Infineon Provides Key Components In Microsoft Xbox 360 Game Console

Munich, Germany - August 30, 2005 - Infineon Technologies AG (FSE/NYSE: IFX) today announced that it will supply three key components for the Microsoft Xbox 360™ video game and entertainment system. Infineon will provide a removable solid-state memory unit product, a single-chip application-specific integrated circuit (ASIC) wireless game-pad controller that makes cables unnecessary for game play, and an advanced security chip.

Xbox 360 consoles with Infineon produced chips and components are expected to be on the shelves in the fourth quarter of this year. Financial details of the design collaboration and supply agreement were not disclosed.

“Collaboration with leading suppliers of semiconductors and electronic components is essential to the realization of Microsoft’s vision to deliver entirely new capabilities in consumer entertainment,” said Marc Whitten, Director, Xbox Peripherals at Microsoft. “Infineon’s broad and complementary IP portfolio, system integration skill, manufacturing expertise and proven track record were crucial factors in our decision to work with the company on these components.”

Infineon is leveraging its IP in areas such as security, memory control and embedded firmware into ASIC-based system solutions for the Xbox 360. For the memory unit, the company designed an ASIC memory controller, created the embedded software that runs on the chip and designed the system printed circuit board. And the security chip is a custom implementation of Infineon’s proven authentication technology.

The chips were developed in Germany, Israel and Italy and will be manufactured in France. Using the flexibility of Infineon fab clusters, Infineon’s ASIC components can be manufactured worldwide in multiple locations, allowing customers additional supply-chain flexibility and opportunity to expand. This is a very important value proposition in the consumer electronics industry where security of supply and reliable high-volume manufacturing are paramount.

“Today, customers require a system view to technology development in order to achieve increased performance, lower cost and a higher level of integration. Infineon is taking this system design approach to bring more value to its key customers,” stated Peter Bauer, Member of the Management Board, Executive Vice President and Head of Automotive, Industrial and Multimarket business group at Infineon Technologies.

About Xbox 360

Xbox 360 is a very powerful video game and entertainment system, delivering the best games, the next generation of the premier Xbox Live online gaming service, and unique digital entertainment experiences that revolve around you. The system will launch this holiday season in Europe, Japan and North America, to be followed by availability in Australia, Colombia, Hong Kong, Korea, Mexico, New Zealand, Singapore and Taiwan in 2006. For more information, go to www.xbox.com/xbox360.

About Microsoft

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Xbox, Xbox 360, and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

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 www.infineon.com.