Visteon's Ford Microelectronics Development Team Joins Intel

Team Strengthens Intel's Design Capabilities in Next Generation Cellular Communications

SANTA CLARA, Calif., June 26, 2000 -- Intel Corporation today announced that Visteon Corporation's Ford Microelectronics Inc. (FMI) design team has joined Intel's Wireless Communications and Computing Group (WCCG).

Intel also acquired certain FMI assets through an agreement with Visteon, of which FMI is a wholly owned subsidiary. Terms of the all cash transaction were not disclosed.

The FMI team, based in Colorado Springs, Colo., will help Intel speed the development of products for next generation cellular devices. These so-called 2.5G/3G devices will combine high-speed Internet access and voice communications over cellular networks.

"We are pleased that this talented design team has joined Intel, where they'll play a key role in developing our advanced cellular products," said Ron Smith, Intel vice president and general manager of WCCG. "The team's analog and mixed signal IC design expertise complements Intel's portfolio of StrongARM® processors, flash memory and cellular chipsets."

"We're excited about joining Intel and helping to develop a new generation of components for advanced cellular applications," said Tom Lombardi, former president of FMI.

Intel plans to develop the former FMI facility, located about five miles from Intel's Fab 23 manufacturing facility in Colorado Springs, into an Intel design center. The team will continue to be led by Lombardi, who reports to Tom McCloud, general manager of Intel's Central Capabilities Engineering group, which supports WCCG.

Intel announced its commitment to wireless communications with the formation of WCCG in December 1999. The group focuses on providing wireless building blocks for high speed data and voice communications in the growing cellular market segment. Intel's wireless direction includes industry leading flash memory technology; advanced cellular chipsets; high performance, low power processors; and advanced digital signal processing capabilities. Additionally, the company has opened Intel® Wireless Competence Centers in Sweden, Japan and China to work with regional industry leaders on developing wireless solutions.

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