Qimonda Sets Up New Memory Development Center in Suzhou, China

Qimonda AG (NYSE:QI), a leading supplier of memory chips, today announced its plans to set up a new Development Center for the development of memory products in Suzhou, China. The additional development capacities will serve Qimonda’s target to further expand and diversify its product portfolio. It will be installed in the existing facility for the assembly and testing of memory ICs (back-end) in the Suzhou Industrial Park (SIP), Suzhou, located 80 kilometers west of Shanghai.

The Qimonda Memory Products Development Center (Suzhou) Co. Ltd will be an independent entity wholly owned by Qimonda AG whose total investment is expected to amount in US$ 20 million. Development center activities are scheduled to start from October 1st, 2007, together with the hiring of respective engineers at Chinese universities. Qimonda targets to employ 200 engineers within five years. The Development Center is planned to complement Qimonda’s existing Development Center Xian, China, while focusing on the full product development including product specification, circuit design and application test for computing and consumer memories.

“The new Development Center in Suzhou is another strategic step to expand our activities in the Asian market, which represented more than 30 percent of Qimonda’s revenues in the last quarter”, said Kin Wah Loh, President and CEO of Qimonda. “Furthermore we expect fruitful synergies with our existing back end facility in Suzhou to result in cost reductions by sharing existing infrastructure, central functions and expensive installations such as the test equipment.”

About Qimonda

Qimonda AG (NYSE: QI) is a leading global memory supplier with a broad diversified DRAM product portfolio. The company generated net sales of EUR 3.81 billion in its 2006 financial year and has approximately 13,000 employees worldwide. Qimonda has access to five 300mm manufacturing sites on three continents and operates six major R&D facilities. The company provides DRAM products for a wide variety of applications, including in the computing, infrastructure, graphics, mobile and consumer areas, using its power saving technologies and designs. Further information is available at www.qimonda.com.


Disclaimer

This presentation contains forward-looking statements based on assumptions and forecasts made by Qimonda management and third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for our products in particular, the success of our development efforts, both alone and with our partners, the success of our efforts to introduce new production processes at our facilities and the actions of our competitors, the availability of funds for planned expansion efforts and the outcome of antitrust investigations and litigation matters, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results, or outcomes to differ materially from those expressed in any forward-looking statement. These factors include those identified under the heading "Risk Factors" in our Annual Report on Form 20-F for our fiscal year ended September 30, 2006, available without charge on our website and at www.sec.gov.