2001s' Economic Downturn Leads Intel to a New Game Plan According to In-Stat/MDR.

Business Editors & High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 18, 2002

Even though it was one of the worst years in the brief history of semiconductors and PCs, 2001 proved to be one of improved execution for Intel, according to In-Stat/MDR (www.instat.com).

However, despite improved execution, the high-tech market research firm reports that aggressive moves by chief competitor AMD cost Intel market share in 2001 with AMD's market share in world wide x86 processors growing from 16% in 2000 to 20%.

The tough year for the PC business led SIA to report a 7% unit decline in 32-bit non-embedded microprocessors.

"However, with demand diminished," said Kevin Krewell, a senior analyst with In-Stat/MDR, "Intel's factories were less hard pressed to increase unit volumes while at the same time they where able to increase allocation of wafers to the larger Pentium 4 die. This allowed Intel to ramp the new 0.13-micron process at a pace of its choosing without precipitating a processor volume shortfall.

"By the end of 2001, Intel was ahead of its plan to shift the market to Pentium 4."

In-Stat/MDR also found that:

-- Intel's processor ASP deteriorated sharply during 2001 and likely bottomed
out in 2Q01. The decline started in 4Q00 as Intel's overall processor ASP
dropped below $200 for the first time since In-Stat/MDR began following it in
1995.

-- The other x86 processor vendors, VIA and Transmeta, held slightly more than
1% in 2000 and made no substantial gains in 2001.

The report, Intel Microprocessors Service, Annual Wrap Up (#IN0106IN) part of a service composed of a series of five reports, each of which focuses on specific aspects of Intel's microprocessor business, and this one year-end summary. This report includes an appendix, Backup Data, with the latest data from the MDR model of Intel's computer processor (CPU) shipments.

Projections for processor ASPs, costs, and volumes are included. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-op.htm or contact Chris Kissel at 480/609-4531; [e-mail]. The report price is $1,995.

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products.

This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

In-Stat/MDR is a unit of Reed Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.