Infineon Launches Breakthrough Single-Chip Home Gateway; Integrates ADSL2+ and Converged Broadband Value Added Services to Reduce System Chip Count Up to 60 Percent

Munich, June 5, 2006 – Infineon Technologies AG (FSE/NYSE: IFX), a leading provider of broadband communications ICs, today announced a single-chip solution for ADSL2+ broadband IAD (integrated access device) and home gateway applications enabling services such as VoIP, video-conferencing and IPTV. Featuring the industry’s highest level of integration, the new Danube chip allows manufacturers of residential broadband IAD products to deliver systems supporting “triple-play” services using up to 60 percent fewer chips compared to competing solutions.   The Danube chip comprises an ADSL2/2+ transceiver, a 32-bit MIPS CPU, a VoIP co-processor and two integrated codecs.  With unparalleled CPU power, hardware acceleration, and integrated VoIP telephony, the single-chip device supports full 24 Mbit/sec ADSL2+ data rates for advanced media services, including IPTV, and provides headroom for additional applications.   The software suite provided as part of the complete reference design supports VoIP features such as three-way conferencing and caller ID and echo cancellation for high-quality voice. Multiple interfaces enable manufacturers to enhance systems by adding WLAN, Bluetooth, Ethernet switching, DECT, ISDN, video codecs and other features to complete the IAD design.  The Danube chip also supports upcoming features of next-generation networks, such as remote management functions, higher data rates through bonding mechanisms, and fixed-mobile network convergence. The Danube chip builds on Infineon’s broad portfolio of xDSL and voice processing ICs and the company’s long experience providing access infrastructure for both analog and digital communications networks.  The next-generation single-chip design paves the way for cost-effective and flexible IAD solutions by meeting the system size reduction and high integration requirements of the CPE market. “With Danube, we are integrating Infineon’s market-proven ADSL2+ technology with the superb voice quality of our Vinetic VoIP product to offer a complete solution to meet the exploding demand for ADSL2+ and VoIP applications,” said Christian Wolff, Senior Vice President of the Communication Solutions Business Group and General Manager of the Wireline Access Business Unit at Infineon. “The open architecture and processing power of Danube make it easy for manufacturers to differentiate products through feature upgrades. This reduces the risk for investment dramatically.” “As telecom providers supplement their broadband data offerings with services such as VoIP, IPTV and advanced security features, they are taxing the performance of current-generation broadband gateways,” said Joseph Byrne, Senior Analyst at The Linley Group. “Danube stands out with its integrated packet engine and powerful VoIP co-processor, providing manufactures with the flexibility to support advanced services.” Engineering samples of the Danube chip (PSB 507x2) will be available in August 2006, with production volumes scheduled for the fourth quarter of 2006.

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