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InfoHQ Computer News and Rumors

July 23-31 2001

About News and Rumors. InfoHQ Computer News and Rumors is a daily column. It features news coverage of new PC and Mac computer hardware and software, Internet news, and other technical news items.
Every Sunday, News and Rumors features "Sunday Shopping Watch", which is a comparison and analysis of Sunday computer store advertisements.
The Computer News and Rumors is an archived column, so feel free to review previous week's or month's computer news by clicking on the link below. Previous computer news articles can also be searched, by using our site search feature found in the right-hand column.

InfoHQ Computer News and Rumors Article Index
Date
(Click on story to read, use your Browser's back button to return to the Index.)
Jul 31 Intel Transforms Notebook PCs With New Mobile Pentium III Processor-M
Jul 31 Dell Adds More Muscle, New Colors to Its Notebook Computer Lines
Jul 31 IBM Announces Flagship ThinkPad T Series Models
Jul 31 HP Expands Line of High-quality Color Scanners
Jul 31 BlueLight.com and Kmart Launch $8.95 Per Month Internet Service
Jul 30 Sony Announces New Business VAIO GR Notebook Series
Jul 30 Hitachi to continue CRT & LCD monitor sales in US
Jul 30 Zoom Posts Second Quarter Loss
Jul 29 Sunday Shopping Watch
Jul 27 Hitachi to Discontinue CRT PC Monitor Production
Jul 27 Infineon Plans Extensive Cost Reductions
Jul 27 AOL Launches Instant Messenger 4.7 for Windows
Jul 27 Which company will dominate future PDA market?
Jul 26 BellSouth and Dell Deliver Broadband Solutions to Consumers
Jul 26 Remote Workers will Drive Demand for Business Broadband
Jul 26 June Electronic Components Orders Remain Flat
Jul 26 Satellite and Cable TV Industries Support Digital Visual Interface
Jul 26 Benefit to E-Learning/Online Training Is Anytime, Anywhere Availability
Jul 25 SOYO Unleashes Athlon SY-K7V DRAGON Motherboard
Jul 25 ADS Technologies Ships USB Analog Video Capture Device
Jul 25 AMD and other industry leaders form HyperTransport Technology Consortium
Jul 25 AT&T Details Results and Outlines Growth Plans For Broadband Business
Jul 25 Logitech Posts Record Q1 Earnings
Jul 24 Excite@Home Reports Second Quarter Loss
Jul 24 Addonics Announces USB 2.0 Host Controller For PCs or Mac
Jul 24 Worldwide Broadband Subscribers Will Total Over 15 Million in 2001
Jul 24 AT&T Posts Second Quarter Loss
Jul 23 AOL Music Announces New Initiatives in Online Music
Jul 23 Lexmark International posts record second quarter revenue
Jul 23 BiTMICRO NETWORKS Announces 75.7 GB SCSI Solid-State Disk
Jul 23 Infineon Announces Third Quarter Loss

Electronic Gaming Monthly Free Year Subscription to Electronic Gaming Monthly!! While it Lasts....

July 31 - Intel Transforms Notebook PCs With New Mobile Pentium III Processor-M. Intel Corporation today announced five new processors based on Intel's advanced 0.13-micron (130 nanometer) process technology that significantly increase the capabilities of mobile PCs. The new family of Intel(R) Pentium(R) III processor-M products feature architectural enhancements to increase performance, reduce power and improve battery life. They are available in volume today at speeds up to 1.13 GHz, the industry's fastest speed for mobile processors.

Intel also announced the new highly scalable, cost effective mobile Intel(R) 830 Chipset family. Together, the new chipset and mobile processor products enable PC makers to design the industry's most innovative, high-performance notebooks that are thinner, lighter and have longer battery life.

"Intel is using its silicon leadership, advanced mobile processor technologies and new mobile chipset family to deliver the highest performance and low power for the mobile market segment," said Frank Spindler, vice president and general manager of Intel's Mobile Platforms Group. "Incredible performance, great battery life and wireless connectivity -- mobile PCs just made a major leap forward with Pentium III processor-M based systems."

