1. Investing in Convergence Mark Christensen Corporate Vice President & Managing Director, Intel Capital Communications Sectors October 2003

2. Agenda  Intel Capital Overview  Intel Technology Directions –The Digital Home –Enterprise –Mobility  Case Study: WiFi

3. Four Pillars of Intel Strategy  Architecture  Manufacturing  Brand  Investments Build ecosystems Market development Foster silicon technology Scout new technologies

4. Intel Capital  World’s Largest Corporate Strategic Investor  Investment Managers Operating in 25 countries on 5 continents –~40% of investments in 2003 to date outside US  Manage Equity, M&A transactions, Internal Seeds and Spinouts  Co-investor with leading VCs StrategicFinancial Intel Capital Intel Capital

5. Intel Focus Areas Investing in Convergence

6. 2002$94B 2003$120B U.S. Consumer Electronics Spending Electronics Spending

7. Digital Home Inflection Point  All Devices and content going digital  Broadband going mainstream  Home network ease of deployment  Powerful client systems with large storage capacity  CE moving to horizontal model

8. CE Moving Horizontal Operating System Middleware Applications/Content ComponentTechnology OEMs/Channel ODMs ConsumerElectronics(Sony,Samsung,Matsushita,Etc.) TraditionalEmerging Investments To Date:

9. Digital Home Working Group

10. Intel Digital Home Direction The PC Integrates CE Capability PC Processor & Chipsets TV Tuner PVR FM Radio Intel “MyRoom” Concept PC Network Content The Media Gateway Ref Designs Ref Designs Silicon Powers the Digital Home 815E IP D-STB MXP5800 Open Source SW DRM Image enhancement Imaging Graphics Chipsets Comm Processors ODM

11. Datacenter Vision SERVERSSTORAGECLIENTSNETWORKING

12. Intel’s Enterprise Business CHIPSETS BOARDS SYSTEMS SOFTWARE DEVELOPER SERVICES SOFTWARE VENDOR ALLIANCES INTEL ® SOLUTIONS SERVICES SOLUTIONS BLUEPRINTS INTEL CAPITAL

13. Itanium ® Architecture Momentum Hewlett Packard Compaq NEC Unisys Hitachi SGI IBM Bull Fujitsu Fujitsu Siemens Sun Power SPARC Time The Strength of the Roadmap

14. Robust Itanium ® Software Ecosystem Today Tools Applications 6 flavors of Intel compilers 8 Intel ® Performance tools Intel ® Developer Services 44 tools for developing applications for Windows 12 tools for developing applications for HP-UX 39 tools for developing applications for Linux Robust set of development tools & services for commercial & custom apps With Windows Server 2003 announcement, broad range of major OSs in production Operating Systems Variety of major ISVs in production today, 400+ more in production & many others slated for 2H’03 Databases Business Intelligence Enterprise Resource Planning Supply Chain Management SecurityOther Management

15. Source: InStat, 7/03 0 10,000 20,000 30,000 40,000 50,000 20022003200420052006 Intel ® Centrino™ Mobile Technology Debuts “Centrino’s introduction is not just another product launch but a milestone in the adaptation of computers into our lives.“ - Aberdeen Group July 2003 December 2002 Worldwide WiFi shipments (Thousands of Units) Mobility

16. ICH6 CODEC ICH6 CODEC GRAPHICS AZALIA SERIAL ATA EXTENDED BATTERY LIFE PCI Express Extended Mobile Access Simplified Network Selection Location-basedComputing

17. Dothan: 2H’04 Next Generation Process and Performance 140 Million Transistors Strained Silicon 2MB power efficient L2 Cache 90nm Process Technology

18. Case Study: WiFi “Intel to invest $150M in wireless technology firms” Wall Street Journal – 10/02

19. WiFi Investment Framework  Viable public WLAN infrastructure models  Aggregation of disparate network infrastructure DriveInfrastructure Sample Investments AreaFocus  iPass  STSN  Cometa  Reduce barriers to adoption: security, ease-of-use, roaming, range  Stimulate new usage: VoIP RemoveBarriers/Drive New Usage  Bluesocket  Transat  Vivato  Telesym  Component technologies that enhance Intel silicon products ComplementSilicon  Sychip  CSR  SiRF Over $40M invested in ~20 companies

20. Top 10 WiFi Trends 1.Enterprise user adoption 2.WiFi invades the home 3.Public access: hot spots to hot zones 4.Convergence with cellular & landline 5.WiFi meets handhelds 6.Voice over WiFi 7.Smart antennas/range extension 8.Smart infrastructure 9.More spectrum, better aligned 10.WiMax Unwire.

21. 10. WiMax Addresses Backhaul BACKHAUL 1 3 DEVELOPING COUNTRIES (e.g., Eastern Europe) RESIDENTIAL & SoHo BACKHAUL for HOTSPOTS 2 4 ALWAYS BEST CONNECTED 802.11 802.16 802.11 802.16

22. Summary  Intel Capital is a focused strategic investor with resources and global reach  WiFi is like the Internet itself…a disruptive, bottoms-up revolution  Convergence is here – horizontal model for consumer electronics and unwired mobility are the drivers