Infineon’s VINAX™ Solution Powers Germany’s VDSL-2 Rollout in 10 Cities: Deutsche Telekom Becomes the First Carrier Worldwide to Deploy VDSL2 with Speeds up to 50 Mbit/s

Munich, Germany – March 10, 2006 - Infineon Technologies, a leading provider of Communication ICs, today announced that T-Com, the Fixed Network business unit of Deutsche Telekom AG will base the rollout of its new hyper-speed VDSL2 network entirely on broadband access systems powered by Infineon’s VINAX™ chip-set. With this investment T-Com will be the first carrier in the world to have a fully standard compliant VDSL2 network in operation. Infineon will provide its VINAX components for both the DSLAMs as well as the customer premises equipment (CPE) side. Deutsche Telekom is currently connecting the first 10 cities in Germany to its new VDSL2 network. The new network allows for example the delivery of around 100 free and pay-TV channels, on-demand video and advanced High Definition Television (HDTV) content running with up to 50 Mbit/s downstream and 10 Mbit/s upstream (profile 17a and 8b respectively of the VDSL2 standard). “We were the first to place a fully standard compliant VDSL2 solution on the market. Now, we are the first to follow up with true mass deployment of this new technology, helping Deutsche Telekom to set the benchmark for tomorrow’s broadband networks,” said Christian Wolff, Senior Vice President of the Communication Solutions Business Group and General Manager of the Wireline Access Business Unit at Infineon. Announced in May 2005, Infineon’s VINAX solution was designed in record time moving from engineering samples to mass production and field deployment in less than a year. Supporting all eight standard VDSL2 profiles and the full VDSL2 frequency spectrum of up to 30 MHz, VINAX enables data-rates of symmetric 100 Mbit/s over copper wires at distances greater than 300 meters. For central office line-card designs Infineon provides VINAX-CO, a dual-port VDSL2 chip-set, in combination with ConverGate-D, a high-end communication processor that provides aggregation towards GbE backplanes. For the CPE side Infineon offers VINAX-CPE, a single-chip VDSL2 solution operated either in hostless mode or in combination with its leading edge VoIP, WLAN, and router/switch system-on-chip solutions.

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