"In the current economic climate, carriers are challenged to provide newservices and value to the subscribers at reduced prices. The XWAY COMPACTfamily addresses the need for high speed wireless connectivity, excellentvoice quality and low power consumption in attractive designs," saidChristian Wolff, President of the Wireline Communications Division atInfineon Technologies. "With these easy-to-use reference designs, we pavethe way for the next generation of in-home broadband networking andunderline Infineon's commitment to provide our customers with highperformance and cost-effective solutions for a faster time-to-market."

Energy efficiency, high definition voice and wireless connectivity

The XWAY COMPACT solutions are the first in the market to fulfill theEuropean Code of Conduct (CoC) for energy efficiency and the IEEE EnergyEfficient Ethernet (EEE) guideline. With significantly reduced standbypower compared to existing products, the XWAY COMPACT solutions exceed thecurrently defined CoC targets by up to 25 percent.

Infineon is a market leader for VoIP and carrier-grade voice solutions,driving CAT-iq deployment and HD voice quality in all of its voiceproducts. XWAY COMPACT delivers high definition voice and data services tocordless handsets with CAT-iq. Infineon's reference designs scored highestMean Opinion Score (MOS) values in tests against competitive solutions. MOSgives a numerical indication of the perceived quality of the voice receivedafter being transmitted. The COSIC(TM) modem DECT/CAT-iqbasestation-on-chip allows customers to integrate CAT-iq basestationfunctionality at about the cost of a single channel Foreign ExchangeStation (FXS).

Based on the recently announced XWAY(TM) WAVE100, WLAN connectivity isadded at reduced cost compared to existing 802.11b/g solutions. XWAYWAVE100 features 802.11n 1x1 which improves the throughput and reach onwireless connectivity by up to four times compared to 802.11 b/g.

About the XWAY(TM) COMPACT ASE1x1

The XWAY COMPACT ASE1x1 is the world's smallest ADSL2+ WLAN Routersolution; built on the XWAY(TM) AMAZON-SE ADSL2+ single-chip router,XWAY(TM) TANTOS-0G Ethernet switch controller and single-chip XWAY(TM)WAVE12A 802.11n IC. The two-layer PCB design provides a low-power, cost andspace saving solution for WLAN routers offering high-speed wirelessconnectivity with up to 150Mbit/s and USB2.0 Host capability. XWAY COMPACTASE1x1 is especially suited for emerging markets.

About the XWAY(TM) COMPACT 182LCG

The XWAY COMPACT 182LCG reference design is based on the XWAY(TM) ARX182single-chip ADSL2+ Gateway, XWAY WAVE12A, COSIC modem DECT/CAT-iqbasestation-on-chip, the single channel FXS solution XWAY(TM) SLIC110 anddual-port Fast Ethernet PHY transceiver XWAY(TM) PHY22F. This gatewaysolution supports a traditional POTS telephone, up-to six DECT/CAT-iqcordless handsets, 802.11n 1x1 and USB2.0 Host connectivity. Additionallyan ideal IPTV experience over ADSL2/2+ is assured by leveraging high-speedrouting capabilities and enhanced DSL Physical Layer features of the XWAYARX182, such as Erasure Decoding and Re-Transmission. The XWAY COMPACT182LCG targets the entry-level gateway market in support of the worldwidedeployment of VoIP services.

About the XWAY(TM) COMPACT 182UTA

The XWAY COMPACT 182UTA reference design is based on the XWAY ARX182, COSICmodem, XWAY SLIC110 and the XWAY PHY22F. This design enables carriers toseamlessly convert traditional telephony services to All-IP over ADSL atminimum cost, allowing subscribers to continue using their existingtelephony equipment from traditional phones to fax, or upgrade to CAT-iqdevices. XWAY COMPACT 182UTA is the first solution of its kind in theindustry. The solution can be deployed not only in the ADSL market butthanks to its dual Ethernet MAC also in cable modem, GPON or WiMAXapplications.

Further information is available at www.infineon.com/cpe

On July 7, 2009, Infineon Technologies announced that it had agreed to sellits Wireline Communications Division (WLC) to the private equity investorGolden Gate Capital. The Division will become LANTIQ after the closing ofthe transaction this fall and will presenting its solutions in the Infineonbooth (#245) at the Broadband World Forum (Paris, CNIT, September 7-9,2009). LANTIQ will be among the Top 15 fabless semiconductor companiesworldwide and be a one-stop solution provider for the wirelinecommunication and broadband access markets. It will be one of the very fewvendors offering a complete DSL end-to-end portfolio and have a uniqueability to integrate DSL, VoIP and home connectivity into complex SoCs.

About Infineon

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor andsystem solutions addressing three central challenges to modern society:energy efficiency, communications, and security. In the 2008 fiscal year(ending September), the company reported sales of Euro 4.3 billion withapproximately 29,100 employees worldwide in continuing operations. With aglobal presence, Infineon operates through its subsidiaries in the U.S.from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japanfrom Tokyo. Infineon is listed on the Frankfurt Stock Exchange (tickersymbol: IFX) and in the USA on the over-the-counter market OTCQXInternational Premier (ticker symbol: IFNNY).

Further information is available at www.infineon.com.

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

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