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To: Joey Smith who wrote (44621)	1/9/1998 11:06:00 AM
From: Paul Fiondella	Read Replies (1) \| Respond to of 186894

Joey could you expand a bit on the OEM BTO model conversion Also do you have any feelings about what happened to the 25% of production in the last quarter that was going into PII production. Do you feel the market absorbed it? You see if the BTO model were in force then the pressure on Intel would be to produce more 166MHz Pentiums than say 233MHz PII's. If Intel resisted then not wanting to hold inventory of chips they couldn't sell the box makers might shift to a manufacturer of CPU's that could give them the product that matched their sales projections. You also have the price cutting Intel has been doing, making it even tougher to just accept whatever Intel produces.

To: Joey Smith who wrote (44621)	1/9/1998 11:33:00 AM
From: Paul Dieterich	Read Replies (1) \| Respond to of 186894

Intel: Nothing To Fear From The FTC (01/08/98; 9:29 p.m. EST) By Gabrielle Jonas and Mary Mosquera, TechInvestor Intel said Thursday it is confident that the Federal Trade Commission's investigation into the chip maker's proposed purchase of Digital Equipment's semiconductor operations will not encounter any roadblocks. In October, Digital agreed to sell its semiconductor operations to Intel for $700 million to settle a patent-infringement lawsuit. As part of the settlement, Intel would manufacture Alpha processors for Digital, and the two companies also signed a 10-year cross-licensing pact. But last month, FTC officials requested more information from Intel and Digital about the deal. "We continue to remain optimistic that this proposed transaction will be approved," said Chuck Mulloy, an Intel spokesman. "We think it's a fair transaction [and] we don't believe it's anti-competitive." The FTC is evaluating the acquisition part of the settlement, said Victoria Streitfeld, a spokeswoman for the regulatory agency. Streitfeld added that such an investigation is a normal procedure under federal antitrust laws. The settlement stemmed from a Digital suit accusing Intel of using technology from Digital's Alpha microchip in its Pentium processors. The 10-year cross-licensing agreement would give Intel the rights to make and sell DEC's non-Alpha semiconductor products. In turn, Digital will be able to develop entire systems based on Intel's IA-64. Turning control of the Alpha chip over to Intel disarms Digital, a formidable competitor Intel in the high-end chip market. But according to Intel's Mulloy, Alpha "will continue to be a competitive product in the marketplace." Intel, he added, is just "serving as a foundry, as a manufacturer of that part for Digital."