Infineon Selects Kuehne & Nagel Subsidiary, USCO Logistics, To Manage North American Distribution

NAUGATUCK, Conn.--Jan. 1, 20043, 2004--Infineon Technologies has selected Kuehne & Nagel's wholly owned subsidiary, USCO Logistics, to implement a North American supply chain management solution, leveraging USCO's multi-client distribution center in Hayward, Calif.

Infineon, which currently operates its own distribution center in South San Francisco, will transition North American distribution operations to USCO Logistics' Bay Area facility. USCO will manage inbound receipt, storage and distribution of finished parts to Infineon locations, key customers and distributors across the United States, Canada and Mexico. USCO's parent, Kuehne & Nagel, also manages a similar distribution center for Infineon in Grossostheim, Germany.

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors; for applications in the wired communications markets and secures mobile solutions; as well as memory products. The company was ranked as the world's sixth-largest semiconductor manufacturer in 2002, and the number-five supplier in North America through the first six months of 2003. With a global presence, Infineon operates in the United States from San Jose, Calif.; in the Asia-Pacific region from Singapore and Tokyo. Further information is available at www.infineon.com.

USCO Logistics' integrated network of multi-client distribution centers delivers maximum flexibility and agility while ensuring the strictest quality control, all within a variable-cost environment. Multi-client warehousing is especially attractive to companies looking to distribute goods from multiple locations, as well as those with changing distribution needs.

USCO Logistics is a subsidiary of Kuehne & Nagel International AG, Schindellegi, Switzerland, a leading global logistics provider, with 19,000 employees at 600 locations in 96 countries. Along with Kuehne & Nagel, USCO Logistics -- which includes among its customers Wal-Mart, JC Penney, Nortel Networks, Sun Microsystems, Hoffman-LaRoche and AstraZeneca -- operates 15 million square feet of shared and dedicated distribution centers space throughout North America. For more information, please visit www.usco.com.