AES to acquire Altis from IBM and Infineon

Terms of the agreement, which are subject to governmental and regulatory approval and works council consultation, were not disclosed. Advanced Electronic Systems AG, located in Zurich, Switzerland, is a Swiss affiliate of GIS (Global Information Services), a Russian-based holding company. Altis, an Infineon and IBM joint venture since 1999, mainly manufactures semiconductor components for communications, automotive and security applications in 250 to 130 nanometer technologies. Altis management was engaged in the process of searching for a buyer. Under the terms of the current understanding, AES will purchase the equity, which includes the real estate and technology assets of Altis from Infineon and IBM, and AES agreed to maintain the level of industrial activity in Altis. Infineon and IBM agree to license key manufacturing process technologies to AES for use in Altis in the future. AES plans to use the Altis facility to manufacture European and Russian designed products and AES also has plans to open a semiconductor design center at the Altis location. "We are very pleased to acquire a state-of-the-art manufacturing site with Altis' history and experience", said Alexander Kalinin, Member of the GIS Board of Directors. “The expertise and skills of the Altis employees are an asset as is the supply agreement with Infineon. We are committed to extending the customer portfolio as well as to licensing additional technologies from IBM and Infineon. We see this acquisition as a natural process of the internationalization of hi-tech businesses, and we are looking forward to continuing the excellent cooperation with IBM and Infineon in implementing new technologies in Altis." The acquisition is subject to regulatory approvals and work councils processes and is anticipated to close in the fourth quarter of calendar year 2007.