Infineon Acquires Texas Instruments’ DSL CPE Business

Neubiberg, Germany – June 25, 2007 – Infineon Technologies (FSE/NYSE: IFX) today announced the planned acquisition of Texas Instruments’ DSL Customer Premises Equipment (CPE) business. The transaction is expected to close in the summer of 2007.

Texas Instruments is a well-established provider of DSL CPE products with field deployments at major carriers worldwide. “Combining Texas Instruments’ DSL CPE products with Infineon’s innovative roadmap leads to a unique end-to-end offering for DSL customers,” said Prof. Dr. Hermann Eul, Executive Vice President of the Infineon Management Board and President of the Communication Solutions business group.

Infineon plans to continue supporting Texas Instruments’ product portfolio and existing customer designs while leveraging the acquired experience in future product generations.

“We recognize Infineon’s strong commitment to the DSL business. This transaction gives our customers continuity of the product line, continuity of customer support and a strong DSL roadmap,” said Dennis Rauschmayer, General Manager of TI’s Residential Gateway business. “TI is fully committed to support the transition of the business and the customer service transition to Infineon, ensuring a positive customer experience.”

DSL – Solution for Communications with a Future

The accomplishments of the digital age – which include calling over the Internet and downloading music, TV and movies from the Internet onto your PC – continue to require more bandwidth. Various communication technologies that were once separate are now converging. For instance, network operators worldwide are now upgrading their networks, and customers are using more powerful access devices, such as home gateways and routers, to obtain easy access to a wide range of different transmission standards.

Infineon Wireline Access Portfolio

Infineon serves the entire DSL value chain from terminal equipment to street cabinets to the Central Office (CO). Infineon’s wireline access portfolio currently includes products ranging from ADSL/2/2+ to integrated voice/data (IVD), SHDSL, VDSL2 and VoIP solutions. Leveraging its product offerings in the CO arena, Infineon also offers a broad portfolio of xDSL routers, VoIP, IP telephony, WLAN and Ethernet switching ICs ideal for broadband CPE applications.

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions addressing three central challenges to modern society - energy efficiency, connectivity and security.  In fiscal year 2006 (ending September), the company achieved sales of Euro 7.9 billion (including Qimonda sales of Euro 3.8 billion) with approximately 42,000 employees worldwide (including approximately 12,000 Qimonda employees).  With a global presence, Infineon operates through its subsidiaries in the US 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).