Infineon Announces XWAY COMPACT Family of Highly Integrated, Cost-Optimized and Ready-to-Go Reference Designs for World’s Smallest WLAN Router, IAD and UTA Systems

Neubiberg, Germany and Paris, France – September 7, 2009 – At the Broadband World Forum in Paris (September 7-9, 2009) Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today introduced a series of highly integrated and cost optimized reference designs for ADSL WLAN router, IAD (Integrated Access Device) and UTA (Universal Telephony Adapter) systems. By combining Infineon’s market leading ADSL, WLAN (Wireless LAN), Ethernet, VoIP and CAT-iq technologies, the XWAY™ COMPACT family allows manufacturers to produce Green-IT-Products in the smallest form factors with the shortest time-to-market.

“In the current economic climate, carriers are challenged to provide new services and value to the subscribers at reduced prices. The XWAY COMPACT family addresses the need for high speed wireless connectivity, excellent voice quality and low power consumption in attractive designs,” said Christian Wolff, President of the Wireline Communications Division at Infineon Technologies. “ With these easy-to-use reference designs, we pave the way for the next generation of in-home broadband networking and underline Infineon’s commitment to provide our customers with high performance and cost-effective solutions for a faster time-to-market”

Energy efficiency, high definition voice and wireless connectivity

The XWAY COMPACT solutions are the first in the market to fulfill the European Code of Conduct (CoC) for energy efficiency and the IEEE Energy Efficient Ethernet (EEE) guideline. With significantly reduced standby power compared to existing products the XWAY COMPACT solutions exceed the currently defined CoC targets by up to 25 percent.

Infineon is a market leader for VoIP and carrier-grade voice solutions, driving CAT-iq deployment and HD voice quality in all of its voice products. XWAY COMPACT delivers high definition voice and data services to cordless handsets with CAT-iq. Infineon’s reference designs scored highest Mean Opinion Score (MOS) values in tests against competitive solutions. MOS gives a numerical indication of the perceived quality of the voice received after being transmitted. The COSIC™ modem DECT/CAT-iq basestation-on-chip allows customers to integrate CAT-iq basestation functionality at about the cost of a single channel Foreign Exchange Station (FXS).

Based on the recently announced XWAY™ WAVE100, WLAN connectivity is added at reduced cost compared to existing 802.11b/g solutions. XWAY WAVE100 features 802.11n 1x1 which improves the throughput and reach on wireless connectivity by up to four times compared to 802.11b/g.

About the XWAY™ COMPACT ASE1x1

The XWAY COMPACT ASE1x1 is the world’s smallest ADSL2+ WLAN Router solution; built on the XWAY™ AMAZON-SE ADSL2+ single-chip router, XWAY™ TANTOS-0G Ethernet switch controller and single-chip XWAY™ WAVE12A 802.11n IC. The two-layer PCB design provides a low-power, cost and space saving solution for WLAN routers offering high-speed wireless connectivity with up to 150Mbit/s and USB2.0 Host capability. XWAY COMPACT ASE1x1 is especially suited for emerging markets.

About the XWAY™ COMPACT 182LCG

The XWAY COMPACT 182LCG reference design is based on the XWAY™ ARX182 single-chip ADSL2+ Gateway, XWAY WAVE12A, COSIC modem DECT/CAT-iq basestation-on-chip, the single channel FXS solution XWAY™ SLIC110 and dual-port Fast Ethernet PHY transceiver XWAY™ PHY22F. This gateway solution supports a traditional POTS telephone, up-to six DECT/CAT-iq cordless handsets, 802.11n 1x1 and USB2.0 Host connectivity. Additionally an ideal IPTV experience over ADSL2/2+ is assured by leveraging high-speed routing capabilities and enhanced DSL Physical Layer features of the XWAY ARX182, such as Erasure Decoding and Re-Transmission. The XWAY COMPACT 182LCG targets the entry-level gateway market in support of the worldwide deployment of VoIP services.

About the XWAY™ COMPACT 182UTA

The XWAY COMPACT 182UTA reference design is based on the XWAY ARX182, COSIC modem, XWAY SLIC110 and the XWAY PHY22F. This design enables carriers to seamlessly convert traditional telephony services to All-IP over ADSL at minimum cost, allowing subscribers to continue using their existing telephony equipment from traditional phones to fax, or upgrade to CAT-iq devices. XWAY COMPACT 182UTA is the first solution of its kind in the industry. The solution can be deployed not only in the ADSL market but thanks to its dual Ethernet MAC also in cable modem, GPON or WiMAX applications.

Further information is available at www.infineon.com/cpe

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 Division will become LANTIQ after the closing of the transaction this fall and will presenting its solutions in the Infineon booth (#245) at the Broadband World Forum (Paris, CNIT, September 7-9, 2009). 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.

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 in continuing operations. 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).