Intel, PictureTel Team to Accelerate Growth of
Videoconferencing
biz.yahoo.com
Tuesday January 19, 8:00 am Eastern Time
Company Press Release
Intel, PictureTel Team to Accelerate Growth of
Videoconferencing
Companies to Jointly Develop New PC-based Products
Intel to Invest $30.5 Million in PictureTel
HILLSBORO, Ore.--(BUSINESS WIRE)--Jan. 19, 1999--Intel Corporation [Nasdaq:INTC - news] and PictureTel
Corporation (Nasdaq:PCTL - news) announced today that they have entered into a distribution and joint product
development agreement to accelerate growth of videoconferencing worldwide.
Intel will also invest $30.5 million in PictureTel.
In combining their respective strengths in PC technology innovation and visual collaboration, the two companies will
develop high-quality PC-based solutions for customers' diverse communication needs and make it easier for customers to
access global services and support. The jointly developed products will take advantage of rapidly emerging markets and
technologies, including the next-generation Internet, broadband, cable modems, XDSL, and others. The companies
expect the result of their collaboration to be a larger, more competitive videoconferencing industry that distributes
products and building blocks through a wider range of channels.
Under terms of the agreement, Intel will provide PictureTel with distribution rights to sell the Intel® ProShare® Video
System 500, and exclusive worldwide distribution rights to sell and support the Intel TeamStation™ System. In addition to
its expertise in videoconferencing distribution, sales and marketing, PictureTel will provide its complete line of professional,
managed and maintenance support services for both products. These Intel products augment PictureTel's existing product
line of group, compact and desktop videoconferencing systems.
Intel and PictureTel also agreed to begin joint development of videoconferencing and collaboration products based on a
common PC-based technology platform. The common platform will be the foundation for future products that will feature
communication and multimedia capabilities such as collaboration over LANs, streaming audio and video, and real-time
conferencing. The full benefits of this joint development agreement can be expected in the year 2000. These future
products -- which will operate over multiple networks, including IP, ISDN and ATM -- will complement PictureTel's
existing product line and will be marketed under the PictureTel brand name. Intel plans to market the resulting
building-block components to other manufacturers and integrators.
''Through the strength of PictureTel's global distribution and service network, we expect a significant worldwide increase
in the use of PC-based videoconferencing products,'' said Gerhard H. Parker, executive vice president of Intel and
general manager of the New Business Group. ''We are delighted to have the global leader in visual collaboration embrace
the PC architecture as the core building-block for emerging videoconferencing solutions.''
The alliance will create the world's most comprehensive and widely distributed visual collaboration solutions, which will be
easier for customers to deploy and use.
''The combination of Intel's market-leading PC technology and PictureTel's global leadership in visual collaboration
applications will propel videoconferencing forward into the new millennium,'' said Bruce R. Bond, chairman and CEO of
PictureTel. ''By working together to develop new products and market segments, we will deliver the solutions that will
enable customers around the world to use visual collaboration in their mission-critical activities and make their businesses
more productive.''
About Intel TeamStation System
Intel TeamStation System is a conference room workstation that combines videoconferencing, Internet access, corporate
network access and PC applications in one convenient system. Based on the Intel Pentium® II processor, the Intel
TeamStation is a turnkey, high-performance system that brings increased productivity to conference rooms. Current
manufacturer's suggested retail price (MSRP) for the Intel TeamStation System with 128 Kbps capability is $8,999, and
$11,999 for 384 Kbps capability.
About Intel ProShare Video System 500
Intel ProShare Video System 500 is an add-in kit for desktop PCs. Priced at $799 (U.S. dollars) MSRP, it provides
excellent audio and video quality over both ISDN and LAN transports, and offers fully integrated data-sharing
capabilities. With its single-board design, Intel ProShare Video System 500 can be installed in approximately 30 minutes.
About PictureTel
PictureTel Corporation is the world leader in developing, manufacturing and marketing a full range of visual- and
audio-collaboration solutions. The company's systems meet customers' collaboration needs from the desktop to the
boardroom. PictureTel also markets network conferencing servers and a comprehensive portfolio of enterprisewide
services. PictureTel collaboration products and services eliminate the barrier of distance, enabling people to be Anywhere
Now™. Additional PictureTel information is available on the Internet at www.picturetel.com.
About Intel
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications
products. Additional information about Intel is available at www.intel.com/pressroom. |
