Infineon and Huawei Sign Letter of Intent for Framework Purchase Agreement for Communication ICs

Neubiberg, Germany – March 19, 2009 – Infineon Technologies AG (FSE/NYSE: IFX) today announced that it has signed a letter of intent for framework purchase agreement amounting 68 million US-dollars with Huawei Technologies of China. This deal, as an important part of the recent European procurement tour of the Chinese business delegation, is intended to supply end-to-end chip solutions to Huawei’s wireline and wireless communication systems. Infineon will provide semiconductor solutions for Huawei in the area of Central Office solutions (CO), Customer Premise Equipment (CPE) and Mobile Phone Platforms.

As one of the major deals signed on this tour, Huawei Technologies will purchase semiconductor solutions from Infineon worth of 68 million US-Dollars in 2009. These products and technologies will enable Huawei to deliver advanced and sophisticated systems to the telecom markets. Shipment of the first products has already started.

“We feel very much honored to sign this agreement with Huawei”, said Dominik Bilo, Senior Vice President, Sales, Marketing and Distribution of Infineon Technologies at the signing ceremony in Frankfurt, Germany. “Huawei and Infineon are maintaining a very positive and long lasting business relationship. We are very happy that we could extend this successful relationship from year to year and now sign this agreement for delivering cutting-edge technologies and communication solutions.”

Despite the global financial recession, China supports the European enterprises with its strong purchasing power. In late February, a business delegation of about 200 Chinese entrepreneurs, led by Commerce Minister Chen Deming, made a procurement tour to Germany, Switzerland, Spain and UK. In Germany only, this delegation signed a total of 37 procurement deals worth around 14 billion U.S. dollars with local companies, focusing on electronics, automotive, machinery and healthcare.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide. 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 (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).