Qimonda Reports Second Quarter Results of the 2007 Financial Year: Positive EBIT and Net Income Despite Difficult DRAM Price Environment

Munich, Germany – April 25, 2007 – Qimonda AG (NYSE: QI) today announced results for the second quarter and first half of its financial year (FY) 2007, which ended March 31, 2007. Qimonda’s net sales of Euro 984 million in the second quarter of FY 2007 increased from Euro 928 million year over year, but decreased from Euro 1.17 billion compared to the first quarter of FY 2007. Second quarter FY 2007 EBIT improved to Euro 85 million compared to EBIT of Euro 21 million in the second quarter of FY 2006, although declined from EBIT in the first quarter of FY 2007 of Euro 250 million. Net income increased to Euro 57 million or earnings per share (basic and diluted) of Euro 0.17 compared to a net loss of Euro 9 million in the second quarter of FY 2006 or loss per share of Euro 0.03. In the prior quarter net income amounted to Euro 177 million and earnings per share were Euro 0.52.

For the first half of FY 2007, Qimonda achieved net sales of Euro 2.16 billion, an increase of 34 percent compared to the same period last year. EBIT for the first half of the financial year improved to Euro 335 million compared to an EBIT loss of Euro 102 million in the first half of the previous financial year. Net income increased to Euro 234 million or earnings per share of Euro 0.68 compared to a net loss of Euro 136 million or loss per share of Euro 0.45 in the first half of the FY 2006.

“In a weaker market environment with severe price erosion for standard DRAM products, we maintained positive earnings. Our diversified DRAM product portfolio partially mitigated the effect of the price pressure on our results,” said Kin Wah Loh, President and CEO of Qimonda. “We were also able to increase productivity with more than 60 percent of our total capacity now converted to technologies with feature size of 90nm and below. In addition, our partnership model helped reduce our manufacturing costs on an absolute basis.”

On a year-over-year basis, quarterly net sales increased mainly due to Qimonda’s 30 percent bit-shipment growth, which more than offset the combined effects of a decline in average selling prices and a weaker US dollar. Quarter over quarter, net sales decreased mainly due to a 21 percent decline in average selling prices and a weaker U.S. dollar and was partially offset by a 7 percent increase in bit-shipments. In the second quarter, the share of bit shipments to non-PC applications was 50 percent, primarily due to stronger than expected bit shipment growth in the PC market as PC makers increased the amount of DRAM per system. In addition, seasonal declines were more than expected in the consumer and infrastructure markets.

36 percent of Qimonda’s net sales in second quarter FY 2007 were generated in North America, 22 percent in Europe, 31 percent in Asia Pacific and 11 percent in Japan.

On a year-over-year basis, despite slightly weaker DRAM prices and a weaker U.S. dollar, Qimonda improved its gross margin and net income in the second quarter mainly due to substantially higher bit-shipments, improved manufacturing productivity and reduced operating expenses. However, quarter over quarter gross margin and profitability decreased due to the sharp decline in the pricing environment, the non-cash effect of the related reduction in the carrying value of inventory, and the lower mix of non-PC business. For the first half of the financial year, the successful DRAM product diversification into non-PC applications contributed to the increase in profitability compared to the same period the previous year despite the market price decline.

With cash flow from operations of Euro 286 million during the second quarter FY 2007, the company’s net cash position improved to Euro 937 million while the gross cash position decreased slightly to Euro 1.14 billion due to debt repayment. Capital expenditures were Euro 144 million, mainly for the further expansion of the Richmond 300mm wafer manufacturing facility and equipment upgrades for the further conversion towards next generation 75nm DRAM technology.

Outlook

Qimonda expects its bit production to grow by 8 to 12 percent in the third quarter of FY 2007, mainly based on additional capacities from the 300mm line in Richmond and the Joint Venture Inotera and continued productivity improvements as a result of the conversion of more capacities to 80nm technology and below. The company expects its share of bit-shipments to non-PC applications to be more than 50 percent for the third quarter and expects the trend of stronger demand for PC-related products to continue.

For the full financial year, Qimonda expects bit demand for DRAM to be driven by the continued strong growth in consumer and communication applications and by the conversion to the Windows Vista operating system. For calendar year 2007, the company expects the market measured in bits to grow between 60 and 70 percent, in line with most market analyst expectations such as Gartner and iSuppli. Qimonda intends to increase bit production in line with this overall market growth. Due to the stronger than expected bit shipment growth in the PC market, Qimonda now expects its share of bit-shipments to non-PC applications to be more than 50 percent for the full financial year.

Unaudited Financial Information

Attached is Qimonda's unaudited financial information for the second quarter and first half of its 2007 financial year, which ended March 31, 2007. This financial information includes reconciliations of the non-US GAAP financial measures EBIT and net cash position to net income and gross cash position, respectively, which are the closest measures prepared in accordance with US GAAP. Financial information as of dates before and for periods beginning before May 1, 2006 is derived from Qimonda's combined financial statements prepared in accordance with its carve-out from Infineon, effective on that date.

Conference Call

The company will host a conference call today at 4:30pm EST, 1:30pm PST, 9:30pm GMT, and 10:30pm CET to discuss its financial results. The web cast and slide presentation will be available at www.qimonda.com. A webcast replay will be available for a limited time on the company’s web site. An audio replay of the conference call will also be available at phone number +1 718 354 1112 (US), +44 (0)20 7806 1970 (UK), +49 (0)69 22222 0418 (Germany), +81 (0)3 3570 8212 (Japan), pass code: 4893017 #, beginning at 6:30pm EST today and continuing until 5:59pm EST on April 29, 2007.

About Qimonda

Qimonda AG is a leading global supplier of DRAM memory products. Following the carve out from Infineon Technologies AG on May 1, 2006, Qimonda went public at the New York Stock Exchange on August 9, 2006. The company generated net sales of €3.81 billion in its 2006 financial year and has approximately 12,000 employees worldwide. Qimonda has access to five 300mm manufacturing sites on three continents and operates five major R&D facilities, including its lead R&D center in Dresden. The company is a leading supplier of DRAM products to PC and server manufacturers and is increasingly focusing on products for graphics, mobile and consumer applications as well using its power saving trench technology. Further information is available at www.qimonda.com.

Disclaimer

This press release may contain 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 you should not place too much reliance on them. These forward-looking statements speak only as of the date they are made, and 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, the actions of our competitors, the availability of funds for planned expansion efforts, 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 financial year ended September 30, 2006, available without charge on our website and at www.sec.gov.