3Com and Infineon Announce Agreement Regarding Patents for Ethernet over Digital Subscriber Line (DSL) Technology

Jan 23, 2003 | Market News

Joint Press Release: 3Com Corporation and Infineon Technologies

Munich, Germany, and Santa Clara, Calif., January 23, 2003 – 3Com Corporation (Nasdaq: COMS) and Infineon Technologies AG (FSE/NYSE: IFX), announced today that they have entered into an agreement that assigns 3Com’s rights to certain patents related to Ethernet over Digital Subscriber Line (DSL) to Infineon. This agreement provides Infineon undivided interest to these patents and thus reinforces Infineon’s leadership position in DSL. In turn, 3Com received an undisclosed fee and will subsequently receive a portion of royalties earned through future licensing of the patents by Infineon.

Infineon's Packet-over-VDSL (PoVDSL) and 10BaseS™ chips incorporate the technology protected by these patents. Engineers from Savan, an Israeli start-up acquired by Infineon, were assisted by 3Com engineers when they developed the technology protected by these patents.

“As the pioneer of Ethernet in the 1980's, 3Com has a long tradition of invention," said Mark Michael, 3Com senior vice president, general counsel and secretary. "This agreement illustrates our continued commitment to maximizing the value of 3Com’s intellectual property through creative agreements with industry leaders."

"The ability to deliver true broadband services such as multi-channel video, interactive gaming, and other IP-based applications over the existing infrastructure in an easy and cost-efficient manner established Ethernet over VDSL as the de-facto standard for Internet service providers and Telcos around the world,” said Noam Alroy, vice president of Infineon’s Wireline Communications Business Group and CEO of Infineon Technologies Savan. “The fact that Infineon shipped over 2 million Ethernet over VDSL chipsets in fiscal year 2002 validates our leadership in this key market. Securing full ownership of the patents will enable Infineon to further extend its position as a supplier of advanced technology solutions to communications equipment providers.”

About 3Com

3Com is a tier-one provider of innovative, practical and high-value networking products for enterprise customers. 3Com is also a leader in Internet protocol (IP) service platforms and access infrastructure for the network service provider market. For further information, please visit www.3com.com, or the press site www.3com.com/pressbox.

3Com and the 3Com logo are registered trademarks of 3Com Corporation. All other company and product names may be trademarks of the respective companies with which they are associated.

About Infineon

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 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 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.

Press Contact for 3COM Corporation:

Pamela Sklar
Tel.: +1 408 326 8726

Information Number

INFCOM200301.034 e