Infineon Launches Industry First Single-Chip ADSL Gateway Solution with Integrated Gigabit Ethernet; Next Generation XWAY ARX100 Family Sets Standard for Wired Delivery of High-Bandwidth Services

Neubiberg, Germany and Brussels, Belgium – September 30, 2008 – Today at the Broadband World Forum Europe, Infineon Technologies AG (FSE/NYSE: IFX) announced the XWAY™ ARX168, a single-chip ADSL2+ device with industry-first integrated Gigabit Ethernet support, and advanced features to support Internet Protocol Television (IPTV) and over 150 Mbps wireless data rate performance. The chip is the first in a planned family of router and Integrated Access Device (IAD) solutions providing industry-leading performance and integration that will allow OEMs to leverage development investment across common platform architecture.

“The XWAY ARX168 chip marks the next phase in Infineon’s strategy to leverage the proven best-in-class interoperability footprint of our DSL solutions and provide our OEM customers with a one investment, many product platform,” said Christian Wolff, Senior Vice President of the Communication Solutions business group and General Manager of the Wireline Access business unit at Infineon. “With the XWAY ARX168, we are delivering a powerful, single-chip platform to support the full range of customer premise router applications, including full 11n wireless routing performance and IPTV.”

XWAY ARX168 is the industry’s first ADSL solution with integrated Gigabit LAN. Together with Infineon’s field proven Protocol Acceleration technology it is ideal for next generation router applications supporting high-bandwidth services with service level guarantees. End user experience with media services is enhanced with such innovative features as Gamma Layer Retransmission, Erasure Decoding and extended Interleaver Depth. The integrated Gigabit Ethernet switch is network processor friendly, allowing flexible mix of bridged & routed services at home, without loading the application CPU. Two USB 2.0 ports provide unmatched connectivity and support for all common peripherals.

Remarkable architecture elements of the XWAY ARX168 include a dual-CPU architecture, with a dedicated routing processor to support wire-speed routing for all packet sizes. The DSL digital front end and interoperability firmware is common to all Infineon ADSL2+ chipsets. This leverages the demonstrated worldwide interoperability footprint of the Infineon XWAY AR7 residential gateway chipset solution to speed customer time to market for new systems.

The enhanced features for IPTV performance that are now common to the Infineon DSL architecture include the industry’s first integration of Erasure Decoding and Gamma Layer Retransmission concurrently supported on a single chip. Erasure Decoding improves impulse noise immunity with no changes to the carrier DSLAM, and can achieve up to two times better error protection than a non-erasure decoding capable CPE in real world deployment scenarios. The Gamma Layer Retransmission mechanism utilizes an intelligent traffic shaping and discrimination algorithm, in conjunction with central office (CO) equipment.

Samples of the Infineon XWAY ARX168 ADSL2+ Router will be available in October 2008. Additional single-chip devices from the XWAY ARX100 family will be available end of 2008.

For further information on the XWAY ARX168 visit: www.infineon.com/XWAY_ARX

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).