Infineon’s Wireline Division Will Become LANTIQ

Neubiberg, Germany – August 10, 2009 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) and Golden Gate Capital announced today that Infineon’s Wireline Communications Division will become LANTIQ after the closing of the recently announced transaction.

On July 7, 2009, Infineon Technologies announced that it had agreed to sell its Wireline Communications Division (WLC) to the private equity investor Golden Gate Capital. The deal is expected to close in fall 2009, at which time LANTIQ will assume all the products, projects and locations of the present WLC. The new standalone company will have unique capabilities to combine traditional Wireline technologies with leading-edge Access and Home Networking technologies.

“During the last few years we have gained a very strong position and significant momentum in the wireline market, based on our broad and innovative product portfolio,” stated Christian Wolff, who is designated to be the CEO of LANTIQ. “We are fully committed to the Wireline communications market and we see a tremendous opportunity in the market for IPTV, Home Networking and Next-Generation IP-based networks.”

“The junction where broadband access meets the digital home is a very hot area in the market today. Exciting new services like IPTV and VoIP depend on a seamless wideband connection from the central office to every point within the consumers’ home,” said Lee Ratliff, Senior Analyst, Broadband Digital Home and IPTV at iSuppli Corporation. “LANTIQ is positioned at the intersection of this activity with a portfolio that includes infrastructure and Home Networking products ranging from ADSL and VDSL to network processors, VoIP, and DECT/CAT-Iq.”

“WLC, and in the future LANTIQ, is a very exciting company representing an attractive investment opportunity for GGC. We are especially impressed with the leadership and integrity of the senior management team as well as the capabilities of the entire employee base. The people, technologies, and customer relationships make LANTIQ an attractive platform for us”, said John Knoll, Managing Director at Golden Gate Capital.

LANTIQ will be among the Top 15 fabless semiconductor companies worldwide and be a one-stop solution provider for the wireline communication and broadband access markets. It will be one of the very few vendors offering a complete DSL end-to-end portfolio and have a unique ability to integrate DSL, VoIP and home connectivity into complex SOCs. LANTIQ will build on a strong foundation of more than 20 years in the industry, and will continue to drive innovation and integration in the telecommunications network, working with the leading players around the world to develop next-generation networks.

LANTIQ will be at the Broadband World Forum in Paris CNIT, September 7-9, 2009. Visit us at our booth (#245).

About LANTIQ

After closing of the deal, LANTIQ will employ 900 people at 14 sites in the Asia Pacific region, North America and Europe. To be headquartered in Neubiberg, Germany, the company will offer a broadband communication portfolio encompassing analog, digital and mixed-signal ICs along with comprehensive software suites, enabling system manufacturers to design high-speed data and telecommunication systems solutions for broadband access and customer premises equipment. Funded by Golden Gate Capital, LANTIQ is a fabless company, offering semiconductor solutions deployed by major carriers and in home networks in every region of the world.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide. With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).