Intel® Centrino™ Mobile Technology Launch

Craig Barrett, Chief Executive Officer
Anand Chandrasekher, Vice President, General Manager, Mobile Platforms Group
New York, NY, USA
March 12, 2003

CRAIG BARRETT: Hello. Good morning and welcome to our technology launch today. This is really part of an international launch. It started several hours ago in Tokyo, then went to Beijing, then went to London, and now we're here in New York City.

I was not in Beijing, Tokyo and London. I had some other executives there, but I wanted to give you a feeling of the worldwide nature of the launch and how excited we are about it.

I hope as you listened to Malcolm Gladwell and his talking about tipping points that you get a measure of how significant we think this convergence of computing and communication is. And it's really much more than just the technology launch that Intel is doing today. It's really the technology launch that Intel is doing in conjunction with a wide variety of other technology product and service providers.

We're really trying to provide something that is an end user experience; something that real people using computing technology can take advantage of.

Malcolm said he didn't know whether this introduction of technology was a tipping point, but we firmly believe that it is. We firmly believe that really the convergence of technologies that is, computing and communications in the form of wireless computing is going to change the way real people do real things with computers.

We're very excited about it, excited about the whole concept of being unwired and what that means to the people using the technology.

If you really look at what's happening here, there are three things that are important in terms of giving the user of the technology an experience. One is there has to be a desire, a wanting of the individuals to use the technology. There has to be a device or capability of them to do so. And there has to be a deployment of that technology.

Malcolm used in his discussion the transistor radio amongst others, but in that instance, radios were there, but really the advent of the transistor radio gave people a freedom to use the technology anywhere, any time, anyplace. In essence, unwired.

And that's exactly what we want to do with the Intel® Centrino™ Mobile Technology. We want to take that technology, its brand, its brand promise and give that to the user, the people who use the technology around the world, to use that technology any time, anyplace, anywhere.

Obviously Intel doesn't do that by itself. Intel has to deal with a large number of other people involved in technology proliferation. But we are making investments, we're making the contacts, we're making the joint partnerships and relationships with many, many other people to bring this technology to the marketplace. And we think it has a great deal to offer to the people who use the technology.

So the desire, device, and deployment. Those are the three critical aspects coming together with the introduction of this technology today.

Ultimately, we provide the technology, but it's people who decide whether to use it or not. The exciting thing is I think people are really ready to use this technology.

I'm sure all of you here lug your laptops around with you, you look for phone jacks. Increasingly you look for high speed wired connections in hotel rooms. You get frustrated at airports. What we want to do is to provide an alternative to that. The alternative to the wired radio, if you will, in terms of the unwired combination of computing and communication.

The device is very simple. The device is really silicon capability that Intel brings to the party, advanced microprocessor technology, peripheral chipset technology, wireless technology. Putting those together in a coherent package, well tested, well verified package, combining with the software, the applications capability so it's seamless to the user of the technology.

That is what Centrino Mobile Technology and its brand means to the people who will buy it, who will use it. It means we provide the technology, we provide the brand promise behind it, and we work with others to achieve that brand promise.

If you look at deployment, it is really a worldwide deployment. People want to use computers everywhere, at any time, in any configuration.

So deployment has to take place with a wide variety of service providers, infrastructure providers, computer suppliers, and people who provide the software and applications expertise to take advantage of this capability.

We're excited about the people that we've been working with. You've seen some of it in the press recently. You'll see announcements going forward in the future, of the people we're working with.

This is really an industry wide collaboration, and I think, again, that is what makes a tipping point. It's not just a point solution, one person, one company trying to do something. In this instance, there's a ground swell of desire, there's a need, and there's a coming together of the industry to provide this capability.

So whether it's computer OEMs, telecommunications infrastructure suppliers, software providers, people that are providing hot spots, access points, all of this is happening as we talk. And you can ask yourself, well, what is new here? Hasn't this base technology been here? Obviously it has. But it is now coming together in a seamless fashion, coming together in a fashion such that the end user can be assured of the capability, the end user can have a great experience.

They can look at the technology, buy the technology, have the brand promise, and then experience the brand promise. That's what we're excited about delivering.

And it's not just here in New York. As I said, this is part of a worldwide effort, because, in fact, if you look around the world, there are places other than the United States that today have been much more excited and much more aggressive about introducing this sort of wireless technology than we have here domestically.

