Munich, Germany / Cannes, France – February 23, 2004 – Infineon Technologies (FSE/NYSE: IFX) today, at the 3GSM 2004 show in Cannes, announced that market leading 3G mobile handset manufacturers NEC and Panasonic will use Infineon’s radio frequency (RF) transceiver in their next generation 3G products. Infineon is the world’s first semiconductor supplier to provide single-chip UMTS transceivers in high volumes. NEC and Panasonic, the world’s market leaders for UMTS/ W-CDMA handsets, will use the RF transceivers in their W-CDMA mobile phones for the Japanese market.

In mobile devices, the RF transceiver handles the mobile device’s interface over the air. On the one hand, it receives and amplifies the high-frequency signals and transfers them into electronic signals which then are transformed into voice and data. On the other hand, before sending signals out over the antenna, the RF transceiver receives them from the baseband chip, modulates and converts them to the required frequency at specified signal level and amplifies them.

World’s highest integrated UMTS / W-CDMA RF chip for mobile devices

Infineon’s RF transceiver, the SMARTi® U, is the world’s highest integrated UMTS/ W-CDMA RF chip for mobile devices. It significantly reduces component count and circuit board area at very low current consumption. Using SMARTi U (Single-Chip Multi Advanced Radio Transceiver IC for UMTS), the UMTS RF transceiver functionality can be realized on a board size of less than 100 square millimetres. As a world first, SMARTi U integrates the UMTS RF receive and transmit path into a single chip. It replaces more than 50 percent of the components in the RF section of UMTS phones. Thus, the SMARTi U helps mobile device manufacturers to design a UMTS phone significantly faster and on smaller board space. Its very low current consumption enables competitive stand-by time of more than 300 hours and 140 hours talk time.

“Infineon’s RF Transceiver, the SMARTi U, helps us to provide 3G mobile phones, offering additional value, such as saving RF board size, with a form factor competitive with available 2G solutions,“ says Yoshiharu Tamura, General Manager, Mobile Terminals division of NEC.

“With SMARTi U, Infineon reinforces its number one market position as RF supplierfor the cellular market and continues its success in UMTS,” said Dr. Erk Thorsten Heyen, CEO of the Secure Mobile Solutions business group at Infineon Technologies.“Since we delivered our RF solution into the first W-CDMA phones worldwide in 2001, Infineon has continuously expanded its market position with RF transceivers and today is the world’s leading supplier.”

Further technical information on SMARTi U

SMARTi U (PMB5699) is the first single-chip UMTS/W-CDMA RF transceiver chip designed to be used in mobile W-CDMA- and UMTS/GSM-wireless terminals according to 3GPP requirements (2100 MHz, Frequency Domain Duplexing, FDD).

Its homodyne architecture, which bypasses an IF (intermediate frequency) step, greatly simplifies frequency planning and eliminates the need for additional components for the IF stage. Two integrated fast settling synthesizers with fully integrated VCO’s support fixed-duplex and variable-duplex operation as well as compressed mode fulfilling the latest requirements of the UMTS standard and network operators. Supply voltage ranges from 2.7 Volts to 3.0 Volts. Operating temperature spans from -25°C to +85°C.

Availability, Packaging

The SMARTi U chip is available in high-volume and packed in a single P-VQFN (Plastic Very thin Quad-Flat Non-leaded) package with 40 pins and a 0.5 mm pitch.

Further information on Infineon’s SMARTiU products is available at www.infineon.com/wireless

About NEC

NEC is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2003. For additional information, please visit the NEC home page at: http://www.nec.com.

About Panasonic Mobile Communications

Panasonic Mobile Communications Co., Ltd. (PMC), based in Yokohama, Japan, is a worldwide leader in the development and manufacture of mobile communications products. As one of the main business domains for Matsushita Electric Industrial Co., Ltd., best known for its Panasonic brand digital electronics, PMC has been developing cutting edge technologies since its establishment in 1958, including the world's first 3G video handset for the Japanese market in 2001. PMC is committed in providing added-value solutions to end-users through its mobile communication products. For more information, please visit http://panasonic.co.jp/pmc

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 2003 (ending September), the company achieved sales of Euro 6.15 billion with about 32,300 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.

Glossary

FDD Frequency Domain Duplex
3GPP 3rd Generation Partnership Project
UMTS Universal Mobile Telecommunications System
VCO Voltage-Controlled Oscillator
W-CDMA Wideband Code Division Multiple Access