Nokia Selects Single-Chip from Infineon for Entry Level Mobile Phones

Munich, Germany – February 7, 2007 – Infineon Technologies (FSE/NYSE: IFX) today announced that Nokia has selected Infineon as a supplier of baseband and RF (Radio frequency) chips for GSM mobile handsets. The highly integrated single-chip E-GOLD™voice will be incorporated in selected future entry level phones from Nokia. The Infineon E-GOLDvoice system-on-chip solution combines a baseband processor, radio frequency transceiver, power management unit and RAM in a footprint measuring just 8 mm x 8 mm. The solution is designed for voice-centric phones with features like color display, text messages, MP3 quality ring tones and applications such as Integrated Handsfree and Speaking Clock. “In order to sustain our clear leadership position in this high volume sector, it is critical for Nokia to offer most competitive and cost-effective portfolio of mobile phones to consumers in new growth markets,” said Soren Petersen, Senior Vice President, Entry Business Unit, Nokia. “Nokia aims to further improve the power performance in our entry level phones and reduce their size. Adding Infineon’s single-chip solution to Nokia’s portfolio of chipset suppliers helps us ensure access to optimized solutions for this important market.” “Infineon is delighted to be selected as a single-chip supplier for Nokia’s entry level phones,” said Prof. Dr. Hermann Eul, member of the Infineon Management Board and head of the Communication Solutions business group. "We continue to focus our efforts on ensuring our customers’ success and assist them in achieving their strategic goals.”

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions addressing three central challenges to modern society including energy efficiency, mobility and security.  In fiscal year 2006 (ending September), the company achieved sales of Euro 7.9 billion (including Qimonda sales of Euro 3.8 billion) with approximately 42,000 employees worldwide (including approximately 12,000 Qimonda employees).  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.  Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com