That doesn't mean there's no demand here. It just means there's a worldwide demand for the technology, and that's what we're trying to provide.

Now, the desire by people is essential. We think if you look at either the consumer or the enterprise, there's an immense amount of desire. The consumer wants computing anywhere, any time, anyplace in their house in an unwired fashion.

Increasingly, the consumer is going to want to have unwired connectivity from their computer to the Internet to their consumer electronic devices. To move big files around they need high bandwidth, high capability. This is what Wi Fi or 802.11 capability gives you.

If you look at the enterprise, a couple of very significant aspects of the enterprise are also lining up to make this a tipping point. We all know there has been a greater percentage of laptop computers sold on an annual basis. It keeps eating into the desktop computer marketplace. Why is that happening? Well, laptop cost of ownership continues to come down. Increasingly, we have a mobile work force. And increasingly, the cost of ownership of laptop computers comes down.

Increasingly, the technology that we provide in conjunction with the computer OEMs and the software service providers makes it easier for people to use the technology, and it costs less. It makes people more productive. Good return on investment.

All of these things come together at once: the technology, the desire for use, the infrastructure capability. This is what we're here celebrating today, if you will.

Now, if you look around the world, there's demand for technology. It's interesting that if you go to Mexico and you go to any of the Monterey Tech campuses, you find they're unwired. If you happen to go to the United Arab Emirates and the Dubai Women's College, you find it's unwired.

If you look at many major corporations, they're becoming increasingly unwired, whether it's Lufthansa, whether it's Bell Canada, whether it's McDonald's, whether it's Intel, we're getting unwired because of the convenience, the productivity, the efficiency, the ability to do something in a competitive fashion.

Increasingly you see that entire cities and towns, whether they be here in the United States or perhaps Zamora in Spain are becoming unwired cities, putting the capability in for all of its citizenry.

I think all of these are tremendously exciting developments. They're all coming together at the same time.

You've recently seen the list of the top 100 unwired cities in the United States led by Portland. This is a measure in terms of the infrastructure that's going in place and the computer technology and the software technology that's coming to meet that infrastructure, to meet the users' demand for this technology.

This is really, after 20 years of talking about it, the most tangible evidence of the convergence of computing and communications. We've talked about it, the industry has hyped it, but this is not so much an issue of the industry hyping the technology. This is an issue of the end user, the people who use the technology, demanding the technology and the infrastructure coming together to meet that demand.

We're going to talk a little bit in the presentation this morning about what the technology looks like and Anand Chandrasekher who is our Vice President of Intel's Mobile Platforms Group will come up and demonstrate the capability that his group has put together in conjunction with many other members of the industry. And that will be a fairly serious presentation, talking about the technology and its capability. But what I want to do is set the stage for Anand to come up here and show you a little bit of our hypothetical image of what transformation we're trying to make. That current user of the technology today, what they're striving for.

So we're going to roll a short video for you entitled "The Unwired Kingdom," and after that Anand will come up and talk a little bit about the details of the technology. So please roll that video.

(Video plays and ends.)

ANAND CHANDRASEKHER: Thanks, Craig. That was a great setup. I'm not quite sure which species I'm supposed to be on this video. I'll let you guys figure that out.

As Craig has talked about and Malcolm alluded to, people are demanding in the notebook computers the ability to be untethered. That means longer battery life to separate yourself from the wall. It means wireless connections. It also means they want more performance as they carry it with them in that form factor, and clearly they want it to be light.

So what users are demanding, what people are demanding are performance, slim form factors, light form factors, connectivity wherever they are, and battery life.

The integration of communications and computing allows us to deliver on that promise. That integration, however, takes innovation. It takes innovation at the silicon level, it takes innovation at the system level. It also requires partnerships at the ecosystem level so that we can deliver solutions in the marketplace that people can take advantage of and truly get productive and truly entertain themselves, or whatever they want to do with these notebooks.

I want to talk about the innovation and the partnerships that we put in place. Let's take a look at silicon innovation. We've worked at Intel over the last several years, invested heavily in developing a technology from the ground up, the CPU, the chipset, and the wireless components that all work together to deliver on the promise of long battery life, breakthrough performance, and wireless connectivity.

The best way to illustrate this is actually through a demo. I'm going to invite up here Brad Gospe, who is one of our technologists. I only have two hands, and I have three notebooks I'm going to activate, so I'm going to use Brad's help. Hi, Brad. When I say one, two, three, I want you to get these started. Okay. One, two, three, go.

