Infineon Introduces Industry`s Smallest Eight-Channel T1/E1/J1 Framer and Line Interface Chip for Channeling Increased Voice and Multimedia Traffic

Munich, Germany – December 9, 2004 – Infineon Technologies AG (FSE/NYSE: IFX), the world’s leading supplier of ICs for T/E carrier grade telecom systems, today introduced OctalFALC™, the industry’s smallest FALC® (Framer and Line Interface Unit Component) offering eight ports per chip. The latest member of Infineon’s FALC product family doubles the density per chip used in universal line cards and reduces the bill of material by around 15 percent. OctalFALC addresses the growing global voice and multimedia traffic over fixed and mobile telephone networks; in 2003 worldwide voice traffic alone amounted to nearly 200 billion minutes. On average, three in every four of the world’s 19 million cellular base-stations that are used to transport wireless voice and data communication are equipped with ICs from Infineon.

OctalFALC is the industry’s first eight channel, single-chip component that uses arbitrary input clocks and integrates analog switches, resulting in reduced circuit board complexity and bill of material. With eight ports on a footprint of 289 square millimeters, OctalFALC offers twice as many channels in almost the same space as previous generations. It supports all three Primary Rate standards T1/E1/J1 and is ideally suited for applications such as 2G/3G Wireless Base Stations, DSLAM (DSL Access Multiplexers), Digital Access Cross-Connect and DLC (Digital Loop Carrier) systems.

A recent report issued by the market research firm Gartner Dataquest expects an annual growth rate in the deployment of T1/E1 ports of 10 percent per year worldwide, mainly driven by advanced services offered over 3G cellular networks - such as short text messages, images, and even video.

“Designers of T1/E1 line cards have four main criteria when selecting components: time to market, small size, low power and specification compliance. The Infineon OctalFALC meets all of these criteria, with software compatibility to recent FALC versions, state-of-the-art packaging and process technology,” said Christian Wolff, Vice President of the Wireline Communications Business Group and General Manager of the Access Business Unit at Infineon Technologies.

T/E carrier systems carry the bulk of telecommunication voice and data traffic in both wireless and wireline core networks. As the number of cellular and fixed-line telephone connections and multimedia traffic continues to increase, service providers need to expand their networks either by incorporating additional T/E systems or by upgrading existing infrastructure. By using OctalFALC-enabled line cards, service providers can double the network’s port density without placing additional equipment in the field and reduce labor costs while achieving faster time to market.

About OctalFALC™

OctalFALC offers eight ports per chip, currently the maximum for multi-channel solutions, with the industry’s smallest footprint of 17mmx17mm. The ability to operate from any available clock source ranging from 1.02 to 20MHz and the possibility of being software switched between T1/E1 and J1 operations allows for the design of a single interface to all three of the worldwide Primary Rate standards. It is operated with separate 3.3V and 1.8V supplies and meets the short-haul and long-haul requirements of T1/E1 and J1. Operating temperature ranges between -40°C and +85°C.

Pricing and Availability

Samples of the OctalFALC in a Plastic Low Ball Grid Array (PG-LBGA-256) package with a 1.0mm ball pitch are available now at US-Dollar 35 for high volumes. The OctalFALC is supported by the EASY22558 Evaluation kit with a Configuration Wizard CD-ROM containing a PC-based graphical user interface and device driver code as well as a complete set of documentation. For further information please visit www.infineon.com/falc.

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 fiscal year 2004 (ending September), the company achieved sales of Euro 7.19 billion with about 35,600 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.