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Business Description We are one of the world’s leading suppliers of semiconductor memory products. We design semiconductor memory technologies and develop, manufacture, market and sell a large variety of semiconductor memory products on a chip, component and module level. We began operations within the Semiconductor Group of Siemens AG, whose roots in semiconductor R&D and manufacturing date back to 1952, and operated as the Memory Products segment of Infineon Technologies AG since its carve-out from Siemens AG in 1999. In each of the past five years, we captured between 9% and 15% of the worldwide DRAM market based on revenues, according to industry research firm Gartner. Although our market share fluctuates, and we may lose market share quarter-to-quarter or year-to-year as we did in the fourth quarter of the 2005 calendar year and in 2005 overall, in each of those five years, we remained among the four largest DRAM suppliers worldwide based on revenues. For the first time in the quarter ended March 31, 2006, we were the world’s second largest supplier of DRAM by revenue, with a market share of approximately 17%, according to Gartner. Our principal products are DRAM components and modules for use in a wide range of electronic products. Our DRAM products include standard DRAMs for use in personal computers, notebooks and workstations as well as a growing range of technologically more advanced DRAMs for use in infrastructure, graphics, mobile and consumer applications. Our infrastructure DRAMs address the high reliability requirements of servers, networking and storage equipment, our graphics DRAMs deliver advanced performance to graphics cards and game consoles, and our mobile and consumer DRAMs provide low power consumption benefits to mobile phones, digital audio players, televisions, set-top boxes, DVD recorders and other consumer electronic devices. We also have a small NAND-compatible flash memory business and are focusing on research and development in this area. The memory products business of Infineon, substantially all of which Infineon has contributed to us, has a long-standing reputation as a supplier of high quality DRAMs, and we believe we will be able to build upon this reputation as a stand-alone entity. We serve a global base of customers, many of which are among the world’s largest suppliers of computers and electronic devices. Our current principal customers include major computing original equipment manufacturers, or OEMs, most prominently HP, Dell, IBM, Sun Microsystems and Sony. To expand our customer coverage and breadth, we also sell a wide range of products to memory module manufacturers that have diversified customer bases, such as Kingston, and to a number of distributors. More recently and in connection with the ongoing expansion of our product portfolio, especially into graphics applications, we have added customers with a strong focus on enabling these applications, such as nVidia and ATI. We have invested significant capital in the development of leading process technologies and modern manufacturing capacity. We have established a number of strategic alliances for research and development, as well as for manufacturing in order to improve the economies of scale and the capital efficiency of our business model. We have access to several front-end and back-end manufacturing facilities worldwide, including our own, our strategic partners’ and our back-end subcontract manufacturers’. We operate these facilities as a coherent unit using our “fab cluster” concept, which enables us to share manufacturing best practice and gain operational flexibility through customer qualification of our entire cluster of fabs. Our net sales in our financial year ended September 30, 2005 were €2,825 million, of which 56% were from standard DRAM products, 34% were from infrastructure, graphics, mobile and consumer DRAM products and the remainder primarily consisted of flash memory products and technology licensing revenues. Our EBIT (which we define as net income plus interest expense and income taxes) during that period was €111 million and our net income was €18 million. Our net sales for the six months ended March 31, 2006 were €1,606 million, of which 52% were from standard DRAM products, 44% were from infrastructure, graphics, mobile and consumer DRAM products and the remainder primarily consisted of flash memory products and technology licensing revenues. Our EBIT during that period was a loss of €102 million and our net loss was €136 million. We operate in the semiconductor memory industry, which is one of the largest segments of the overall semiconductor industry. According to the industry research firm Gartner, DRAM represented the largest portion of the memory semiconductor industry in 2005, followed by flash memory. DRAM sales in calendar year 2005 were $25 billion, and Gartner estimates DRAM revenues will reach $34 billion in calendar year 2010, representing a compound annual growth rate, or CAGR, of 6%. Gartner also expects DRAM bit shipments to grow at a CAGR of 53% over the same period, driven in part by increased penetration of DRAM in new applications including mobile and consumer devices. Underlying this expected bit growth is Gartner’s belief that DRAM content in traditional DRAM applications, primarily computing devices, will also continue to increase and that sales of DRAM-containing products will grow strongly in emerging markets such as China and India. ------ We were registered in the commercial register of the local court of Munich on May 25, 2004 as Invot AG, a German stock corporation and wholly-owned subsidiary of Infineon Technologies AG, under number HRB 152545. We changed our name to Qimonda AG on April 6, 2006. Our principal executive offices are located at Gustav-Heinemann Ring 212, 81739 Munich, Germany, and our telephone number is +(49)(89)234-20390. Our website is http://www.qimonda.com.