INTEL GOES INSIDE HOLLYWOOD FOR A NEW GENERATION OF FILMAKING

INTEL GOES INSIDE HOLLYWOOD FOR A NEW GENERATION OF
FILMMAKING

Visual Effects Leader Industrial Light & Magic

Using Intel Technology at the Core of its Desktop
Workstations

SANTA CLARA, Calif., July 22, 2002 - Hollywood has found
an unlikely ally in its efforts to lower costs in the increasingly complex world
of digital

filmmaking: Intel Corporation.

Industrial Light & Magic* (ILM), a division of Lucas
Digital Ltd. LLC, today revealed its latest Intel technology deployment of 600
Pentium® 4 processor-based animation workstations. ILM is one of many studios
adopting Intel technology to assist with the future of filmmaking.

"The visual effects industry has traditionally been a
land of proprietary systems and software," said Cliff Plumer, ILM's chief
technology officer. "At ILM, we're increasingly using Intel-based systems to
expand our range of software choices for animation and compositing. In fact,
having Intel at the core of our desktop systems provides greater quality and
productivity because the technology can handle more iterations with greater
frequency. We can now run any operating system we want."

ILM began using Intel-based systems on "Star Wars:
Episode II -- Attack of the Clones," and then with "Men in Black II" and
"Minority Report." They are currently employed in the development of "Star Wars:
Episode III," "Harry Potter and the Chamber of Secrets," "The Hulk" and
"Terminator 3: The Rise of the Machines." Use of Intel technology is on a rapid
rise in Hollywood because of the convergence of four key factors. First, the
performance of Intel-based systems over the past two years has consistently
surpassed that of proprietary systems, while system costs have come down. This
has led to significant savings for studios. Next, major studios are increasingly
outsourcing the rendering of digital effects to "render farms" that use large
banks of small servers, and in that model Intel's high-volume, high-performance,
low-cost, any-software approach makes sense. In addition, studios are now using
a variety of operating systems, and Intel technology provides them the most
flexibility. Finally, the results of Intel's multi-year effort to make movie
software more Intel-friendly has borne fruit. Applications from such companies
as Adobe*, Alias/Wavefront*, Digital Domain*, Discreet*, Macromedia* and
Softimage* have reached critical mass. Large studios are now using or have
recently used Intel technology to help create some of Hollywood's leading
movies. DreamWorks*, which used Intel-based systems in the Academy
Award*-winning "Shrek" and recent hit