Infineon Technologies Establishes Presence in New York City -- Targeting a Top Five Market Position with 5 Percent Market Share in North America by 2005

NEW YORK--Sept. 30, 2003--Dr. Ulrich Schumacher, President and CEO of Infineon Technologies , the world's sixth largest semiconductor company, reaffirmed his commitment to growing the company's presence in North America, with the opening of its latest U.S. office facility in New York City, the world's largest capital market. The facility, located on Broadway near Union Square, will serve as a platform for Infineon to promote its brand to key financial, political and commercial audiences and will help to achieve its strategic goal of establishing the company as a consistent top-five supplier in the North American semiconductor market.

Infineon now generates 22 percent of its global revenue in North America -- nearly US $1 billion in the first nine month of fiscal year 2003 -- and has established long-term customer relationships with a significant number of major US technology companies. In fact, nine of its 30 strategic and global customers are US-based. "Over the next two years we plan to strengthen our market position, particularly with the expansion of our logic business in automotive electronics and communications as well as memory products, capturing an overall market share of five percent by 2005," said Dr. Schumacher.

"As one of the fastest growing semiconductor companies in the US top 10, our strategy is already starting to pay off," said Robert LeFort, President of Infineon Technologies North America. "We have shown a strong growth record in our key markets and are best positioned for continued growth based on a solid product portfolio and our track record for innovation. In automotive electronics, we offer advanced sensor technology for tire pressure monitoring. In power management, we offer products that can significantly reduce power consumption in household appliances. In addition, we have a strong market position for advanced security solutions for access control and identification systems."

Infineon's commitment to North America is backed by an expanding presence in the United States -- employing nearly 2,800 people across seven development centers. At its state of the art manufacturing site in Richmond, Virginia, Infineon has invested more than US $1.7 billion, and created 1,800 jobs. In addition to its North American headquarters in San Jose, California, Infineon recently opened an operations center and R&D facility, in the Research Triangle area of North Carolina, which specializes in the development of memory products.

The company is also increasing its investment in nanotechnology development in the U.S. for next generation chip applications. In New York, Infineon is strengthening its cooperation with Albany Nanotech, and expanded its existing partnership with IBM at its Advanced Semiconductor Technology Center, for the design of much smaller and more powerful chips for future applications. In addition, Infineon is a partner with other leading semiconductor companies at Albany Nano-tech to jointly develop the most advanced lithography technology for future chip generations.

"These development partnerships in New York are more than just an increase in our business activity in the U.S., they are also a strategic investment in our future based upon our innovative strengths," said Dr. Schumacher.

About Infineon

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 the fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 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.