Joint news release of LS Industrial Systems and Infineon Technologies

Infineon and LS Industrial Systems Form Joint Venture to Forge Ahead in Molded Power Module Business for White Goods; Joint Venture to Accelerate Access to Power Module Market in Korea and Asia

Seoul, Korea, and Neubiberg, Germany – June 9, 2009 – The Korean company LS Industrial Systems and Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today announced the establishment of the joint venture LS Power Semitech Co., Ltd. which will focus on the development, production and marketing of molded power modules for white good applications. The establishment of the joint venture paves the way for Infineon and LS Industrial Systems to more rapidly access the promising market for energy efficient household appliances, such as washing machines, refrigerators and air conditioners, and also for other low-power consumer and standard industrial applications. The use of variable-speed motors to reduce the energy consumed by household appliances is growing in response to regulatory requirements and consumer demand. Concurrently, smart design of drive control electronics to make best use of these motors presents manufacturers with further opportunities for efficiency and savings. LS Industrial Systems holds 54 percent and Infineon 46 percent of the joint venture with headquarters at LS Industrial Systems’ site in the city of Cheonan which is located around 160 kilometers to the south of Seoul. Infineon will provide the joint venture with licenses to IP as well as technology and process know-how on its power module family CIPOS™ (Control Integrated Power System), and will transfer existing CIPOS backend manufacturing equipment from Regensburg, Germany. Both companies will closely cooperate in terms of marketing, international sales, and new product developments. LS Power Semitech expects to begin mass production for CIPOS modules by January 2010 in its Cheonan manufacturing site. According to the current market report of the research firm IMS Research, Infineon holds the number one market position in semiconductor discretes and modules for power electronics having a 9.7 percent market share within the overall global market of US Dollar $13.6 billion in 2007. CIPOS power modules increase energy efficiency and reliability of home appliance motors The CIPOS modules incorporate a three-phase inverter power stage with a SOI (Silicon-On-Insulator) gate driver, boot strap diodes and capacitors, and auxiliary circuitry in a compact, high-performance, fully isolated package. Based on a combination of Infineon’s leading-edge TRENCHSTOP™ IGBT (Insulated Gate Bipolar Transistor) and emitter controlled diode technology, they eliminate as many as 23 discrete components compared to a design based on discrete components. The CIPOS modules also offer the industry’s lowest junction-to-case resistance, which increases output current by up to 20 percent compared to other available modules. The CIPOS family today comprises various members including modules for three-phase IGBT inverters for the voltage classes 5V or 3.3V with and without fault detection, for three-phase IGBT inverters with closed common emitter and for two-phase IGBT inverters for switched reluctance drives. The CIPOS modules are available in a RoHS-compliant single-in-line package that is best-suited for washing machine applications. About LS Industrial Systems Established in 1974, formerly known as LG Industrial Systems, LS Industrial Systems is currently the market leader in industrial electric power and automation sectors in Korea. The Electric Equipments and Systems division of LS Industrial Systems provides service in low, medium, high voltage; metering, protection and measurement, high voltage equipment and systems, low and medium voltage switchgears, and transformer. The Automation division provides PLC, inverters, monitoring units, process control system, ITS (Intelligent Transport System), railway signing and control system. For continuous growth, LS Industrial Systems is investing into new business areas, such as power semiconductors, RFID and PCU (Power Conditioning Unit) for solar energy and automotives. And, LS Industrial Systems is concentrating on fostering four fields – electric vehicle components, green electric power IT, new & renewable energy, and environmentally-friendly electric equipment – as new growth engine businesses, through which the company is trying to take off as a global company that leads an age of what it calls “Low Carbon, Green Growth”. Further information is available at to http://eng.lsis.biz

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 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide. 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 (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com.