Siemens Semiconductors to Become Infineon Technologies AG

Siemens Semiconductors (HL) on April 1, 1999 will change to a legally separate entity, Infineon Technologies AG, with headquarters in Munich. The move is an important prerequisite for listing Semiconductors on stock exchanges late this year or early next year. Until then, the new company will be a wholly owned subsidiary of Siemens AG. Dr. Ulrich Schumacher, member of Siemens' Managing Board and currently president and CEO of Siemens Semiconductors, will be Infineon's president and CEO.

The new company will begin operations on April 1, 1999 with around 215,000 employees, of whom 12,000 are located in Germany. This transfer has already been arranged with Siemens AG's Central Works Council. On April 1, legally independent Semiconductor subsidiaries within Siemens AG will be transferred to Infineon Technologies AG. They will retain their independent legal status.

To establish a consistent corporate identity worldwide, the names of all domestic and international subsidiaries will include 'Infineon Technologies' plus the name of the city or country where the subsidiary is located. Joint ventures like White Oak Semiconductor (with Motorola in Virginia, U.S.), ProMOS (with Mosel Vitelic in Taiwan), in which Siemens holds a minority stake, and companies with prominent names will not be affected by this rule.

Infineon Technologies provides highly integrated system ICs, memory and high-frequency components, smartcard ICs, discrete semiconductors,- power ICs, sensors and fiber-optic components. Its markets include telecommunications, the automobile industry, consumer electronics, data networking and automation.

Semiconductors, Siemens AG Phone: +49 89 636 28480