Exar Acquires Assets of Infineon`s Optical Networking Product Line - Infineon Focuses on Core Business Activities in Wireless and Broadband Access Communication Markets

Munich, Germany and Fremont, USA – April 7, 2005 – Infineon Technologies AG (FSE/NYSE: IFX) and Exar Corporation (NASDAQ: EXAR) announced today that they have entered into a definitive agreement in which Exar has agreed to acquire for cash a significant part of Infineon's Optical Networking(ON) Business Unit. The acquisition includes assets relating to multi-rate TDM framer products, Fiber Channel over SONET/SDH, Resilient Packet Ring (RPR), as well as certain intellectual property for Data Over SONET products. The transaction is expected to close shortly.

The existing MetroMapper™ family of Ethernet over Sonet products will remain part of Infineon's product solution portfolio to ensure continued support for its customers.

“Following the sale of a significant part of our Fiber Optics group, the Optical Networking sale is yet another step towards our overall commitment to streamlining our business activities to focus on our core markets in wireless and broadband access communication,” said Loh Kin Wah, Member of Infineon's Management Board. “In Exar, we have found an excellent company with a mutual interest in supporting our customer base.”

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2004 (ending September), the company achieved sales of Euro 7.19 billion with about 35,600 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.