Infineon Technologies and the German Federal Ministry of the Interior Form Security Cooperation

Munich, Germany – June 30, 2003 – The German Federal Ministry of the Interior (Bundesministerium des Inneren, BMI) and Infineon Technologies (FSE, NYSE: IFX) will closely cooperate in the field of IT Security in the future. BMI Minister Otto Schily and Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG, signed the “Memorandum of Understanding“ to initiate this security cooperation in Munich today.

The far-ranging security cooperation of the BMI and Infineon aims at establishing a sound technology basis for an enhanced security level in Information Technology (IT) systems that are used in the Civil Service, in private companies and households. The contracting parties have agreed upon a close information exchange in three subjects: the security aspect in the field of smart card technology, security of future mobile applications, and the security components needed to elevate the trustworthiness of personal computers and computer networks. Furthermore, BMI and Infineon intend to drive selected projects to promote the use of secure information technologies in Germany. Examples for such projects are the German citizen card incorporating digital signature and „BundOnline 2005“ which is the initiative of the German government to make available to the citizens all online-capable Civil Services’ information services by the year 2005.

The center of the parties’ discussions on smart card security are technological considerations providing the basis for new electronic identification cards and an omnibus concept for a qualified signature card. This qualified signature card for every German citizen is meant to incorporate biometric functionality and be utilized for a wide range of applications, such as civil services card, job card, and health card.

The topic security for personal computers and PC networks include the security standards of the “Trusted Computing Group“ (TCG). The TCG is an industry initiative that wants to standardize the requirements for a trustworthy PC and to secure it against virus attacks and unauthorized manipulation

With respect to secure mobile solutions, the BMI and Infineon wish to jointly develop application scenarios and a trustworthy mobile platform. It is the goal that based on results of the cooperation, cellular phones and other mobile devices can be used, for example, to encrypt data and to authorize payments.

“Our information society gets more and more mobile and is in need for new security mechanisms. Reliable communication and information technologies are necessary to secure our computer systems and networks against unauthorized use and manipulation.” said Minister Otto Schily. “The intensive cooperation with Infineon will enable the speedy availability of security for our citizens. It will also help to modernize Civil Services and to offer new services more citizen-friendly.”

“Advanced silicon-based technologies enable a broad spectrum of flexible security solutions for future ID documents, mobile communication devices, PCs and networks,” said Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. “Security cooperations between government and the private sector – such as the one between the German Federal Ministry of the Interior and Infineon – and the subsequent use of silicon-based solutions have the potential to make Germany the pacesetter for such security solutions in Europe.”

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 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.

Press contact of German Federal Ministry of the Interior
(Bundesministerium des Inneren, BMI)
Phone: +49 1888 861 1023
www.bmi.bund.de

Photos of Dr. Ulrich Schumacher welcoming Minister Otto Schily as well as both signing the contract will be available at about 4:15 p.m. at www.infineon.com/news