Intel Outlines Web Appliance Strategy

Company to Provide Appliance Management Software, Services Packages and Family of Intel-Branded Appliances

SANTA CLARA, Calif., Jan. 5, 2000 - Intel Corporation today disclosed its plans to deliver consumer Web appliance products. Intel's strategy is to provide three major components -- appliance management capabilities, services package building blocks, and a family of Intel-branded Web appliances designed for accessing the Internet -- to telecom operators and service providers, who will offer them to consumers.

"We see a significant business opportunity to bring the Internet to new devices in the home," said Claude Leglise, vice president, Intel Architecture Business Group, and general manager of the Home Products Group. "Our strategy focuses on providing telecom operators and service providers with a cost-effective platform on which they can offer their services and remotely manage the new appliances. We are excited to help provide consumers with a fast and simple way to access new Internet services."

Multi-Faceted Offering
Intel said it is developing a family of Intel-branded Web appliances that service providers can use to deliver new consumer services. The first such products, to be available in mid-2000, will integrate Internet access with telephony features such as call management and unified messaging.

Intel has signed an agreement with Telcordia Technologies, Inc. (formerly Bellcore) for Telcordia to serve as Intel's telephony solutions provider for the Web appliance. Telcordia will provide enhanced telephone functionality, Custom Local Area Signaling Services (CLASS) and Custom Calling Service support, and intelligent capabilities that enable Call Management applications. Intel is also working with Lucent Technologies to provide a unified messaging solution for service providers. Future products will also enable retailers to offer e-commerce services to consumers.

Intel also intends to assist service providers in developing service offerings. In this effort, Intel will work with other companies that will provide applications and content for the Intel Web appliance. Intel has signed an agreement with InfoSpace, a leading Internet infrastructure company, to enable a wide variety of communications, commerce, and portal services that can be branded by Intel's customers.

Intel further plans to provide service and telecom providers with server software based on standard management technologies to enable cost-effective remote support of the Intel Web appliances, and other Internet access devices.

Worldwide Support for Web Appliance
Intel is already working with telecom operators, Internet service providers (ISPs) and e-commerce retailers worldwide to deploy new services based on its Web appliance platform in 2000. These include NEC's BIGLOBE in Japan and LASER-Galeries Lafayette Group in France.

NEC, which is supporting Intel's Web appliance development for the Japanese market, plans to sell it to banking companies, application service providers as a financial terminal and as a home service terminal, starting mid-2000. NEC is focusing on capturing new Internet users with the combination of the Web appliance and new services.

LASER-Galeries Lafayette Group has selected Intel's Web appliance products to provide personalized e-commerce services to consumers across Europe. LASER will offer Intel Web appliances to consumers in Europe in mid-2000 working with several retail and services companies.

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