Infineon Extends Comprehensive Server Memory Portfolio; Introduces Very-Low-Profile DIMMs with up to 2GByte density

At the Intel Developer Forum (IDF) in San Franciscotoday, Infineon Technologies AG (FSE/NYSE:IFX), a leading supplier ofmemory products, announced that it is sampling 512MB (mega-byte), 1GB(gigabyte) and 2GB DDR2 (Double Data Rate 2) VLP-DIMMs(Very-Low-Profile Dual-In-line Memory Modules). The Infineon VLP-DIMMshave a height of only 18.3 millimeters, which is 40 percent less thanthe height of the 1U Registered DIMMs usually used in serverapplications, and target high-density blade servers with reduceddimensions. The smaller form factor reduces space requirements by morethan half, improving airflow and making room for additionalfunctionalities or more memory modules in blade servers. To increasememory capacity beyond 1GB while keeping a reduced form factor,Infineon uses dual-die-based 1Gbit (gigabit) DDR2 compo-nents, whichthe company introduced as the industry's first in February 2005.

"VLP-DIMMs are the perfect solution for blade servers. With theintroduction of VLP-DIMMs, we extend our leading DRAM portfolio forserver applications, offering our customers an added value with regardto system performance, power consumption and appropriate form factor,"said Michael Buckermann, Head of the Business Unit Computing ofInfineon's Memory Products Group. "This is another milestone in thesuccessful implementation of the Memory Products Group's strategy tobroaden its product portfolio to include less volatile and highermargin DRAM components and modules."

Blades are thin, modular servers designed to be inserted into aspace-saving rack with many similar servers that share a commonbackplane for power supply and connectivity resources. Due to theirreduced height, VLP-DIMMs can be placed vertically rather than at anangle on the memory socket of the blade, resulting in a space increaseof about 60 percent and improved cooling airflow within the bladeunit.

The small dimensions of blades allow users to fit more than 250servers in the same space as conventional 42-server racks, while theirreduced power consumption leads to additional cost savings. Bladedservers are being adopted for applications inside data centers and atthe edge of networks for tasks such as Web pages, e-mail and streamingmedia.

According to recent forecasts by market research firm Gartner,blade server shipments are expected to grow from around 540 thousandunits this year to 1.3 million units by 2009, representing 14 percentof worldwide server shipments.

Infineon 512MB, 1GB and 2GB DDR2 VLP-DIMMs with speeds ofDDR2-400, DDR2-533 and DDR2-667 based on the company's low-power512M-bit DDR2 components are available now in sample quantities.Volume production of the 512MB and 1GB VLP-DIMMs is planned to startby the end of 2005.

For reference, the price of a 1GB DDR2 VLP-DIMM is US-Dollar 210in sample quantities.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductorand system solutions for automotive, industrial and multimarketsectors, for applications in communi-cation, as well as memoryproducts. With a global presence, Infineon operates through itssubsidiaries in the US from San Jose, CA, in the Asia-Pacific regionfrom Singapore and in Japan from Tokyo. In fiscal year 2004 (endingSeptember), the company achieved sales of Euro 7.19 billion with about35,600 employees worldwide. Infineon is listed on the Dax index of theFrankfurt Stock Exchange and on the New York Stock Exchange (tickersymbol:IFX). Further information is available at www.infineon.com.

This news release and a press photo are available athttp://www.infineon.com/news

For the Trade Press: INFMP200508.083e