Micronas acquires Infineon Technologies' consumer electronics operations

Oct 24, 2000 | Market News

Joint News Release by Infineon Technologies and Micronas

Munich/Zurich, October 24, 2000 –Micronas Semiconductor Holding AG, Zurich, and Infineon Technologies AG, Munich (FSE/NYSE: IFX), today announced that Micronas has acquired Infineon’s ”Image and Video” consumer electronics integrated circuits operations, with economic effect from August 1, 2000. The transaction, worth a total of EUR 250 million, includes development and sales activities and 130 former Infineon employees. In the business year ending September 2000 "Image and Video" had a total net sale of approximately 135 million Euro. For the Micronas Group, the acquisition represents an investment in complementary technology and markets that will allow the company to significantly expand its expertise in the audio and video area. By selling ”Image and Video”, Infineon will be able to more effectively concentrate resources on its core business.

”With this acquisition, Micronas has taken a decisive step forward in its video business. By augmenting our core audio and video operations, we are reinforcing our leadership in the key competencies of the rapidly growing multimedia market,” said CEO of the Micronas Group, Dr. Wolfgang Kalsbach.

”The sale of ‘Image and Video’ is a key step in our strategy, which was announced previously, of focusing on the communications markets. By optimizing our portfolio, we can concentrate more closely on our target segments: optical networking, broadband communication and future mobile communication technologies”, explained Dr. Ulrich Schumacher, President and CEO of Infineon Technologies. ”We are pleased that Micronas will continue to grow our solid Consumer-IC business in the interest of the existing customers.”

The ”Image and Video” division develops and markets integrated circuits for consumer electronics applications (television and video recorder applications),covering five product segments: teletext and data services (Videotext, closed caption), scan rate conversion (100Hz, progressive scan, deflection), Picture-in-Picture (PIP), Video Recording Services (VPS/PDC), and digital TV. The division is a market leader in the text/VPS/PDC and PIP segments and a global leader in the 100Hz market.

Pending approval from the responsible anti-trust authority, the transaction will be completed with economic effect from August 1, 2000. The transaction does not include any manufacturing facilities. The ”Image and Video” business was sold through a controlled auction process. Schroder Salomon Smith Barney advised Infineon Technologies on the sale of “Image and Video”; Micronas was advised by UBS Warburg.

About Micronas

Micronas is an internationally active semiconductor company with its head office in Zurich. Its operations comprise the development, manufacture and sale of integrated circuits and sensors for applications in home entertainment, multimedia and automotive electronics. Micronas’ strategy is to further expand its position as a global provider of semiconductors for the consumer goods and automotive industries in the areas of image, sound, data and sensors; it aims to exploit the opportunities provided by new technological developments to secure long-term business success. Micronas Holding is listed on the Swiss Stock Exchange and on Frankfurt’s Neuer Markt. Further information available at www.micronas.com.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor solutions for applications in the wireless and wired communications markets, for the automotive and industrial sectors, for security systems and chip cards 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 1999 (ending September), the company achieved sales of Euro 4.24 billion (US $ 4.51 billion) with about 26,000 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.

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 Micronas.

Contact at Micronas

Investor Relations
Silvia Wolf
Tel.: +49 (0) 761 517 3214

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