Local Area Wireless: Infineon to Increase R&D Focus on Bluetooth and WLAN Solutions

Munich, Germany – May 2, 2002 –Infineon Technologies (FSE/NYSE: IFX), a leading provider of wireless products and systems, today announced its new Local Area Wireless (LAW) business unit.

“In order to enhance synergies in this area, the Bluetooth, WLAN, Wireless Control and DECT/WDCT product units have been merged to optimize the product portfolio and to address future oriented applications promising significant market growth and high profitability” said Ulrich Hamann, Chief Executive Officer of Infineon’s Wireless Solutions Group.

Devices equipped with Bluetooth and WLAN technology are quickly gaining acceptance and are forecast to gain a huge share of the market over the next three years. The DECT and WDCT based digital cordless solutions segment is currently experiencing a price war which even extends to new products that are not due to go into production until 2004/2005. Infineon does not consider it makes sense to allocate R&D resources and reserve production capacity in a segment holding out little prospect of profitability. Although Infineon is market leader in DECT/WDCT the company will not participate in such a price war. Infineon will of course continue to fullfil all customer commitments.

This strategic refocus will enable Infineon to further expand its leading position in wireless solutions and forms part of the “Wireless Solution Value Net” concept which was successfully presented at this year’s 3GSM World Congress in Cannes.