Major China-based System Vendor Embraces Infineon's VDSL Solution: Huawei Technologies Selects Infin

Munich, Germany / Shanghai, China – September 3, 2002 – Infineon Technologies (FSE/NYSE: IFX), a leading provider of integrated circuits (ICs) for advanced communication systems, today announced at CeBIT Asia show in Shanghai that Huawei Technologies, a global supplier of telecom network equipment, will develop its next-generation VDSL access system based on Infineon’s standards-compliant Packet over VDSL (PoVDSL) chipset. The new platform will enable Huawei to provide its worldwide customers with a highly scalable, broadband access solution that uses cost-effective Ethernet transport technology to support video-based services such as video-on-demand, interactive TV and multi-player gaming simultaneously with fast Internet access and voice services.

“Addressing the global broadband market, we were looking for a flexible solution that could be easily adjusted to meet unique customers’ needs and found Infineon’s PoVDSL a perfect match,” said Jian Lee, Vice President of Research and Development, Huawei. “The chipset’s high level of integration will enable us to reduce the number of components on our broadband access line-card and dramatically reduce design time, system complexity and overall costs,” he added.

Huawei and Infineon have recently established a joint laboratory for R&D. This initiative enables the two companies to share their extensive knowledge and promote the development of next-generation broadband access technologies.

“Our xDSL broadband access platform, especially the VDSL solution, will enable Huawei to maintain its leading position in Telecom markets in China (including Hong Kong) as well as Australia, and other countries around the world,” said Fei Min, Vice President, Huawei. “Working on the design of the VDSL platform, we’ve established excellent relations with Infineon. We plan to expand our collaboration into other xDSL technologies in the near future,” he added.

Infineon’s QAM-based PoVDSL chipset supports both the asymmetrically optimized Plan 998 as well as symmetrically optimized Plan 997 and offer 2, 3 or 4-band VDSL standard as well as non-standard frequency allocation schemes, providing flexibility in meeting carrier cost and application requirements.

“The selection of our standard VDSL chipset by Huawei further strengthens Infineon’s leading position in this rapidly evolving market,” said Thomas Seifert, Senior Vice President and General Manager of the Wireline Communicatons business group at Infineon. ”The PoVDSL chipset provides Ethernet over VDSL capabilities at distances of up to 1.5km (5,000ft) – 15 times the distance of traditional LANs. It gives leading system designers such as Huawei the right set of tools for developing feature-rich platforms that meet the market demand for high performance broadband access solutions.”

Infineon will be present at CeBIT Asia 2002 show (2.-5. September 2002, Shanghai New International Expo Centre, Shanghai, China) at booth A60 in hall 1. Further information on Infineon’s wireline products at www.infineon.com/wirelinea>

About Huawei

Established in 1988, Huawei Technologies is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks. Huawei's customers include China Telecom, China Mobile, China Unicom, China Netcom as well as Thai AIS, South Korea Telecom, SingTel, Hutchison Global Crossing, PCCW, Telemar (Brazil), etc.