Joint News Release by Infineon Technologies and RF-iT Solutions

Infineon Transfers its RFID Software Solutions to RF-iT Solutions GmbH in a Management Buy-Out

Graz, Austria / Munich, Germany – August 9, 2005 – With effect from July 1, 2005, Infineon Technologies AG (NYSE/FSE: IFX) has transferred its activities in the area of RFID (radio frequency identification) software solutions as part of a management buy out to RF-iT Solutions GmbH, which has its registered office in Graz, Austria. This means that patents, trademarks, licenses, development hardware and software, as well as current customer projects and RFID demonstration applications have been transferred to RF-iT Solutions. The parties have agreed not to disclose the purchase price. Infineon focuses its RFID activities in the area of object identification on logistics applications and other intelligent label applications on the further development, production, and marketing of RFID chips and inlays, which comprise chips, antennae, and the connection between chip and antenna. The newly formed RF-iT Solutions will take over all activities related to RFID system solutions, including the You-R® OPEN software, which Infineon developed to market readiness, as well as readers and service components. The company will continue to develop its range of services and You-R OPEN. The You-R OPEN OPerating ENvironment connects a company’s existing logistics IT landscape to its new RFID-supported logistics system and its entire RFID infrastructure of readers, PCs and links to IT networks. In addition, RF-iT Solutions will continue to operate the RFID Solution Excellence Center in Graz. The Center acts as a showcase for different RFID applications, a development laboratory for sector-specific RFID solutions, a verification laboratory to carry out technology research and a customer training center. The managing directors of RF-iT Solutions are Dominik Berger and Alexander Gauby, who were responsible for marketing and technology in the RFID solution business at Infineon. Matthias Weitlaner, who is the head of product development, is a fellow shareholder. RF-iT Solutions GmbH, which has around 20 employees, is based in Graz, Austria. The 40 employees who were previously involved in RFID chip activities at Infineon’s development center will remain with Infineon. “In view of the strategic realignment and focus on core activities, Infineon has decided not to pursue its own RFID software solutions, although the continuation and expansion of the RFID solution business in this new company will ensure that it has an expert business partner in the future,” said Bodo Ischebeck, Head of the Memories & RFID Chip Card IC Product Line at Infineon Technologies AG. “The managing directors of RF-iT Solutions have helped shape the RFID markets for over 10 years and were responsible for marketing and technology of RFID solutions. We are confident that the RFID solution business is in very good hands.” “It is our objective to establish the You-R OPEN RFID operating environment as a de facto standard in the marketplace. This will allow system integrators to offer their customers end-to-end RFID system solutions. Our core technology and consulting competence, built up over many years, in matters relating to the radio frequency interface, information technology and RFID-relevant process management in logistics, facilitates the handling of RFID technology,” said Dominik Berger, Managing Director of RF-iT Solutions. “The approach taken by RF-iT Solutions allows IT and software companies and system integrators without RFID expertise to participate quickly in the booming RFID market, because You-R OPEN enables them to benefit from efficient RFID system integration, easy scalability, and simple maintenance.” About RF-iT Solutions GmbH RF-iT Solutions GmbH was established as an Infineon spin-off; its activities cover RFID software and services. It produces the You-R® OPEN OPerating ENvironment which is the world’s leading RFID platform for system integrators. “RF-ID Enablement Packages” provide system integrators and software producers with a rapid and expert market entry to RFID. RF-iT Solutions implements reference projects in strategic market segments in order to facilitate the multiplication of solutions through certified You-R OPEN partners in the rapidly developing RFID market. With technical services, such as studies, technology assessments, benchmarking, technology consulting and pre-sales support, RF-iT Solutions functions as the technical backbone for system integrators. The company operates the RFID Solution Excellence Center at its company office in Graz, Austria. Further information is available at http://www.RF-iT-Solutions.com. Press Contact at RF-iT Solutions Dominik Berger Managing Director & COO Phone: +43 676 579 2234 E-mail: dominik.berger@rf-it-solutions.com

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products. 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. In fiscal year 2004 (ending September), the company achieved sales of Euro 7.19 billion with about 35,600 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com