So let me explain what I just got started here. The system on the extreme left is the Intel Centrino Mobile Technology system at 1.6 GHz from IBM. The system in the middle here is the Pentium 4 Processor-M system running at 2.4 GHz, also from IBM. And the system here is the Pentium III Processor-M system from IBM running at 1.2 GHz.

All three of these systems are running a series of spreadsheets, word processing applications, PowerPoint applications, some video rendering using Adobe Photoshop, and essentially putting some stress on the system.

This system here shows a graph up there on the top, and the magenta line is essentially the power consumption on that graph being consumed by the Centrino system. The green line is the power consumption from the Pentium III M system, the Pentium III mobile system, and the blue line is the power consumption of the Pentium 4 system.

What you'll see behind me is that the Centrino system is now done. As are the Pentium 4 and then the Pentium III mobile systems.

So the power consumption at the same time, not only did Centrino finish faster, it consumed significantly lower power than the Pentium 4 or the Pentium III system.

To put that in perspective, using an application benchmark like Mobile Mark, the system you're seeing, the Centrino Mobile Technology system delivers up to 15 to 20 percent more performance relative to the Intel® Pentium® 4 system you saw up there, and about 80 percent more battery life in comparison to the Pentium 4 system up there.

When you compare that same performance and battery life of Centrino to the Pentium III, you'll see about 60 percent more performance and about 30 percent more battery life.

Breakthrough performance, breakthrough battery life.

We delivered this performance and battery life through integration of technologies together into all of our silicon components. We didn't stop, however, simply with improving the performance of the product and improving the battery life of the product. We also needed to innovate to deliver sleek new form factors and delivery of wireless solutions into these products.

Wireless needs to be robust, simple, secure, easy to use. So what we did when we did our wireless solutions, we put a lot of technology into our software to essentially facilitate, for example, seamless interoperability between a wired environment and a wireless environment.

So when a user disconnects from the wired LAN and takes the notebook with them from their office to a meeting room, the connection stays intact and the software takes care of that, and the person using the notebook does not have to be bothered with any of the settings.

Another technology that we put in place in our wireless solution is the coexistence between Bluetooth and 802.11. Why?

Well, we find that people often use Bluetooth as a headset, for example, to be listening to music while they're at the airport, downloading e mail, and they might be doing the download on the e mail using 802.11. Those two technologies interfere. They're still in the same frequency range.

So we invented some technology in our labs which phase shift these radios out of collision so that the person using the notebook does not see any difference, and we've solved the issue for them using technology.

We've also taken that level of innovation and integration to the system level in terms of antenna design, working closely with our customers as well as the industry partners to verify and validate this technology. So what I want to do is show you how this works.

I'm going to quickly start a video here. This is a Dell Latitude, Centrino technology based notebook. I am downloading off the LAN here a video. This happens to be our ad that is running here. This is the ad that has started running today on the launch. And you can see here that's running very nicely. Great quality.

But this is right now connected via wire. This whole meeting is about wireless.

ANAND CHANDRASEKHER: Well, as you can see, it's still continuing to stream the video. What I'm going to do is remove it and carry it with me.

So as you can see, the technology seamlessly converted from a wired LAN to a wireless LAN, invisible to the person using it.

ANAND CHANDRASEKHER: So we've talked about performance, we've talked about battery life, we've talked about seamless connectivity between wired LAN and wireless LAN as one of the technologies. We haven't talked about sleek form factors and how we enable that.

Basically to enable sleek form factors our customers and partners have to be able to take advantage of the power management technology that's there in the Centrino Mobile Technology ingredients to essentially enable them to do very innovative, very cool designs.

What I want to take your attention to now is this system here. This is a thin and light system from Samsung. We've actually stripped it apart so you can see the innards of it, if I could get a camera to focus on the innards for a second. There you go.

This is the CPU, and I have focused on the system a thermal sensor camera. So you can see here the thermal sensor camera, what it's seeing at the same time. And you can see that the CPU is yellow and occasionally it glows magenta. The processor is sort of lazy. It tries to sleep as much as possible on the job. So it gets the job done as quickly as it can and then tries to go to sleep.

And that's exactly what you see happening. When the processor is sleeping, it's yellow. When it has a task to do it glows a little bit magenta and then it goes right back down to sleep mode. And you'll see about the time when it changes color, your screen changes. So there's an activity being done.

