10 Gbps Optical Transponder MSA Group Celebrates First Anniversary with 100% Growth in Membership an

San Jose, California / Munich, Germany, September 26, 2001 - Infineon Technologies (FSE/NYSE: IFX), a leading provider of communications integrated circuits today announced the first anniversary of the 10 Gigabit per second (10 Gbps) optical transponder multi-source agreement (MSA) with more members, new product specifications and customers. Since inception, the MSA group has seen more than 100% growth in membership, is currently sampling products with several customers, and has published open-standard specifications for follow-on 850 nm and 1550 nm 10 Gbps transponders.

The 10 Gbps optical transponder MSA group was founded in September 2000 by Infineon Technologies, JDS Uniphase, Light Logic (recently acquired by Intel) and Nortel Networks. Today there are nine members of the group. The other vendors that have joined in the last year are Cielo, Multiplex Inc, OptronX, Delta, and the newest member of the MSA is Network Elements.

“Open, standards-based MSAs are the backbone of industry collaboration that guarantees a competitive marketplace,” said Bob Merritt, director of emerging markets at Semico Research Corporation. “The progress this MSA group has made over the last year is remarkable. Getting a large group of credible industry suppliers behind this MSA is fundamental to relevant product innovation and secure supply at an attractive price.”

The group was formed with the mission to develop specifications for the industry’s smallest footprint 10 Gbps 1310 nm SONET optical transponder compliant with Optical Internetworking Forum, International Telecommunication Union and Telcordia guidelines. The ensuing 200-pin 10 Gbps transponder MSA rapidly moved forward as member companies began supplying alpha trial parts to customers. The group is now working together to address new customer requirements, and has agreed to new specifications for a 1550 nm SONET transponder, along with an 850 nm version for very short reach (VSR) applications. The MSA also supports IEEE, 10 Gigabit Ethernet, short, long and extended reach with XSBI interface.

“We jointly developed specifications for a complex product and delivered samples in only three months,” said Helmut Vogler, vice president of Infineon’s Fiber Optics group. “Our 10 Gbps transponder has the smallest footprint available, and by agreeing to develop enhancements we are benefiting our customers and extending our strategic advantage over competitors.”

Transponders greatly simplify what is required of optical systems designers to enable the transmission and reception of data in the form of light. Without them, designers need to separately source, integrate and test lasers, laser drivers, muxes, demuxes and PIN preamp receivers. Transponders need to be small, low power and support multiple standards in order to help systems vendors deliver what customers are looking for – smaller equipment that requires less power and supports more users per square foot.

“By integrating all of these functions into a single device, we accelerate design-in time and enable higher port density while addressing key economic needs,” said Pat Walsh, vice president of Product Line Management, Nortel Networks Optical Components.

The 1310 nm 10 Gbps transponder supports connections between switches and routers from 2 to 12 kilometers. The 1550 nm transponder will support distances up to 80 kilometers, and the VSR variant supports connections of several hundred meters. In addition, with the market momentum of Ethernet now evident, the group has put plans in place to develop devices to support 10 Gigabit Ethernet network links.