Intel Forms a New Business Unit and Aligns Existing Groups Around Internet Opportunities.

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 14, 1999--

Intel Corporation today announced the formation of a new business unit along with related changes within other business groups designed to increase Intel's focus on opportunities surrounding the Internet.

Intel has formed the new Communications Products Group to drive the company's systems initiatives in networking and communications, combining related hardware, software and support capabilities into one organization. The new group will be headed by Intel vice president John H. F. Miner, formerly general manager of the Enterprise Server Group (ESG). Miner will report directly to Craig R. Barrett, president and chief executive officer.

Intel's Network Communications Group (NCG) will continue to be headed by Intel vice president and general manager Mark A. Christensen, who also reports to Barrett. Christensen will drive Intel's networking and communications component opportunities, including the pending acquisitions of Level One Communications and Softcom Microsystems, and the development of the company's network processor strategy. Christensen will continue to lead Intel's expanding network interface and home networking businesses.

"Intel is organizing around Internet opportunities in four key areas: clients, servers, network infrastructure, and solutions and services," said Barrett. "The addition of the Communications Products Group segments our network infrastructure activities along systems and components, bringing greater alignment to our silicon capabilities, platform initiatives and acquisitions."

The groups will continue to sell through OEM, distributor and reseller channels, including the recently formed Intel(R) Internet Service Provider Program.

Other Organizational Changes

To establish the Communications Products Group, Intel combined the Communications and Internet Server Division formerly within ESG; Intel's Dialogic subsidiary; the Network Systems Division formerly within NCG; and the Systems Management Division formerly within the New Business Group.

Succeeding Miner in his former role is Michael J. Fister, vice president of the Intel Architecture Business Group (IABG) and general manager, ESG. Fister previously served as vice president, Microprocessor Products Group and general manager, Performance Microprocessor Division where he had responsibility for the design of Intel's current and next generation 32-bit microprocessors. Fister, who joined Intel in 1987, will report to Paul S. Otellini, executive vice president and general manager of IABG. ESG will maintain its focus on developing new server-based business opportunities for Intel in the enterprise and Internet, while creating demand for Intel's high-performance 32-bit and forthcoming 64-bit processors.

Intel recently moved the Platform Components Division, Graphics Components Division and Platform Driver Division from the Computing Enhancement Group (CEG) into IABG, forming a new group called the Platform Components Group (PCG), also reporting to Otellini. PCG is headed by Intel vice president and general manager Louis J. Burns, who previously served as director of Intel's Information Technology group. The formation of PCG benefits OEM customers and the IT community as Intel achieves greater alignment between its microprocessor products and their platform components.

Intel's Information Technology group is now headed by Douglas F. Busch, a 12-year Intel veteran who has been appointed a vice president of Information Technology and director of Intel's Information Technology group, reporting to Barrett.

CEG is pursuing major opportunities for embedded processors and flash memories surrounding the growth of wireless communications, Internet appliances and Internet infrastructure under the continued leadership of Ronald J. Smith, Intel vice president and general manager, who continues to report to Barrett.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

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