Infineon Drives Expansion of its Solution Business and Founds New Business Group for Secure Mobile Solutions

Munich, November 5, 2002 – Infineon Technologies AG (FSE/NYSE:IFX) is forging ahead with the expansion of its solution business with the launch of its new Secure Mobile Solutions (SMS) Group on November 1, 2002. The company’s aim in founding the new business group is to merge the former Wireless Solutions and Security and Chip Card ICs activities, with Ulrich Hamann (47) heading the new group. This move is the next logical step in Infineon’s implementation of its strategic “Agenda 5-to-1” program, which will focus on technology lifestyle solutions for the 21st century.

Future mobile multimedia applications will enable people to access information and entertainment offerings of their choice anytime and anywhere. Secure communications to guarantee the security of the transferred data is the basic requirement. This will produce a huge increase in demand for solutions that combine security applications with mobility.

“Secure Mobile Solutions puts us in pole position to service the increasing demand for security in mobile applications especially for current and future mobile communication by delivering complete solutions. This gives us a crucial competitive advantage,” declared Ulrich Hamann, CEO of Infineon’s new business group.

Ulrich Hamann embarked on his career at Infineon Technologies in 1986, when it was still Siemens Semiconductors. An electrical engineering graduate, Hamann has headed up the Wireless Solutions Group at Infineon since May 2001. For the previous five years he was head of the Security and Chip Card ICs Group, and can bring his experience in both sectors to bear to optimum effect in the new group.

Infineon Technologies AG, Munich, Germany, supplies semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial electronics sectors, as well as memory components. A global player in the semiconductor industry, Infineon operates out of San Jose, California, in the USA, Singapore in the Asia-Pacific region, and Tokyo in Japan. Employing some 33,800 people worldwide, Infineon reported sales of EUR 5.67 billion in fiscal 2001 (ending September). The company is listed under the ticker symbol IFX on the Frankfurt DAX index and on the New York Stock Exchange (NYSE). Further information is available at www.infineon.com.