Infineon and Toshiba to End Negotiations on Memory Chip Joint Venture

Business Wire, Dec 18, 2001

Business Editors/High-Tech Writers

MUNICH, Germany--(BUSINESS WIRE)--Dec. 18, 2001

Infineon Technologies AG and Toshiba have been unable to reach a mutual agreement in their negotiations on a potential cooperation in the memory segment. Following intensive talks, both Infineon and Toshiba agreed that none of the options that were discussed would be feasible strategies for both companies. Therefore, the negotiations were brought to an end.

"I regret that the mutual talks will not continue and that we could not achieve the results we were looking for," commented Dr. Ulrich Schumacher, President and CEO of Infineon, on the decision. "However, in the consolidating memory market, Infineon has established a strong leadership position. Our leading technology, our outstanding cost position in manufacturing and our pioneering role in 300mm technology secure important competitive advantages and provide us with a market position from which we will build," continued Dr. Schumacher.

Infineon continues to remain open to future cooperations with manufacturers of memory chips if Infineon's cash position would not be adversely affected as a result of a potential cooperation.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, 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 2001 (ending September), the company achieved sales of Euro 5.67 billion with about 33,800 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.