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Neubiberg, Germany, and San Jose, CA - October 09, 2007 - Infineon Technologies (FSE/NYSE: IFX) and Jungo Ltd., today announced a partnership to deliver production-ready, carrier-grade reference designs for the multi-service residential gateway market. The partnership enables customers to offer complete solutions for operator-specific products based on a pre-integrated, carrier-ready software platform from Jungo and Infineon's communications chips. Furthermore, it also helps significantly reduce the customer's time-to-market by shortening in-house design cycles by up to 50 percent. The new design is available for ADSL2/ 2+ and VDSL solutions.

"This cooperation with Jungo, the market leader in embedded software for residential gateways, will enable our customers to bring their products faster to market and leverage the silicon's value and capabilities", said Christian Wolff, Senior Vice President of the Communication Solutions business group and General Manager of the Wireline Access business unit at Infineon. "Furthermore this partnership will help, complete our offerings in the residential gateway market and additionally strengthen our business."

"Jungo's vision of the 'digital home' is one where the operator offers a plethora of managed value-added-services. By delivering managed easy-to-use targeted services, the provider can both retain and reclaim the customer relationship, and maximize the revenue potential of the subscriber base," said Ofer Vilenski, Jungo's CEO. "Jungo and Infineon are helping operators drive this vision," he commented.

Infineon is focusing on three key areas of business: Energy Efficiency, Communications and Security. The company plans to grow in these areas and strengthen existing businesses. This partnership contributes positively to Infineon's CPE-business and growth in the Communications area.

About the platform offerings
The gateway design is targeted at OEMs developing carrier grade CPE that can offer high-performance, next generation multi-service gateways. Service Providers deploying gateways based on the new platform can increase revenue streams by offering new revenue-generating services such as IPTV, video surveillance and Video on Demand (VoD).

The new reference design, for ADSL2/2+ (using Infineon's Danube IAD-on-a-Chip solution) and VDSL (using the TwinPass-VE and the Vinax-CPE), offers a wide range of popular services and functions, including IPTV, home media distribution, WLAN, firewall, VoIP, remote file access and parental control. This robust functionality gives gateway manufacturers the flexibility they need for rapidly developing market-specific products such as triple-play residential gateways, DSL, integrated access devices (IADs), wireless access points, voice and Private Branch exchange (PBX) gateways, VPN routers and home storage routers.