Infineon PJM Chip and License Agreement Expansion with Magellan Bring Highest Performance RFID Technology to Healthcare, Pharmaceutical and Document Management Applications

Neubiberg, Germany – November 19, 2008 – Infineon Technologies (FSE/NYSE: IFX) today announced the further expansion of its RFID (Radio Frequency Identification) product portfolio. Infineon’s new RFID chip “PJM Light” provides a memory capacity of 1 kbit (kilobit) and privacy features designed to prevent unauthorized access to the protected data. Unlike current RFID solutions, PJM (Phase Jitter Modulation) chips are suitable for simultaneous contactless electronic identification of several hundred objects – even if they are tightly packed or very fast-moving. In addition to document management, the “PJM Light” chip allows the cost-effective inventory of objects and efficient supply chain management in healthcare, pharmaceutical and medical applications such as medical implants.

Infineon and Magellan Technology Pty Ltd of Australia announced they have also expanded their license agreement and ongoing collaboration in order to further develop the growing PJM global reader infrastructure. In addition to the existing license for PJM chips, Infineon has taken a license from Magellan for its patented PJM reader technology. Infineon is now in the position to grant sub-licenses for PJM reader technology to other reader manufacturers and RFID system integrators worldwide.

“Contactless object identification is a key solution to save time and money in logistic processes for healthcare, pharmaceuticals and document management applications. PJM Light will bring previously unmatched performance with costs comparable with ISO 15693 chips,” said Dr. Tilo Pannenbaecker, Head of Business Line Personal & Object Identification at Infineon Technologies. “Importantly, Infineon is now in the position to support its hardware partners to further build and expand the global reader and infrastructure base for PJM RFID technology.”

“Magellan’s PJM technology has over the past few years and in actual implementations proven its unique benefits of reliably reading multiple tightly stacked objects. The implementations include high value dedicated medical and gaming applications worldwide,” said Tim Frost, CEO of Magellan Technologies Pty Ltd.

PJM technology is today’s most advanced RFID technology

PJM technology uses the high frequency range of 13.56 MHz and is fully compliant with the international standard ISO/IEC 18000-3 Mode 2. It is today’s most advanced high speed stackable RFID technology. PJM chips are suitable for the simultaneous contactless electronic identification of up to 1500 objects per second. Objects may be closely stacked (so-called “zero-separation”) or on very fast-moving conveyor belts with speeds of 4 meters per second (15 kilometers per hour). Compared with other RFID chips, where identification performance is limited by speed and reliability considerations, PJM chips are in the order of 25 times faster.

Infineon’s PJM portfolio

In addition to its new 1 kbit “PJM Light” chip (SRF 66V01ST), Infineon will continue to provide PJM chips with a storage capacity of 10 kbit, which is equivalent to about two DIN A4 pages of simple text. All PJM chips can be read and rewritten 100,000 times and offer retention time of 10 years minimum. Depending on the system configuration, the ICs are programmable up to a distance of 100 cm.

Availability

The “PJM Light” starts sampling beginning of 2009 with volume production scheduled to start in Q2 2009. The ICs will be shipped as unsawn, sawn or NiAu bumped wafers.

Further information

For further information on Infineon’s RFID chips please visit www.infineon.com/rfid. For information on Magellan Technology Pty Ltd, Sydney, Australia, and Magellan’s PJM technology please go to www.magellan-rfid.com/

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2007 fiscal year (ending September), the company reported sales of Euro 7.7 billion (including Qimonda sales of Euro 3.6 billion) with approximately 43,000 employees worldwide (including approximately 13,500 Qimonda employees). With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX).
Further information is available at www.infineon.com

About Magellan Technology
Magellan Technology Pty Ltd, Sydney, Australia, is a technology developer; manufacturer and licensor of advanced read and write 13.56 MHz RFID systems. Magellan designs and offers RFID chips, inlets and a complete reader portfolio for Magellan’s Phase Jitter Modulation (PJM) technology, which complies with the International Standard ISO/IEC 18000 Part 3 Mode 2. The PJM technology is many times faster than other existing HF technologies. PJM products are optimized for applications where many hundreds of tags are stacked tightly or need to be identified reliably in dynamic situations where tags are presented in all orientations. Magellan develops and licenses its PJM technology world wide to interested parties including other manufacturers and system integrators.

Further information is available at www.magellan-technology.com