Infineon’s Unique VoIP Processor Revolutionizes IP-Phone Designs, Doubling CPU Performance for Feature Rich Devices with Benchmark Voice Quality

Munich, Germany - March 2, 2006 - Infineon Technologies AG (FSE/NYSE: IFX), a leading provider of communication ICs (Integrated Circuits), today announced INCA®-IP2, a single-chip Gigabit Ethernet IP (Internet Protocol)-phone solution. INCA-IP2, Infineon’s second generation IP-phone system-on-a-chip uses a highly innovative architecture based on two MIPS32® 24KEc™ processors each running at 400MHz. Its first-of-its-kind approach uses one CPU (Central Processing Unit) as a network processor while the second core employs a unique real-time operating system paired with dedicated VoIP Hardware. This turns INCA-IP2 into a powerful voice engine capable of supporting an almost unlimited range of advanced voice applications while providing benchmark voice quality. The novel approach of INCA-IP2 also doubles the processing power compared to competing solutions that consist of a CPU and a DSP (Digital Signal Processor). With this scalability, system vendors can now improve time to market and turn IP phones into future-proof, powerful and user-friendly multimedia devices, with icon driven menus on colour displays, data encryption and even video decoding. “Infineon offers the industry’s most advanced and comprehensive IP-phone on-a-chip solution,” said Stephan Grinzinger, Vice President Product Management Devices & Access, Siemens Communications Enterprise Systems. “INCA-IP2’s unique architecture allows us to develop a range of telephones with excellent voice quality and enough CPU power and memory capability to easily offer feature upgrades depending on our business user’s requirements. We have tested the INCA-IP2 with persuasive results and plan to incorporate it in our next generation feature-rich IP-phone platforms.” With GbE (Gigabit Ethernet) network performance now a reality in the enterprise, the IP-phone has become a vital link in the network rather than its end point. INCA-IP2 provides designers with enough processing power and Gigabit Ethernet speeds to   implement new voice and graphical features addressing current business users’ needs, while creating a scalable platform for future enhancements. With one processor core of the INCA-IP2 used for packet handling and running the operating system, the second core runs application specific DSP code to ensure jitter free high-quality VoIP performance. In addition, INCA-IP2’s extensive data encryption and authentication features bring the IP-phone into line with the strict security requirements of today’s enterprise network. “We are fully committed to develop best-in-class semiconductor solutions that enable our customers to exceed market requirements in wired communications,” said Christian Wolff, Senior Vice President of the Communication Solutions Business Group and General Manager of the Wireline Access Business Unit at Infineon. “Building upon our system expertise we can now help our customers to quickly react to the changing requirements in VoIP. The INCA-IP2 allows our customers to individualize and scale their product design while shortening their time-to-market in this increasingly competitive market environment,” he added. According to the latest report from market research firm In-Stat (September 2005) the market for VoIP-ICs for private and business applications is expected to show an annual growth rate of 43.2 percent from approximately 142 million units in 2005 to almost 400 million units in 2009. The report shows that Infineon has grown faster than the market capturing 15 percent share. About INCA®-IP2 INCA-IP2 is Infineon’s second generation of IP-phone chips, and the fifth generation of PBX terminal devices offering enhanced clock speed, security and phone related features. It provides the combined processing power of two 400MHz MIPS-Based™ CPUs one of which gives system vendors a dedicated engine for adding a virtually unlimited range of industry voice codecs such as G.711, G.723, G.729a/b, G.722 and G.722.1 Wideband as well as more advanced codecs such as ILBC, MP3, MiDi synthesizer, polyphonic ringing, video decoding and stereo sound. Its integrated 3-port GbE switch contains security features such as a classification engine and bandwidth management which further improve QoS (Quality-of-Service) and make it ideally suited for today’s corporate networks.   The INCA-IP2 supports NAND and NOR Flash, as well as DDR and SDR SDRAM memories. Interfaces include a USB host, an 8/16 bit parallel interface, a PCM interface, two Serial and two UART ports. With an integrated Hardware Security and Authentication block, Infineon is making security a priority feature of the IP-phone. The Data Encryption Unit includes AES, DES and 3DES encryption standards as well as the Hashing algorithms SHA1 and MD5. In addition a True Random Number Generator rounds off an impressive offering. Combined with a Linux board support package and a full set of device drivers, the INCA-IP2 comes complete with a SIP Phone Hardware and Software reference design including Voice codec Firmware, SIP signalling stacks and application layer software. The INCA-IP2 (PSB21653) comes in a P-LBGA-416 package. Engineering samples are available now at sample quantity pricing of US-Dollar 20. More information is available at http://www.infineon.com/voip

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 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 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