Infineon Expands in Portugal - Memory Chip Assembly and Testing Facility Enlarged at Cost of Euro 230 Million

Munich/Germany and Porto/Portugal – June 15, 2004 – Infineon Technologies AG, one of the world’s leading semiconductor manufacturers, today announced that it is expanding its existing memory chip assembly and test (backend) facility. The company is investing a total of EUR 230 million in the second module. Work on expanding the facility kicked off in fall 2003 and full capacity will be reached by mid-2006. It is planned to create about 500 new jobs in the process, increasing the workforce in Porto to around 1,500. The new module will be formally opened on June 16, 2004, in the presence of Portuguese Prime Minister Jose Manuel Durao Barroso and the first products are already rolling off the production line in the new manufacturing facility.