DGAP-Adhoc: Infineon to sell Wireline Communications Business to U.S. Investor

Infineon Technologies AG / Disposal/Agreement

07.07.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Infineon to sell Wireline Communications Business to U.S. Investor; 
The Transaction marks a further step in the refinancing and
strategic-focusing process

Neubiberg, Germany - July 7, 2009 - Infineon Technologies AG announces it
has agreed to sell its Wireline Communications (WLC) business to an
affiliate of U.S. based investor Golden Gate Capital for Euro 250 million.
The contracts were signed today. This transaction means Infineon will focus
in future on four segments: Automotive (ATV), Industrial & Multimarket
(IMM), Chipcard & Security (CCS) and Wireless Solutions (WLS). In making
this move, Infineon can concentrate its resources more closely on growth
and leadership in these four market segments. The transaction will
significantly improve Infineon's financial situation. Closing is expected
in autumn 2009.

Besides the WLC divestiture the stronger focus enables Infineon to expand
its leading technological position in the three key sectors energy
efficiency, security and communications. As the Wireline Communications
segment has limited dependence on the working and production processes of
the company as a whole, the carve-out will involve reasonable effort.

Christian Wolff has been appointed CEO of the new company. He has led the
division for many years, and has also held leading positions in the
Wireline segment for 14 years. All products, business bases and development
projects will be continued. Around 800 patent groups will be transferred.
Therefore the customer will be guaranteed consistency in every respect.

Employment contracts for approximately 600 WLC employees will be
transferred to the new company. Furthermore, an estimated 300 employees
from Infineon central functions who already work on behalf of the WLC
segment today are also designated to join the new company.

D I S C L A I M E R
This press release includes forward-looking statements about the future of
Infineon's business. These forward-looking statements are subject to a
number of uncertainties, including broader economic developments, including
the duration and depth of the current economic downturn; the successful
completion and implementation of the sale of our Wireline business; and the
other risk factors described in the 'Risk Factors' section of the annual
report of Infineon on Form 20-F filed with the U.S. Securities and Exchange
Commission on December 29, 2008.
As a result, future developments could differ materially from those
contained in or suggested by these forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking statements.
Infineon does not undertake any obligation to publicly update or revise any
forward-looking statements in light of developments which differ from those
anticipated.

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Information and Explaination of the Issuer to this News:

About Infineon
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system 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 with
approximately 29,100 employees worldwide in continuing operations. With a
global presence, Infineon operates through its subsidiaries in the U.S.
from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan
from Tokyo. Infineon is listed on the Frankfurt Stock Exchange (ticker
symbol: IFX) and in the USA on the over-the-counter market OTCQX
International Premier (ticker symbol: IFNNY).

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

About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm
with approximately $9 billion of capital under management. The firm's
charter is to partner with world-class management teams to make equity
investments in situations where there is a demonstrable opportunity to
significantly enhance a company's value. The principals of Golden Gate have
a long and successful history of investing with management partners across
a wide range of industries and transaction types, including corporate
divestitures, leveraged buyouts, and recapitalizations.

For more information, visit www.goldengatecap.com. 

Contact:
Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987


DGAP 07.07.2009 
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Language:     English
Issuer:       Infineon Technologies AG
              Am Campeon 1-12
              85579 Neubiberg
              Deutschland
Phone:        +49 (0)89 234-26655
Fax:          +49 (0)89 234-955 2987
E-mail:       investor.relations@infineon.com
Internet:     www.infineon.com
ISIN:         DE0006231004
WKN:          623100
Indices:      TecDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Hannover, Stuttgart,
              Hamburg; Terminbörse EUREX
 
End of News                                     DGAP News-Service
 
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