Infineon´s Single Chip EDGE/UMTS RF Transceiver SMARTi™UE+ Selected By Leading Cellular Handset Companies

Neubiberg, Germany – February 11, 2008 – Infineon Technologies AG (FSE/NYSE:IFX) today announced that another tier 1 handset company has selected the SMARTi™UE+, the world’s first single chip Receive-diversity transceiver IC with a standard DigRF V3.09 interface, for their HSxPA/ EDGE products. The single chip RF significantly improves the signal quality from base station to handset, increasing the effective data throughput and reducing the required network resources. Compared to conventional products with a single receiver, Infineons dual receiver (Rx-diversity MIMO) solution compensates various degradation effects (e.g. fading, reflections) of a real network especially in higher HSxPA categories. Users experience a higher effective downlink speed, better network coverage and less drops in Voice over IP- and video-applications, while the network operators can significantly increase their network capacity and quality of service. Furthermore with its architecture, SMARTi UE+ enables phone manufacturers to reduce testing cycles in the production processes by more than a factor of 10.

"With two leading handset companies using our advanced diversity RF solution, the SMARTi UE+, we see a growing demand in our leading-edge 3G RF-technology and products," said Stefan Wolff, Vice President and General Manager of Infineon’s RF Engine Business Unit. “Receive diversity is becoming an important feature in UMTS and higher data rates in HSxPA and LTE will make this feature mandatory.”

According to market research firm Strategy Analytics, they expect annual shipments of over 400 million UMTS phones in 2010. Most of these phones are HSPA enabled as operators move to more efficient 3G+ networks, fulfilling demand among users for faster and less expensive uplinks and downlinks for social networking, multimedia messaging, Location Based Services and other new services.

About SMARTi™UE/ UE+

The SMARTi UE+, announced at last year’s then-3GSM show, is the world’s first single chip Rx-diversity transceiver IC with a standard DigRF V3.09 interface based on the widely adopted SMARTi UE with a single receiver. Both products offer an easily scalable RF solution for worldwide HSxPA/ EDGE requirements with maximum categories in HSDPA (14.4Mbps) and HSUPA (5.76Mbps). With the SMARTi UE+, a complete diversity RF-system for quad-band EDGE and triple-band UMTS-diversity can be as small as 360 square mm, a low-cost strip down for single-band UMTS and quad band EDGE requires less then 250 square mm PCB area. The radio reference design uses only 4 layers of a conventional 8-layer board in a single RF-chamber. The unique radio architecture reduces the factory calibration time of a triple-band UMTS phone from over 30 seconds, down to less than 3 seconds.

Availability

SMARTi UE+ is being manufactured in large volume 130 nanometer standard CMOS technology, and housed in a small 6x7 mm BGA-package. Samples have been shipped to selected customers and production ramp-up is expected the second half of 2008.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2007 fiscal year (ending September), the company reported sales of Euro 7.7 billion (including Qimonda sales of Euro 3.6 billion) with approximately 43,000 employees worldwide (including approximately 13,500 Qimonda employees). 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).