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Infineon Strengthens Leadership in MDU/MTU Market with Ethernet over VDSL Technology Patent Award

Munich, Germany - January 8, 2001 – Infineon Technologies (FSE/NYSE: IFX), one of the world’s leading providers of Communications Integrated Circuits and a pioneer in the field of VDSL, today announced that the company, together with 3COM, has been awarded a patent for Ethernet Transport Facility over DSL technology. The technology, trademarked by Infineon as 10BaseS™, utilizes VDSL modem technology to provide the highest performance copper access technology currently available for the explosive MDU/MTU market.

Originally, VDSL technology was designed to provide the telephone companies with a competitive solution in their ongoing challenge with the cable companies to deliver true broadband services over existing copper infrastructure. Merrill Lynch cited in its October 2000 report forecasts that the market for semiconductors used in DSL equipment will grow by 79% through 2004 while the market for semiconductors used in cable modems will grow by only 29% through 2004. The newly issued 10BaseS patent covers the transmission of Ethernet, the most common LAN protocol over VDSL and the highest performance DSL technology currently available. 10BaseS co-exists with xDSL, ISDN and Digital PBX systems, allowing system vendors to offer standard, full duplex, 10 Mbits/s Ethernet data transfer in addition to traditional telephone services over existing copper infrastructure.

“10BaseS is best suited for the Multiple Tenant Units (MTU) and Multiple Dwelling Units (MDU) markets because of its interface simplicity and high data rate. The patent will strengthen Infineon’s dominance in this lucrative market,” said Noam Alroy, Infineon’s Vice President and General Manager Access 2. “Adding 10BaseS to our broadband access portfolio and our highly integrated LAN switching ICs has enabled us to offer our customers all the communications building blocks they need for a cost effective, high performance MTU/MDU solution.“

About 10BaseS™ Technology

The inventors of record are Dr. Peleg Shimon and Dr. Porat Boaz, Chief Scientists Access 2 at Infineon Technologies and Noam Alroy. Additional inventors include Rubinstain Avinoam and Sfadya Yackow who held leading positions in 3COM’s Network System Business Unit when the patent application was filed in 1997.

10BaseS is a highly integrated, low-power, Quadrature Amplitude Modulation (QAM) solution. It utilizes frequency division multiplexing (FDM) to separate downstream channels from upstream channels as well as to separate both downstream and upstream channels from POTS signals. Unlike standard Ethernet, it does not require costly Cat 5 cabling. It makes use of the existing copper infrastructure, while maintaining full integrity for distances of over 4000 ft.

10BaseS provides glue-less compatibility with RMII, SMII, seven wire and IEEE 802.3 Ethernet MII interfaces reducing design complexity, cost and time to market. Configured as a standard Ethernet PHY it can be used in switch, DSLAM or Network Interface Card (NIC) applications. The chipset can also be configured as a Media Access Controller (MAC) for standalone control of Ethernet PHY devices in customer premise equipment applications.

Infineon introduced its 10BaseS chipset last year at the June SuperComm 2000 conference held in Atlanta, Ga. With less than 1.5 W power consumption, an internal controller, and the underlying robust operation of VDSL the 10BaseS™ chipset is a highly competitive solution in today’s broadband market.

Pricing and Availability

The 10BaseS™ chipset is priced at $23 for quantities of 500K. Volume shipments are available now.


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 US from San Jose, CA, 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.

Infineon, the stylized Infineon Technologies design and 10BaseS™ are trademarks and servicemarks of Infineon Technologies AG. All other trademarks are the property of their respective owners.

Any statements in this document that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. Infineon Technologies undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


Information number: INFCOM200101.031e
   
Further Information:  
   
Infineon Technologies AG
P.O. Box 80 09 49
D-81609 Muenchen
Germany
Media Relations Contact

Worldwide Headquarters
Guenter Gaugler
Phone/Fax: ++49 89 234 28481/28482
guenter.gaugler@infineon.com

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Chris Goodhart
Phone /Fax: ++1 408 501 6389/2424
chris.goodhart@infineon.com

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Phone/Fax: ++65 8400 689/082
kaye.lim@infineon.com

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Phone/Fax: +49 89 234 26655 / 26155
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