Infineon Demonstrates Second Generation Ultra Low-Cost GSM Single-Chip with Successful Live Phone Call

Munich – May 23, 2006 – Infineon Technologies AG today announced that the first E GOLDvoice chip produced in Dresden worked at the first attempt and has already been used to make phone calls on GSM networks. E-GOLDvoice is the most highly integrated chip for mobile telephony, combining all of a mobile phone’s essential electronic components in an area measuring 8 x 8mm². This highly integrated chip can further reduce the materials costs of a complete mobile phone. “The successful chip operation is proof of our innovative integration strategy: to put existing functionality in established technologies onto a single-chip to bring down costs and reduce space requirements.” said Prof. Hermann Eul, Member of the Infineon Management Board and head of the Communication Solutions Business Group.“ Our developers in Duisburg and in Sophia-Antipolis have achieved something truly exceptional. With E-GOLDvoice and fewer than 50 other electronic components, it’s now possible for the first time to manufacture mobile phones that fit their entire GSM functionality onto a circuit board measuring four square centimeters.” Manufactured using mature 130nm CMOS technology, the GSM chip is the first in the world to integrate on a single-chip not just the baseband processor and the RF part that carries voice between the handset and the basestation, but also the SRAM memory and power management. Previously, the power management chip alone took up an area measuring 7 x 7mm². Volume manufacturing of ultra low-cost mobile phones based on Infineon’s current ULC1 (ultra low-cost, first generation) platform with the E-GOLDradio chip has been underway for several months now, and preparations are now in progress for production using the ULC2 (second generation) platform centered on the E-GOLDvoice chip. Engineering samples are expected to be available in July.

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 through its subsidiary Qimonda. 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 Further information on Qimonda is available at http://www.qimonda.com