Intel And LG Electronics Announce Long-Term Business Agreement

SANTA CLARA, Calif., Aug. 28, 2000 -- Intel Corporation and LG Electronics Inc. (LGE) today announced the two companies have signed a long-term business agreement involving product sales, technology and intellectual property.

Although specific terms were not disclosed, under the agreement LG Electronics will expand its development and sales of products based around Intel microprocessors and chipsets. Intel and LGE together will also pursue additional market and sales opportunities. Over the course of the agreement, Intel and LGE will be evaluating the potential for LGE to provide additional products, manufacturing and design services for Intel.

"Intel's agreement with LG Electronics expands the relationship between our two companies," said Pat Gelsinger, Intel vice president and chief technology officer for the Intel Architecture Group. "The agreement also allows us to broaden the range of strategic business opportunities we can explore in the future."

"LGE views this enhanced relationship with Intel as an opportunity to become a global leader in mobile computing and the rapidly expanding markets for Internet appliances and home networking," said Dr. Hee-Gook Lee, executive vice president, Corporate R&D of LGE. "We hope to achieve this by combining LGE's world-class product development and manufacturing capabilities with Intel's cutting edge chip solutions and technologies."

The companies also entered into a patent cross-license agreement. Specific terms of the agreement are confidential, but the license agreement provides for an undisclosed payment from Intel to LGE.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

LG Electronics, founded in 1958, is a major global player in electronics & telecommunications, operating 60 subsidiaries in 34 countries with 54,000 employees worldwide. Headquartered in Seoul, Korea, LGE focuses on digital TV, CD-RW, DVD, CD-ROM, DVD-ROM drives, PCs, monitors, mobile handsets and PDPs. LGE is strengthening core competencies even more to further its reputation as the "Digital Leader" in electronic products and equipment in the digital era. Additional information is available at www.lge.com.

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