Infineon to Take Majority Stake in Sci-worx to Strengthen Design Expertise in Communications

Munich/Hanover -- October 5, 2000 - Sci-worx GmbH today announced that it has acquired Sican's intellectual property (IP) modules and System-On-Chip (SOC) solutions for secure applications in wired and wireless communications, effective October 1, 2000. With approximately 300 employees previously employed by Sican, Sci-worx will continue to expand on these innovative technologies. Infineon Technologies (FSE/NYSE: IFX) has invested a majority share in the new company valued at approximately 75 percent equity.

Infineon's investment significantly strengthens the chipmaker's access to leading edge communications technologies. In fiscal year 2000, Sican achieved approximately Euro 35 million revenue. According to a Dataquest market research study dated May 2000, Sican was number nine in the worldwide IP modules market which is growing at an annual growth rate of 23 percent.

"It is essential for the future success of semiconductor manufacturers to have a portfolio of intellectual property that can address demands of the communications market," said Ulrich Hamann, Senior Vice President and General Manager of the Security and Chip Card ICs and head of Corporate Center at Infineon Technologies. "Germany offers an infrastructure with excellent resources to help leading development companies, such as Sci-worx, succeed. Through Sci-worx, Infineon is now positioned to take full advantage of this infrastructure and these resources to contribute to Germany's role in technology innovation."

According to Hamann, "the investment in Sci-worx, as an independent company, marks a new step for Infineon with respect to its development activities. Infineon's divisions will now be able to draw on the resources of its internal development groups and Sci-worx. We expect this investment to stimulate more aggressive innovation among our 21 research and development centers located in nine countries around the world. At the same time, Sci-worx can offer its R&D services to other semiconductor manufacturers as well as Infineon."

"Internet and mobile applications will increasingly change the communications market. The networked world of the future requires new, even more complex system-on-chip solutions than today. It is our goal to be among the top five providers of system-on-chip solutions by 2005," says Juergen Ruprecht, Chief Executive Officer at Sci-worx.

About Sci-worx

Sci-worx develops and markets system-on-chip solutions for secure applications in the field of wired and wireless communication markets. Sci-worx uses state-of-the-art design methodology, highly optimized core technology and a verification program that ensures high quality and performance. Along with Infineon Technologies, other shareholders include RBK Investment GmbH (Regionale Beteiligungsgesellschaft der Kreissparkasse Hannover mbH &Co. KG) with 15.1 percent and TÜV Sueddeutschland Holding AG with 10 percent. The management board consists of Juergen Ruprecht, (Chief Executive Officer), Thomas Hoetzel (Chief Operations Officer) and Wolfgang Schambeck (Chief Financial Officer).

The name "Sci-worx," a combination of the English words "science" and "works," signifies innovation and future-oriented creativity. Apart from a new company name, Sci-worx is also introducing its new corporate design. The colors red and blue in the Sci-worx logo represent vigor and purpose (red), as well as technology and relevance (blue). The arch in the logo symbolizes the bridge between knowledge and work, communicating the connection between humans and technology.

Further information is available at www.sci-worx.com

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor solutions for applications in the wireless and wired communications markets, for the automotive and industrial sectors, for security systems and chip cards as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 1999 (ending September), the company achieved sales of Euro 4.24 billion (US $ 4.51 billion) with about 26,000 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com

Contact sci-worx Headquarters:
Frau Bettina S. Doerr
Phone: +49 (0) 511 277-1619
Mobile: +49 (0)170 570 5613
Fax: +49 (0)511 277-2610

sci-worx USA:
Ms. Collier,
Phone: +1 650 626-1888-107
Fax: +1 650 625-1818