| Thursday December 7, 9:01 am Eastern Time Press Release
 Infineon Announces Multi-Service ATM Traffic Management IC for Enterprise and Central Office Switches, Multiplexers and Linecards
 MUNICH, Germany--(BUSINESS WIRE)--Dec. 7, 2000--Infineon Technologies AG (FSE:IFX)(NYSE:IFX - news), one of the world's leading providers of communications integrated circuits, today announced a new version of its Asynchronous Transfer Mode (ATM) Traffic Management Device. The new ATM Buffer Manager Premium (ABMP) PXB 4330 V2.1 Buffer Manager supports rate adaptive services and Internet Protocol over ATM, making it ideal for use in enterprise and central office data communications and networking equipment, such as multi-service line cards, multiplexers and ATM switches.
 
 The new IC features an Enhanced Rate Control (ERC) unit, which enables network operators to take advantage of the Variable Bit Rate (VBR) and Available Bit Rate (ABR) characteristics of data transmission lines to maximize service flexibility and revenue opportunities by utilizing the available bandwidth of ATM networks. Infineon is the first company to integrate Virtual Channel (VC) merge, ABR - Explicit Rate and ABR - Virtual Source/Virtual Destination with other ATM Buffer Management functions in a single device. Previously, equipment manufacturers had to use a custom chip or gate array in conjunction with a buffer manager, which adds to the complexity of the chip as well as to the design time required to bring products to market.
 
 ``The companies that purchase telecom and datacom systems want manufacturers to deliver switching equipment with forward looking features like higher port density, reduced system power dissipation and the smallest possible physical size,'' said Christian Scherp, vice president in Infineon's Communications Business Group and General Manager of its Wide Area Network (WAN) Business Unit. ``Infineon works closely with its customers to meet each of these requirements, and the new version of the PXB 4330 is an example of our commitment to use chip-level integration to achieve maximum system performance.''
 
 The ABMP PXB 4330 V2.1 is designed to provide all traffic management and shaping functions for ATM (Asynchronous Transmission Mode) switches and multiplexing applications. Weighted Fair Queuing secures Quality of Service for delay sensitive traffic and fully utilizes available bandwidth while meeting strong fairness criteria. Other features are non-blocking backpressure and automatic per-queue congestion monitoring to enable multi-layer TCP/IP performance optimized scheduling, and ATM Adaption Layer Type 5 (AAL-5) support.
 
 Infineon's ABMP chip supports both ATM Forum and ITU-T standards, including the ATMF Traffic Management Specification 4.1, UTOPIA Level 1 Specification Version 2.01, UTOPIA Level 2 Specification Version 1, and ITU-T Recommendation I.371, Traffic Control and Congestion Control in B-ISDN.
 
 In linecard and switch designs, the ABMP PXB 4330 V2.1 is one of a number of integrated chips used on a board, including memory ICs, a microprocessor, and physical layer chipsets. Packaged in a P-BGA-456, the ABM PXB 4330 V2.1 is priced at US$150 in 10,000 unit quantities. Operating power is 3.3V (I/O) and 1.8V (core), and the power dissipation is approximately 2W. Engineering samples will be available in 1Q01.
 
 About Infineon
 
 Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, as well as memory products. With a global presence, Infineon operates in the United States from San Jose, Calif., in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2000 (ending September), the company achieved sales of Euro 7.28 billion with about 29,000 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.
 
 For the Trade Press: INFCOM200012.021 e
 
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 Contact:
 
 Infineon Technologies AG, Munich
 Guenter Gaugler, +49-89-234-28481 (Media Relations)
 Fax: +49-89-234-28482
 guenter.gaugler@infineon.com
 Chris Goodhart, 408/501-6389 (United States)
 Fax: 408/501-2424
 chris.goodhart@infineon.com
 Kaye Lim, +65-8400-689 (Asia)
 Fax: +65-8400-082
 kaye.lim@infineon.com
 Investor Relations, +49-89-234-26655
 Fax: +49-89-234-26155
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