Infineon Achieves a 300 Percent Growth Rate in the VoIP Market in 2004 and Underlines Technology Leadership with New Products at the Fall 2005 VON Tradeshow

Munich, Germany and Boston, USA – September 20, 2005 – Infineon Technologies AG (FSE/NYSE: IFX), a leading supplier of communication ICs (Integrated Circuit), today announced that its revenues in VoIP (Voice over Internet Protocol) CPE (Customer Premises Equipment) products grew at the rate of 300 percent from 2003 to 2004, much higher than the 70.2 percent average for the total market of 102 million US-Dollars (source: iSuppli 2005). The worldwide number of residential VoIP-users is expected to be approximately 5 million in 2004 and to increase to 200 million subscribers in 2010. Building upon its extensive experience in POTS (Plain Old Telephone System) applications, Infineon offers carriers and system manufacturers a single source for state-of-the-art VoIP products, accompanied by a complete xDSL (Digital Subscriber Line) portfolio. Consequently Infineon ranked as the world’s fifth largest supplier of VoIP ICs in 2004, up from number 10 position in the previous year. Infineon is demonstrating its state-of-the art portfolio of VoIP products at the Voice Over the Net (VON) tradeshow (booth# 1227), which is currently being held at Boston’s Convention & Exhibition Center (Sep. 19-22, 2005). Product highlights include: a new highly integrated Dual-Channel SLIC SoC (system-on-chip) solution an INCA-IP SoC solution selected by Midas for its fixed-wireless voice/data broadband solution targeting remote areas in India Dual-Channel SLIC System-on-Chip Solution that Simplifies the Design of Advanced VoIP Devices DuSLIC-SP (Dual-Channel Subscriber Line Interface Controller-Single Package), a new member of the Infineon DuSLIC product family, integrates a dual-channel telephone line interface and the CODEC (coding-decoding) in a single package. Fully programmable and featuring two integrated DC/DC converters, DuSLIC-SP is a complete SLIC/CODEC SoC for POTS and advanced VoIP applications, such as wired and wireless VoIP routers and gateways, VoIP-enabled DSL and cable modems or small PBXs (Private Branch Exchanges) for private telephone networks within an enterprise. Its size of only 256mm² reduces the line interface unit’s footprint by up to 40 percent compared to multi-chip solutions, and makes the design of VoIP-enabled devices much simpler, requiring less development time and efforts. It also reduces the overall BOM (bill of material). DuSLIC-SP incorporates a unique 170V process technology to withstand higher voltages than any other available solution. This makes it more robust and immune to line surge, caused, for example, when telephone lines deployed in the open air are hit by lightning, and result in a short-circuit that can destroy the broadband access device. Engineering samples of DuSLIC-SP will be available starting October 2005. Mass production is planned to begin in the first quarter of Calendar Year 2006. Further information is available at http://www.infineon.com/duslic Midas Selects the Infineon INCA-IP SoC Solution for its Fixed-Wireless Voice/Data Broadband Solution Targeting Remote Areas in India Midas Communications, an innovative network access provider in India, has selected Infineon’s INCA-IP SoC solution for its new Broadband corDECT fixed-wireless access indoor unit. Taking advantage of Infineon's INCA-IP, Midas enhanced its DECT (Digital Enhanced Cordless Telecommunications) indoor unit to fully support VoIP: voice and data is sent from a base station to the corDECT indoor unit using simple and fast to deploy DECT-technology. Through corDECT, service providers will be capable of offering simultaneous voice and internet services within a 10 to 35km radius at data rates from 35/70 Kbps to 256 Kbps, which is two and a half times higher than data rates served by competing platforms. Midas’ corDECT solution is targeting remote areas where a copper- or fiber-based broadband access is not available. According to market research firm Gartner/Dataquest (2005), IT spending for telecommunications amounts to 80 percent of all IT spending in India with an expected annual growth rate of around 20 percent between 2003 and 2008. Further information is available at http://www.infineon.com/inca-ip and http://www.midascomm.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