This is the efficiency of the processor. And what this translates into is a much, much lower thermal level for these processors which allows our customers to innovate and do very cool form factors, like these.

I have a number of systems up here. This one is from IBM. It's an X31 based notebook. It's got Centrino Mobile Technology innovated in it. Long battery life, breakthrough performance, wireless connectivity.

I have another wonderful system here. This one is from Toshiba. This is a Toshiba Portege system. It's a beautiful design. Very thin, very light, also long battery life, beautiful performance.

Another example here is from Motion Computing, and this one is a slate form factor. It's a fanless design. So you can see on this one, it takes advantage of the thermals of the processor and the system and all of the other silicon ingredients to deliver a very innovative design.

These are just some of the examples. I want to point out this last one. It's kind of unique. This one looks a little bigger. It's a notebook from Panasonic. It's designed for field applications for use in the military, the police, and other applications, field use. So these may come into more rugged usage environments.

(Dropping laptop.) Oops. Well, they did say it was supposed to be ruggedized and operational. As you can see, it still is.

So that's the technology enabled. These kind of sleek, thin, form factors are what are enabled by Centrino Mobile Technology, and you've seen here now silicon innovation, system level innovation, in partnership with our OEMs delivers breakthrough performance, breakthrough battery life, innovative wireless, very cool form factors, in a range of configurations.

Historically, we validate and put a lot of testing into our silicon components before we ship them. We torture the silicon, the CPU and chipset, before we ever ship it to any of our customers.

We added torture to our wireless components as we were introducing the Centrino Mobile Technology, and we actually have to expand our validation set outside of the box, and also incorporate testing with the range of access points that are available in the industry, testing with a range of security solutions available in the industry. We partnered with Cisco, CheckPoint and Verisign, for example, to make sure that their solutions are not only optimized on Centrino, validated on Centrino before their customers get to see it.

We also worked closely with a number of application vendors who are mobility based applications: JD Edwards, Seybold, to name just a couple. The result of all of this is essentially a much, much more robust experience for people who buy Centrino based notebooks.

So Centrino is the brand under which we put our processor, our best processor for the mobile marketplace, our best core logic solution, chipset for the mobile marketplace, and Intel's best wireless solution for the mobile marketplace.

Centrino represents the brand that ties all of these together. It is our means of communicate to go the end user, the ultimate consumer: If you're looking for a notebook that has the best components in the marketplace to deliver a wireless experience that has breakthrough performance, breakthrough battery life, and can support innovative form factors, look for Intel Centrino mobile technology.

Today what we're announcing is the first member of that family. That member of the family comes in a number of speeds: 1.3 GHz, 1.4 GHz, 1.5 GHz, and 1.6 GHz. The demo system I showed there was 1.6 GHz.

Intel is about innovation. Already, as we're introducing the first member of this family, we have successive generations of this product line already under development. Later on this year we will be moving to 90 nanometer process technology, and as we do that, we will also take our Centrino Mobile Technology to 90 nanometers.

I have here in front of me a wafer of processors based on 90 nanometer technology, which is part of the Centrino Mobile Technology product family.

This processor and its associated components will be shipping in the second half of the year, and this future product will not only extend our reach on breakthrough performance, of course using the process technology advances; it's also going to run cooler so battery life will get better as will the other components and benefits associated with Centrino Mobile Technology.

So I've talked about silicon innovation, system innovation, and I also mentioned that we need partnerships to enable the ecosystem so that solutions are deployed that consumers, people can take advantage of these systems.

There are lots and lots of hot spots out there today. Tens of thousands on a worldwide basis. There are lots of access points being sold. And clearly, there's a viral phenomenon underway on a global basis to essentially accelerate the growth of Wi Fi.

It's happening here in New York City. There's a map of Manhattan that should be showing up behind me which has all of the access points on it. Those are access points. Those are not necessarily hot spots that are enabled.

What we found through our experience, working through and doing a lot of testing and debugging, is the claim of a hot spot did not necessarily make a hot spot. So we've been working very closely with the industry, a number of our partners, telecommunications vendors, service providers, OEMs, as well as some startups to accelerate the deployment of wireless hot spots.

We have a $150 million Communications Fund via the Intel Capital portfolio, and this communications fund has been investing in a number of startup companies to enable Wi Fi technology to get to market.

We have over 800 people inside of Intel working on the development of Wi Fi technologies, not just on the products but on the verification and the validation aspects of it so that the consumer's notebook usage experience can be a robust one.

