INTEL DEVELOPER FORUM, SAN JOSE, Calif., Aug. 28, 2001 - Intel Corporation Executive Vice President Paul Otellini today outlined how the company is driving computing capabilities to promote future industry growth. Otellini, in a speech to 4,000 technology industry engineers, developers and designers, said Intel will expand its product and technology development focus beyond sheer processor speed to bring to market fundamental technologies that will enable greater productivity and better experiences for computer users

Yesterday, Intel introduced the world's first 2 gigahertz (GHz) microprocessor and during his speech, Otellini demonstrated an Intel® Pentium® 4 processor operating at 3.5 GHz. Otellini noted that the Pentium 4 microarchitecture is expected to scale to 10 GHz during its lifetime. 

"Intel will continue to invest in the product development, manufacturing and process technologies that will allow us to lead in microprocessor speed," said Otellini. "While this focus on raw processor speed is important, it's not sufficient to drive the levels of growth and innovation that will allow our industry to prosper." 

Intel will create technology capabilities that are specifically targeted to match market segments and computing models, Otellini said. The company believes this more tailored approach to product and technology development will better match the computing requirements of the increasingly sophisticated digital world.

"We're expanding our focus to include the fundamental technologies and chip design features that will deliver greater value and functionality to the people who use computers every day," said Otellini. "Our objective is to enable a broad range of usage models that will redefine how people will use the pervasive and powerful computing resources Intel is helping to create."

As the computing industry has grown and new technologies have evolved, purchasing criteria are changing. While processor speed is of primary importance, buyers now look to features such as style, form factor, security, power consumption, reliability, communications functions, price and overall user experience. Combinations of these features and others are driving end-user technology requirements in individual market segments. Intel plans to develop technologies that will help address these changing requirements in each of the key market segments.

Hyper-Threading Technology and Banias Processor Architecture
As an example of the innovative approach Intel will bring to the server market segment, Otellini demonstrated an advanced technology the company calls Hyper-Threading. The technology allows microprocessors to handle more information at the same time by sharing computing resources more efficiently.

"Intel's Hyper-Threading technology effectively enables multiprocessing on a single chip," said Otellini. "We believe this technology represents a significant advance in computing."

During his remarks, Otellini demonstrated that the breakthrough in processor design delivered a 30 percent increase in performance in certain server and workstation applications. Intel plans to bring Hyper-Threading technology to market first in its Xeon™ processor family next year and migrate it throughout the product line over time as software is tuned to take advantage of its performance benefits.

Otellini also disclosed details regarding plans for Intel's upcoming "Banias" mobile processor architecture. Banias processors will be based on a new core design initially optimized for mobile applications and will incorporate innovative low-power technologies to extend Intel's leadership in mobile processors. Banias will deploy new low power circuitry and design techniques to deliver higher performance at lower power. It will also incorporate technology to help enable a new generation of notebooks that will be capable of seamlessly connecting to the Internet and other networks.

The technology is expected to be available in the first half of 2003 for the mobile market segment. Over time, Banias will also be incorporated into ultra-dense server products and small form-factor desktop systems.

For more information: www.intel.com

MobileInfo Comments and Advisory:  It appears to us and industry observers that Intel is aiming Banias at the Transmeta market. Banias will have many applications but mobility is one of them - with  extended battery life and connectivity. Banias will also include dual-band 802.11a and 802.11b chip sets, and, separately, Intel is working on Project Rainbow, a national 802.11-based wireless network.

Also, Banias has been designed so that manufacturers have more flexibility in connectivity. The chips are more tightly integrated, there are fewer connectors and the chip is smaller than most. With Transmeta already there and Banias on the horizon, we can expect spme changes in the look and form factor of notebooks and Pocket PC devices.