INTEL CELEBRATES THE INDUSTRY'S 1 BILLIONTH PC

INTEL CELEBRATES THE INDUSTRY'S 1 BILLIONTH PC

Processor Innovation & Emerging Markets To Fuel Growth
to the Second Billion

July 1st, 2002 - Intel today celebrates the industry
reaching the milestone of 1 billion PCs shipped, following industry analyst firm
Gartner Dataquest's announcement today. This is a major milestone in the history
of an industry that has transformed the world in about 25 years.

The first commercially successful and widely available
PC, the Altair, was launched in 1974, powered by an Intel 8080 chip. But Intel's
contribution to the evolution of personal computing began with its 1971
invention of the microprocessor.

Innovation

This path of innovation leads from the Intel 8080 chip
used in the Altair to the 4.77 MHz Intel 8088 processor that powered the
watershed IBM PC in 1981 and into the era of the Intel® Pentium® 4 processor.
This is the world's fastest processor delivering speeds of up to 2.53 GHz. 25
years ago, PCs were big, clunky and enabled simple word processing and basic
spreadsheets. The billionth PC of today is likely to enable its owner to send
e-mail and instant messages, surf the Web, manage a household budget, edit home
movies, burn them onto DVDs, mix digital music, create photo albums featuring
narration and background music and play action-packed games - uses inconceivable
when people started snapping up Altairs.

The journey to the 1 billion milestone, has seen the PC
profoundly change the way companies transact business and how people
communicate, shop, learn, access information and entertain themselves. It is now
found in 49% of Western European households and at the end of 2001 nearly half a
billion people worldwide had home access to the Internet. "The PC is so
versatile and so good at so many things," said Martin Reynolds, vice president
at Gartner Dataquest and author of the analyst firm's report on the 1 billionth
PC. "It's become something that almost everybody has to have."

"At Intel, we passionately want to deliver the
technologies that change the world," said Pat Gelsinger, vice president and
chief technology officer at Intel. "If you consider that PC technologies today
have touched a billion people, that's fairly impressive. But there are five
billion lives that we haven't touched yet. And we are driven every day by the
opportunity to deliver the innovations that will reach the vast worldwide
population of potential users of our technology."

Another Billion in Five to Six Years

Gartner Dataquest calculates that the next billion PCs
could ship far faster

than those that came before. Between 2007 and 2008, the
PC industry is

projected to reach the milestone of 2 billion PCs, with
the greatest growth opportunity coming from high-volume emerging markets in
places such as China, Latin America, Eastern Europe and India.

Intel believes that as technology goes increasingly
global, the focus must remain on developing the faster, more powerful processor
technologies that users covet, while enabling "anytime, anywhere" computing and
making PCs more intuitive and easier to use.

"Today, humans have to work with computers on the
computer's terms," explained Gelsinger. "Tomorrow, we want to make computers
work with humans on their terms. That vision includes developing PCs that can
recognize speech, gestures and video, and it means achieving breakthroughs that
will make the interaction between people and computers a truly immersive
experience in the future."

"Ultimately, we envisage a world in which billions of
people are seamlessly connected to the Internet, all the time and anywhere, with
a rich set of services that are enabled by wireless technologies," Gelsinger
said.

Professor Sir Alec Broers, Vice-Chancellor of the
University of Cambridge, who has served on numerous British Government, EEC and
NATO committees and currently serves on the Council for Science and Technology
added, "The capability of PCs far exceeds anything that we foresaw in the early
eighties when they first appeared. It was predictable that they would take over
office tasks, such as typing and accounting, but we never imagined that they
would gain the power to rival mainframe computers in mathematical computation,
let alone replace the photographic darkroom and the movie film editor. But this
is only the beginning."

About Intel

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