Infineon Technologies AG

Share Issue/Capital Change • Jul 10, 2009

News Details

Ad-hoc | 10 July 2009 09:01

Infineon announces the planned launch of a rights issue for up to Euro 725 million in gross proceeds, backstopped by investment firm Apollo

Infineon Technologies AG / Capital Increase

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Infineon announces the planned launch of a rights issue for up to Euro 725
million in gross proceeds, backstopped by investment firm Apollo

Neubiberg, Germany - July 10, 2009 -Today Infineon Technologies AG
announced plans to launch a rights issue of up to 337 million shares with a
subscription price of Euro 2.15 per share. Subject to the required
prospectus approval by the German Federal Financial Supervisory Authority
(BaFin), the new shares will be offered to Infineon's shareholders for
subscription. Funds managed by an affiliate of Apollo Global Management
LLC, have agreed to acquire at the subscription price up to approximately
326 million new shares not subscribed for, subject to certain conditions.
Infineon expects to announce details of the offering, including the dates
of the subscription period, in the near future.

If fully placed, the offering would raise new equity in a gross amount of
Euro 725 million in cash. Infineon intends to use the proceeds to repay
debt and strengthen its liquidity position. In particular, the company
plans to apply the proceeds to repay its convertible bonds maturing in June
2010, of which a nominal amount of Euro 522 million is outstanding, and its
exchangeable bonds maturing in August 2010, of which a nominal amount of
Euro 48 million are outstanding.

Apollo has agreed to provide a backstop for the rights offering relating to
new shares not subscribed for. Apollo has committed to acquire at the
subscription price up to approximately 326 million new shares not
subscribed for, up to a maximum shareholding of 30% minus one share of
Infineon's share capital after implementation of the rights issue. This
commitment is subject to the condition that Apollo, after implementation of
the rights offering, would have a minimum shareholding of 15% of Infineon's
share capital. If this minimum shareholding is not achieved, Apollo may,
but is not obligated to, acquire all new shares not subscribed for.
Apollo's investment is also subject to regulatory approvals.

Upon completion of a successful investment representing a shareholding of
15% or more of Infineon's share capital, Apollo will have designated, with
the support of Infineon, the chairman of the supervisory board and will
obtain a second seat on Infineon's supervisory board thereafter.

Shareholders of Infineon will be entitled to exercise subscription rights
with respect to the new shares offered at a subscription ratio of four new
shares for every nine existing shares held, and Infineon's depositary will
make such subscription rights also available to the holders of Infineon's
American Depositary Shares. The subscription period for the shares will
commence following prospectus approval which is expected next week or the
week thereafter. Settlement for the subscribed shares will take place
approximately two weeks after the commencement of the subscription period,
with settlement of Apollo's investment to occur following receipt of the
necessary regulatory approvals.

The subscription rights for the new shares will not be traded on the
regulated market of the Frankfurt Stock Exchange.

D I S C L A I M E R
Infineon Technologies AG may file a registration statement (including a
prospectus) with the U.S. Securities and Exchange Commission ('SEC') for
the offering to which this communication relates. Before you invest, you
should read the prospectus in that registration statement and other
documents Infineon has filed with the SEC for more complete information
about Infineon and this offering. You may get these documents for free by
visiting EDGAR on the SEC website at www.sec.gov or on Infineon's website
at www.infineon.com by clicking 'Investor'. Alternatively, Infineon will
arrange to send you the prospectus after filing if you request it by
calling +49-89-234-26655 or emailing investor.relations@infineon.com.

This publication constitutes neither a prospectus, nor an offer to sell nor
a solicitation to buy securities of Infineon and it is not a substitute for
the prospectus. The offer of shares of Infineon in Germany will be made
solely by means of, and on the basis of, a securities prospectus which is
to be published. An investment decision regarding the publicly offered
securities of Infineon in Germany should only be made on the basis of the
securities prospectus. Subject to approval by the German Federal Financial
Supervisory Authority, a securities prospectus will be published and will
be available free of charge on Infineon's website (www.infineon.com).

This press release includes forward-looking statements about the future of
our business, including statements relating to our financing plans and
developments regarding the planned rights offering. These forward-looking
statements are subject to a number of uncertainties, including market
conditions and general economic developments, as well as developments in
our own business and the other factors described in the 'Risk Factors'
section of the annual report of Infineon on Form 20-F filed with the U.S.
Securities and Exchange Commission on December 29, 2008. As a result,
future developments could differ materially from those indicated in the
forward-looking statements. Infineon does not intend or assume any
obligation to update or revise these forward-looking statements in light of
developments that differ from those anticipated.

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Information and Explaination of the Issuer to this News:

About Infineon
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and
system solutions addressing three central challenges to modern society:
energy efficiency, communications, and security. In the 2008 fiscal year
(ending September), the company reported sales of Euro 4.3 billion with
approximately 29,100 employees worldwide in continuing operations. With a
global presence, Infineon operates through its subsidiaries in the U.S.
from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan
from Tokyo. Infineon is listed on the Frankfurt Stock Exchange (ticker
symbol: IFX) and in the USA on the over-the-counter market OTCQX
International (ticker symbol: IFNNY).

Further information is available at www.infineon.com.
This news release is available online at www.infineon.com/press/

About Apollo
Apollo is a leading global alternative asset manager with in excess of $41
billion under management. Apollo invests across a core group of industries
where Apollo has considerable knowledge and resources. Apollo has offices
in New York, London, Los Angeles, Frankfurt, Luxembourg, Singapore and
Mumbai.

Contact:
Investor Relations, Tel.: +49 89 234-26655, Fax: +49 89 234-9552987

10.07.2009 Financial News transmitted by DGAP

Language: English
Issuer: Infineon Technologies AG
Am Campeon 1-12
85579 Neubiberg
Deutschland
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: investor.relations@infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hannover, Stuttgart,
Hamburg; Terminbörse EUREX

End of News DGAP News-Service

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