Infineon Acquires MorphICs Technology Inc. Strengthening its Position in the 3G Market

Munich, Germany, March 6, 2003 - Infineon Technologies AG (FSE/NYSE:IFX), one of the world's leading semiconductor companies, today announced that it's subsidiary Infineon Technologies North America Corp. has agreed to acquire the assets of MorphICs Technology Inc., headquartered in Campbell, California. The deal is expected to close on March 31, 2003.

This acquisition will strengthen Infineon's position in the 3G sector and enlarge its IP portfolio for multi-standard wireless solutions. It will also broaden Infineon's product range for the 3G infrastructure market with programmable chips for digital baseband signal processing, enabling Infineon to cover the entire signal processing chain. The terms and conditions of the acquisition were not disclosed.

The addition of MorphICs' products, technology, and team supports Infineon's Agenda 5-to-1 strategy, which sets out the company's objective to become the world-leading provider of total solutions in the semiconductor business within the next five years.

"The MorphICs acquisition is an example of the Infineon strategy to expand our portfolio in key growth segments and add world-class know-how, technology and expertise of highly specialized companies, and," said Ulrich Hamann, CEO of Secure Mobile Solutions at Infineon Technologies AG. "With this step, we not only strengthen our presence in the 3G infrastructure market; we are also accelerating the development of multi-network configurable mobile handsets."

Founded in 1998, MorphICs is a privately held fabless semiconductor company with 30 employees. It is an innovative developer of configurable digital baseband circuits for terminal devices and basestations for 3rd-generation (3G) wireless communications. MorphICs' core technology permits extremely efficient implementation of programmable multi-standard platforms for 3G/WLAN systems. The company is currently sampling its basestation signal processor product, which is entering trials in commercial networks, and is developing technology that enables efficient multi-network operation of terminals.

"We look forward to combining our 3G systems, software, and silicon expertise with Infineon's market-leading mobile solutions business- a match with powerful synergies," said Dr. Ravi Subramanian, MorphICs President and CEO. "By integrating our core technology with Infineon's key strengths across the mobile communications and security space, together we will be uniquely positioned to build compelling integrated solutions spanning both infrastructure and terminals."

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.

About MorphICs
MorphICs Technology, Inc. is a privately-held fabless semiconductor company headquartered in Campbell, California. The company offers a new-class of programmable signal processor semiconductors and software solutions for use in next-generation wireless infrastructure and terminals. MorphICs combines expertise in communication theory, digital signal processing, computer architecture, and silicon engineering to cost-effectively deliver programmable, high-performance signal processing engines for use in basestations and terminal devices Further information is available at www.MorphICs.com.

This press release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events. These statements and all other statements that are not historical facts, are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Infineon and MorphICs.