
            INTEL PROJECTS DOUBLING OF PROCESSOR PERFORMANCE
                        AT KEY PC PRICE POINTS

SANTA CLARA, Calif., December 20, 1993 -- PC performance is expected to 
double at key price points in 1994 as Intel positions its Pentium(tm) 
processor for the high-volume PC market segment, the company said today.  
Intel said broad acceptance of the Pentium processor combined with 
high-volume chip production is moving the newest technology into the mass 
market at faster rates than in previous years. 
       The company said that more capacity will be on line in 1994 to build 
Pentium processors as a result of recent investments in factories and 
process technologies.  To reflect the added capacity and to accelerate 
Pentium processor-based PCs into the mainstream, Intel is repositioning its 
product line and adjusting prices.  The company said it will lower Q2 '94 
prices of high performance processors 14-18 percent from Q1 '94.
      "Once again we're seeing a dramatic move in PC price/performance," 
said Paul Otellini, senior vice president, Intel's Microprocessor Products 
Group.  "Seven months after introduction, there are more than 100 
manufacturers of Pentium processor-based systems on the market -- some 
under $3,000.  This product is on the fastest ramp in our history.  We have 
now shipped several hundred thousand units.  We expect to ship millions of  
Pentium processors in 1994, produced at five factories, and are moving the 
price into a range that will make it even more affordable for use in the 
high-volume PC market segment."  
      The company noted that in the last six months, the Pentium processor 
outshipped the entire year's shipment of any RISC processor-based systems.  
In 1994, Intel expects Doubling Performance Pentium processors to amount to 
15 percent of the overall PC market volume and expects that by Q4 1994, 
Pentium processors will represent 25 percent of the Intel architecture 
processor unit volume.
      "We are also announcing price reductions of the Intel486* DX2 chips.  
We expect them to be pervasive in the under $2K portion of the overall PC 
market segment in 1994.  The result of these moves is that PC performance 
will roughly double at each of the industry's key price points," Otellini 
said.
      The new Q2/94 1,000-piece price for the 66 MHz Pentium processor will 
be $750 and the 60-MHz version will be priced at $675 each, down 14 percent 
from the Q1 prices.  The 66-MHz Intel486 DX2 processor will be priced at 
$360 each in 1,000-piece quantities, down 18 percent from Q1 prices.  Intel 
will also be lowering the Q2 prices of other Intel486 processors.

      Intel, the world's largest chip maker, is an international 
manufacturer of microcomputer components, modules and systems.

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