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To: TTOSBT who wrote (50626)3/14/1998 7:06:00 PM
From: Paul Engel  Read Replies (1) | Respond to of 186894
 
TTOSBT - Re: " Intel now has new online callin service (If INTEL inside)"

The press release follows.

Paul
{================================}
Tuesday March 10, 10:49 pm Eastern Time

Intel gets into customer service business

By Therese Poletti

SAN FRANCISCO, March 11 (Reuters) - Semiconductor giant Intel Corp. has found what it
hopes is another way to sell more PCs -- by getting into the customer support business.

On Wednesday, Santa Clara, Calif.-based Intel will unveil a foray into customer support, with the
launch of a new operation within Intel called the Internet Services Operation.

Intel will begin offering the Intel AnswerExpress Support Suite -- targeted to small business and
consumers -- to give PC users one-stop, fast access to live help and automated online support.

''It's mother in a box,'' said Cheryl Currid, president of Currid & Co., a Houston-based computer
consulting firm, citing recent market research which showed that 45 percent of U.S. homes now
have PCs. ''We all went out and bought them, but do we know what to do with them?''

Intel will charge an initial three month subscription fee of $49.95, which includes call support,
computer virus detection and removal, online data backup and PC tips and tutorials.

Customers can continue to receive the comprehensive service for $14.95 a month, or $5.95 a
month with co-pay call support available as needed, of $19.95 per call.

''There is a certain segment that was not serviced,'' said James Johnson, Intel vice president
and general manager, Internet Services operation. ''Seventy percent of questions are how-to
questions, such as my tool bar disappeared .... Or, it's 10:30 at night and I have a presentation
tomorrow and I can't get this done.''

Johnson said that Intel aims to be the third party after the PC manufacturer's warranty has
expired, as well as a complementary service to hardware and software offerings.

Intel said it has fewer than 100 people working in the operation, which will offer service from 5
am to 11 p.m. Pacific Time, seven days a week, with 24-hour support a goal.

Intel said because the services business is so different and less capital intensive than
semiconductor development and manufacturing, it was able to start up a group after deciding
last May to focus on providing customer service.

''We use a lot of similar techniques as a start-up,'' said Johnson. ''Frank Gill was my venture
capitalist.'' Gill, an Intel executive vice president, heads up the company's small business and
networking group. Intel formed the operation in a totally separate building at its Hillsboro, Ore.,
site, to give the project a start-up flavor and focus.

Intel declined to say how much money it is investing in this business.

Intel said its AnswerExpress Support Suite complements programs available for new PC
purchases, such as the CompUSA Technology Assurance Program, available at its
superstores.

The suite is also available in North America at Computer City and Computer Discount
Warehouse. Customer can also sign up for the service on the Internet, at
www.answerexpress.com.

''I think it's really interesting, especially this backup and virus protection. This is the kind of stuff
people just can't deal with,'' Currid, the consultant, said. ''These are real critical services and if it
works, and I'm kind of bullish, it could take people to a usage level not seen in years.''

Intel said it does not plan to target large corporate users, who typically have large in-house
computer maintenance, training and servicing staffs, or third-party providers.

''Craig Barrett (Intel's president and chief operating officer) said one billion PCs is our goal,
and to sell one billion PCs, you need to have one billion happy customers,'' Johnson said. (INTC
- news; CPU - news)

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