NEUBIBERG, Germany -- Infineon Technologies AG announces it has agreed to sell its Wireline Communications (WLC) business to an affiliate of U.S. based investor Golden Gate Capital for Euro 250 million. The contracts were signed today. This transaction means Infineon will focus in future on four segments: Automotive (ATV), Industrial & Multimarket (IMM), Chipcard & Security (CCS) and Wireless Solutions (WLS). In making this move, Infineon can concentrate its resources more closely on growth and leadership in these four market segments. The transaction will significantly improve Infineon’s financial situation. Closing is expected in autumn 2009.

“The divestiture of the WLC segment is an important step in our overall refinancing process. Furthermore, our stronger focus enables us to expand our leading technological position in the three key sectors energy efficiency, communications and security”, says Peter Bauer, CEO of Infineon Technologies AG. As the Wireline Communications segment is relatively independent from the working and production processes of the company as a whole, the carve-out will involve reasonable effort.

"WLC is well positioned to stand on its own feet. With the financial backing of Golden Gate Capital, we are well positioned to continue our investment in innovative broadband products for our customers, and therefore benefit from growth opportunities in the market,” says Christian Wolff, designated CEO of the new company. Wolff has led the division for many years, and has also held leading positions in the Wireline segment for 14 years.

Infineon Technologies AG (NYSE/Frankfurt: IFX)