Exhibit 99.1
Parlex and Infineon to Form Joint Venture Company
METHUEN, Mass., Dec. 28, 2004--Parlex Corporation (PRLX), a world leader in
the design and manufacture of flexible interconnects and Infineon
Technologies AG (FSE/NYSE:IFX) a world leader in semiconductor solutions,
have agreed to establish a joint venture company to manufacture and sell
advanced technology substrates for secure mobile electronic identification
products. The joint venture will be headquartered in Hong Kong with
manufacturing facilities in China.
Under the terms of the agreement, Parlex will have a 51% equity share with
Infineon holding the remaining share. Infineon will pay Parlex $3 million
and Parlex will contribute equipment and technology. Parlex Shanghai Circuit
Company will also provide certain additional services which will be paid for
by the joint venture. In addition to supplying substrates for the Infineon
"Flip Chip on Substrate (FCOS)" program, the joint venture will offer its
products to customers worldwide. It is anticipated that this new entity will
be operational in April 2005.
Xxxxx X. Xxxxxx, President and CEO of Parlex commented: "Combining resources
with the recognized market and technology leader for electronic
identification products allows us to rapidly introduce a variety of new
technologies developed specifically to serve this expanding customer
segment. With Infineon as our partner, we are increasing our presence in the
smartcard arena while we remain confident that we have the technology to
become the world's leading smartcard substrate provider."
About Parlex Corporation
Parlex Corporation is a world leader in the design and manufacture of
flexible interconnect products. Parlex produces custom flexible circuits and
laminated cables utilizing proprietary processes and patented technologies,
which are designed to satisfy the unique requirements of a wide range of
customers. Its manufacturing facilities are located in the United States,
China, Mexico and the United Kingdom. For further information, please visit
Parlex on the web at xxxx://xxx.xxxxxx.xxx.
About Infineon
Infineon Technologies AG, Munich, Germany, offers semiconductor and system
solutions for the automotive and industrial sectors, for applications in the
wired communications markets, secure mobile solutions as well as memory
products. With a global presence, Infineon operates in the US from San Jose,
CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In
fiscal year 2004 (ending September), the company achieved sales of Euro 7.19
billion with about 35,600 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 xxx.xxxxxxxx.xxx.
The foregoing contains certain forward-looking statements. The Company's
actual results of operations may differ significantly from those
contemplated by such forward-looking statements as a result of various
factors beyond its control, including economic conditions in the electronics
industry, particularly in the principal industry sectors served by the
Company, changes in customer requirements and in the volume of sales to
principal customers, competition and technological change. For a detailed
discussion of these and other cautionary statements, please refer to
Xxxxxx's filings with the Securities and Exchange Commission.
