ZTE Selects Infineon Single-Chip Solution for Ultra-Low Cost Mobile Phones

Munich, Germany, May 24, 2007 – Infineon Technologies (FSE/NYSE: IFX) today announced that its ULC2 (second generation ultra-low cost) platform based on the single-chip E-GOLD™voice solution has been selected by ZTE Corporation, a leading China-based telecommunication equipment manufacturer. The Infineon ULC2 will be integrated into new ZTE phone models which are planned to be deployed by leading mobile carriers in mid of 2007.

The Infineon ULC2 platform consists of the E-GOLDvoice system-on-chip solution which combines a baseband processor, radio frequency transceiver, power management unit and RAM in a footprint measuring just 8 mm x 8 mm. The solution is designed for voice-centric phones with features like color display, text messages, and polyphonic ring tones. The platform also includes all the necessary software to enable shorter development time, consisting of GSM protocol stack and reference Man-Machine Interface developed by Infineon.

“We are happy that ZTE selected our ULC2 platform for their new ultra-low cost handsets addressing emerging markets,” said Dominik Bilo, Vice President Sales and Group Marketing at Infineon’s Communication Solutions business group. “This selection underlines the market acceptance of our ULC2 platform which offers the highest integration, smallest footprint and best  time-to-market.”

About Infineon ULC2 Platform

ULC2 is the second generation of the Infineon ultra-low-cost mobile phone platform based on the E-GOLDvoice single-chip solution. The small size of the ULC2 solution, combined with a highly customizable software package enables handset manufacturers to easily adopt specific operator and market requirements. Additional features can easily be added to ULC2 solutions to allow handset vendors to extend their product portfolio to address both emerging and developed markets. Additional information is available on: www.infineon.com/ulc2