Munich/Germany November 10, 2004 Infineon Technologies AG (FSE/NYSE: IFX) and ProMOS Technologies Inc. have reached an agreement regarding ProMOS' license of Infineon's DRAM technologies transferred to ProMOS. The S17 to S12 License Agreement of 2000, as now amended, remains in effect. ProMOS has been, and continues in the future to be, licensed to produce and sell products using the technologies transferred from Infineon, and to develop its own processes and products. As full consideration for the ongoing license for use of Infineon's technologies, ProMOS will pay Infineon US$156 million in four instalments over a period through April 30, 2006, of which Infineon's accrued payable for DRAM products purchased from ProMOS of US$36 million will be offset.
Disagreements which previously arose as to the license granted to ProMOS are now no longer relevant. All claims (including litigations, arbitration or other complaints) raised by both sides are being withdrawn. Infineon will recognize the relevant license income in the three months ending December 31, 2004.