Intel's Advanced 130-Nanometer Process Technology

By incorporating its advanced 130-nanometer process technology, Intel is able to build transistors (the switches used to create the ones and zeroes of the information age) that are the fastest in the industry. This new process technology also features high speed copper interconnects that accelerate the flow of data inside the processor, further increasing performance while consuming less power.

Processors built on Intel's 130-nanometer technology consume up to 40 percent less power and are up to 20 percent faster than the previous 180 (0.18-micron) nanometer process. Chips using Intel's 130-nanometer technology contain circuitry that is about 1/1000th the width of a human hair (1000 nanometers equal 1-micron).

Intel Delivers Next-Generation Mobile Pentium III Processor-M

The mobile Pentium III processor-M is the world's most advanced mobile processor, providing almost a 50 percent performance gain over the previous mobile Intel(R) Pentium(R) III processor on data intensive applications.(2) It features several architectural advancements including: 512KB L2 cache (twice the L2 cache size of the previous generation), the new Data Prefetcher (an L2 cache enhancement that results in improved performance) and a 133-MHz processor system bus.

In addition, the processor supports Enhanced Intel SpeedStep(TM) technology that automatically switches between Maximum Performance Mode and Battery Optimized Mode based on the application demand on the processor, providing the best balance of performance and low power. The processor also uses new Intel packaging technology enabling thinner and lighter mobile PCs. The new Deeper Sleep mode provides a power reduction from previous low power sleep states to help extend battery life -- reaching power levels as low as two tenths of a watt or less -- even while running software applications.

New notebook designs based on the new processor will be available from leading PC makers including: Acer America Corporation, Compaq Computer Corporation, Dell Computer Corporation, Fujitsu Corporation, Gateway Inc., Hewlett-Packard Company, IBM Corporation, NEC Corporation, Sony Corporation, and Toshiba America Information Systems, Inc.

Initial product offerings will be focused on full-size and thin and light mobile systems. Later this year Intel will extend the Pentium III processor-M family to include low voltage and ultra-low voltage versions, targeted for mini- and sub-notebook market segments.

New Mobile Intel(R) 830 Chipset Family

The Intel(R) 830 Chipset family includes three new chipsets designed to take advantage of the mobile Pentium III processor-M performance and low power characteristics. The Intel 830MP supports external graphics and is available today. Later this year Intel will provide the Intel 830M with high-performance integrated graphics, while the Intel 830MG will offer integrated graphics for lower cost systems. The new chipset uses high-performance PC-133 SDRAM, which is 33 percent faster than memory supported in the previous Intel 440BX chipset. It also includes 1GB memory support for a 50 percent increase over previous generations.

The Intel 830 Chipset also features a hub architecture that increases bandwidth and provides for a smoother and richer multimedia and Internet experience. The chipset improves connectivity and flexibility by accommodating a total of six USB ports, while integrated local area network (LAN) capability minimizes board space and reduces cost. Like the new mobile processors, the chipset integrates the new Deeper Sleep low power mode to further conserve power and help prolong battery life.

Specifications and Pricing

The five new mobile processors at speeds of 1.13 GHz, 1.06 GHz, 1.0 GHz, 933 MHz, and 866 MHz are available today. In Enhanced Speed Step automatic mode, the mobile Intel Pentium III processor-M runs at up to 1.13 GHz at 1.4 volts (Maximum Performance Mode). In Battery Optimized Mode, it runs at 733 MHz and 1.15 volts, and consumes less than 2 watts of average power.(2) Intel will offer boxed versions of its mobile Pentium III processor-M to enable system integrators such as Asus and Clevo that configure build-to-order mobile PCs.

In 1,000-unit quantities, with either micro-flip-chip Ball Grid Array or micro-flip-chip Pin Grid Array packaging, the mobile Pentium III processor-M at 1.13 GHz, 1.06 GHz, 1.0 GHz, 933 MHz, and 866 MHz are priced at $625, $499, $394, $278 and $247, respectively. In 1,000-unit quantities, the Intel 830MP chipset is $37.50.

Other Products Based on 130-Nanometer Technology

Intel is also moving forward with plans for desktop and server processors as well as flash memory components manufactured on the 130-nanometer process. The Pentium III processor at speeds of 1.2 GHz and 1.13 GHz will soon be available for small form-factor desktop PCs.

