Infineon Announces World´s Most Compact and Energy Efficient VDSL and ADSL Solutions for Gigabit Home Gateways

Paris, France and Neubiberg, Germany – September, 7th 2009 – At the Broadband World Forum, Infineon Technologies AG today introduced its latest single-chip VDSL/ADSL solutions for next generation telecom networks. The XWAY™ xRX200 family offers high integration, with a more than 50 percent smaller footprint compared to existing solutions, and best-in-class energy efficiency, with more than 50 percent lower power consumption compared to the market. The first members of the family, the XWAY™ VRX200 chips will help carriers to deploy High Definition Internet Protocol Television (HD-IPTV) and meet the ever growing demand from consumers for broadband connectivity with up to 100 Mbit/s download speed. The new VDSL/ADSL single-chip solution in 65 nanometer technology enables the industry’s highest level of integration, based on a core footprint that is 50 percent smaller than existing solutions in the market. This results in the world´s smallest VDSL solution for Home Gateways, enabling attractive designs for manufacturers. The solution also complies with the most stringent requirements of European Union Code of Conduct (EU CoC) for energy consumption of broadband equipment. It supports the industry’s goal of Green-IT, which refers to environmentally sustainable computing and applies to efficient and effective design, manufacture, use and disposal of IT systems with minimal or no impact on the environment. The XWAY VRX200 family also underlines Infineon’s focus on designing energy efficient solutions, supporting manufacturer and telecom provider goals to save power and cost. Together with advanced dynamic power management features, best-in-class energy efficiency is attained; with a 30 percent lower power consumption in operational mode and more than 50 percent less power consumption in low-power mode against comparable products. “The VDSL market is now taking off with carriers deploying new broadband services. This places a lot of pressure on carriers and suppliers to provide cost-effective and energy efficient solutions with advanced features,” said Christian Wolff, Division President of the Wireline Communications division at Infineon Technologies. “Infineon again sets the benchmark with the most compact VDSL solution design in the world. The XWAY VRX200 family enables our customers to respond to market needs by meeting toughened environmental  requirements and offering advanced features such as Gigabit home networking and concurrent 802.11n WLAN.“ About the XWAY™ VRX200 family The XWAY VRX200 family is targeted for Modems, Routers and Gigabit Gateways. It supports all 6 bands of VDSL2 standards, at the same time achieving full backward compatibility to ADSL standards based on a single hybrid design. To extend the reach of DSL, Bonding of 2 DSL links (up to Profile 8) is also supported on-chip. As the world’s first VDSL solution with embedded Gigabit Switch fabric and 802.3az compliant Ethernet PHYs that are configurable as two Gigabit or four Fast Ethernet ports, it eliminates the need for external Fast or Gigabit Ethernet Switches. The market trend is towards a smooth transition from Fast Ethernet to Gigabit Ethernet which is enabled by the chipset with optimal costs. The VRX200 family sets a new standard in driving cost reduction and high performance by providing rich interfaces like PCI Express, High-Speed DDR2 and high-performance storage NAND Flash. Customers also still have the choice to use legacy interfaces like DDR1 or PCI. In launching IPTV services, carriers place high emphasis on the Quality of Service (QoS) to ensure good user experience when watching high definition TV programs. The XWAY VRX200 family fulfils these requirements by guaranteeing wire-speed routing capabilities and at the same time providing many advanced DSL Physical Layer features and service improvement techniques. Erasure Decoding and ITU-T Universal Retransmission is part of Infineon’s IPTV Feature Package. In addition Infineon’s SMART Acceleration technology assures higher QoS at all system conditions. The XWAY VRX200 family builds on the established architecture and software of Infineon’s field proven ADSL and VDSL chipsets. Availability Samples of the XWAY VRX200 family will be available by next quarter and volume production starts Q2 2010. Further information is available at www.infineon.com/cpe On July 7, 2009, Infineon Technologies announced that it had agreed to sell its Wireline Communications Division (WLC) to the private equity investor Golden Gate Capital. The Division will become LANTIQ after the closing of the transaction this fall and will be attending the Broadband World Forum (Paris, CNIT, September 7-9, 2009; Booth #245). LANTIQ will be among the Top 15 fabless semiconductor companies worldwide and be a one-stop solution provider for the wireline communication and broadband access markets. It will be one of the very few vendors offering a complete DSL end-to-end portfolio and have a unique ability to integrate DSL, VoIP and home connectivity into complex SoCs.

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 in continuing operations. 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).