Intel Acquires Thinkit Technologies, Inc.

Adds Worldwide Resources to Communications Chip Design Capabilities

BANGALORE, India, Feb. 3, 2000 - Intel Corporation today announced it has entered into a definitive agreement to acquire privately held Thinkit Technologies, Inc. The agreement includes the acquisition of Software & Silicon Systems Pvt., Ltd., Thinkit's wholly owned subsidiary based in Bangalore, India.

The Thinkit acquisition adds to Intel's design capabilities for advanced communications silicon on a worldwide basis. The purchase also marks the 11th networking and communications related acquisition announced by Intel since January 1999. Terms of the all-cash transaction were not disclosed.

Thinkit Technologies specializes in advanced design for chips used in networking and communications products such as switches and routers. The Bangalore-based Software & Silicon Systems group currently designs communications silicon for Intel's Level One Communications subsidiary. When the acquisition is completed, Intel will operate communications chip design facilities at more than a dozen sites worldwide.

The purchase complements Intel's efforts to provide advanced silicon components for networking and communications applications. In September, the company announced the Intel® Internet Exchange™ (IX) architecture, a comprehensive "blueprint" for building next generation networking equipment. The Intel IX architecture uses programmable silicon to allow new functions and features to be added to networking equipment quickly and cost effectively.

"The acquisition of Thinkit further expands the worldwide reach of Intel's silicon design capabilities for networking and communications," said Mark Christensen, vice president and general manager, Intel Network Communications Group. "Adding this new silicon design expertise provides Intel with additional resources for advancing the Intel Internet Exchange architecture. This, in turn, will help enable networking and communications systems companies to build faster, more intelligent networks."

"Chips for networking and communication infrastructure are pushing the edge of silicon technology and tools," said Sridhar Mathani, Thinkit Technologies president and managing director of the Software & Silicon Systems subsidiary. "Our expertise in designing multimillion gate communication chips coupled with Intel's market segment focus will speed time-to-market and provide Intel's customers with high performance, cost effective and adaptable solutions."

Intel has had a presence in Bangalore since 1988 and also operates additional offices in Chennai, Mumbai, New Delhi, Ahmedabad and Calcutta. In addition, Intel announced last year it was creating a Bangalore-based development center to provide software development support for the company.

"With the high-tech industry contributing an increasing proportion towards India's economy, this acquisition is another sign of Intel's commitment to India," said Avtar Saini, Intel's co-director for South Asia and director of Intel's India Development Center.

Upon completion of the acquisition, Thinkit will become a wholly owned subsidiary of Intel, reporting within Intel's Network Communications Group.

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