Our focus in Wi Fi is comprised of three parts: accelerate the deployment of Wi Fi technology, verify the deployment of Wi Fi technology, and increase awareness where there are hot spots that those hot spots are verified Wi Fi hot spots. All three of those are critical. I talked about the acceleration aspect of it and now I'll discuss verification.

We've been engaged very closely inside of Intel and clearly with the likes of T*Mobile, AT&T Wireless, on a worldwide basis Deutsche Telecom, France Telecom, British Telecom, NTT Communications in Japan, Korea Telecom, some of the others in APAC, to make sure their wireless hotspots are verified for Centrino Mobile Technology.

As a result, as we do this launch today, you're going to be able to see about 3,000 to 4,000 hotspots on a global basis that are verified to work with Centrino Mobile Technology, and co marketed in conjunction with those partners as verified for Centrino Mobile Technology.

Over the course of this year, that number is going to grow into the tens of thousands of hot spots that are verified for Centrino Mobile Technology and will be co marketed.

The co marketing aspect is very important as well. I hit about 20 countries a year, and as I travel, one of my hobbies over the last year has been checking for hot spots. I use my PC as a sniffer. And what I find is in a lot of cases, there is no signage that says that I'm in a hot spot. I live in Seattle and commute to Santa Clara. The Seattle airport is completely wireless. You would never know it unless you had a laptop that signaled to you that there was a wireless hot spot.

That means there's not a lot of traffic being generated on that network, which is a shame because a service provider that went in and put in all the effort to wire it probably isn't getting the benefit.

So the co marketing is critical. You probably saw a globe spinning back there which had our logos, which had the logos that we will be working with our partners to deploy in these hot spots, which are verified and being co marketed. The logo shows a) that there's a hot spot available; b) it's verified, who the service provider is; and c) it's verified on Centrino.

What I want to do here, as I've talked a lot about this program that we've engaged in with our fellow travelers, I'd like you to hear from them how this program has been going. So if you could roll the video, please.

(Video plays and ends.)

ANAND CHANDRASEKHER: What you see here is it takes comprehensive partnerships to deliver the kind of solutions we're talking about in the marketplace so we can truly untether and unwire people as they desire and demand.

We've established all of these partnerships, all of these solutions are in place. Let's take a look at the kind of solutions that are available from our partners, the OEMs, in terms of the systems that are coming out in the marketplace.

You'll see a range of systems across the entire portfolio in terms of form factors, fully configured systems ranging price all the way from $1399 to higher in terms of capabilities, in price and performance. You'll see tablets, sub-notebooks, mini notebooks, full size systems through the entire range. And once again, many of these systems are available today, day of launch, on a worldwide basis. Craig already alluded that this launch is the last leg of the launch across on a global tour, starting in Tokyo, Japan, going to Beijing, China, London, and now here.

CRAIG BARRETT: You know, Anand, I enjoy watching your presentation and I like all of the fellow traveler comments. I even like watching all the hardware you just showed on the screen. But this is really about people.

ANAND CHANDRASEKHER: Absolutely.

CRAIG BARRETT: It's really about people who use the technology. And I think you do the audience a disservice unless you show them real people using the real technology.

ANAND CHANDRASEKHER: Well, Craig, I thought you might ask us to do exactly that.

CRAIG BARRETT: What a surprise.

(Laughter.)

ANAND CHANDRASEKHER: So we have something planned. What we're going to do here is go to a live broadcast, we're actually going to go to the user sites where people are using Centrino Mobile Technology. We're going to show three different usage scenarios where people have equipped consumers with Centrino Mobile Technology notebooks a couple of weeks ago, and you're going to hear in their own words about their experience, how they were using it, and what they saw as the benefits.

So first what I want to do is go to Keene, New Hampshire, to the Dartmouth Medical Facility. Hi, Buzz, are you there?

BUZZ: Yes, I am. Thank you very much.

ANAND CHANDRASEKHER: What are you going to show us?

BUZZ: Well, first of all, we really were enjoying your presentation so we forgot what we were going to say, but most importantly, you're going to get some feedback that I think you're really going to love. Let me introduce you to our guests, first. Dr. Don Caruso on my right is the associate professor of medicine at Dartmouth Medical School and also the chairman of the department of family practice. And on my left I have Dr. Leslie Pitts who is the director of quality improvement, which is another very important area of responsibility. But first, Dr. Caruso is going to tell us just a little bit about this facility to get us started.

