Intel Reduces Q3 Sales Forecast

Santa Clara, CA (DACWIRE) - During a mid-quarter analyst meeting today, Intel
Corporation executives revised their third-quarter sales forecast further
downward in a widely anticipated announcement.

Citing weak demand for personal computers and consumer items, Intel spokeman
Mark Wittenberg stated that the company hopes to sell "six, maybe seven,
Pentium 4 processors this quarter" after slashing prices on their main
product by up to 28%.

Sales of server and low-end processors followed the trend, with Celerons
targeted for eight units sold. Wittenberg declined to forecast sales for
their Itanium server products, but many analysts note that most server
vendors are refusing to use the chip even for free.

Hewlett Packard, which assisted in the early stages of Itanium's development,
reportedly "won't even touch it even when Intel is offering them $10/chip"
to incorporate them in their servers, according to Merrill Lynch analyst
Joe Osha.

Should sales of the Itanium chip continue to remain flat, Intel may be faced
with a tough decision regarding warehouse space. "We're evaluating our
options, but burying them in the Nevada desert seems to be our leading
choice," said Wittenberg.

A call seeking comment from Atari, which faced a similar decision in 1984, was
not immediately returned.