targeting the growing market of machine-to-machine communication for various applications. Machine-to-machine (M2M) applications range from utility monitoring; remote alarm systems; car telematics (for communication between car makers and owners to signify that an oil change or software updates are required); fleet management in freight forwarding and rental car companies; to vending machines (stocks level checks). The new Infineon SLM 76 family of security microcontrollers is available in various package options and has been designed specifically to bring SIM functionality to M2M applications. All members of this family are very robust and reliable, and are capable of storing data for at least a decade. They fulfil the tough requirements for high data retention within a broad temperature range even in rough environments such as humidity, as typical in vehicles and industrial units, and vibrations, which occasionally can be extreme in vehicles. The SLM 76 security microcontrollers are responsible for the connection and authentication to the mobile network. This allows the secure exchange of information between the background infrastructure, such as the utility company, and the local equipment, such as an utility meter. 16 million write-and-erase operations at temperatures from -40 °C to +105 °C SLM 76 security microcontrollers are capable of operating in an unusually broad temperature range totaling 145 °C, ranging from -40 °C to +105 °C. Compared to today’s typical range of -25 °C to +85 °C for SIM applications, the increased temperature range improves the market’s typical maximum temperature specification by nearly 25 percent. The Infineon chips are also more advanced when it comes to storing data over prolonged periods. Compared to other chips’ typical capabilities – around 100,000 write-and-erase cycles and a memory life between three and five years – Infineon’s security microcontrollers can retain data for at least ten years and can achieve between 500,000 and 16 million write-and-erase cycles per page, even in harsh environments. Therefore, if you were to begin writing data into an SLM 76 chip every minute, and assuming a capability of 16 million write-and-erase cycles and that a chip could function that long, the last write operation would occur in the year 2038. Infineon offers SLM 76 chips in conventional chip card modules and also as SMDs (surface mounted device) in 8-pin VQFN (very thin profile quad flat non-leaded) packages. This packaging is ideal for attaching to equipment and machinery applications automatically, and reducing the overall solution cost. In some applications, such as telematics, these standard packages help to cope with harsh environment, like vibrations. “Infineon has been a driving force in the development of security controllers for SIM cards, and we are now applying our many years of experience in that field to communication applications in automobiles and industrial segments,” said Dr. Helmut Gassel, vice president and general manager for Chip Card and Security ICs at Infineon Technologies. “Thanks to the smart cell concept, our SLM 76 security microcontrollers are exceptionally durable and robust, and support an unprecedented number of write-and-erase operations.”   According to industry analysts, the market for these chips can expand at a rate of around 35 percent a year, growing from approximately 15 million units in 2006 to a total of approximately 70 million in 2011. Leading smart card manufacturers have started developing products and solutions based on the SLM 76 or are conducting initial field tests. Currently, these development efforts center primarily on automotive telematics and metering. Availability and pricing The SLM 76 family currently comprises five products with EEPROM sizes ranging from 256 kilobytes (KB) to 504KB. They are available in various package types, including sawn wafer, chip card module, and 8-pin VQFN (very thin profile quad flat non-leaded) package. Volume production of the first microcontroller, the SLM 76CF5120P, is now available. The security microcontroller features 504KB EEPROM and 12KB RAM. In lots of 200 units, the unit price is roughly USD2.90 (roughly EUR2.00). Additional information Further information on the new SLM 76 is available at http://www.infineon.com/slm76 For information on Infineon’s range of chip card and security ICs, please go to http://www.infineon.com/security

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