Huawei Selects Infineon's VDSL5100 Chip Set for New Platform: QAM-based VDSL Supports New Long-Reach Service up to 4km and Outstanding Short Reach Data Rates.

Business Editors/High-Tech Writers

SUPERCOMM 2003

ATLANTA--(BUSINESS WIRE)--June 3, 2003

Infineon Technologies (FSE/NYSE: IFX) today announced that Huawei Technologies, a global supplier of telecom network equipment, has designed a multi-range VDSL system based on Infineon's QAM VDSL5100 chip set. The VDSL5100 allows flexible band allocation and achieves Long-Reach VDSL asymmetrical data rate performance of up to 4Mbps over line lengths up to 4 km (13,200 feet) utilizing the Band 0 frequency. At shorter distances the chip set provides asymmetric data-rates of 70 Mbps down-stream/ 40Mbps upstream and symmetric data-rates of 50/50 Mbps over single-pair copper wires.

"Infineon's VDSL5100 suits a range of applications and deployment scenarios, from very high bit rates over short distances to medium bit rates over long distances, using a single line card or CPE design," said Qian Yuan, Vice General Manager of Access Networking of Huawei. "Our new SmartAX platform will enable our Telco customers to offer VDSL services to subscribers residing up to 4 km from the CO or street cabinet. That's well beyond the capabilities of any competing VDSL system. Plus, VDSL5100 makes it very easy to upgrade the service offering once fiber is deployed, shortening the distance between the VDSL access system and the end user."

In August 2002 Huawei and Infineon announced their collaboration in the development of broadband access systems based on Infineon's standard QAM PoVDSL chip set. This new collaboration between the two companies expresses their commitment to promote standard based VDSL technology. Huawei is the first system vendor to develop systems for the China market using Infineon's Long-Reach VDSL technology.

"We are extremely happy to extend our relationship with Huawei, a world leader in the development of xDSL and Ethernet Access technologies," Mr Pow Tien Tee Managing Director, Infineon Technologies Hong Kong & China. "More than four million QAM-VDSL ports shipped in just ten months make Infineon the recognized number one VDSL IC solution provider in the world. The latest generation of our technology eliminates the need for external filters, driving down the overall BOM cost and reducing the physical size of VDSL systems. High performance, low cost broadband access solutions that foster further acceleration of VDSL deployment are built best on Infineon's VDSL chipsets," he added.

About VDSL5100

VDSL5100, is a flexible QAM-based VDSL solution for all Very High Bit Rate Digital Subscriber Line (VDSL) applications, including Ethernet over VDSL and ATM over VDSL. The VDSL5100 chip set uses Frequency Division Multiplexing (FDM) and Quadrature Amplitude Modulation (QAM) to provide simple, low-cost, low-power, and very robust design and operation. Allowing for very high line speeds, the VDSL5100 supports asymmetric transmission rates of 70/40 Mbps and symmetric data rates of 50/50 Mbps at distances up to 1,700 feet (500 meters). At longer ranges, the VDSL5100 delivers symmetric 10 Mbps over 4,000 feet (1,200 meters) and Long-Reach VDSL up to 4 Mbps at 13,200 feet (4 km) using Band 0. Actual performance depends on regional band plans, cable types, and deployment environment.

About Huawei

Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks. Huawei's customers include China Telecom, China Mobile, China Unicom, China Netcom as well as Thai AIS, South Korea Telecom, SingTel, Hutchison Global Crossing, PCCW, Telemar (Brazil), etc. Further information is available at www.huawei.com

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions 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 fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 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 http://www.infineon.com

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

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