Infineon's Octal 10BaseS Selected by Kenetec, Powerful Chipset Enables Ethernet over VDSL on EdgeXpress Universal Access Platform Designed for Business Class Applications.

Business Editors/High-Tech Writers

MUNICH, Germany--(BUSINESS WIRE)--Feb. 14, 2002

Infineon Technologies (NYSE:IFX)(FSE:IFX), one of the world's leading providers of Communications Integrated Circuits, today announced that Kenetec, an innovator in the development of next generation broadband access communications systems, has selected Infineon's Octal 10BaseS(TM) to maximize the flexibility of EdgeXpress(TM), its Universal Access Platform.

By delivering high-speed voice and data services to businesses over the existing copper telephone infrastructure, 10BaseS eliminates the need to rewire and makes the local loop "Ethernet ready." Kenetec will incorporate the 8-port 10BaseS chipset in EdgeXpress to reduce design time while increasing the platform's access density -- without increasing the physical footprint.

"We found Infineon's 10BaseS enhanced capabilities, with its plug-and-play nature, an ideal technology to expand our system. It enables an easy to implement high-performance Ethernet service provisioning solution for our EdgeXpress system," said Mark Stylinski, vice president of engineering at Kenetec, Inc. "We were also impressed by Infineon's clear technological roadmap, leadership in relevant standards bodies, and especially their technical support," Stylinski added.

Infineon's Octal10BaseS is a high integration chipset based on the company's patented 10BaseS Ethernet over VDSL technology. It extends the reach of Ethernet over an existing telephony copper infrastructure, providing symmetric 10Mbps data rates over distances up to 4000ft (1200m). The 8-port chipset increases 10BaseS system capacity while requiring little additional board space compared to Infineon's first generation, single port chipset.

"We are pleased to count Kenetec as one of the leading customers to embrace 10BaseS and make it the de facto technology for extending Ethernet's reach over copper," said Christian Wolff, vice president of Infineon's Communications Business Group and General Manager of the Access Business Unit. "Our advanced 10BaseS technology makes the local loop as well as entire MTU/MDU complexes 'Ethernet-ready' and facilitates a wide range of value-added services such as LAN extensions, video on demand, interactive games, telecommuting and distance-learning. Using 10BaseS provides much more than just a fast Internet connection," added Mr. Wolff.

About 10BaseS(TM)

10BaseS is a highly integrated, low-power, Ethernet over VDSL quadrature amplitude modulation (QAM) technology. Based on VDSL, 10BaseS can be configured in symmetric or asymmetric modes, depending on the services provisioned over it and its use in local loops or private network applications.

In symmetric mode, Ethernet throughput is full duplex 10 Mbps at 1200 m (4,000 feet). The line rate is programmable to reach up to 15.6Mbps, dependent on the distance between ends. Special implementations that support up to 25Mbps bit rates are also possible. 10BaseS transfers Ethernet frames transparently and is a plug and play technology, able to act as a PHY or MAC. Unlike other Ethernet solutions, 10BaseS does not require costly Category 5 cabling. It makes use of existing copper pairs while supporting POTS or digital telephone service simultaneously on the same pairs.

Infineon's Octal-10BaseS is a highly integrated system building block with CPU, clock, AGC and memory. It provides glue-less compatibility with RMII, SMII-interfaces minimizing design complexity, cost and time to market. Directly replacing standard Ethernet PHYs it can be used in switch or DSLAM applications. The lower integration 10BaseS single port chipset has the same interfaces and can also be configured as a media access controller (MAC) for standalone control of Ethernet PHY devices in CPE applications.

About EdgeXpress and Kenetec

Kenetec's EdgeXpress(TM) product family is the industry's first universal access platform that enables multi-services, such as voice, frame relay, Internet access,

Ethernet services and others, to be delivered independent of the transport environment in today's evolving networks. Generally available and currently in trials, the EdgeXpress product family consists of the EdgeXpress 1000 Service Access Unit, the EdgeXpress 5000 Series Service Exchange Platform, and the EdgeXpress Management System, which includes EdgeXpert(TM) Service Planning and Provisioning Suite and EdgeManager(TM) Network Management System.

Kenetec was established in 1999 to build the industry's first universal access platform capable of supporting multi-service networks built on ATM, IP or Ethernet infrastructures. The company's EdgeXpress(TM) product allows service providers to evolve their network seamlessly without the expensive risks associated with deploying new transport technologies, or negatively affecting services, revenue stream and the access infrastructure. Kenetec has secured $25.5 million by investors that include St. Paul Ventures, Commonwealth Ventures, Ascent Ventures and Siemens Mustang Group. For more information, visit www.kenetec.com.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system 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 U.S. from San Jose, Calif., 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.

Note to Editors: Infineon and the stylized Infineon Technologies design are registered trademarks and service marks of Infineon Technologies AG.

Kenetec, the Kenetec logo, EdgeXpress, EdgeManager, and EdgeXpert are either registered trademarks or trademarks of Kenetec, Inc. The names of other companies and products mentioned herein may be the trademarks of their respective owners.