DR. CARUSO: Sure, Buzz. Dartmouth Medical Facility is an 80 physician, multi specialty group practice here in the southwest portion of New Hampshire. We have about 300 support staff, and we see about a thousand patients a day.

BUZZ: Well, what is your greatest frustration as a physician today with the practice of medicine?

DR. CARUSO: Time, and not having enough of it. I spend incredible amounts of time researching history, assimilating laboratory reports and x ray reports. When I'm doing that, I'm not spending time with the patients, and that's my big problem.

BUZZ: But the good news is that you have some new technology that's addressing that problem now, right?

DR. CARUSO: That's absolutely right. In the past, we used the medical record that was paper, and as you can see in a multi specialty group practice, the chart gates rather large, very difficult to mine the data.

Since April of 2002, we've been working with the AllScripts electronic medical record, and at the same time we looked at our older building, decided we weren't going to retrofit with wiring, and we instituted an 802.11 wireless network. Unfortunately, at the time, the mobile handheld devices didn't meet our needs, and we placed PC like devices in the exam rooms.

BUZZ: So you got the wireless network, but you couldn't find the mobile devices that worked, which takes me to Dr. Pitts. You received this Centrino convertible notebook just to try it out. What do you think?

DR. PITTS: It's been wonderful. I have quick and ready access to my patient information on our Touch Work CMR from anywhere in the clinic. And it's made my patient interactions much easier. I can look people in the eye rather than having to worry about typing on a keyboard.

BUZZ: So you're excited about this thing.

DR. PITTS: I am.

BUZZ: One of the things we want to do is demonstrate for people how it actually works. And we're going to ask Dr. Caruso to show us just a little bit about how you use it because it does so much.

DR. CARUSO: Absolutely, Buzz. Now, even before we go into the exam room, we can have all of the patient's history right at our hands. What you see on the screen right now is on the All Scripts product we can see their snapshot, which allows us to review their history. We can easily go from here to their laboratory results, and we are able to trend those results over time to give us a better idea of what's going on with their medical history. But the real exciting part is we can go into the room, we can graph this data. This is an incredibly powerful tool for education for the patients.

But one of the real new things we can do is bring information and images from far away. We can bring up an x ray that's actually from the medical center 80 miles way.

BUZZ: What's really amazing about this too, from what you told me before, this device can actually be used to capture medical data live, real time, as you're using it, right?

DR. CARUSO: That's correct. If we insert a PC card from the QRS, what we can do is we can actually collect some real time data. And what we have is we have a demonstration for you.

When we insert our card into the Century notebook tablet, the tablet acts as a spirometer. We have a patient, Chris, here who is going to demonstrate for us. Chris, can you blow as hard as you can into that device in front of you? And you can see as Chris blows into that device, real time we can collect data that we can then, in the exam room, make medical decisions about.

BUZZ: Interesting. And I want to thank you, Chris, for taking time to work with us. Nice job. Now back to New York.

ANAND CHANDRASEKHER: Thank you, Buzz. Thank you Dr. Caruso, Dr. Pitts. That's actually a wonderful experience you're sharing with us. As doctors, you must have a very busy lifestyle, and time is obviously important to you. Has this technology helped you in that manner any way?

DR. PITTS: Oh, absolutely. I think I'm saving about two to three minutes per patient encounter and I see about 25 to 30 patients a day. I love it. It's light, it's portable. I think this is the missing link that busy clinicians have been waiting for.

DR. CARUSO: I would agree with Dr. Pitts. I believe I save about an hour a day using both the AllScripts solution and the mobile technology.

ANAND CHANDRASEKHER: Thank you very much. Appreciate your time this morning. We're now going to go to the University of Georgia where we gave a couple of Centrino notebooks to some students, and you know how that can work out. So we're going there live and take a look at what they've been doing.

[Demo begins and ends.]

CRAIG BARRETT: What better place to go, from a university campus to our next practical demonstration. Technology with real people. Let's go to the local McDonald's at 57th and Sixth here in Manhattan and see what's going on there with Centrino technology.

DEBRA: Hi, everybody. I'm Deborah Lee Shook here with Rick Altheiser. He's a vice president and general manager for McDonald's heartland region. Rick is responsible for more than 500 McDonald's restaurants in Kansas and Missouri. Rick, we're all wondering what brings to you the Big Apple today.