In addition, a 1.13-GHz Intel Pentium III processor for single and dual-processor servers has been shipping since May. Several OEMs have already introduced systems based on this technology, with more expected in the third quarter. Intel also expects to release a 1.26-GHz version of the Pentium III processor for servers later this year. These products are used in systems targeting front-end, application servers and deliver a balance of performance and lower power without sacrificing reliability and availability.

More information on Intel can be found at www.intel.com.

July 31 - Dell Adds More Muscle, New Colors to Its Notebook Computer Lines. Dell (Nasdaq:DELL) today announced the worldwide availability of two new wireless-ready notebook computers, the Inspiron(tm) 8100 and the Latitude(tm) C810, that offer customers significantly improved performance and lower power usage.

The notebooks feature Intel's new Mobile Pentium(R) III processor 1.13 GHz-M, which John Medica, vice president of Dell's client product group, says is an important step in the evolution of mobile computing.

"When you add these new processors to notebooks with large, ultra-sharp 15-inch displays and multiple optical drives, both the Inspiron 8100 and the Latitude C810 become true desktop replacements. They deliver the mobility and flexibility of a high-performance system that customers can use anywhere, anytime," Medica said.

The new Intel(R) Mobile Pentium III 1.13-M processor can offer more that 25 percent higher performance on productivity applications and 45 percent better performance on gaming applications compared to the Intel Pentium III at 1GHz processor.

In addition to higher processing performance, the Latitude C810 will feature the NVIDIA GeForce2Go chipset, which offers increased graphics capacity, up to 32MB, and performance. The NVIDIA graphics solutions includes Twinview(R) technology, which allows customers to use dual monitors on the same notebook system, a common configuration in the financial industry.

Dell also announced today the availability in the United States of 12 new optional Inspiron color kits that allow users to creatively customize the look of their systems. Several of the new colors are based on textures and feature a "soft touch" surface, including Black Leather and Fishskin, while others offer more unique looks, such as Burled Wood, Spring Palette and Champagne. The color kits for the Inspiron 8100 and the Inspiron 2500 have inserts that snap easily into the palm rests. The kits for the Inspiron 4000 have inserts for the palm rests and LCD back panel. They are available for $29.99 and $49.99 per set respectively.

The price of a typical Inspiron 8100 starts at $2,049(a). It features a Mobile Intel Pentium III processor 1.13 GHz-M, 128 MB SDRAM, 15-inch SXGA+ display, 24X max CD-ROM, 10GB(b) ATA-100 hard drive, integrated 56k v.90 modem(c), 16MB Nvidia GeForce2Go graphics chipset, Microsoft(R) Windows(R) Millennium, Microsoft Works Suite and 1-year limited warranty(d). More information on Inspiron notebooks is available at www.dell.com/inspiron.

The price of a wireless-ready Latitude C810 starts at $2,459. It features a Mobile Intel Pentium III processor 1.13GHz-M, 128 MB SDRAM, 15-inch UXGA display, 16 MB Nvidia GeForce2Go graphics chipset, 10 GB hard disk drive, integrated 56k v.90 modem, Dell's DualPoint technology, fixed 24X maximum CD-ROM drive, floppy diskette drive, Microsoft Windows 2000, and 3-year next-business-day onsite service(e). More information on Latitude notebooks is available at www.dell.com/latitude.

The Inspiron and Latitude product lines are supported by Dell Services, which can help lower a customers' cost of computing with a full suite of award-winning computing services, including deployment and after-sale support. Complete information on Dell Services is available at www.dell.com/services.

July 31 - IBM Announces Flagship ThinkPad T Series Models. IBM today announced new high-performance ThinkPad T Series models with security features designed to help protect corporate date and e-mail, as well as integrated wireless solutions for highly mobile users.

The company is leading an industry charge to develop technologies that allow workers to wirelessly and securely connect to corporate networks from virtually anyplace at anytime, through both traditional and non-traditional devices.

