Saifun Grants New License to Infineon for Development of Flash Memory Products

NETANYA, ISRAEL – January 24, 2005 – Saifun Semiconductors Ltd. announced today it reached an agreement with Infineon Technologies AG granting Infineon a new license for the use of Saifun NROM® technology for Infineon’s line of Flash memory products. Under the terms of the agreement, the two companies will continue to cooperate closely in technology and product development. As part of the agreement, Infineon will acquire Saifun’s share in their joint venture, Infineon Technologies Flash (IFL).

Saifun NROM® is a leading-edge non-volatile memory technology developed by Saifun Semiconductors that is currently used for NAND-Flash, NOR-Flash and EEPROM. Incorporated in Infineon products under the trade name TwinFlash, Saifun’s NROM technology currently stores two locally -separated bits in one transistor cell. Compared to competing single-bit-per-cell floating-gate technologies with equivalent process structures, TwinFlash offers 40% smaller die sizes due to its two-bit-per-cell approach, as well as lower mask levels. As a result, Saifun NROM®-based memory products have achieved a competitive position in terms of production costs.

“IFL has demonstrated its ability to develop Saifun NROM®-based products, to produce these products at high volume and to bring them to the market place,” says CEO of Saifun Dr. Boaz Eitan. “The new licensing agreement marks a major milestone for Saifun.”

About Saifun

Founded in 1997, Saifun Semiconductors develops, designs, licenses, manufactures and markets a diversified range of leading-edge non-volatile memory (NVM) solutions, allowing superior performance, reliability and cost optimization. Saifun’s patented Saifun NROM® technology is used by leading flash manufacturers who have adopted the technology as the basis for a wide variety of applications.

Saifun NROM technology is utilized by Saifun and its partners – including leading companies such as Infineon Technologies AG (FSE, NYSE: IFX), Advanced Micro Devices Inc. (NYSE: AMD), Fujitsu Limited (TSE:6702) Macronix (NASDAQ: MXICY), Sony Corporation (NYSE:SNE) and Tower Semiconductors Ltd. (NASDAQ:TSEM). For more information, visit www.saifun.com Saifun NROM is a registered trademark of Saifun Semiconductors Ltd.