Infineon Strengthens Leadership in Chip Solutions for Communications; Also Announces Technology Innovation Award for Biochip Product.

Business Editors/High-Tech Writers

ITU Telecom Asia 2002

MUNICH, Germany--(BUSINESS WIRE)--Dec. 2, 2002

In addition to our regular news releases we combine product announcements and other novelties from Infineon Technologies in our service News Alert to inform you in the most efficient way. For further information, please refer to the web URLs, or contact the Media Relations department contact listed in each summary.

Infineon Technologies today announces several design wins for its leading edge communication products, on the occasion of the opening of ITU Telecom Asia in Hong Kong. Additionally, the company announced that its new product for the biological test and research market arena received a pan-European Technology Innovation Award.

-- Infineon's advanced Packet over QAM-VDSL solution selected by D-Link for new broadband platforms

-- Infineon shipped over 1 million Ethernet over VDSL ports in last six months: Market leading Ethernet over VDSL solution selected by Millinet to serve South Korean customers in nationwide deployment

-- Infineon reinforces leading position in Japanese VDSL market: Tomen Cyber-business Solutions selects Infineon's Packet over QAM-VDSL chipset

-- Infineon And Metalink Demonstrate Industry's First Interoperable Ethernet over Standard QAM-based VDSL Chipsets At ITU Telecom Asia and Establish Availability of True Multivendor VDSL Solutions

-- Biochips from Infineon are among a select group of technology innovation winners 2002 according to "Wall Street Journal Europe"

Access Communications Products

Infineon's Advanced Packet over QAM-VDSL Solution Selected by D-Link for New Broadband Platforms

D-Link Inc., Irvine, Calif., (www.dlink.com) an award-winning designer, developer and manufacturer of networking, data and voice communications products, has selected Infineon's QAM standard compliant Packet over VDSL (PoVDSL) chipset to enable extended range Ethernet services over its broadband access platform. D-Link's choice of the Infineon chipset further strengthens the market leadership of Infineon's VDSL technology. Wonder Wang, president of D-Link said: "Targeting the broadband-hungry Chinese and Japanese markets, we were looking for a solution that could offer high bandwidths and operate flawlessly in an environment shared by many technologies. Furthermore, the solution had to be robust enough to fit any outdoor deployment scenario. After extensive tests, we found Infineon's PoVDSL chipset fulfilled all our requirements." For further information: www.infineon.com/vdsl Contact: [e-mail].

Infineon Shipped Over 1 Million Ethernet over VDSL Ports In Last Six Months Infineons' Market Leading Ethernet over QAM-VDSL Solution Selected by Millinet -- Solution Will Serve South Korean Customers in Nationwide Deployment

Millinet Inc., Seoul, Korea (www.millinet.co.kr), a leading venture business holding superior technology in the fields of IT and broadband access, is using Infineon's EoVDSL chipset to support deployment of broadband services in South Korea. The Korean government recently announced that telecommunications companies will invest up to U.S. $10.3 billion in broadband data networks between now and 2005. The Ministry of Information and Communication said this investment will boost the number of live broadband connections to 13.5 million households. According to an In-Stat/ MDR report from April 2002, there are already 5.5 million broadband subscribers -- 11 percent of the total population -- in South Korea making the country the world leader in deployment of broadband technology. Over the last six months alone Infineon has shipped more than one million EoVDSL ports. For further information: www.infineon.com/vdsl Contact: [e-mail].

Infineon Reinforces Leading Position in Japanese VDSL Market: Tomen Cyber-business Solutions Selects Infineon's Packet over QAM-VDSL Chipset

Tomen Cyber-business Solutions (http://www.tomen-g.co.jp), a leading provider of residential broadband services and solutions for the Multi-Tenant Unit (MTU) market in Japan has selected Infineon's QAM standard compliant PoVDSL chipset, which supports Ethernet over VDSL (EoVDSL) as well as symmetric and asymmetric high-speed video and data transmissions exceeding 50 Mbps for use in its VDSL Access System Omega-AVSM. According to Nomura Research Institute, Ltd., the number of subscribers to fiber to the building plus VDSL service will reach 2.63 million lines in 2006, setting the market value at 40,637 Million Japanese yen (US$ 331 million). Deployment of about 200,000 lines is expected to start as early as next year, lead by Japan's incumbent carrier NTT and the power companies TEPCO.

Infineon And Metalink Demonstrate Industry's First Interoperable Ethernet over Standard QAM-based VDSL Chipsets At Telecom Asia

Metalink Ltd. (http://www.metalink.co.il/), a leader in providing high-performance broadband access chip sets, and Infineon will hold interoperability demonstrations of their respective standards-based Ethernet over Very-high-speed Digital Subscriber Line (EoVDSL) chipsets at ITU-Telecom Asia 2002, December 2-7, Hong-Kong, China. "Featuring the industry's first interoperable Ethernet over QAM-VDSL solutions reinforces Infineon and Metalink's commitments, to address the demand to accelerate mass-deployment of Ethernet broadband access, especially in rapidly evolving markets such as China, Korea and Japan," said Tzvi Shukhman, chairman and CEO for Metalink. EoVDSL provides the key solution for next generation Ethernet based broadband access over copper. Reaching speeds of 10-52 Mbps and more over a single telephone line it brings a new class of broadband to the last mile.

Background on Infineon's EoVDSL technology

Infineon's EoVDSL allows for seamless integration with existing Ethernet networks and supports advanced services such as video, interactive multi-channel television, voice and fast Internet access. With all the necessary functionalities integrated within the chipset, Infineon's VDSL solution significantly reduces the number of required external components. This high-level integration helps to reduce total system cost by lowering the overall bill of material (BOM), reducing system footprint and lowering design complexity at both ends of the network. Already more than 70 vendors worldwide opted for the EoVDSL solution from Infineon and made it the industry leading platform. Until today Infineon delivered more than three million EoVDSL chipsets. For further information: www.infineon.com/vdsl Contact: [e-mail].

Biochips from Infineon Among Technology Innovation Winners 2002 According to "Wall Street Journal Europe"

Biochip technology of Infineon Technologies (FSE/NYSE:IFX) is named as Best Technological Innovation 2002 and recipient of a Technology Innovation Silver Award which is presented by the daily newspaper Wall Street Journal Europe. The award will be handed over to Infineon on December 4, 2002, in Paris. Infineon's biochip, called Flow Thru Chip, were honored because they promise to cut cost and time required to develop new drugs. Infineon's future generation of biochips has the potential to make medical diagnosis in hospitals and in medical practices less costly, faster, and more efficient. In the long-term, biochips open up new applications, such as determining whether or not a patient has adverse reactions to a medication. The European Innovation Awards, now in their second year, honor individuals, organizations, and companies throughout Europe that develop and deliver new ideas, methods or technologies that improve quality of life or enhance productivity. An independent panel of jurors -- eleven leaders in European technology and business -- selected the individual recipients for this year's Technology Innovation Awards Gold, Silver and Bronze from a total of 190 applications.

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, Calif., 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 www.infineon.com.

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