Intel Press Release

Intel StrataFlash Memory Program Created To Support Cellular Phone Manufacturers

SANTA CLARA, Calif., May 31, 2001 - Intel Corporation has established a new program for original design manufacturer (ODM) customers of its Intel® StrataFlash® memory that will help them design and assemble cellular phones more quickly.

Four Taiwan ODMs of cellular phones - Acer Communications & Multimedia Inc., Arima Communication Corporation, Compal Communications, Inc. and GVC Corporation - are the first companies to participate in the program, which features competitive pricing, continuous supply, software porting and technical design assistance. The role of cell phone ODMs has become increasingly important as more major cell phone manufacturers outsource the building of handsets.

"Internet cell phones are requiring significantly larger amounts of flash memory as voice and data applications converge in the wireless Internet economy," said Curt Nichols, vice president and general manager of Intel's Flash Products Group. "Intel StrataFlash memory provides twice the density in the same space at a lower cost. Intel is excited to offer this program to our ODM customers because they rapidly adopt and produce new technologies."

Intel StrataFlash memory incorporates multi-level cell technology to provide 2X the bits in 1X the space. Higher density memory enables cell phone manufacturers to enhance cellular features for its customers to include storing audio music files, Web caching, Java* applications and more, without significantly increasing the cost of building the phones. Coupled with Intel StrataFlash, Intel's Flash Data Integrator (FDI) software offers customers the flexibility of user-defined code and data sizes with no hardware re-design required for changing systems. Starting in 1997, Intel was the first company to ship high volumes of multi-bit per cell flash memory with Intel StrataFlash technology. Intel StrataFlash memory represents more than 25 percent of Intel's current flash bit shipments.

"Intel StrataFlash memory and supporting software will enable us to deliver the designs and manufacturing necessary to bring high-quality, high-value phones quickly to the market," said Irwin Chen, vice president of Acer Communications & Multimedia Inc.'s wireless business unit.

"Arima is excited to be using its design, manufacturing and expertise in the GSM/GPRS arena with Intel StrataFlash technology," said Arima Vice President Owen Chen. "We look forward to developing communications solutions that will meet consumer communication needs and drive the platforms of the future."

"By joining this program, Compal Communications, Inc. can use Intel StrataFlash technology to bring more functionality and features into mainstream cell phones while reducing time-to-market," said Stephen Chen, senior director of Compal Communications, Inc.'s research and development department.

"Working with Intel is important for GVC, as we strive to meet the increasing demand for Internet-enabled phones," said Paul Wang, vice president of GVC's communication group. "Intel StrataFlash technology provides the highest density and lowest cost per bit to enable us to bring new products that support content and services for next generation wireless networks."

Intel's Wireless Communications and Computing Group has introduced the Intel® Personal Internet Client Architecture (Intel PCA) to accelerate the development of new wireless Internet applications and devices. Intel will offer a wide range of products, including flash memories, to help facilitate the growth of these new wireless solutions.

First introduced by Intel in 1988, flash memories today are found in thousands of common products, including mobile phones, MP3 music players and handheld PC organizers.

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