Announced this week at Microsoft's WinHEC 2006 (Windows Hardware Engineering Conference), Microsoft FlexGo technology creates a new business model for delivering personal computers to individuals and families in emerging market economies. Systems with Infineon components are expected to be available in the second quarter of next year. Financial details of the design collaboration and supply agreement were not disclosed.

"Infineon's expertise in secure authentication for financial transactions and consumer subscription technology makes them an important player in expanding access to computing technology around the world," said Tom Phillips, General Manager of the New Business & Products Group at Microsoft. "Building on the Microsoft relationship with Infineon and leveraging the company's skills in system level integration of security is a great use of our combined solution."

Infineon is working with Microsoft in the technically challenging area of developing easy-to-use and secure access rights to subscription and prepaid computing devices. "Working with Microsoft on Windows FlexGo is a natural evolution of our strategic relationship," said Peter Bauer, Member of the Board and Head of the Automotive, Industrial and Multimarket business group at Infineon Technologies. "This initiative reflects the success of Infineon's strategy, and it leverages our position as a leader in security and design of customer-specific solutions to launch a robust solution in a very short time."

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products through its subsidiary Qimonda. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 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. Further information on Qimonda is available at www.qimonda.com.

This news release is available online at http://www.infineon.com/news/

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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