Advanced 65nm Mobile Phone Chip Works First Time; 30 Million Transistors Integrated on One Cell Phone Key.

MUNICH, Germany -- Infineon Technologies AG (NYSE: IFX)(FWB: IFX) announced today that the first cell phone chips equipped with its advanced 65-nm CMOS process technology are now available. The components functioned perfectly right from the start, as complicated testing in Duisburg, Munich and Bangalore, India has now shown. The dial-in to different GSM mobile communications networks and the resulting connections worked without a hitch. This new technology features high performance at low power consumption and is the most advanced semiconductor technology for logic circuitry that Infineon is currently preparing for mass production. First products in this new technology are expected to be market-ready towards the end of 2006.

"The data available today emphasizes the multifold strengths of our alliance strategy resulting into a leading position towards time-to-market, figure-of-merits, and manufacturing flexibility by pooling significant R&D resources as also exploiting a huge amount of intellectual capital," said Prof Dr Hermann Eul, member of the Infineon Management Board and head of the Infineon Communication Solutions Business Group. "Thanks to this technological breakthrough, we have proven that our strategy of innovative integration works and that the number of available functions will increase while the footprint decreases."

The chip just tested puts more than 30 million transistors on a space of just 33mm(2) and proves that Infineon is able to produce such major digital and analog circuitry in cell phones as MCU/DSP cores, storage and analog/mixed-signal in 65-nm technology to operate with high reliability. This space-saving technology was also used to manufacture high-frequency circuits for the first time.

Infineon developed this technology in the leading 65/45-nm research and development alliance ICIS consisting of IBM, Chartered, Infineon and Samsung. The mobile communications chip developed by Infineon was produced in the frame of a manufacturing agreement with Chartered in Singapore.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products through its subsidiary Qimonda. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 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. Further information on Qimonda is available at www.qimonda.com.