Infineon Achieves New Data Rate Breakthrough with 3.0 Gb/s Advanced Hard Disk Drive Read Channel and 6 Gb/s Serdes Interface

Neubiberg, Germany and Milpitas, California. – June 29, 2007 – Infineon Technologies AG (IFX: FSE, NYSE) today announced it has demonstrated functionality and data rates exceeding 3.0 Gb/s speed of read channel, setting the pace for next-generation hard disk drive (HDD) System-on-Chip (SoC) technology. The read/write channel IC is the result of a proven cooperation between Infineon and Hitachi Global Storage Technologies. When combined with Infineon’s 6 Gb/s Serdes Interface, the read-channel core enables integrated state-of-the-art SoCs to perform higher transfer rates. The HDD Read Channel provides exceptional speed and high-performance signal processing required for next-generation perpendicular recording for hard disk drives in enterprise applications.

“This read channel technology achievement further demonstrates the successful cooperation between Hitachi and Infineon to bring industry-leading innovation and engineering expertise together,” said Steven Smith, senior director and general manager of Rochester, Minnesota, Hitachi Global Storage Technologies. “Infineon has demonstrated leadership in silicon development in its ability to deliver higher levels of performance. We are pleased with the results of the read-channel implementation.”

“High-channel data rate combined with low-power consumption are key to innovation in the enterprise segment to enable the integration of the read channel into the SoC or to provide reliable, high-quality stand-alone ICs in cost-effective packages,” said Peter Bauer, member of the management board and head of Infineon’s Automotive, Industrial and Multimarket business group. “Our presence and commitment to the market is further demonstrated by this achievement.”

The read channel is part of the broad portfolio of Infineon silicon proven products and IP blocks which cover the full spectrum of HDD market segments, including consumer/ultra-low power, mobile, desktop and enterprise applications, which reduce customer development costs and time-to-market.

Various versions of the channel core are derived from the common architecture and custom designed to meet specific target parameters for each market segment.

Complementary to the high-performance read channel, Infineon has also demonstrated silicon of its 6 Gb/s multistandard PHY (Physical Layer interface), capable to operate bit error free in “ closed eye” environments required by the upcoming SAS 6G standard. The multistandard PHY supports 6 Gb/s SATA and SAS as well as FC 4.25Gb/s standards and all their legacy modes. A 3 Gb/s SATA derivative of the same baseline architecture is specifically tailored to support power sensitive mobile applications.

Infineon high-performance read channel and PHY technologies have been proven in production silicon for many generations. This long-standing experience, along with the performance and cost competitiveness of Infineon’s SoC solutions provide the design and manufacturing expertise for hard disk drive customers that have stringent time-to-volume and high-volume production support requirements.

™ - S-ATA is a trademark of Infineon Technologies North America Corp.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, connectivity and security. In fiscal year 2006 (ending September), the company achieved sales of Euro 7.9 billion (including Qimonda sales of Euro 3.8 billion) with approximately 42,000 employees worldwide (including approximately 12,000 Qimonda employees). With a global presence, Infineon operates through its subsidiaries in the US from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX).