InterDigital and Infineon Expand Cooperative Agreement to Include HSDPA Technology Development

InterDigital Communications Corporation (NASDAQ:IDCC)
and Infineon Technologies AG (NYSE:IFX) today announced the expansion
of their long standing cooperative development and marketing agreement
to include the joint development of HSDPA (High Speed Downlink Packet
Access) 3G protocol stack software technology for Infineon's 3G
platform. HSDPA is a packet-based data service for 3G mobile networks
supporting peak data transmission rates of 14 Mbps.
   Since March 2001, InterDigital and Infineon have been developing
and commercializing 3G technologies and products in a strategic
relationship. Under the expanded agreement, InterDigital and Infineon
will continue to jointly develop and upgrade the 3G protocol stack
incorporating UMTS Release 5 and HSDPA. InterDigital will be
compensated for associated non-recurring engineering services.
   "Infineon believes that by partnering with InterDigital in our 3G
protocol stack development, we can more quickly bring a mature 3GPP
Release 5 product to our customers, with committed HSDPA deliveries
this quarter. We therefore are pleased to have expanded our joint 3G
development with InterDigital to include HSDPA," said Thomas Lindner,
Senior Director of Marketing at Infineon's Mobile Software Business
Unit.
   "Infineon is the second customer for HSDPA solutions from
InterDigital, further validating our strength as an effective
technology partner and leading provider of HSDPA technology," said
Mark Lemmo, Senior Business Development and Product Management
Officer.
   InterDigital and Infineon also amended the royalty structure
established under their original 2001 cooperative agreement. The new
royalty rate structure extends the term and amends the per-unit
royalty rates to be paid to InterDigital for the sale of Infineon's
ASICs containing jointly-developed protocol stack software.

   About InterDigital

   InterDigital Communications Corporation designs, develops and
provides advanced wireless technologies and products that drive voice
and data communications. InterDigital is a leading contributor to the
global wireless standards and holds a strong portfolio of patented
technologies which it licenses to manufacturers of 2G, 2.5G, 3G and
802 products worldwide. Additionally, the company offers baseband
product solutions and protocol software for 3G multimode terminals and
converged devices. InterDigital's differentiated technology and
product solutions deliver time-to-market, performance and cost
benefits. For more information, please visit InterDigital's web site:
www.interdigital.com. InterDigital is a registered trademark of
InterDigital Communications Corporation.

   About Infineon Technologies

   Infineon Technologies AG, Munich, Germany, offers semiconductor
and system solutions for automotive, industrial and multimarket
sectors, for applications in communication, as well as memory
products. With a global presence, Infineon operates through its
subsidiaries in the US from San Jose, CA, in the Asia-Pacific region
from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending
September), the company achieved sales of Euro 6.76 billion with about
36,400 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 www.infineon.com.
   This news release is available online at
http://www.infineon.com/news/.