Infineon Further Expands its Mobile Solution Business and Provides Complete EDGE Solution for High-speed Mobile Communications

Munich, Germany – December 10, 2002 – Infineon Technologies (FSE/NYSE: IFX), a leading provider of semiconductor solutions, is now sampling the world’s first fully featured EDGE (Enhanced Data Rates for GSM Evolution) solution to a wide customer base in Europe, the US and Asia. End users will benefit from data transfer rates three times higher compared with GPRS systems. With the introduction of its new EDGE platform Infineon is forging ahead with the expansion of its solution business.

Infineon’s EDGE solution is targeting the feature phone segment ranging from entertainment-oriented consumer devices with Java-enabled gaming platforms, location and navigation features, MP3 HiFi music and polyphonic ring melodies up to high-end multimedia phones with video-streaming, email, SyncML (Markup Language), touchscreens with handwriting recognition, Bluetooth and teleconferencing applications. The new platform is a world’s first to support EDGE in both up- and downlink with up to Class 12 speed. End users can transfer data, such as pictures or emails, up to three times faster compared to GPRS systems.

“We currently experience an increasing demand for EDGE system solutions mainly driven by the US and Asia but also Europe is taking a closer look at EDGE due to the delayed availability of UMTS,“ said Klaus Hau, Vice President and General Manager of Wide Area Wireless at Infineon. “The introduction of our EDGE solution is another example for consequently executing our Agenda 5-to-1 strategy focusing on technology lifestyle solutions for the 21st century.”

Infineon’s EDGE platform solution is based on S-GOLD, an application enhanced modem chip. Additional components are SMARTiDC+, Infineon’s latest RF chip supporting quad band operation at 850/900/1800/1900MHz supporting worldwide operation and a full featured power management chip. Infineon’s solution is completed by a comprehensive multimedia reference design along with a complete set of wireless applications based on APOXI™ (Application Programming Object-oriented eXtendable Interface) and protocol stack supporting E-GPRS up to Class 12 with MCS 1 to 9.

EDGE is a further evolution step of GSM/GPRS offering higher transmission rates than GPRS (up to 384kbit/s). Modern basestation equipment can generally be upgraded to support the EDGE feature and offers operators an easy way to optimize the capacity of their networks which may otherwise become heavily loaded by the rising use of GPRS for the upcoming data services.

Availability

First samples of the new EDGE platform solution have already been shipped to customers. Volume production is planned for mid 2003.

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 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.