Munich, Tokyo, February 19, 2000 -- Infineon Technologies AG and Toshiba Corporation today announced that they are collaborating on the interface between Infineon's dual-mode UMTS/GSM single-chip baseband IC (M-GOLD) and Toshiba's TC35273XB (T3), MPEG-4 single-chip codec IC to offer an integrated solution which will bring transmission, decoding and encoding of MPEG-4 video to next-generation dual-mode cellular phones. This solution will allow subscribers to receive and to view streaming video on cellular terminals and to transmit streaming video from terminals equipped with a camera. This cooperation is an important step enabling high performance solutions for the emerging market for a new class of products combining mobile communication and multimedia features.

Intex Management Services (IMS; July 2000) predicts almost 1.8 billion worldwide cellular subscribers by the end of 2006. Over 50 percent of these subscribers will be using 2.5G or 3G technologies together with the respective mobile multimedia services. Video is a driving factor in the mobile handset market and MPEG-4 technology is essential to the encoding and decoding of streaming media for next generation cellular. According to market-research firm Scottsdale, cumulative shipments of approximately 30 million MPEG-4 chips are expected from 2001 through 2003, with 60 million shipments in 2004. Most of these devices are designed for the mobile handset market.

Mr. Takeshi Nakagawa, vice president of Toshiba Corporation's Semiconductor Company, said; "We have long and valuable experience of working with Infineon on leading-edge process technology for DRAMs and FeRAMs and look forward to bringing together our expertise in the field of mobile multimedia communications. We are strongly promoting our MPEG-4 LSI mainly in Japan, and this collaboration with Infineon will give us greater leverage in bringing it to world markets. We are confident that the combination of the two chips is set to be an attractive and advanced solution for 3G mobile terminals."

"The cooperation with Toshiba on interfacing leading edge wireless and video processing chips fully supports Infineon's approach to provide our customers with sophisticated solutions on the wireless market", said Günter Weinberger, Senior Vice President and General Manager of the Wireless Group at Infineon Technologies. "The demonstration of this working system solution shows the way to a new class of products like web-enabled cellular phones or hand-held computing devices with full featured multimedia services."

About M-GOLD

Announced in September 2000, Infineon's UMTS/GSM baseband integrated circuit solution M-GOLD is the world's first single-chip baseband solution. M-GOLD enables the convergence of second and third generation (2G, 3G) mobile radio standards. The highly integrated single-chip baseband IC incorporates Infineon's UMTS and GSM/GPRS modems as well as an extensive set of dedicated and general-purpose peripherals. With the dual-mode capability M-GOLD addresses all UMTS/W-CDMA and UMTS/W-CDMA/GSM markets.

About TC35273XB (T3)

In response to the increasing demand for streaming media in wireless applications Toshiba Corporation announced in January 2001 the TC35273XB - a single-chip, low-power MPEG-4 encoding and decoding (CODEC) solution. This new chip integrates an MPEG-4 CODEC with 12-megabits of embedded DRAM and delivers a low-power, end-to-end solution with encoding, transmission and decoding functionality that fully supports the MPEG-4 industry standard. The new MPEG-4 CODEC opens the doors for designers to create advanced wireless communication products such as mobile interactive multimedia devices, digital television or remote security and surveillance. Based on large embedded DRAM, Toshiba's solution has the potential to more than double the battery life in a mobile videophone compared to the same phone using off-chip memory.

Infineon and Toshiba will jointly present a prototype demo of a system based on the M-GOLD and the TC35273XB at the GSM World Congress in Cannes from February 20th through February 23rd.

About Toshiba

Toshiba Corporation's wide-ranging capabilities assures its position as a leading company in semiconductors, LCDs and other electronic devices, and allows it to support its customers around the world with a complete portfolio of semiconductor solutions. Toshiba has 191,000 employees worldwide and annual sales of over US$50 billion. Visit Toshiba's website at http://www.toshiba.co.jp

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 2000 (ending September), the company achieved sales of Euro 7.28 billion with about 29,000 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 http://www.infineon.com