Infineon and InterDigital expand cooperation; InterDigital Announces Availability of Complete Dual-Mode 2G/3G Wireless Modem Platform based on 2G GSM/ GPRS/EDGE Technology from Infineon

Munich, Germany and King of Prussia, PA – October 04, 2006 – Infineon Technologies AG (FSE/NYSE: IFX) and InterDigital Communications Corporation (NASDAQ: IDCC) today announced the expansion of their relationship. Infineon has licensed its field-proven GSM/ GPRS/EDGE baseband modem, the S-GOLD®3, and protocol stack software from Comneon (a wholly-owned subsidiary) to InterDigital. InterDigital also announced the availability of a complete dual-mode 2G/3G wireless modem platform, including the 3G protocol stack, the licensed technology from Infineon, and InterDigital’s own 3G baseband design (WCDMA, HSDPA and HSUPA).

 

“InterDigital now offers an entire dual-mode 2G/3G modem suite to customers,” sta­ted Mark Lemmo, InterDigital’s Senior Business Development and Product Management Officer. “By integrating this market proven, evolutionary 2G technology with our own leading-edge WCDMA technology, we have a compelling design solution for semiconductor companies seeking to enter the 3G market, as well as handset manufacturers seeking to design and produce their own 2G/3G modems.”

 

“By licensing our proven baseband technology and protocol stack software to InterDigital, we have increased our ability to expand our leadership in the mobile solutions arena by reaching additional customers interested in developing 2G/3G dual-mode technologies,” said Clemens Jargon, Infineon’s Vice President and General Manager of Business Unit Feature Phone. “This expanded agreement with InterDigital will shorten the time to market for customers, opening new opportunities and revenue streams for Infineon,” he added.

 

The combination of Infineon’s leading-edge 2G technology with InterDigital’s advan­ced 3G solution optimizes performance, price, size, and power consumption. This complete modem solution offers customers:

Under the terms of the extended agreement with Infineon, InterDigital has the right to use the Infineon 2G technology in its own modem offering or to sublicense the technology to third parties developing their own 2G/3G modem offerings. InterDigital also gains access to all of the applicable design specifications, source code and other design data for Infineon’s integrated GSM/GPRS/EDGE baseband and protocol stack technology, including the S-GOLD®3 baseband processor ASIC design with support for Infineon’s market leading RF, Power Management and Connectivity modules as well as related components.

 

“Through the licensing of the Infineon technology, we have fully-enabled all three market channels we intend to use for our modem business,” added William J. Merritt, InterDigital’s President and Chief Executive Officer. “Those market channels are the licensing of components of the modem, the licensing of the complete design, and the sale of ASICs. We believe that the ability to offer this complete technology suite in a variety of manners, and in a complementary fashion with our patents, can be a value driver for InterDigital.”

 

About InterDigital

InterDigital Communications Corporation designs, develops and provides advanced wireless technologies and products that drive voice and data communications. InterDigital is a leading contributor to the global wireless standards and holds a strong portfolio of patented technologies which it licenses to manufacturers of 2G, 2.5G, 3G and 802 products worldwide.  Additionally, the company offers baseband product solutions and protocol software for 3G multimode terminals and converged devices.  InterDigital’s differentiated technology and product solutions deliver time-to-market, performance and cost benefits.  For more information, please visit InterDigital’s web site: www.interdigital.com. 

InterDigital is a registered trademark of InterDigital Communications Corporation.

 

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products through its subsidiary Qimonda. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 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. Further information on Qimonda is available at http://www.qimonda.com.