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To: FJB who wrote (17886)	5/29/1998 10:21:00 PM
From: Mr. Aloha	Respond to of 25960

Oops, I thought it had to do with sample production?? Maybe I was halusinating? NEW YORK (CBS.MW) -- Intel Corp. (INTC) may slide lower Monday after postponing the release of its much-anticipated Merced processor. The giant chip maker said it expects to move production volumes from 1999 to mid-2000. Sample volumes of the chip are expected to be available in 1999. The company attributed the delay to a more precise schedule and a better understanding of the product development cycle. Merced will be the first chip based on the next-generation architechture called IA-64, co-developed with Hewlett-Packard(HWP). The Merced is expected to run at speeds of about 900 megahertz and use about 40 million transistors. The Pentium II, currently Intel's most advanced chip, runs at 300 megahertz on 7.5 million transistors. Many analysts expect the Merced to allow Intel to further penetrate the corporate high-end market and cement its dominance of the PC industry. Shares closed down 2 1/16 at 71 7/16, but fell to 70 1/2 in after-hours trading. Aloha

To: FJB who wrote (17886)	5/29/1998 10:23:00 PM
From: BillyG	Read Replies (4) \| Respond to of 25960

You're right Bob, it sounds like the Merced is far from production. So, why the delay? The market for this type of chip? Is the design taking longer than expected? Or is it because Intel has decided to scale back its fab construction schedule (I don't know if it has) in order to reduce expenses and make the quarterly numbers look better? Or are they waiting for the FTC to help them with the design blueprints? Any other speculations?