Infineon Takes DSL to the Next Level by Introducing Industry's First Fully Standard Compliant VDSL2/ADSL2+ End-to-End Solution

Infineon Technologies AG (FSE: IFX) (NYSE: IFX), a leading manufacturer of integrated circuits for wireline and wireless communication, today announced that it is extending its comprehensive DSL portfolio with the VINAX(TM) chipset, a complete VDSL2/ADSL2+ end-to-end solution. VINAX is the industry's first chipset that is fully compliant to VDSL2/ G.993.2 (Very-High-Bit-Rate Digital Subscriber Line 2), a standard ratified earlier today by the International Telecommunications Union (ITU).

VDSL2 is a key enabling technology for sought-after triple play services such as multi-channel HDTV, on-line/on-demand gaming and video applications, VoIP and high-speed Internet access. Leveraging the full VDSL2 frequency spectrum of up to 30 MHz, the new Infineon chipset drives symmetric 100Mbit/s over copper wires at distances greater than 350 meters (1150 ft), doubling the loop reach performance of existing VDSL solutions. VINAX's flexible VDSL2/ ADSL2+ architecture allows system manufacturers to cover worldwide market requirements for broadband access with a single hardware platform, enabling global mass deployment of triple play services.

"We are very proud to introduce the industry's first fully standard compliant VDSL2 chipset," said Christian Wolff, Vice President Communications Business Group and General Manager Wireline Access Business Unit at Infineon. "Full standard compliancy is a prerequisite for interoperability and, therefore, the key enabling factor for mass deployment. Taking advantage of Infineon's expertise in ADSL2+ technology, with more than 6 million ports shipped in 2004 alone, VINAX assures highest ADSL2+ backwards compatibility and interoperability necessary for a smooth VDSL2 deployment. VINAX allows carriers to seamlessly upgrade their DSL networks by gradually changing line cards in the central offices or street cabinets to VDSL2 while end users still use their ADSL/2/2+ modems at home."

The new VDSL2 standard combines three characteristics that are a precondition for successful mass deployment: enhanced, ADSL-like, long-range loop reach performance; ultra high data rates over short loops; and sophisticated Quality-of-Service (QoS) features like dual latency, dual interleaving, or pre-emption. Only the combination of all three factors enables the large scale roll-out of triple play services meeting consumer quality expectations for undisturbed video transmission and carrier grade Voice-Over-IP (VoIP).

"We are delighted to see standardized VDSL2 technology entering the market so quickly as it is a key element of next generation DSL business," said Tom Starr, Board Member of the international DSL Forum. "VDSL2 offers a combination of higher access bit-rates, enhanced QoS control, and ADSL-like long reach performance, making it highly suitable for the quickly evolving telecom environment and allowing operators and service providers to reap higher revenues from emerging triple-play services, especially video over DSL."

According to a November 2004 forecast from the market research firm In-Stat/MDR, total revenue from VDSL ICs is expected to reach $ 440 million by 2008, representing an annual shipment of nearly 70 million ports, up from about $ 117 million revenues and 12 million ports shipped in 2004.

VDSL2 -- the ultimate DSL-technology

The new transmission standard VDSL2 (G.993.2), ratified today by the ITU-T, is solely based on DMT (Discrete Multi-tone Modulation) technology. It provides the long-reach capabilities of the ADSL2+ technology, while enhancing the high data rates of VDSL from 70/30 Mbit/s to symmetric 100 Mbit/s. In order to carry such high bit rates within a reach of up to 350 meters, the VDSL2 frequency spectrum has been increased from 12 MHz to 30 MHz. To meet carrier access market requirements for medium and long loops the transmit power has been raised up to 20 dBm and echo cancelling techniques were specified to allow ADSL-like performance for long reach applications. For most efficient use of bit rate and bandwidth, flexible framing and on-line reconfiguration methods like Seamless Rate Adaptation (SRA) and Dynamic Rate Repartitioning (DRR) were included as well.

Maximum Speed and Highest Flexibility with the VDSL2/ADSL2+ solution VINAX

The Infineon VDSL2 chip set is available as complete end-to-end solution designed for full VDSL2 bandwidth of 30 MHz. The multi-channel Central Office (CO) chipset is based on a 2-chip architecture enabling line card density of 48 full-rate VDSL2 ports in CO and Remote Terminal (RT) applications. MII, R-MII, S-MII, SS-SMII, POSPHY-L2, and a Utopia-L2 interface on the backplane side allow full flexibility and, in combination with the built-in AAL5 interworking functionality, enable system vendors and telecom providers to deploy VDSL2/ADSL2+ line cards in existing Ethernet and ATM networks. To increase service speed and range, the solution integrates a 2-port bonding mechanism and therefore enables service providers to reach 100 percent of their customer base. ADSL-like long reach performance is ensured using echo canceller algorithms, time domain equalization and a maximum of 20 dBm line power. All service profiles and regional specific requirements can be met with a single hardware platform by appropriate software configuration.

On the Customer Premises Equipment (CPE) side, Infineon offers a full standard compliant VDSL2 single-chip solution, which addresses both simple bridge modems as well as access gateway applications. The VINAX-CPE can be integrated with the company's new WildPass Wireless Network processor for a complete, ready-to-deploy VDSL2 / ADSL2+ gateway reference design.

VINAX-CO is offered in a BGA/TSSOP package. VINAX-CPE comes in a LBGA package. Samples are available now, and volume production is planned for the third quarter of 2005.

VINAX will be exhibited at the Broadband World Forum in Yokohama, Japan, May 31-June 2, 2005, and at SuperComm 2005 in Chigago, USA, June 6-9, 2005.

For further information please go to: www.infineon.com/vdsl2.

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. 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 2004 (ending September), the company achieved sales of Euro 7.19 billion with about 35,600 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. This news release and product pictures are available online at http://www.infineon.com/news/.

Distributed by Market Wire