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To: FISHERMAN who wrote (4823)	11/18/1998 12:05:00 PM
From: Scrapps	Respond to of 9236

Intel eyes more networking firms By Bloomberg News Special to CNET News.com November 17, 1998, 4:20 p.m. PT update Intel, the world's No. 1 semiconductor maker, plans to buy more computer-networking companies to boost its share of the fast-growing market for equipment that links computers to each other and the Internet. "We'll probably make some more acquisitions," chief executive Craig Barrett said at a dinner with journalists during Comdex in Las Vegas. "We're looking at some other people." Intel last month agreed to buy Shiva for $6 a share, or $185 million in cash, to acquire products that connect computers in far-flung offices. Intel, whose chips are in most computers, is making the push because sales of networking equipment are growing faster than other types of computer-related gear and networking technology is helping drive PC sales. "The know that this could be a meaningful business for them," said Martin Pyykkonen, a networking industry analyst with CIBC Oppenheimer. Intel, which makes PC connector cards and low-cost computer switches, bought Shiva to expand its line of networking products for small and medium-size businesses. Additional takeover targets also are likely to be makers of low-cost networking gear that Intel will sell in volume through distributors, Pyykkonen said. "Intel knows how to push a lot of product through the [distribution] channel," he said. QUOTE SNAPSHOT November 18, 1998, 8:42 a.m. PT Intel Corp. INTC 109.8125 +1.3125 +1.21% Santa Clara, California-based Intel has made other networking acquisitions in the past few years, including Case Technologies and Dana Communications, and has made investments in Xircom. Intel sells its so-called gigabit Ethernet switches, which speed data in corporate networks, through a distribution agreement with Fore Systems. Fore gets most of its revenue from powerful, expensive switches used by corporations to combine voice and data traffic on their networks. The Pittsburgh-based company uses its Intel partnership to broaden its product line. "That [partnership] is a natural fit for both of them," Pyykkonen said. Intel invests in or acquires companies that have technology to spur demand for PCs, 90 percent of which use Intel microprocessors. The chipmaker wants to alleviate bottlenecks, such as slower memory and sluggish flow of data and graphics displays, which frustrate many PC users. The fact that networking-equipment makers like 3Com, and networking chip makers such as Broadcom, are putting more networking functions into their chips is a plus for Intel, which has years of research experience building computing functions into its chips.