10 Gbps Optical Transponder MSA Group Celebrates First Anniversary with 100% Growth in Membership and New Products.

Business Editors/High-Tech Writers

SAN JOSE, Calif. & MUNICH, Germany--(BUSINESS WIRE)--Sept. 26, 2001

Infineon Technologies (FSE:IFX)(NYSE:IFX), a leading provider of communications integrated circuits today announced the first anniversary of the 10 Gigabit per second (10 Gbps) optical transponder multi-source agreement (MSA) with more members, new product specifications and customers. Since inception, the MSA group has seen more than 100% growth in membership, is currently sampling products with several customers, and has published open-standard specifications for follow-on 850 nm and 1550 nm 10 Gbps transponders.

The 10 Gbps optical transponder MSA group was founded in September 2000 by Infineon Technologies, JDS Uniphase, Light Logic (recently acquired by Intel) and Nortel Networks. Today there are nine members of the group. The other vendors that have joined in the last year are Cielo, Multiplex Inc, OptronX, Delta, and the newest member of the MSA is Network Elements.

"Open, standards-based MSAs are the backbone of industry collaboration that guarantees a competitive marketplace," said Bob Merrit, director of emerging markets at Semico Research Corporation. "The progress this MSA group has made over the last year is remarkable. Getting a large group of credible industry suppliers behind this MSA is fundamental to relevant product innovation and secure supply at an attractive price."

The group was formed with the mission to develop specifications for the industry's smallest footprint 10 Gbps 1310 nm SONET optical transponder compliant with Optical Internetworking Forum, International Telecommunication Union and Telcordia guidelines. The ensuing 200-pin 10 Gbps transponder MSA rapidly moved forward as member companies began supplying alpha trial parts to customers. The group is now working together to address new customer requirements, and has agreed to new specifications for a 1550 nm SONET transponder, along with an 850 nm version for very short reach (VSR) applications. The MSA also supports IEEE, 10 Gigabit Ethernet, short, long and extended reach with XSBI interface.

"We jointly developed specifications for a complex product and delivered samples in only three months," said Helmut Vogler, vice president of Infineon's Fiber Optics group. "Our 10 Gbps transponder has the smallest footprint available, and by agreeing to develop enhancements we are benefiting our customers and extending our strategic advantage over competitors."

Transponders greatly simplify what is required of optical systems designers to enable the transmission and reception of data in the form of light. Without them, designers need to separately source, integrate and test lasers, laser drivers, muxes, demuxes and PIN preamp receivers. Transponders need to be small, low power and support multiple standards in order to help systems vendors deliver what customers are looking for -- smaller equipment that requires less power and supports more users per square foot.

"By integrating all of these functions into a single device, we accelerate design-in time and enable higher port density while addressing key economic needs," said Pat Walsh, vice president of Product Line Management, Nortel Networks Optical Components.

The 1310 nm 10 Gbps transponder supports connections between switches and routers from 2 to 12 kilometers. The 1550 nm transponder will support distances up to 80 kilometers, and the VSR variant supports connections of several hundred meters. In addition, with the market momentum of Ethernet now evident, the group has put plans in place to develop devices to support 10 Gigabit Ethernet network links.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, 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 the fiscal year 2000 (ending September), the company achieved sales of Euro 7.28 billion with about 29,000 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.

Note to Editors: Infineon and the stylized Infineon Technologies design are trademarks and servicemarks of Infineon Technologies AG. All other trademarks are the property of their respective owners.

Any statements in this document that are not statements of historical fact are "forward-looking" and therefore involve risks and uncertainties; actual results may differ from such forward-looking statements. Important factors that could cause actual results to differ from those indicated by such forward-looking statements include uncertainties relating to the acceptance of our communications IC solutions, including our xDSL technology offerings, and other business factors and uncertainties that are discussed in our filings with the U.S. Securities and Exchange Commission, including in the "Risk Factors" section of our Annual Report on Form 20-F for the year ended September 30, 2000. Infineon Technologies undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contacts:

Infineon Technologies Worldwide Headquarters:

Reiner Schoenrock

Phone/Fax: ++49 89 234 29593/28482

[e-mail]

Infineon Technologies U.S.A. :

Mark Pearce

Phone/Fax: ++1 408-501-6391/2424

[e-mail]

Infineon Technologies Asia:

Kaye Lim

Phone/Fax: ++65 8400 689/7433-875

[e-mail]

Nortel Networks United Kingdom

Ben Roome

Phone: ++44 2075 293036 Fax: ++44 2075 293193

[e-mail]

OptronX

Tory Bergstrom

Phone ++ 1 610 336 5895

[e-mail]

LightLogic, Inc.

Gary Wiseman

Phone: ++1 408-855-1800 Fax: ++1 408-970-7271

[e-mail]

Cielo

Cory Rigler

Phone ++1 303 460 3819

[e-mail]

Delta

Fiona Hung

Phone ++886-34526107 Fax ++886-34527314

[e-mail]

Multiplex

Steven Kukoda

Phone ++1 908 412 7185

[e-mail]

Network Elements

Lori Toriseva

Phone ++ 1 503 601 3397

[e-mail]