Intel Press Release

Dr. Andrew S. Grove, Ceo, Intel Corporation, Warns European Leaders Of Potential "Technology Deficit"

DAVOS, Switzerland, February 3, 1997 -- Intel President and Chief Executive Officer, Dr. Andrew S. Grove, in his opening plenary session speech at the World Economic Forum in Davos, Switzerland, today advised European government and business leaders to take advantage of their existing infrastructure and substantial investments in information technology (IT) as a competitive tool in the race towards globalization. He said that without significant national programs and incentives towards increased utilization of existing technology, IT investments alone would not be enough to maintain competitiveness with emerging markets.

Using Intel as an example, Dr. Grove demonstrated how a global $20 billion business uses PC based electronic communications to give it a competitive advantage. Intel has invested $450 million in its PC-based digital communications infrastructure, has 42,000 PCs for its 48,500 employees who send 1 million electronic mail messages per day. Dr. Grove said, "In modern business, speed is the difference between success and failure - speed of decision making, speed in meeting customer needs, speed in delivering products when and where the market needs them - these are some of the critical factors required to win globally."

Also in his speech Dr. Grove described the Internet as a Strategic Inflection Point (a point in the life cycle of an industry which is undergoing fundamental change). He argued that the Internet will radically change and create new industries from today's telecommunications, media and services industries. Such radical changes create opportunities for businesses and economies which can operate in these new industries. These changes are already taking place throughout the world and Europe has the opportunity to be a global leader given its current IT investment and infrastructure. A specific example Grove cited was that the Internet provides a direct link to consumers for advertisers of goods and services without having to go through an intermediary like television or print media.

Grove asserted that Europe's communications infrastructure is an advantage but he balanced this with data showing the growing gap in Europe's use of technology compared to the US and emerging markets in Asia. "The data shows that Europe, while rich in infrastructure and PC consumption, is relatively poor in terms of technology utilization. Over the long term, Western Europe is forecasted to lag behind emerging markets in the deployment and utilization of PC technology," he concluded.

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