Broadband Communication: Infineon supports the DVB standards for Terrestrial, Satellite and Cable Applications -- First Major Order From Nokia for DVB-T Chips.

Business Editors/High-Tech Writers

MUNICH/LONDON--(BUSINESS WIRE)--May 15, 2000

Following its strategic goal to assume a leadership position in the broadband communication market and Infineon Technologies AG (FSE/NYSE:IFX) has been awarded a major contract from Nokia for DVB (Digital Video Broadcast) chips for digital terrestrial TV networks.

The worldwide digital terrestrial TV network market is predicted to rise by more than 60% annually over the next five years (source: Dataquest/Infineon). Infineon is intensifying its activities in this growth market and will soon deliver products for digital satellite reception (DVB-S/DSS).

Real market boosts are expected as soon as the digital TV platforms are upgraded bi-directionally to allow interactive TV and Fast Internet. Cable networks provide the most suitable platform for this technical advance. The driving forces behind this growing multimedia segment are telephony services at extremely low rates via the cable TV network, Internet services and interactive TV. Infineon is currently developing System-On-Chip solutions for the interactive cable TV and cable modem market that support the DVB-C/RCC standard. This will allow cable STB (set-top box) and modem manufacturers to provide cost efficient products in a timely manner with the bi-directional network upgrade process.

"We support the European DVB standard for digital TV that enables manufacturers of digital terrestrial, satellite and cable-based STB modems to develop cost-efficient solutions for the mass market," said Noam Alroy, CEO of Infineon Technologies Savan Ltd. "The DVB standard was defined by a European forum, whose members include leading manufacturers of terminal equipment and multimedia services."

On April 27, 2000, Infineon acquired Savan, an Israel-based broadband communications IC specialist.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor solutions for applications in the wireless and wired communications markets, for the automotive and industrial sectors, for security systems and chip cards as well as memory products. With a global presence, Infineon operates in the U.S. from San Jose, Calif., and in the Asia-Pacific region from Singapore. In the fiscal year 1999 (ending September), the company achieved sales of Euro 4.24 billion (U.S. $4.51 billion) with about 26,000 employees worldwide. The company is listed on the main market segment (Amtlicher Handel) of the Frankfurt Stock Exchange and at the New York Stock Exchange. Further information at www.infineon.com

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

Any statements in this document that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. 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.