Chip from Infineon Improves Energy Efficiency - Deployment in Computer Servers Saves a Whole Power Plant - Plan of Action by EC Welcomed.

MUNICH, Germany -- Infineon Technologies (NYSE:IFX) (FWB:IFX), the global leading provider of integrated circuits for power electronics, today unveiled an innovative product that will further improve the energy efficiency of power supply units (PSUs). A good portion of all the electrical energy used in the world today flows through PSUs into electrical equipment such as computers, TVs and consumer electronics. This is precisely where the new OptiMOS([R])3 will be used leaving many existing power semiconductors standing in terms of performance. Its properties are nothing short of outstanding: one third fewer components, up to two thirds less space in the PSU and one third less resistance. According to Infineon's calculations, the power generated by an entire 360-Megawatt power plant could be saved if OptiMOS 3 was fitted to deliver the right efficiency to all the computer server power systems in use.

"I welcome the plan of action announced a few days ago by the European Commission to improve energy efficiency," says Dr. Wolfgang Ziebart, President and Chief Executive Officer of Infineon. "The plan marks an important step toward mastering the huge energy policy challenges that face Europe today. Our innovative semiconductors are making a major contribution to increasing energy efficiency and conserving ever more scarce resources."

The plan presented by the European Commission cites a series of measures that together make up a broad spectrum of cost-efficient initiatives to improve energy efficiency. They include measures to make energy-consuming products, buildings and means of transport more efficient, and to do the same for power generation. Products from Infineon are deployed at every link in the energy value chain, from generation through distribution to the efficient use of electrical energy. Data from market research organization IMS Research indicates that Infineon's sales of power semiconductors rose from USD 950 million in 2004 to USD 1.06 billion in 2005.

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 .

This news release is available online at http://www.infineon.com/news/

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