X-FAB AG and PRODUCTIVITY ENGINEERING GMBH expand partnership

Erfurt, Germany, 9月 30, 2004.

X-FAB Semiconductor Foundries AG (X-FAB AG), Erfurt, and Herrenberg-based Productivity Engineering Gesellschaft fuer Prozessintegration mbH (PE GmbH) today announced that they will expand their cooperation. The entire customer support function - from development to the delivery of the THA1008 and THA1006 gate array series - has been transferred from X-FAB AG to PE GmbH.

As part of the cooperation, X-FAB AG will support PE GmbH by providing digital libraries, macros and design kits as well as by manufacturing the silicon wafers for engineering services and series production. This means that all customers will continue to be able to access a comprehensive service from a single source.

X-FAB AG and Productivity Engineering GmbH have been working together in the realization of digital net list designs and standard cell designs. The transfer of services thus builds on a solid business relationship.

About X-FAB
X-FAB Semiconductor Foundries AG, headquartered in Erfurt , Germany, is an independent analog/mixed-signal Foundry manufacturing silicon wafers for analog-digital integrated circuits (mixed-signal ICs) on customer order. The company maintains production facilities in Erfurt (Germany), Plymouth (UK) and Lubbock (Texas, US) and employs approx. 1,000 people worldwide. The mixed-signal ICs are manufactured based on ultra-modern modular CMOS- and BiCMOS- processes with technologies ranging from 1.0 down to 0.35 micron. Main application areas are the automotive, communications, consumer and industrial sector.

About PRODUCTIVITY ENGINEERING GMBH
Productivity Engineering GmbH (PE), headquartered in Herrenberg (Germany), is an independent privately held company specializing in IC Design as well as data and process integration between eCAD applications and PLM systems. For four years, the division IC Design successfully operates as fabless design house. PE develops application-specific integrated circuits (ASIC), programmable components (CPLD/FPGA), and produces high-quality replacement (pin and function compatible) for obsolete digital integrated circuits. Moreover, PE GmbH converts ASICs, which are no longer available as they are based on obsolete semiconductor technologies, and FPGAs to long-lived and inexpensive semiconductor technologies of its cooperation partners. Refer to www.pe-gmbh.com for further information.

X-FAB AG Press Contacts:   PE GmbH Press Contacts:
Thomas Hartung Manfred Gehring
VP Sales & MarketingGeneral Manager
+49-361-427-6160 +49-7032-2798-0
thomas.hartung(at)xfab.com  manfred.gehring(at)pe-gmbh.com
Investor Relations Erika Walker
Uta Mueller Administration & Controlling
+49-361-427-6789  +49-7032-2798-20
uta.mueller(at)xfab.comerika.walker(at)pe-gmbh.com
Dagmar Berendes Thomas Zerrer
ThinkBold Corporate Communication       R & D Manager IC-Design
+1-408-379-2344    +49-7032-2798-0   
dagmar(at)thinkbold.comthomas.zerrer(at)pe-gmbh.com