100 Millionth Boxed Processor

Intel’s Channel Operation Ships 100 Millionth Boxed Processor
Important Milestone Exemplifies Success of Seven-Year Program

AUCKLAND, March 13, 2002 – Intel today announced it has shipped its 100 millionth boxed microprocessor through its worldwide reseller sales channel. The 100 millionth chip, an Intel Pentium 4 processor, was produced last week.

“This is an important milestone for our channel business, because it shows how far we have come in making Intel products broadly available for system builders and resellers around the world,” said Jim Yasso, vice president of Intel’s Reseller Products Group. “This sales channel, which is very important for reaching small businesses and supporting strong growth in emerging markets, has shown its resilience during the recent economic downturn, and continues to rapidly adopt new technology with a highly flexible business model.”

Intel started shipping boxed processors in Asia in late 1994 and in North America in late 1995 (the Intel Pentium processor at 60, 66, and 90 MHz). The company’s objective was to make Intel chips and technical information available to smaller system builders, who build “white box” (unbranded or privately branded) personal computers.

Today, Intel’s reseller channel encompasses a broad range of 60,000 companies who build their own desktop, mobile and server systems in 75 different countries. Intel has developed channel membership programs designed to provide marketing, sales and technical support to ensure that these companies can deliver competitive systems and solutions to their end customers. Sales through the channel now accounts for more than a third of total Intel processor sales, and products such as Intel-branded desktop boards, server boards, and networking equipment are also available through the channel.
Despite difficult economic conditions, 2001 saw record sales of Intel processors and desktop boards through the reseller channel, and the channel was instrumental in ramping the new Pentium 4 technology worldwide.

The majority of Intel channel customers prefer to buy boxed chips, and Intel plans to increase the amount of boxed product available through authorised distribution this year. Intel boxed processors are specifically designed to meet the needs of system integrators, and are shipped with an Intel-designed fan heatsink and Intel® Inside logo label, and are covered by a three year limited warranty.

In Asia Pacific in the second half of 2001, Intel's channel processor sales grew 42% (vs. the same period in 2000). Board sales in Asia Pacific grew 106% year-to-year.

Intel’s channel programs have been designed to target reseller companies of any size, from the thousands of small integrators who build hundreds of PCs a month to the hundreds of large, regional system builders who sell thousands of PCs per month. While these companies service all end-user segments (consumers, business, government and education), they are the preferred source for small and medium businesses and have a very strong consumer retail presence in emerging markets.

ENDS

About Intel
Intel, the world’s largest chipmaker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom

* Other names and brands may be claimed as the property of others. Intel is a trademark or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.

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