Infineon Announces Second Generation Parallel Optical Link Modules that Speed PCB Manufacturing.

Business Editors/High-Tech Writers

AMSTERDAM, Netherlands--(BUSINESS WIRE)--Oct. 1, 2001

Infineon Technologies (FSE:IFX) (NYSE:IFX), a leading provider of communications integrated circuits, today announced the second generation of its innovative 12-channel parallel optical link (PAROLI) series module. Called PAROLI(TM) 2, the new version features a ball grid array connector that allows the module to be easily plugged onto a printed circuit board (PCB). As a result, customers can speed production by running a fully automated PCB line and leaving assembly of the optical module to a later stage.

"PAROLI 2 gives customers the choice of testing board operations during production before the temperature sensitive optical module is added," said Helmut Vogler, vice president of Infineon's Fiber Optics business unit. "This added benefit combined with the expertise in optical module manufacturing honed in our own VCSEL fab provides customers with significant time savings and highly improved yield. I am also pleased to announce that Infineon's license partner for the original PAROLI, Molex Inc. will partner with us on PAROLI 2 creating a second source for customers."

According to a recent ElectroniCast report, (Internal Optical Interconnect, Subsystems and Components, April 2001), the market for optical interconnect components is steadily growing and will increase from $81.7 million in 2000 to $896 million by 2005.

PAROLI 2

PAROLI 2 transports more than 30gigabits of data over board to board distances inside telecom equipment and among different network systems inside a central office. The transmitter utilizes arrays of 850nm vertical cavity surface emitting lasers (VCSELs) connected by a fiber ribbon using a detector array. Each module connects to the external electrical circuitry using a compact socket with a BGA pattern on its underside.

PAROLI 2 transmitter/receiver modules provide a data rate of 12 x 2.7Gbps over multi mode ribbon fiber cable using multi-fiber push-on plug (MPO) connector technology. The MPO connectors provide reliable high performance interconnects of up to 12 fibers in a minimum footprint using push-pull keyed connector housing for simple and speedy assembly. Offering an aggregate bandwidth of 30 Gbps and running at less than 2 watts for the pair, PAROLI 2 can be used in high-speed data links, OC-192 Very Short Reach optical links, board-to-board and shelf-to-shelf high-speed interconnects.

The PAROLI Family

PAROLI 2 is part of a product family that includes a line of asynchronous AC transceiver modules for parallel data transmission through fiber optic cables. PAROLI modules use 12-channel ribbon cables and 12-channel simplex MT connectors and operate at a low power supply voltage of 3.3 V. These modules operate at a wavelength of 850nm for the transmitters and 840-nm PIN-diode arrays for the receivers allowing transmission distances ranging up to 300 meters.

Pricing and Availability

Engineering samples for PAROLI 2 will be available at the end of the year. Volume quantities will be available in the first half of 2002 at less than $800 a pair.

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 US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2000 (ending September), the company achieved sales of Euro 7.28 billion with about 29,000 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 trademarks and servicemarks of Infineon Technologies AG. All other trademarks are the property of their respective owners.

Any statements in this document that are not statements of historical fact are "forward-looking" and therefore involve risks and uncertainties; actual results may differ from such forward-looking statements. Important factors that could cause actual results to differ from those indicated by such forward-looking statements include uncertainties relating to the acceptance of our communications IC solutions, including our xDSL technology offerings, and other business factors and uncertainties that are discussed in our filings with the U.S. Securities and Exchange Commission, including in the "Risk Factors" section of our Annual Report on Form 20-F for the year ended September 30, 2000. 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.