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To: Barry Grossman who wrote (61682)	8/2/1998 10:38:00 PM
From: Paul Engel	Respond to of 186894

Barry - Compaq has 1500 Initial Orders for XEON Servers. If these are split between 2 and 4-CPU servers, at an average of 3, this could be a nice $4,500,000 order for Intel for August, assuming $1000/XEON CPU. I hope DELL's business is doing as well as Compaq's. Note - Microsoft received the very first Compaq XEON Server. If their is a "system crash", I wonder who Microsoft will blame - themselves, Compaq or Intel? Paul {========================================} infoworld.com Compaq and Dell ship Xeon-powered servers By David Pendery InfoWorld Electric Posted at 4:18 PM PT, Jul 31, 1998 Compaq Computer and Dell are the first OEMs to break the Xeon logjam with their announcements that they are now shipping Xeon-powered servers. Dell began shipping its dual-Xeon PowerEdge 6300 earlier this week, while Compaq announced it shipped its first ProLiant 6000, also a dual-processor server, Friday. The company shipped its first ProLiant 6000, code-named Javelin, to Microsoft, said Tim Golden, Compaq director of enterprise server marketing. While Compaq and Dell may be the first, they will almost certainly be leading a charge. An Intel representative said the company has been shipping "screened processors" to OEMs for over a week. Although most server manufacturers announced availability of Xeon servers in late June, a problem in the processor chip set was uncovered, delaying shipments. The error was in the circuitry that checks Level 2 cache memory, coordinating CPUs accessing the same data in multiprocessor systems. Intel corrected that problem by July 17, the Intel representative said, but an additional erratum in the error correcting code on the processor pushed out shipments until the end of July. Compaq says that it has begun shipping its initial 1,500 orders for the new servers, and will ramp up full production into its channels in three or four weeks. "We are now confident that the process by Intel has cleared the problem," Golden said. He added that Compaq received its first "clean" Xeon processors from Intel Thursday. Golden said that Compaq had played a significant role in identifying the error during their testing, as well as in correcting the error during July. "Our test process is extensive so it's not uncommon that we could uncover bugs like this," Golden said. Compaq Computer Corp., in Houston, is at (281) 370-0670 or compaq.com. David Pendery is a reporter for InfoWorld. Go to the Week's Top News Stories Please direct your comments to InfoWorld Deputy News Editor, Carolyn April Copyright c 1998 InfoWorld Media Group Inc. InfoWorld Electric is a member of IDG.net

To: Barry Grossman who wrote (61682)	8/2/1998 10:50:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Barry - Our Government applies a small fine to IBM for Illegal Sales of Computers to Russia Federal Nuclear Center - and allows them to keep on exporting - while it harrasses the hll out of Intel and Microsoft. Is Lou Gerstner related to Klaus Fuchs? I think we have a dual standard here. Paul {=================================} infoworld.com IBM unit pleads guilty on illegal computer sale to Russia By Marc Ferranti InfoWorld Electric Posted at 4:32 PM PT, Jul 31, 1998 An IBM East European subsidiary has pleaded guilty in federal court to illegally exporting computers to a Russian nuclear research facility, agreeing to pay about $8.5 million in fines. In a plea-bargain pact Friday before U.S. District Court for the District of Columbia, IBM agreed with federal prosecutors that IBM East Europe/Asia Ltd. (IEEA) sold 17 RS/6000 computers to go-betweens acting on behalf of Arzamas-16, a "noncivil" nuclear laboratory operated by the Russian Federal Nuclear Center,* according to court documents that IBM made available today. Arzamas was doing research and testing on nuclear explosive devices. The sales were made despite the fact that regulatory bodies in the Unites States and Germany refused IBM's applications to sell the computers to Arzamas. As part of its plea bargain, IBM submitted a "factual proffer" to the court. In this document IBM agreed that in August 1996, IEEA sold 16 RS/6000 Model 7013-591 machines, two fiber channel switches, and related hardware and software valued at about $1.5 million to Ofort, an agent acting on behalf of Azamas, without applying to authorities in the United States for the export. An IEEA employee helped rzamas-16 install the computers, IBM said. In addition, in November 1996, Ofort received from IEEA an RS/6000 Model 9076-308 and related hardware and software valued at about $600,000. This machine also found its way to Arzamas, without IBM applying for an export license for the technology, IBM said in its plea agreement documents. IEEA has received a two-year suspension of export privileges, but after pledging that it will not sell computers for military or nuclear use, has been put on probation, during which it will be allowed to export computers, IBM said. The purchases came under scrutiny by the U.S. Commerce Department after Russia's minister for atomic energy announced his department had bought at least one computer through a middleman in Europe. According to U.S. export law, the sale of any computer overseas requires an export license if it is headed to a facility involved in nuclear explosives testing, according to the Commerce Department. The plea agreement signed today ends an investigation that has been under way since at least last October. IBM, in Armonk, N.Y., can be reached at (914) 765-1900 or ibm.com. Go to the Week's Top News Stories Please direct your comments to InfoWorld Deputy News Editor, Carolyn April