Infineon Introduces Complete UMTS Handset Platform Solution Development Time and Costs Savings for 3G Handsets of up to 50 Percent

Cannes, France February 18, 2003 - Infineon Technologies (FSE/NYSE: IFX) announced today a complete UMTS handset solution at the 3GSM World Congress in Cannes. This solution facilitates the transition from today's GSM mobile phones to multimode 3G handsets. It supports 384 kbps data transfer as well as high-speed data transfer via EDGE, which many operators are considering as part of the evolution to 3G. The FP1-Ux called platform is the result of a joint development with US based companies Zyray Wireless and InterDigital Communications Corporation, in conjunction with Infineon wholly owned subsidiaries Comneon and Danish Wireless Design.

Mobile phone manufacturers thus have early access to a complete 3G system solution dramatically shortening time-to-market of their 3G handsets. The time and cost advantage is significant and is realized by combining an Infineon S-Gold® based 2.5G platform running a multimode protocol stack with the SPINNER® WCDMA baseband processor made by Zyray Wireless.

Karl Lange, Vice President and General Manager of Customized Solutions at Infineon Technologies, said: "The single flexible solution enables manufacturers to create multiple devices ranging from mass market 3G phones to fully featured multimedia appliances. With the first working handset system solution already demonstrated in Cannes, Infineon Technologies is well prepared for the 3G market and offers a cost-optimized solution at the right time."

The system solution also comprises a multimode protocol stack that was jointly developed by Comneon - and InterDigital Corporation. This protocol stack provides a complete handset software solution for rapid product deployment. Infineon's radio frequency chips from the SMARTi® family, the APOXI application framework and a reference man-machine interface round up the complete 3G solution. Danish Wireless Design has also completed a multi-mode, form factor reference design for use by handset manufacturers.

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 the 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.

SPINNER is a registered trademark of Zyray Wireless.