The ThinkPad T23, which will be available on ibm.com, is the first notebook computer to offer a powerful security chip subsystem that helps enhance authentication, strengthen access control and protect information. The IBM Embedded Security Subsystem offers Smart Card-like features at a fraction of the cost and supports industry standards. This innovative security technology helps give users peace of mind by providing an extra level of protection for e-mail and files.

Unique to the industry, the embedded security subsystem --combined with Virtual Private Networking (VPN) technology -- helps offer ThinkPad users more secure 802.11b communication using standard tools and technology. Wireless security tools based on the 802.11b standard are significantly augmented when using VPN. 802.11b, also known as Wi-Fi, is increasingly being deployed in corporate, travel and campus environments where mobile workers need fast access to their local area networks from ThinkPads and personal digital assistants.

The new ThinkPads are also the first in the T Series to offer integrated wireless 802.11b capabilities. Select models of the T23 feature a dual antenna system built into the display cover for increased signal strength, allowing individuals to move around while they stay connected to an existing wireless network. The 802.11b radio is fully integrated into the T23 via mini-PCI so users no longer need a PC Card and cumbersome "bump" antenna for wireless LAN applications.

Wireless models also come fully integrated with V.92 ready modems and 10/100 Ethernet. Additionally, the optional Bluetooth PC Card or UltraPort Module from IBM can be used with the T23 for short-range personal area network connectivity.

New Usability Features

IBM today also introduced ThinkPad Access Connections, a 'point and click' application that gives users real-time information on network connection status. The application also manages multiple network connections and locations on the same ThinkPad, making for easy management of wired and wireless networks on the road, at an airport, hotel or at home.

"The new ThinkPad T23 represents proof of concept for many of our most advanced mobile technologies," said Rick McGee, vice president of marketing, IBM Personal Device Brands. "But more importantly, it reaffirms IBM's commitment to delivering products that help take the worry and effort out of key technologies like wireless networking and security."

IBM 48GB Travelstar hard disk drives will be available for the first time in the ThinkPad family. The Travelstar boasts the industry's highest capacity in a notebook drive and features new media technology, dubbed "pixie dust, " introduced by IBM earlier this year. At 5400 RPM, the Travelstar is also the fastest notebook drive on the market and is available on select models of the T23.

"In the so-called 'post PC world' computer manufacturers will have to offer more than just a product to their customers, they will have to deliver the services and support as well as the know-how that make the computing experience easier," said Alan Promisel, notebook analyst for IDC. "Security, wireless and migration are issues that IT managers are currently making decisions on for the coming years. The fact that we are seeing these technologies implemented in new products is a reflection of manufacturers' awareness of these user issues."

IBM is also introducing new ease-of-use features into the T23 that will soon become standard across the ThinkPad and NetVista lines. In addition to ThinkPad Access Connections, the T23 will offer new back-up and restore features such as disk-to-disk recovery tools and a hidden partition on the hard drive that allows users to restore their disks if the drive becomes corrupted. IBM is also introducing new migration tools that allow data to be easily transferred from an older computer to a new T23.

IBM today also announced the new High Rate Wireless LAN Gateway, based on 802.11b standards, which serves as the networking hub in small business and home office environments. Besides networking together wireless clients and Ethernet wired clients, the gateway makes it possible to share a single high-speed cable or DSL account with clients in the network.

About the ThinkPad T23

At 4.8 pounds1 and 1.3 inches with a 14.1 inch XGA or SXGA+TFT display (varies by model), the T23 is lightweight, yet powerful. The T23 will offer the latest Mobile Intel Pentium III Processor-M, featuring SpeedStep technology with speeds up to 1.13 GHz.2 The new graphics chipset helps improve 2D and 3D performance and offers twice the video memory of previous ThinkPad T Series notebooks.

Customers can choose between a 15B and 48GB hard drive (a 30GB hard drive is available as an option) and all models come standard with 128MB of memory, expandable up to 1GB. A 6-cell lithium ion battery offers more than three hours of battery life,3 depending upon model. All standard ports are included, as well as an additional USB port and S-video out for expanded multimedia capabilities.

