License Agreement and Associated Contracts Signed Among Infineon, Mosel Vitelic and ProMOS

Business Wire, March 17, 2000

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--March 17, 2000

Today Mosel Vitelic, Infineon and ProMOS, the joint venture of Mosel Vitelic and Infineon located in Taiwan, signed multiple agreements including licensing future technologies to ProMOS from Infineon and jointly developing products between Infineon and Mosel Vitelic.

These licenses will grant ProMOS the right to make, use, develop and sell DRAM products using Infineon 0.17 micron, 0.14 micron and 0.12 micron production processes. The licensed technology platforms will allow the manufacturing of the existing products such as 64Mb, 128Mb or 256Mb SDRAM products and future products such as 512Mb and 1Gb DRAMs.

In addition, Infineon and Mosel Vitelic have extended the existing license agreement. With the delivery of additional design information, Mosel Vitelic will be able to design, develop and have its own proprietary DRAM products manufactured by ProMOS or Infineon. This additional design information is based on the processes licensed to ProMOS.

Furthermore, Infineon and Mosel Vitelic will jointly develop DRAM products for sale by both companies. Mosel Vitelic and Infineon will utilize part of the capacity in ProMOS for their own individual products.

Although almost all of ProMOS production is reserved for Infineon and Mosel Vitelic, the new contracts now enable ProMOS to use a limited portion of the overall capacity for processes and products it has developed or to provide foundry services to additional customers.

The original technology transfer agreement dated early 1997 covered basic process technologies for advanced generations and products including 0.2 micron.

These long-term agreements assure that ProMOS can continue to be one of the most successful DRAM manufacturers in Taiwan. In addition, they provide a solid ground and leave room for ProMOS' prospective growth in both R&D and marketing. Mosel Vitelic and Infineon have access to this excellent manufacturing source in Taiwan for leading-edge DRAM products.

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 U.S. from San Jose, Calif., and in the Asia-Pacific region from Singapore.

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. Further information is available at www.infineon.com

About Mosel Vitelic

Mosel Vitelic designs, manufactures and markets main memory DRAMs, buffer memory DRAMs, SRAMs, flash memories, embedded flash memories and micro-controllers. For years the company steadily expands its business with revenue reach NT$19.83 billion (NT$ 4 billion profit) in 1999 with 1,600 employees worldwide.

About ProMOS

ProMOS Technologies is the joint venture company of Mosel Vitelic and Infineon manufacturing high performance and high density DRAMs. In year 1999, ProMOS produced over 100 million chips of 64M DRAM. Its revenue reached NT$18.2 billions.

Any statements in this document that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements. Infineon Technologies undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Note to Editors: Infineon and the stylized Infineon Technologies design are trademarks and servicemarks of Siemens AG. All other trademarks are the property of their respective owners.