Intel Agrees To Invest $250 Million In Infineon

Companies to Cooperate in Production of DRAM Memory Products Including RDRAM

SANTA CLARA, Calif., Feb. 21, 2000 -- Intel Corporation today announced that the company has signed a definitive agreement to invest $250 million in Infineon Technologies, AG in a private placement subject to certain closing conditions including necessary regulatory review.

Additionally, Infineon and Intel have agreed to cooperate in the production of DRAM memory products. As part of this cooperation, Infineon and Intel will share roadmaps, and Infineon will increase its manufacturing capacity for DRAM memory products, as well as support production of Direct RDRAM memory technology. Direct RDRAM memory technology helps improve computer system performance by providing faster memory access to meet the increasing performance requirements of today's newest generation microprocessors.

"Continued investment in leading-edge memory technology is strategically important for the computing industry, and is one of the key reasons underlying this investment. Infineon's commitment to support RDRAM production will help ensure continued growth in the supply of this important memory technology," said Mike Splinter, senior vice president and general manager of Intel's Technology and Manufacturing Group. "We are encouraged by the growing industry momentum for Direct RDRAM. From a PC perspective, it is critically important that memory technology move ahead as quickly as possible to meet the ever increasing performance needs of computer systems."

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