Through the innovative ThinkPad UltraPort connector, a port on top of the display edge, users have access to additional optional features including the Bluetooth UltraPort Module from IBM for short-range wireless networking; the IBM UltraPort Camera II for digital image capture; the IBM UltraPort Digital Array Microphone for recording speech, using IBM ViaVoice Professional voice recognition software (available separately); and the IBM UltraPort Compact Flash Reader which gives users easy access to CF media like the IBM 1GB Microdrive.

Pricing, Availability, Service and Support

ThinkPad T23 Series models will be generally available in several weeks. Worldwide availability varies by country. Prices range from $2,279 to $3,9594. All prices quoted are Web list price. All models come preloaded with Microsoft Windows98 or Windows 2000 Professional. The High Rate Wireless LAN Gateway is priced at $299, and will be available August 31.

The notebook computers are available directly from IBM via the Internet at www.ibm.com/thinkpad.

July 31 - HP Expands Line of High-quality Color Scanners. Hewlett-Packard Company (NYSE:HWP) today announced a compact photo scanner designed to help users digitally share and archive photos. The company also introduced four color scanners featuring HP's innovative scanning technology, which previously was available only in higher priced HP professional scanners. All five scanners are expected to be available in August at retailers nationwide.

HP Photo Scanner 1000

The HP Photo Scanner 1000, with an estimated U.S. street price of $99(1), allows users to easily scan photos up to 4 x 6-inches -- the most popular size photo -- with photo-quality results. The HP Photo Scanner 1000 is compact and sleek in design and ideal for home users looking for a fast and easy-to-use scanner for sharing, creating reprints and archiving images.

Included with the scanner is HP's proprietary photo imaging software, which can be used to create photo album pages and photo reprints from scanned photos. Scanned photos can also be e-mailed to friends and relatives and shared via photo-sharing Web sites.

The HP Photo Scanner 1000 features USB PC connectivity and can scan a photo in less than 14 seconds with 300-dpi resolution and 30-bit color depth.

New HP Scanjet Models

The HP Scanjet 4400c, 4470c, 5470c and 5490c color scanners are ideal for home and small office users who require fast, high-quality scans to create professional-looking documents. The scanners include two sensors, which enable consumers to get sharp images easily, capture finely detailed color photos or quickly scan lower resolution text. Also, with a scan-to-CD feature included in each of the four scanners, customers who own a CD-writer will be able to save scanned images onto CDs, making it easy to archive documents and pictures, and to preserve valuable hard disk space.

Consumers also can save paper by using the new HP photo reprint feature to effortlessly arrange photos on a single sheet of photo paper.

"HP's scanning technology, the first notable innovation in scanner sensor technology in at least a year, is sparking interest," said Janet Kauffman, research analyst at InfoTrends Research Group. "Previously only available in scanners costing more than $499, this technology is now more affordable for consumers who want to easily scan images and documents at home or in a small office."

HP Scanjet 4400c and 4470c Color Scanners

The HP Scanjet 4400c and 4470c color scanners are expected to be available at estimated U.S. street prices of $149(1) and $199(1), respectively. Each scanner has true 48-bit color depth and 1200-dpi resolution, making them ideal for school projects, photo reprints, greeting cards and other creative projects. Families and small business owners will benefit from the scanners' ability to make quick color or black-and-white copies in conjunction with nearly any inkjet printer.

The HP Scanjet 4400c and 4470c color scanners include a 1200-dpi sensor for scanning and enlarging high-resolution photos plus a 300-dpi sensor to achieve fast, high-quality scans of lower resolution photos and documents. Preview scans can be done in just 13 seconds with each scanner. Additionally, the HP Scanjet 4470c color scanner includes a lighted adapter for scanning 35-mm negatives and slides.

HP Scanjet 5470c and 5490c Color Scanners

With estimated U.S. street prices of $299(1) and $399(1), respectively, the HP Scanjet 5470c and 5490c color scanners are two of the most affordable 2400-dpi models on the market. The scanners each have a 2400-dpi sensor and a 600-dpi sensor to produce preview scans in only eight seconds. Information about HP and its products can be found on the World Wide Web at www.hp.com.

