Infineon Expands Portfolio of Optical Communications Products, Shows Leading-Edge Technologies at OFC Conference

Munich, Germany – February 19, 2004 – Infineon Technologies (FSE/NYSE: IFX) today announced new technology developments and planned demonstrations by its Wireline Communications Business Group at the upcoming Optical Fiber Communications (OFC) Conference in Los Angeles. The core-to-the-door solutions for high-speed data- and telecommunications markets exhibited in the Infineon booth (Hall J, Booth 1739) at the three-day industry conference, February 24 – 26, 2004, will include:

Summary information on the products and demonstrations is provided below. For further information, please contact Infineon Media Relations.

Infineon’s 1310 nm VCSEL laser supporting data rates of 10 Gbps

Infineon will demonstrate its 1310 nm VCSEL technology for applications up to 10 Gbps. The 1310 nm VCSEL will be deployed in future versions of Infineon's XPAK, XFP and X2 form factor modules. These modules target 10G FibreChannel, 10 Giga-bit-Ethernet as well as SDH/SONET applications for transmission distances of up to 10km. Unlike the commonly used DFB (distributed feedback) and FP (Fabry-Perot) laser diodes, which emit light from the edge of the laser chip, VCSELs emit light from the surface, which greatly simplifies packaging and results in a significant cost-savings advantage. This device is shown in an LC-TOSA based on an innovative, low-cost packaging technology that is run on Infineon's high-volume backend lines for IC packaging.

850 nm VCSEL laser for data rates up to 2.5 Gbps

While 1310 nm VCSELs allow for transmission distances of up to 10 km, VCSELs with an 850 nm wavelength have come to dominate short-reach datacom applications of up to 500 m. Infineon’s 850 nm VCSEL with proven high reliability has a FIT rate far better than 20 FIT. This is measured and guaranteed for each individual wafer with elaborate statistical methods and advanced process control. The device is available now in an LC-TOSA or TO46 can for application in standard transceiver modules. It targets short-range datacom applications according to FibreChannel and Ethernet standards. The 850 nm VCSEL features specified performance over an extended temperature range of -40 to 95°C.

Infineon achieves extended reach of 10GbE (Gigabit Ethernet) over legacy multimode fiber with X2 transceiver using EDC (Electronic Dispersion Compensation)

Infineon will demonstrate X2 transceiver modules running at a data rate of 10 Gbps using a 1310 nm laser with EDC (Electronic Dispersion Compensation) technology to extend the distance, currently specified by IEEE 802.3ae over FDDI-grade multimode, up to 300 meters. This technology was successfully demonstrated in the XPAK MSA form factor by Infineon Technologies last year. The EDC technology compensates for dispersion and other impairments that cause inter-symbol interference and perfor-mance degradation. This will allow enterprise networks to be upgraded to 10 Gbps without replacing the installed fiber, thus helping accelerate adoption of the 10 GbE technology. Concept samples of Infineon’s XPAK and X2 modules with integrated EDC will be available for technology evaluation purposes during the first half of 2004.

Optical Network Terminals (ONT) for tripleplay voice, data and analog or switched digital video services over a single, converged access network

Infineon’s Triport-BIDI® optical module allows two-way digital communication over a single optical fiber, and features an additional receiver for RF video signals carrying analog and digital TV channels, thus eliminating the need for additional transmission media. The Optical Solutions, Inc., FiberPath® 500 system, based on the Triport-BIDI, will be displayed at Infineon’s booth. This system meets the broadband needs of entire communities by delivering voice, data and analog or switched digital video services over a single, converged access network. It is deployed in optical network terminals supporting the GPON (Gigabit PON) standard with speeds of 1.244 Gbps downstream and 622 Mbps upstream, and serves both residences and businesses.

Ethernet services delivery over legacy SONET/SDH infrastructure

Infineon will demonstrate its recently announced MetroMapper™ 622 Mapper/Framer solution, which is used to deliver Ethernet services over the legacy SONET/SDH infrastructure. The MetroMapper 622 EoS (Ethernet-over-SONET/SDH) chip will enable both data communications and traditional telecommunications equipment vendors to develop flexible systems that meet the latest Ethernet transport require-ments. It provides unsurpassed flexibility by performing VCAT (virtual concatenation), GFP (Generic Frame Protocol) and LCAS (Link Capacity Adjustment Scheme) functions on-chip.

Complete RPR line card based on the Frea™ PoS Framer/RPR MAC chip

An RPR OC-192 RPR line card will be demonstrated using a Frea integrated circuit (IC). The Frea chip is the Industry's first RPR MAC, compliant to the IEEE 802.17 specification. The device supports for OC-48, OC-192 and 10 GbE data rates. It also includes a POS framer for OC-48 and OC-192 line rates and a mate interface.

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 2003 (ending September), the company achieved sales of Euro 6.15 billion with about 32,300 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.