With immediate effect, investment management firm Cipio Partners has acquired the corporate venture capital portfolio of Infineon Technologies AG. The portfolio, invested by Infineon Ventures GmbH since 1998, comprises approximately 30 direct investments as well as several fund investments, positioning it as one of the largest corporate venture capital funds in Europe. Infineon Ventures includes a range of fast growing companies in the areas of semiconductor, micro-electronics and communications technology headquartered in North America, Europe and Israel. Cipio Partners has led the transaction jointly with LGT Capital Partners, a leading European private equity manager.

The purchase of Infineon Ventures represents Cipio Partners’ fourth major acquisition of venture capital assets built up by a large German corporate parent. As recently as in September and November 2004, Cipio completed the purchase of the private equity arms ofDeutsche Telekom AG and DaimlerChrysler AG.

“Through Infineon Ventures, we have acquired a portfolio of leading-edge technology companies with enormous potential. To further support and foster these firms’ development in order to realize their full potential is in everybody’s interest. We view Infineon’s choice of Cipio as its partner as a clear vote of confidence in us and the credibility and trust we have built up in previous acquisitions,” commented Tom S. Anthofer, Managing Partner at Cipio.

Infineon Technologies AG commenced sale efforts concerning its venture capital arm in late October 2004. “This disposal forms part of a strategy strictly aimed at focusing us on our core business,” commented Dominik Asam, Senior Vice President Investor Relations, Mergers & Aquisitions, Ventures of Infineon Technologies AG. “We are confident that in Cipio we have chosen the partner with the requisite experience to facilitate a timely closing and transfer of our corporate venture capital portfolio into good hands,” added Dominik Asam.

The Infineon Ventures portfolio includes a number of investments in leading semiconductor, software and communications businesses worldwide. Among these are BridgeCo (Zurich, Switzerland), a leading vendor of rich media networking ICs and software; Broadbus Technologies, Inc. (Boxborough, MA), a fast growing developer of next-generation video servers; and MontaVista Software Inc. (Sunnyvale, CA), the leading vendor of “embedded Linux” solutions. In addition to its direct investments, Infineon Ventures also holds stakes in leading venture capital funds, which will form part of the transaction.

About Infineon Ventures
Founded in 1998, Infineon Ventures GmbH counts among the most prominent venture capital firms dedicated to the global microelectronics and communications industries. Committing up to $10 million per investment, Infineon Ventures is dedicated to supporting promising early-stage businesses in Europe, Israel and the United States.