Infineon's Number Two Position In The Global Market Improved

MUNICH, Germany—(BUSINESS WIRE)—June 28, 2006— According to the latest study from US market research company Strategy Analytics, Boston, the sales growth of 11.9 % posted by Infineon's (NYSE: IFX) (FWB: IFX) automotive electronics business in 2005 means that it has once again significantly outperformed the global market as a whole, which expanded by 7.5 % to US $16.4 billion. Strategy Analytics indicates that Infineon's sales revenue in this market rose to US $1.525 billion from US $1.363 billion in 2004, which gave it a 9.3 % share of the global market and enabled it to strengthen its solid number two position. Infineon maintained its standing as the uncontested market leader in Europe with a market share of 14.8 %, and also expanded its market share to 7.9 % in the USA, where it is number three. Being number six in Japan, Infineon has become the leading foreign supplier in the demanding Japanese automotive market.

Peter Bauer, head of Infineon's Automotive, Industrial Electronics and Multimarket division and a member of the Management Board, attributes the organization's sustained success to "the focus on automotive applications and requirement, with a broad innovative product portfolio of the highest quality and excellent technological expertise." Infineon supplies sensors, microcontrollers and power semiconductors for the automotive industry. Every new vehicle built around the world contains on average approximately two dozen components from Infineon.

According to Bauer, one of the factors that have helped Infineon's automotive electronics business to above-average growth in the USA is new legislation introduced to improve safety and security, and to better control automotive emissions. Infineon, he points out, has a strong position in both of these areas. For example, under new safety regulations an increasing proportion of new vehicles will be equipped with a tire pressure sensor system in coming years, and Infineon is the world market leader in this field. Concerns about emissions and efficiency, meanwhile, will open up new opportunities for Infineon's successful intelligent engine management chips, which can ensure that the air-fuel mixture is properly balanced at all times as well as optimizing injection and ignition timing for each cylinder. The latest 32-bit AUDO-NG (Next Generation) series microcontrollers, for example, reduce fuel consumption by around 15 percent over previous models.

"To be successful in Japan," Bauer reports with conviction, "you have to fulfill the tough customer requirements regarding product quality. That we are the most successful non-Japanese supplier now, confirms that we are on the right track with our focus on quality excellence, reliability and customer satisfaction." Infineon's quality advantage, Bauer continues, stems from its early adoption of the Automotive Excellence Program, a comprehensive quality management system that strives for zero defect products.

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 Further information on Qimonda is available at .

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