Infineon Technologies Introduces the IVAX Familiy - the First Chipset to Integrate Voice and Fullrate ADSL Services on a Single Line Card

Munich/Germany – March 15, 2001 – Infineon Technologies (FSE/NYSE: IFX), one of the world’s leading providers of Communications Integrated Circuits, today introduced the IVAX chipset family. IVAX is the first chipset available to integrate Voice and fullrate ADSL services on a single line card, eliminating the need for splitters on the network side, facilitating the mass provisioning of ADSL in the network. It is targeted at access network and Digital Loop Carrier (DLC) systems markets.

According to the market research company IMS, ADSL has been the technology of choice in the rollout of DSL services by Incumbent Local Exchange Carriers (ILECs) over the past two years and is expected to reach more than 58.0 million lines annually by 2004. Leading ADSL systems and IC companies are focusing their efforts on finding technical solutions to simplify the provisioning of this mature DSL technology. IVAX is the first integrated, 8-channel POTS and ADSL transceiver solution available on the market, which eliminates the need for a separate overlay network. It offers service providers a quick and easy upgrade of access network systems, Digital Subscriber Line Access Multiplexer (DSLAM) and Digital Loop Carrier (DLC) equipment.

“ADSL will play a crucial role over the next few years as telephone companies and other service providers battle new barriers of delivering converged voice and data services“, said Christian Wolff, Vice President of Infineon’s Communications Business Group and General Manager of the Carrier Access Business Unit. “The IVAX enables the integration of ADSL and voice on the same line card resulting in significantly reduced system costs. The close integration of ADSL and voice allows many new intelligent functions like integrated line testing and pre-qualification. Emerging DLCs utilizing this solution will be pre-installed with POTS and `ADSL ready` service, thus enabling service providers to offer immediate on-demand ADSL service without any additional truck roll.“

Technical Background Information

The IVAX chipset occupies just 1.1 square inches per line (Voice and Data) and has a power consumption of less than 1W/Channel (16dBm), enabling very high-density integration on line cards. With all memory on chip, the number of required external components is minimized as well as overall system cost and complexity.

Firmware includes an integrated toolbox for advanced ADSL and POTS testing (ITDF) and other functions that would otherwise require additional hardware e.g. test in/out relays. The diagnostic toolbox accurately analyzes loop length, crosstalk disturbers and expected data rates in a single ended configuration – no CPE modem connected. These remote measurements provide all the required information to pre-qualify ADSL service and avoid making service installations on a trial and error basis at the customer. These advanced techniques increase the efficiency of operators while significantly reducing overhead costs. Customer satisfaction is guaranteed and the overall competitive advantage is extended.

The IVAX family is a chipset solution as summarized below:

• IVAX-D High-performance Data DSP, up to 8 channels G.lite/G.dmt,

• IVAX-V High-performance Voice DSP, up to 8 channels,

• IVAX-S 1 channel subscriber line interface, full-rate ADSL+POTS,

• IVAX-A Full-rate AFE for ADSL and Voice, A/D and D/A for 4 channels.

The IVAX chipset family is fully compliant with ITU-T (G.dmt) Annex A,B,C,F,G including double upstream, overlapped and non overlapped spectrum modes, ITU-T G.992 (G.lite) Annex A,B,C , ITU-T G.994.1 (G.handshake), ANSI T1.413 Issue 2, and ETSI ETR 328.

Support Tools

The IVAX support package includes a complete evaluation package with test and configuration software, reference designs, a worldwide network of support, data sheets, product overview, as well as application notes and chipset firmware.

Pricing and Availability

The IVAX chipset is currently available. In quantities of 100,000 pieces, IVAX is priced at US $22 per channel.

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.

All brand or product names may be trademarks or registered trademarks of their respective companies.

Any statements in this document that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. 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.