Best-of-Breed Hybrid Integration Enables Scaleable, Flexible, Low Cost Architectures for Next-Generation WDM Applications

Amsterdam / Netherlands, October 1, 2001 – Infineon Technologies (FSE/NYSE: IFX), a leading provider of communications integrated circuits (ICs) and fiber optic components and WaveSplitter Technologies, Inc., a worldwide supplier of innovative fiber-optic components and modules for advanced optical networks, today unveiled at ECOC 2001 in Amsterdam, the industry’s most innovative 40-channel optical mux/demux with integrated power monitoring. The new glass on silicon device is the result of a joint development effort aimed at offering customers high-performance channel monitoring products for next-generation WDM applications.

“Combining WaveSplitter’s innovative optical design and packaging strengths with Infineon’s advanced IC, proven fiber optics design and manufacturing expertise provides all the benefits of hybrid integration with active and passive components on a planar platform in the industry’s most advanced channel monitoring product,” said Gerhard Geiger, senior vice president and general manager of Infineon’s Communication Group. “This collaboration will accelerate next-generation hybrid integration to better enable scaleable, flexible, low-cost network architectures for the fast emerging metro market,” he added.

“WaveSplitter is excited about teaming up with Infineon, one of the world’s leading semiconductor companies, to develop integrated optical monitoring products,” said Bill Diamond, president and CEO of WaveSplitter. “The industry is moving beyond single-function discrete components to more advanced multi-function integrated modules and through our joint development efforts, we are leveraging the core competencies of both companies to reduce time to market and lower costs for customers.”

The need to direct the excess bandwidth available on the longhaul and ultra-longhaul levels to the growing demand for bandwidth on the enterprise and access levels is driving demand for low-cost, compact and highly functional components in the metro core. The new mux/demux with integrated power monitoring is the industry’s first true planar component to satisfy these requirements, surpassing available single function solutions. The collaboration between Infineon and WaveSplitter provides two separate yet compatible sources for this unrivaled Arrayed Waveguide Grating based channel-monitoring device.

40 Channel Mux/Demux with Power Monitoring

The new mux/demux device utilizes planar lightguide circuit technology, which enables the integration of multiple functions and mass customization. This glass on silicon platform allows the hybrid integration of optical processing with electrical interface and control.

The integrated power monitor increases the dynamic functionality of the device and enables the direct control and reconfiguration of each channel’s power level as well as adjustments of the laser. As a result, customers will benefit from greater scalability, flexibility and lower cost per channel.

Availability

Prototypes of the 40-channel mux/demux will be demonstrated at ECOC in Amsterdam at both the Infineon and WaveSplitter booths (Stand No. 903 & Stand No. 3050, respectively). Engineering samples are expected to be available in Q4, 2001.

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.

About WaveSplitter Technologies, Inc.

WaveSplitter Technologies, Inc. develops, manufactures and markets reliable, highly-scalable, cost-effective components and modules for advanced long-haul and metropolitan area optical networks. WaveSplitter’s high-performance fused fiber, planar lightguide circuit, and micro-optic technology platforms increase network bandwidth capabilities and offer a unique combination of low signal loss and modular expandability at an economic value. WaveSplitter was founded in 1996 and is headquartered in Fremont, California. Further information is available at www.wavesplitter.com.

Company Contact: Lisa Blair; WaveSplitter Technologies, Inc.;
(510) 580-8800 x 243; lisa_blair@wavesplitter.com

Infineon and the stylized Infineon Technologies design are trademarks and servicemarks of Infineon Technologies AG. WaveSplitter and the WaveSplitter logo are trademarks of WaveSplitter Technologies, Inc. All other trademarks are the property of their respective owners.

Any statements in this document that are not statements of historical fact are "forward-looking" and therefore involve risks and uncertainties; actual results may differ from such forward-looking statements. Important factors that could cause actual results to differ from those indicated by such forward-looking statements include uncertainties relating to the acceptance of Infineon’s communications IC solutions, including its xDSL technology offerings, and other business factors and uncertainties that are discussed in its filings with the U.S. Securities and Exchange Commission, including in the "Risk Factors" section of its Annual Report on Form 20-F for the year ended September 30, 2000. Neither Infineon Technologies nor WaveSplitter Technologies undertakes an 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.