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CHIPS AND TECHNOLOGIES REJECTS INTEL LEGAL ALLEGATIONS

 CHIPS AND TECHNOLOGIES REJECTS INTEL LEGAL ALLEGATIONS
 CHIPS Asserts Its Right to Conduct Business With Microprocessor
 Manufacturing Partners, Including Texas Instruments Inc.
 SAN JOSE, March 2 /PRNewswire/ -- CHIPS and Technologies Inc. (NASDAQ: CHPS) today vehemently rejected Intel's allegations that CHIPS' Super386(TM) and SuperMath(TM) products violate Intel patents or other intellectual property.
 CHIPS also rejected Intel's attempt to interfere with its corporate arrangements with Texas Instruments Inc., or others, which include manufacturing CHIPS' microprocessors.
 CHIPS and Technologies Inc. president and CEO Gordon A. Campbell said, "Intel should learn from history: the age of the microprocessor monopolies is over."
 On Feb. 28, 1992, in the Federal District Court of Northern California, Intel filed two complaints against CHIPS alleging patent violations and seeking a temporary restraining order preventing CHIPS from conducting normal business with customers, software developers, and manufacturing sources.
 "Although we anticipated such legal actions from the start, we are disappointed that Intel chose to file this lawsuit at this time," Campbell said. "Over the past few months we have been in discussions related to our products, among other things. During the course of these discussions both companies had agreed to standstill agreements . On Friday, Intel abruptly and without warning, filed this lawsuit and requested a temporary restraining order," said Campbell. "Frankly, this lawsuit is absurd.
 "Intel's lawsuit is a continuation of its policy to exert a monopoly over the microcomputer industry. It has played this game for ten years. Its latest tactic is to file this legal action in an attempt to delay the adoption of our superior microprocessors by the computer industry," Campbell said.
 "Because of our belief that Intel would misuse the legal process, CHIPS took extraordinary precautions in designing our microprocessor and co-processor products," Campbell stated.
 CHIPS' microprocessors and co-processors substantially outperform the equivalent Intel microprocessors. All of CHIPS' products were forward engineered utilizing a clean room environment with a totally different hardware architecture and microcode. The result is a product line vastly superior in performance which does not violate Intel intellectual property. During the entire microprocessor design cycle, CHIPS retained two nationally known law firms specializing in intellectual property to ensure that the CHIPS processor products did not infringe on any Intel patents, copyrights or other intellectual property.
 "Intel is clearly intimidated by the prospect that CHIPS has designed and is bringing to market microprocessors and math co- processors that threaten to obsolete the Intel equivalents," said Campbell. "We will take whatever actions are necessary to strongly defend our intellectual property and our right to conduct business with our foundries and customers."
 -0- 3/2/92
 CHIPS an Technologies, Inc. is the world's leading supplier of integrated silicon, software, and design services to the worldwide microcomputer industry. The company's products include CHIPSystem Architecture microprocessor-based solutions incorporating the SuperState System Management Architecture, VLSI CHIPSets, software accelerators, networking solutions, firmware, and design services. CHIPS common stock is traded over the counter and is listed on the NASDAQ National Market System under the symbol CHPS.
 /CONTACT: Gavin Bourne of CHIPS and Technologies, 408-434-0600; or Michael Jacobs of Morrison & Foerster, 415-677-7000, for CHIPS and Technologies/
 (CHPS) CO: CHIPS and Technologies; Intel ST: California IN: CPR SU:


RM -- SJ004 -- 3976 03/02/92 12:39 EST
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Publication:PR Newswire
Date:Mar 2, 1992
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