INTEL SAYS IBM SHIPMENT HALT IS UNWARRANTED

SANTA CLARA, CA, December 12, 1994 -- In response to an IBM press release,
Intel reiterated that it has studied the Pentium(tm) processor flaw for
months and has concluded that the frequency of encountering reduced
precision in floating point divide operations is once in every nine
billion random divide operations. Intel said it regards IBM's decision to
halt shipments of its Pentium processor-based systems as unwarranted.

"Based upon the work of our scientists analyzing real world applications,
and the experience of millions of users of Pentium processor-based
systems, we have no evidence of increased probability of encountering the
flaw," said Andrew S. Grove, president and chief executive officer.

"You can always contrive situations that force this error. In other words,
if you know where a meteor will land, you can go there and get hit," Grove
said.

Intel does not agree with the conclusions reached by IBM, but reiterates
nonetheless that any customer who might encounter the problem with the
Pentium processor in the course of their applications will be sent a
replacement at any time during the life of their PC.

Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer networking and communications products.

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