RICK: We're here in New York checking out this new Centrino mobile laptop platform in this Wi Fi enabled McDonald's. It's one of the first in the country to go Wi Fi. What I'm most excited about is how this is going to improve the experience for our customers. It's going to enhance their experience at McDonald's as they can access the wireless Internet here at McDonald's.

But what I've been involved in is how this is going to change the lives of our remote workers. These are our road warriors. They work for our office, but they're out in the restaurants where our customers are.

DEBRA: Can you show us the types of tools that the remote workers will be able to use with this?

RICK: Absolutely. First we developed this remote worker Web site that pulls together all the information a remote worker needs when they're in the restaurant. Now we can use this portal to push out technology or content that they might need in the restaurants. For example, new products, new procedures, new promotions, those kinds of things. Here we've shared with our remote workers the new salad lineup we just announced, our new premium salads. And we've also shared some information about Paul Newman's own dressings. We see Paul there having fun with his new dressing lineup. And also a video clip of Paul at the restaurant here in New York on Monday with Ronald, and he's making up some salads here for the press.

DEBRA: I can see how this would be helpful in getting the information out to the field workers, but what about getting feedback into headquarters?

RICK: Well, our operations consultants work in the restaurants full time with our owner operators and restaurant managers, trying to improve the levels of quality of service and cleanliness. They do that by doing periodic inspections or evaluations on the restaurants to see how they're doing.

With this Wi Fi technology, we can actually gather that information and transmit it directly to our central database to see where we're doing well and where we might have areas of opportunity. Let me show you here the summary data for the restaurant that we're in here in Manhattan. You can see that Irwin Kruger runs this restaurant. He's doing a great job satisfying his customers.

DEBRA: Okay. And what other connectivity and communication tools have you been experimenting with?

RICK: Well, we've invested back in Kansas City at our office in some new phone technology. It's a soft phone application from Avia, and what this does is it enables us to experiment with Voice over IP. Our remote workers in the restaurant, if they had a Centrino laptop like this and a Wi Fi environment, they could actually use this phone like they would their desktop. Full functionality of their PBX and their desk phone, speed dialing, conference calling, those kinds of things.

DEBRA: Can we have a quick demonstration?

RICK: Absolutely. I'll place a conference call right now.

DEBRA: Okay. We're going to call Irwin Kruger who is the owner and operator of this establishment, and also Lou Soto who is a supervisor here.

IRWIN: Hello.

RICK: Hi, Irwin, it's Rick. Hold on. I'm going to put Louis on the phone.

DEBRA: We're conferencing him in right now.

RICK: Right. Irwin? Louis? Hi, it's Rick. Can you guys hear me? Excellent. I just had a couple of things I wanted to say. Two things, really. Thank you for letting us use your McDonald's restaurant here today, and congratulations on being one of the first Wi Fi enabled restaurants here in the United States.

DEBRA: All right.

RICK: All right. So you can see that McDonald's is not only a home away from home for millions of customers every day, but it's also going to be an office away from the office for our remote workers at McDonald's.

CRAIG BARRETT: Is there going to be a rapid proliferation of this throughout the entire McDonald's chain?

RICK: Well, we're very impressed with the Centrino, and I don't know if you were planning on getting this one back, but this one is going back to Kansas with me.

CRAIG BARRETT: All right.

RICK: I talked to the IT folks, and they think that Centrino is the logical next step in our mobile technology platform.

CRAIG BARRETT: Okay, no problem. Take it with you.

(Laughter.)

RICK: Thank you.

CRAIG BARRETT: All right. Those are three examples, really, of real people using the technology, whether you're in a medical clinic, whether you're in a university campus, or whether you're in a work environment.

I think the demonstration of the real people using the technology to solve real problems, to improve the utilization of the technology is what it's all about. That's why we think Centrino Mobile Technology and our working with computer OEMs, infrastructure providers, software providers is really providing the impetus to make this a tipping point; really a change in the way people use the technology going forward.

We're just looking for unwired computing to be ubiquitous, to be everywhere, to be the new wave that really takes this industry forward. And it's not just because we can do the technology, but I think because there is really an insatiable demand for the capability by real people.

That's what we intend to do, is to bring our technology forward, bring the brand and the brand promise forward, work with our fellow travelers, and to make it happen.

Thank you.

* Other names and brands may be claimed as the property of others.