Epson and Infineon develop next generation Single-Chip GPS receiver - Highest Sensitivity, Halved Power Consumption and Smallest Footprint

Tokyo, Japan and Neubiberg, Germany – February 11, 2009 – Seiko Epson Corporation (“Epson”, TSE: 6724) and Infineon Technologies AG (FSE/NYSE: IFX) today announced the successful development of the next generation of advanced global positioning system (A-GPS) technology. The new GPS single-chip design, the XPOSYS™, is optimized for mobile devices for the consumer market; especially cellular phones with navigation features.

Compared to existing solutions in the market, the XPOSYS, which is manufactured in a 65 nanometer process technology, provides increased performance and new levels of user experience. Sensitivity has been increased from -160dBm to -165dBm – unique in today’s positioning technology – allowing for pinpoint positional accuracy even when indoors or in urban canyons. Furthermore, power consumption has been reduced by 50 percent, increasing the battery life of products in which it is included. The footprint has been reduced to fit into a printed circuit board (PCB) area of only 26 mm ². This is 25 percent less than the smallest GPS chip solution available today and provides, together with only nine additional external passive components, design flexibility and substantially lower system cost for device manufacturers.

“We’re very excited about this cooperation, which matches our GPS baseband IP with Infineon’s number one radio frequency design,” said Yutaka Kitazawa, Head of Epson’s GPS Business Development Division. “We’re convinced that this partnership between two great companies with excellent technologies enables us to offer best-in-class solutions for the worldwide GPS market.”

“We are honoured to have such a strong partner with us. This is a perfect symbiosis, with Epson offering one of the best GPS baseband solutions worldwide, long term experience and the leading position in the Japanese domestic market,” said Weng Kuan Tan, Division President of the Wireless Division at Infineon Technologies.

Market forecasts by leading analysts predict strong growth of GPS features in mobile handsets, in addition to portable navigation devices (PND) and automotive embedded devices. According to market researcher iSuppli, the GPS penetration in handsets will rise from 2008 level of 19 percent to 35 percent by 2012. In unit terms, this translates to 238 million GPS-enabled mobile handsets in 2008 going up to 543 million units in 2012. In addition, PNDs, automotive systems and vehicle-device solutions are gaining popularity. The market research company Strategy Analytics is forecasting PND sales to exceed 100 million units by 2013 globally.

Availability of the XPOSYS chip

Samples are available now. Volume production is expected to start by mid-2009.

About Epson

Epson is a global leader in imaging products including printers, 3LCD projectors and small- and medium-sized LCDs. With an innovative and creative culture, Epson is dedicated to exceeding the vision and expectations of customers worldwide with products known for their superior quality, functionality, compactness and energy efficiency. Epson is a network of 93,279 employees in 107 companies around the world, and is proud of its ongoing contributions to the global environment and to the communities in which it is located. Led by the Japan-based Seiko Epson Corp., the Group had consolidated sales of 1,347 billion yen in fiscal 2007.

About Infineon

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 and on the New York Stock Exchange (ticker symbol: IFX).

Media Relations Contacts:

Seiko Epson Corp.

Brand Strategy & Communications

Contact us by e-mail:

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Infineon Technologies AG

Media Relations

Christoph von Schierstaedt

phone: +49 89 234-22984

vonschierstaedt@infineon.com