Power Semiconductors from Infineon Technologies Receive Prestigious German Trade and Industry Innovation Award for Best Technological Innovation in 2001

Munich, Germany – January 16, 2002 – Infineon Technologies (FSE/NYSE: IFX) today announced that two of its power semiconductors, CoolMOS and Insulated Gate Bipolar Transistor ( IGBT), were named as Best Technological Innovation 2001 and recipients of an Innovation Award from the “Deutscher Wirtschaftsclub Rhein-Main”, the German Trade and Industry Group.

The German Innovation Award, now in its 22 year, annually honors remarkable achievements in the categories “Large-scale Enterprises”, Middle-Class Companies” and “Start-ups”. Infineon is awarded within the large-scale enterprises category. A board of 32 trustees active in business, science and technology select the individual recipients. The German “Wirtschaftsclub Rhein-Main” and the German weekly magazine “Wirtschaftswoche” invited entries for the competition.

Infineon’s CoolMOS semiconductor enables completely new system approaches for power supplies, such as used in PCs, laptops and battery chargers in mobile applications. Infineon’s IGBT product family enables the development of new concepts for motor drives in household appliances, air conditioning systems and industrial applications. These Infineon prize-winning power semiconductors precisely and reliably regulate the energy flow to the electrical products. Their low inner resistance and switching behavior enable low waste heat. Household appliances using Infineon’s power semiconductors may reduce energy consumption by up to 30 percent.

“The company is honored to receive this award which confirms Infineon’s role as a market leader in the arena of power semiconductors,” said Dr. Reinhard Ploss, vice president and general manager of the business group Automotive & Industrial at Infineon Technologies. “Our support of this industry continues as we develop a next generation of power semiconductors for power supplies and motor drives that will enable compact and smaller designs that are significantly quieter, powerful and reliable.”

The Innovation Award of the German Trade and Industry Group will be awarded on January 19, 2002, in the course of a festive gala in the Old Opera at Frankfurt. Dr. Ulrich Schumacher, President and CEO of Infineon, will accept the prize from Edelgard Bulmahn, Madame Minister of the Federal Ministry of Education and Research. The sponsor in the large-scale enterprises category of the 2001 award is Unisys Deutschland GmbH.

Further information (only available in German language) on the 22. Innovation Award of the German Trade and Industry Group at
www.wirtschaftsclub-rhein-main.de

The development of the awarded power semiconductors is supported by the German Federal Ministry of Education and Research within the scope of the program “Power Semiconductors”.

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 2001 (ending September), the company achieved sales of Euro 5.67 billion with about 33,800 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.