July 31 - BlueLight.com and Kmart Launch $8.95 Per Month Internet Service. BlueLight.com and Kmart are lowering the price on Internet access in America. The companies today announced the launch of a new BlueLight Internet service that provides unlimited access for just $8.95 per month. The new BlueLight Unlimited Internet Service is the lowest-price major ISP available to consumers. To increase the value proposition, BlueLight.com shoppers can also earn free months of Internet service with the purchase of non-clearance items on the BlueLight.com online shopping site. And, if customers sign up before September 1, their first three monthly payments will be just $6.95, then $8.95 per month after.

BlueLight.com and Kmart challenge consumers to find a better-value ISP than the new BlueLight Unlimited Service. The new Internet service offers unlimited hours of service at a lower cost than other national Internet services such as AOL and Earthlink. The new BlueLight Unlimited Internet Service will feature more local access numbers than any other Internet service available - more than twice as many as AOL and 35% more than NetZero - meaning fewer busy signals and a higher level of service. BlueLight continues to be the highest-rated major ISP in customer satisfaction according to the consumer comparison site Epinions.com.

"BlueLight.com and Kmart's goal is to offer the consumer the best value possible - online and in store," said Heidi Gibson, general manager, ISP at BlueLight.com. "The BlueLight Unlimited Internet Services matches value with quality to truly meet the needs of our loyal customers. Americans shouldn't have to pay nearly $25 each month for the privilege of surfing the Internet and shopping online."

BlueLight.com's current ISP, established in March 2001, offers two tiers of service - BlueLight Premium and BlueLight Basic. BlueLight.com Premium Service provides100 hours of online access per month for $9.95. Premium subscribers will automatically be transferred to the new $8.95 a month BlueLight Unlimited ISP on July 30. BlueLight.com Basic Service users receive 12 hours of access per month for free. Basic service will be discontinued on August 29. BlueLight.com currently boasts more than seven million subscribers to its ISP.

For more information, visit www.bluelight.com.

July 30 - Sony Announces New Business VAIO GR Notebook Series. Sony Electronics is taking the audiovisual convergence features VAIO(R) users love and placing them in a powerful and practical tool designed specifically for the business professional with the introduction of the VAIO GR170K and GR150K notebook PCs -- its first two-spindle notebooks created especially for the corporate market.
The highlight of this new notebook PC line is the GR170K unit, which houses a mobile Intel(R) Pentium(R) III processor 1GHz-M supporting Enhanced Intel(R) SpeedStep(TM) technology. As one of the first PC manufacturers incorporating this new processor in a notebook PC, Sony VAIO GR users will experience seamless application transition and significantly higher performance for enhanced productivity. Both the GR170K and the GR150K weigh 5.6 pounds with the weight saver and only 6.3 pounds with the removable CD-RW/DVD combo drive.
Designed to be highly functional, yet thin and light, the new GR170K model has a 14.1-inch SXGA+ TFT display for 87 percent higher pixel count than a regular XGA TFT screen. This impressive screen provides brilliant playback for business presentations and DVD viewing. It also sports a modular design that allows users to run two batteries, an easily removable hard drive and an optional port replicator for full office peripheral connectivity.
The GR summer lineup offers one additional configuration, the GR150K. It features a mobile Intel(R) Pentium(R) III processor 866MHz-M and a 14.1-inch XGA TFT screen.
Along with the GR series' great features, Sony will offer a three-year limited warranty on both notebook PC models, providing security and convenience for the business user.

Powerhouse Multimedia Capabilities For The Road Warrior

All VAIO notebooks PCs, including the GR series, come equipped with an i.LINK(R) (IEEE 1394) digital interface, allowing for digital video and data exchange between VAIO notebook PCs and Sony Digital Handycam(R) camcorders, Sony Cyber-shot(R) digital still cameras and other compatible devices.
Also included in the new VAIO GR PC line's software mix are: Sony's original MovieShaker(TM) software, a simple application for producing digital movies; Sony's PictureGear(TM) software, designed to help manage digital content; and Dvgate(TM) software, which captures full motion digital video and still photography.
The GR series also house a CD-RW/DVD combination drive and a MagicGate(TM) Memory Stick(R) media slot for quick, high capacity storage of music, video, digital images and convenient sharing of files among colleagues. They also feature Sony's JogDial(TM) control for easy application selection. The quick and simple integration of all these products allows users who work on the road and in the car to create and share photos, videos and information immediately.
In addition to the GR170K and the GR150K, the GR series can be custom configured on our web site at www.sonystyle.com/vaio. The GR170K and GR150K ship with a Microsoft(R) Windows(R) 2000 Professional operating system for about $2,999 and $2,599, respectively. Both systems arrive on store shelves in early August.

