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Thursday February 18 3:29 AM ET Intel Sets $300 Million Ad Campaign For Pentium III By Therese Poletti SAN JOSE, Calif. (Reuters) - Intel Corp. (Nasdaq:INTC - news), the world's largest computer chip maker, will launch its new Pentium III chip with a $300 million advertising and marketing campaign -- its largest ever. Touting the Pentium chip's multimedia capabilities, such as better quality video, audio and graphics, Intel executives on Wednesday gave a ''sneak peak'' at the chip they said would give users a better experience, especially on the Internet. ''Behind this door is a better experience for the end user,'' Intel Chief Executive Craig Barrett said as he stood on stage in front of a giant blue door marked ''This Way In.'' The blue door later opened to a trade-show-like area of over 200 companies demonstrating software and hardware designed around the Pentium III -- ranging from faster speech recognition systems to more graphically intensive games to a professional video editing system for the PC. ''The 3-D stuff is interesting, especially what they are trying to do to improve the Web experience with ordinary dial-up phone lines,'' said Nathan Brookwood, president of Insite 64, a consulting firm in Saratoga, Calif. The chip has generated a lot of publicity already due to a controversial security feature that has prompted a boycott by privacy groups. The Pentium III also includes the PSN (processor serial number), which acts as an identification number for the PC. After protests from many privacy groups, who believe that the chip will compromise user privacy on the Internet, Intel has decided to ship PC makers software that will switch the PSN to the off position when the system is booted up. With the software patch, a user must actively click on the PSN feature in order to use it. Intel said many PC makers are shipping PCs with the software patch for consumers, but for corporate users, Intel said the software utility patch was not an issue. ''They are not doing that for business PCs because it's a valuable feature,'' said Mike Aymar, vice president and director, platform launch organization. Aymar said that Intel had listened to the privacy groups and has given consumers a choice with the software utility. Few technical details about the Pentium III processor were available, except the clock speeds, which will start at 450 and 500 megahertz when the product is shipped next week by PC makers. Executives said they were holding back on details and pricing of the chip until its Feb. 26 official launch date. A Pentium III running at 550 megahertz will be available sometime in the second quarter. Personal computers running the chip are expected to be priced under $2,000, Intel executives said. The new processor includes a new instruction set called Internet Streaming SIMD Extensions, which is a next generation of Intel's MMX multimedia technology to accelerate three-dimensional processing, audio and video streaming, digital imaging and faster speech recognition. Earlier Stories Intel To Launch Pentium III Amid Protests (February 17) Intel Cuts Prices On Low-Cost Celeron Chips (February 16) Intel To Launch Pentium III Amid Privacy Protests (February 16) Feb 19 | Feb 18 | Feb 17 | Feb 16 | Feb 15 | Feb 14 | Feb 13 | Feb 12 | Feb 11 | Feb 10 Index | Top Stories | Business | Tech | Politics | World | Local | Entertainment | Sports | Science | Health Questions or Comments Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.