Intel Capital Launches Russia Venture Investment Operations

Announces ru-Net Holdings as First Investment in Russian Company

MOSCOW, May 15, 2003 - Intel Capital launched its operations in Russia and signed an agreement to make its first venture investment in a Russian company, Intel Corporation announced today.

Intel Capital has agreed to invest in Moscow-based ru-Net Holdings, an IT investment company whose primary asset is a systems integration business called TopS Business Integrator. The investment will be made to help TopS provide a solutions menu, based on Intel Architecture, to large Russian corporations. Financial details of Intel Capital's investment were not disclosed.

"Russia has great potential in both computing and communications and is one of Intel's fastest growing markets. Intel Capital's investments in companies like ru-Net Holdings will help us accelerate the adoption of advanced computing technology by Russian enterprises," said Christian Morales, vice president of Intel's Sales and Marketing Group and general manager of Intel's Europe, Middle East and Africa Operations. "Intel Capital's willingness to invest in Russia broadens Intel's ability to work closely with the ICT community."

Intel Capital will invest in companies, such as systems integrators and software developers, which complement Intel's products and help accelerate business' adoption of Intel processor-based technology across Russia and the Ukraine. It also will fund companies developing technologies, such as materials science or semiconductor process technology, which could help Intel market or produce its products. Intel Capital also will invest in companies producing emerging technologies, including nanotechnology and wireless technology.

"Russia is a critical market for Intel," said Claude Leglise, vice president of Intel Capital. "Intel Capital has invested in companies in emerging markets worldwide to support Intel's strategic objectives. A wealth of technology expertise distinguishes Russia from most other emerging markets and we are excited about the opportunities to invest in the unique and innovative technologies developed here."

To advance the practical working knowledge of developing and executing successful business models, Intel Capital aims to foster the development of entrepreneurial experience within the high growth segments of Russia's high tech industry by working with the local investment community and other organizations that support entrepreneurship.

Intel Capital has been investing in companies across Europe since 1999. This includes operating in Central Europe for the past three years, having made investments in companies within Poland, Czech Republic and Hungary. Two investment professionals, with more than seven years of global Intel experience and seven years of Russian investment experience will staff Intel Capital's Moscow office.

Intel Capital is one of the most active venture investors worldwide and has invested in more than 1,000 information technology companies in more than 30 countries. In 2002, Intel Capital invested more than $200 million in more than 100 companies. Approximately 40 percent of Intel Capital's investments in 2002 were in companies based outside the United States.

Intel Capital focuses on making equity investments and acquisitions in support of Intel's strategic interests and invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. Intel Capital currently has holdings in more than 475 companies.

Intel is a registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.

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