Intel Launches Initiative to Help Resellers Participate in Multibillion-Dollar E-Rate Program

Federal Government Has Received Applications from Educational Institutions Requesting over $2 Billion for 1998

HILLSBORO, Ore., June 2, 1998 -- Intel Corporation announced today a new program designed to help resellers and educators successfully participate in the federal government's Education Rate (E-rate) fund.

The E-rate fund was established in 1997 by the Federal Communications Commission to subsidize eligible K-12 school and library purchases of telecommunications services, internal connections and Internet access. More than 30,000 applications for 1998 funding have been received to date by the Schools and Libraries Corporation (SLC), the nonprofit entity established to oversee the program.

Intel's E-rate program includes components for both resellers and educators. Resellers will benefit from special discounts on eligible products, payment terms extended through distribution, network design assistance, seminar training and online product training. Educators will have access to technology planning materials, network design assistance, newsletters and informational seminars.

Intel networking products offer resellers cost-effective solutions that:

• have a brand name known and trusted by educators;
• are totally scaleable to meet school networking needs at the classroom, school and district levels;
• are simple to configure, manage and maintain; and
• offer a complete infrastructure solution for connecting schools and libraries from the desktop to the Internet.

Products eligible for federal funding under the E-rate program include: Intel® Express hubs, switches, routers and Intel InBusiness™ networking products.

"We think Intel's reseller program, reputation and comprehensive product solutions will translate into closing more E-rate business," said Gary Kirtley, general manager of Network America. "The program provides us with the tools to successfully compete for a share of the growing educational market."

"Intel is constantly defining ways to empower children to learn and teachers to teach using digital technology. We are a strong supporter of government and private efforts to provide universal networking and Internet access to the nation's educational institutions," said Mark Christensen, vice president and general manager of Intel's Networking Products Division. "Our E-rate program is a step towards achieving this end."

"Intel is providing us with the products and services to connect every classroom in our district," said Joe Kitchens, superintendent of schools at the Western Heights School District in Oklahoma. "Through this program, every child in our school system will have access to the basic tools of electronic information."

Intel is making its E-rate program broadly available in the reseller and distribution channels, and is also participating in the E-rate program of major distributors such as Tech Data, Ingram Micro and Comstor. This participation includes an array of lead generation and marketing activities.

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