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To: MONACO who wrote (75391)	3/4/1999 5:38:00 PM
From: Amy J	Read Replies (3) \| Respond to of 186894

Monaco, Re: What does Level One Communications Inc. bring to the table? "The acquisition marks a significant push by Intel to move into the fast-growing networking market, where it said it will now become a leading component supplier. "We're continuing to look for other acquisition candidates," said Intel chief executive Craig Barrett. "We are deadly serious about our networking communications group." Barrett said today's merger "provides us with the silicon building blocks necessary to supply the rapidly growing demands created by the Internet and e-commerce." Level One's chips contain built-in communications features, used by network-equipment makers such as 3Com, Cisco, and Hewlett-Packard to save costs by reducing the parts in their gear. The transaction is expected to be completed by the end of the second quarter, at which time Level One will become a wholly-owned subsidiary of Intel. Level One's 800 employees will be transferred to this subsidiary. While the market for networking equipment continues to grow by leaps and bounds as use of the Internet expands, Intel is facing pricing pressures at the low end of the x86 processor market from Advanced Micro Devices. Today's move will help insulate Intel's profit margins in the volatile market for PC chips. Bloomberg contributed to this report. Amy J

To: MONACO who wrote (75391)	3/4/1999 5:49:00 PM
From: t2	Respond to of 186894

Monaco--I don't have a clue about Level 1. Glad to see other people on this thread do.

To: MONACO who wrote (75391)	3/4/1999 7:25:00 PM
From: Jeff Fox	Read Replies (2) \| Respond to of 186894

MONACO, re:"T2000...So do you know what Level 1 brings to the table?" Sure do... - a key to the high speed internet. Level One is a specialty manufacture of chips that combine analog functions with some logic. These parts are the stuff that actually connect networks to the ethernet, cable or phone wires. They say it like this, "mixed-signal integrated circuits for high-speed digital signal telecom and networking application". By "mixed" they mean that they have a fab process that can make great linear circuits combined with adaquate digital on the same chip. These form tranceivers that drive the lines. Intel can not do this now. All of there massive fabs are tuned to make great digital circuits only. Up to now Intel has purchased these type chips for its network products from the likes of Level One or National. Intel has had a close relationship (as a customer) with Level One since L1's inception. L1 is located in Sacramento nearby Intel's Folsom campus. This press release is an example of this business: zdnet.com By merging L1, Intel gains critical components and technology to meet three requirements: - Gigabit Ethernet Drive tranceivers - Cable Modem tranceivers - ADSL twisted pair tranceivers The first business is on track, but the latter two are in their infancy. I see this as an Intel's move to crush the bottlenecks of the Internet. Intel intends to assure the rapid widespread deployment of the wideband Internet. By merging into Intel, L1 will learn how to scale up quickly, and ramp up products on schedule and with high quality. The new Intelabees will need retraining to think right. I'm sure they have no experience with working with the high pressure that is the result of great goals combined with unlimited resources. I think this is a gutsy and great move by Intel top management. This shows commitment, control, and determination; the qualities that allow Intel to control its fate. Intel doesn't wait around hoping others find solutions for its problems. Jeff