IPO of X-FAB Semiconductor Foundries AG

Erfurt, Germany, 三月 3, 2004.

X-FAB Semiconductor Foundries AG, (ISIN DE0006364581) a leading pure-play semiconductor wafer foundry, plans to go public, listing on the Official Market of the Frankfurt Stock Exchange (Prime Standard). The shares are being offered in an international offering at a price range of EUR 10 to 14 per X-FAB share (subject to amendment). The bookbuilding period will begin on 4 March and end on 16 March, 2004, subject to early closing. ING Investment Banking, London, is the lead manager, and the other banks in the syndicate are HSBC Trinkaus & Burkhardt, DZ Bank and KBC Bank.

X-FAB is one of the world's leading pure-play semiconductor wafer foundries with manufacturing sites in Germany, the United States and the United Kingdom. X-FAB focuses on analog mixed-signal semiconductor manufacture, producing customised products to order. In 2003, X-FAB had capacity of approximately 28,000 8-inch equivalent wafers per month. Its main application markets are the automotive and industrial sectors, with additional target markets being the consumer, medical and PC & peripherals segments. X-FAB generated sales of approximately EUR 112 million in 2003.

The offering consists of up to 11.5m shares in X-FAB, comprising up to 4.5m shares newly issued by X-FAB and up to 7.0m X-FAB shares being sold by the selling shareholder, Elex NV, and up to an additional 1.725m X-FAB shares from Elex to cover the Greenshoe option. X-FAB has agreed to a 12 month lock up period after the IPO, subject to waiver by the lead manager. Elex, Thueringer Industriebeteiligungs-GmbH & Co. KG and the management board have agreed to a 6 month lock up period after the IPO, subject to waiver by the lead manager.

X-FAB intends to use the net proceeds of the shares sold by it to expand its 8-inch capacity and increase the share of 0.6 micron capacity in its foundries and to pay down certain loans and other outstandings.

About X-FAB
Headquartered in Erfurt, X-FAB is an independent mixed-signal foundry. Together with X-FAB UK (Plymouth, UK) and X-FAB Texas Inc. (Lubbock, Texas, USA), the company maintains three production facilities with a combined capacity of approximately 28,000 equivalent wafer starts per month and employs more than 1000 people worldwide.
For more information, visit www.xfab.com.


Contacts
X-FAB Semiconductor Foundries AG
Uta Mueller
Haarbergstrasse 67
99097 Erfurt
Tel.: +49 361 427 6789
Fax: +49 361 427 6111
E-mail: uta.mueller(at)xfab.com

edicto GmbH
Axel Muehlhaus, Soenke Knop
Tel.: +49 6084 94859-0
Fax: +49 6084 94859-2
E-mail: kontakt(at)edicto.de


Disclaimer
This press release does not constitute a public offer to buy or to subscribe or a solicitation of an offer to sell securities of X-FAB Semiconductor Foundries AG. There will be no public offer of securities of X-FAB Semiconductor Foundries AG outside the Federal Republic of Germany.

This press release is not for distribution, directly or indirectly, in or into the United States. It does not constitute an offer of securities for sale into the United States.

The Shares of X-FAB Semiconductor Foundries AG may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act of 1933) unless they are registered or exempt from registration. There will be no public offer of securities in the United States.