Infineon today announced that it has supplied the industry’s first DDR3 devices and modules to leading PC industry developers. This milestone places Infineon at the development forefront for the next generation of memory products, which will be twice as fast as today’s highest speed memory products. First computer systems equipped with DDR3 memory technology are expected to be available in late 2006. The new Infineon DDR3 device processes data at the exceptional transfer rate of 1067Mbps and Infineon will focus its further development activities to increase the data transfer rate up to 1600 Mbps. The supply voltage is being reduced from 1.8 volts for DDR2 to just 1.5 volts for DDR3 targeting a work day equivalent of battery time. The first DDR3 customer samples from Infineon co-developed with Nanya will be available in the second half of 2006. Depending on the availability of matching platforms, volume production is currently planned for the end of 2006.

Infineon Technologies AG, a leading supplier of memory products, today
announced that it has supplied the industry’s first DDR3 (Double Data Rate 3)
devices and modules to leading PC industry developers. This milestone places
Infineon at the development forefront for the next generation of memory
products, which will be twice as fast as today’s highest speed memory products.
First computer systems equipped with DDR3 memory technology are expected to be
available in late 2006.

"DDR3 is the technology of choice to satisfy future needs in mobility, digital
home and digital enterprise applications. Being the first company in the world
to supply DDR3 components to the industry underlines our position as a
technology and product leader for innovative memory solutions," said Michael
Buckermann, head of the Computing Business Unit at Infineon Technologies.
"Building upon our experience in the design and production of ultra
high-frequency communications products and working with the industry leaders, we
will continue to expand upon this technological edge, and thus decisively
influence the launch of the next generation of memory products," he added.

The new Infineon DDR3 device processes data at the exceptional transfer rate of
1067Mbps (megabits per second) equivalent to about 40 songs in MP3 quality a
second. By running the Infineon devices on a DDR3 platform prototype, excellent
signaling has been achieved and DDR3 functionality has been proven. DDR3 will
become the next standard of high-speed, low-power memory components and modules
used
in server systems, desktops and notebook computers.

Starting from current DDR3 performance with bandwidths of 800 Mbps and 1067
Mbps, Infineon will focus its further development activities to increase the
data transfer rate up to 1600 Mbps. This will double the maximum data transfer
rates of today’s DDR2 memories and significantly boost the performance of future
computer systems and applications.

Further enhancements of DDR3 offer increased performance at low power: the
supply voltage is being reduced from 1.8 volts for DDR2 to just 1.5 volts for
DDR3 targeting a work day equivalent of battery time. This voltage reduction is
an important prerequisite for limiting power consumption and heat generation due
to the increase in bandwidths.

The market research company iSuppli expects DDR3 DRAM products to replace their
predecessor DDR2 as the main volume product in 2008. iSuppli forcasts a DRR3
market share of 55 percent the same year.

The first DDR3 customer samples from Infineon co-developed with Nanya
Technology Cooperation will be available in the second half of 2006. Depending
on the availability of matching platforms, volume production is currently
planned for the end of 2006.

Further information on the Infineon DDR3 memory products is available at:
www.infineon.com/memory/DDR3