Creating a Wireless Value Net for the Mobile Industry -- Back to a Successful Future.

Business Editors/High-Tech Writers

3GSM World Congress

CANNES, France--(BUSINESS WIRE)--Feb. 19, 2002

Infineon Technologies presented its "Wireless Solution Value Net" concept for the first time at the 3GSM World Congress. The concept pools the mobile communications know-how of Infineon and selected partner companies and provides the necessary basis for the introduction and cost-effective use of the mobile Internet.

The mobile communications industry experienced an unprecedented growth boom in the nineties. GSM was synonymous with success, mobility, but above all mobile voice communication. The GSM standard has gradually evolved over this period and today the coverage of the networks is virtually total in many countries. At the same time the classical value creation chain, consisting of technology companies, terminal and network vendors and operators, has proven a success.

GPRS signals a significant step in the direction of a new growth wave. Packet-switched GPRS is a key technology enabling the mobile Internet. With GPRS and, in the near future, UMTS, the focus is no longer limited just to voice communication, but permits, for example, machine-to-machine (MtM) communication via mobile Internet. Vertical markets and business segments such as telematics, logistics or online service for field organizations open up new business opportunities.

"The phase of euphoria and boom in the 90s ended with disenchantment and consolidation. A new phase of growth -- Back to a Successful Future -- is just around the corner: the mobile Internet," declared Ulrich Hamann, Chief Executive Officer of Infineon's Wireless Solutions Group. "The structure of the new mobile data market is far more complex than the traditional GSM market structure with voice-oriented business models and SMS. One-stop, end-to-end solutions are scarcely possible any longer. The key to the mobile Internet market is the creation of a Wireless Value Net."

The Wireless Value Net stands for an intensive dialog between technology companies like Infineon and operators, terminal manufacturers, software companies, content and portal providers, and companies from vertical markets, such as the automobile and entertainment industries, as well as logistics, with the objective of collectively implementing solutions based on new business models.

Infineon possesses the necessary credentials to smooth the way into the mobile Internet. These include solutions such as Apoxi, an object-oriented MMI framework, mobile Internet applications for MPEG4 video streaming, Bluetooth applications, as well as GSM/GPRS and 3G system solutions, plus S-Gold, an application processor incorporating modem functionality. Infineon works closely with its inhouse partners DWD, Commeon, sci-worx and Guardeonic in order to contribute to the successful creation of a company-independent Wireless Solution Value Net. In addition, the company brings its many years of experience and mobile radio expertise to the traditional areas of a world-leading semiconductor manufacturer.

"For us, Cannes is more than just a product fair; it is the launchpad into a new, successful period of growth," said Hamann, and added: "Back to a successful future."

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and customized 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 2001 (ending September), the company achieved sales of Euro 5.67 billion with about 33,800 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.

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

Note to Editors: Infineon and the stylized Infineon Technologies design are registered trademarks and service marks of Infineon Technologies AG. Other product and brand names may be trademarks or registered trademarks of their respective owners.

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