July 30 - Hitachi to continue CRT & LCD monitor sales in US. In a reversal of a previous announcement made last Friday, Hitachi now says they will continue CRT monitor sales in the US. In addition, today they announced a new value priced19-inch flat-faced monitor. Their press release follows.

Hitachi America, Ltd., a subsidiary of Hitachi, Ltd. (NYSE: HIT), has added a value-priced, 19-inch display (18-inch viewable) to its flat-faced monitor line. The new CM721F offers an amazingly tight dot pitch of 0.20 mm horizontal, 0.13 mm vertical to form one of the tightest dot pitches available. The CM721F comes with Hitachi's 5-year branded CRT monitor warranty - the longest, most comprehensive warranty available in the industry.
The new CM721F marks Hitachi's commitment to expanding its CRT product line and to meet the demands of its U.S customers and through its U.S distribution channels. The CM721F expands Hitachi's award-winning flat-faced monitor series providing a value priced solutions for general home use, business use or entry-level graphics and imaging customers requiring all the advantages of a flat-faced monitor at a value price. Hitachi will continue to sell its award-winning ErgoFlat 19" monitors the CM771, CM772 & CM772B targeted towards higher-end graphics, CAD/Cam and imaging users.
"Hitachi will continue to expand its CRT monitor & LCD display offerings in the United States. As the market shifts increasingly towards flat-faced monitors, Hitachi is meeting this demand by adding value line flat-faced monitors to complement its traditional emphasis on professional displays. By expanding our line and concentrating our manufacturing facilities in cost-effective countries - but still utilizing Hitachi's design, engineering and quality assurance staff and procedures - Hitachi intends to expand its U.S market penetration in the competitive branded monitor industry," said, Kevin Bowler, vice president, sales and marketing, display products, Hitachi America's Computer Division.
Flat-faced monitors are increasingly in demand because they eliminate glare and minimize distortion across the screen. With a maximum resolution of 1600x1200 at a flicker-free 75 Hz refresh rate, the Shadow Mask CM721F provides the vibrant, realistic images of flat-face technology at a value-price. The new monitor has an 18" viewable image area and an amazing new, super-fine dot pitch of 0.20 mm horizontal x 0.13 mm vertical dot pitch. It provides 202 MHz bandwidth.
Using EasyMenu on screen controls with adjustments for color temperature, trapezoid, parallelogram, pincushion, and more, the TCO '99 approved CM721F will begin shipping to Hitachi's worldwide distributors within the next 30 days. Pricing was not announced.

Hitachi America, Ltd, monitor sales group can be found on the Web at www.hitachidisplays.com.

July 30 - Zoom Posts Second Quarter Loss. Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading manufacturer of modems and other Internet access products, today reported sales of $10.8 million for its second quarter ending June 30, 2001, down 18% from the second quarter of 2000. Sales for the first six months of 2001 were $21.1 million, down 23% from the first six months of 2000.

Zoom's second quarter 2001 sales increased 5% over the first quarter of 2001, primarily due to growth in worldwide OEM and North American non-OEM sales.

Zoom reported a net loss of $2.6 million or $.33 per share for the second quarter of 2001, versus a net loss of $937 thousand or $.12 per share for the second quarter of 2000. For the first six months of 2001, Zoom reported a net loss of $7.8 million or $1.00 per share, versus a net loss of $1.9 million or $.24 per share for the first six months of 2000.

"We expect sales of dial-up modems by retailers to increase when Internet Service Providers roll out service that supports the new V.92 and V.44 standards," said Frank Manning, Zoom's President and CEO. "Zoom is a leader in V.92 and V.44, and our Zoom, Hayes(R), and Global Village(R) brands should benefit from the expected surge in sales. Until then we will continue to try to grow our share of dial-up modem revenues in the USA, the UK, and other major markets; and we will position ourselves for growth in the broadband and wireless network product areas."

During the second quarter of 2001 Zoom increased its sales of cable modems. Zoom recently achieved @Home(R) level 2 approval for two of its cable modems, and Zoom now has the only PCI cable modem with CableLabs, WHQL, and @Home approvals. Zoom has recently begun cable modem shipments to two top U.S. computer retailers, Fry's and Micro Center(R), and Zoom has received a commitment from another major retailer. In addition, Zoom is shipping to some cable service providers and has received commitments from some original equipment manufacturers.

Zoom also continues to expand its wireless local area network product line, which now includes a range of low-cost 11 Mbps wireless network interface cards, an access point, a gateway, and a building-to-building bridge. Visit Zoom's website at www.zoom.com.

July 29 - Sunday Shopping Watch.
Special Discounts and Financing. In addition to sales on specific items, the following store-wide sales are advertised this week.
Best Buy
is giving away 1 year of free MSN with any computer purchase. They are also offering 12 month no interest financing on all computer purchases over $598 and $100 mail-in rebates on all desktop computer packages.
Circuit City is offering $100 instant rebates on all AMD desktop computer packages and notebooks.
Office Depot no special store-wide computer sales (individual items may be on sale).
CompUSA Is offering 12 month no interest financing on all computer purchases over $598.
Staples no ad this Sunday.

Internet Rebates. All stores continue to offer 3 year, $400 Internet Rebates. Please see our article, What You Need to Know About Internet Rebates and Free PCs, for an in-depth discussion of Internet Rebates.

Definitions. A complete system/package is defined as a computer with monitor and printer or scanner.
A build-to-order system is customized at the retailer and then ordered from a vendor's store. In addition to the computer's stated price, you still pay sales tax and shipping charges (if you order direct from the vendor without going through the chain store, you may not have to pay sales tax and you could get a better warranty).

* Prices discussed in this article. Advertisers typically deduct the $400 Internet rebate from an items true price. We report all prices without subtracting the $400 Internet rebate, however all other rebates and discounts are usually subtracted.
Caution about advertised prices. When reading advertisements, read the fine print of the ad to make sure you know what is being advertised and what it cost. For example, many advertisers will show a complete system with computer, monitor, and printer but advertise a price for the computer only.

Best Deals this Sunday
Category
Product Description
Price* (see above)
Store
Best Celeron Deal
HP 800 MHz complete system
$749
Best Buy, Circuit City
Best Pentium III System
HP 1 GHz complete system
$1049
Best Buy, CompUSA
Best Pentium 4 System
HP 1.3 GHz complete system
$1349
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Best Duron System
Compaq 900 MHz complete system
$749
Circuit City
Best High End Athlon System
Sony 1 GHz complete system
$1149
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Best Low Cost Notebook
Compaq 800 MHz Celeron with DVD
$1149
Office Depot
1. Best High-end Notebook
Compaq Athlon 1 GHz with DVD/CD-RW
$1799
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2. Best High-end Notebook
Compaq Pentium III 1.13 GHz with DVD/CD-RW
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Additional Information. For additional technical information, advice on how to buy a laptop or desktop, and vendor and manufacturer links, please see our Computer Buying Advice page.
About Sunday Shopping Watch. Sunday Shopping Watch appears every Sunday (except some holidays like Easter and Christmas) in our News and Rumors column. It is a review of the highlights of local (Dayton, Ohio) computer chain store advertisements. While we can not guarantee your local chain store has the same items, this article should help you to make informed buying decisions.

July 27 - Hitachi to Discontinue CRT PC Monitor Production. Hitachi, Ltd. (NYSE:HIT)(TSE:6501) today announced that it has decided to withdraw from CRTs for PC monitors. In line with this decision, by the end of 2001 Hitachi will halt production of monitor CRTs at its manufacturing bases in Japan, Singapore and Malaysia, and is reviewing specific options for selling the business.

The sluggishness of the desktop PC market has reduced demand for CRTs for PC monitors, leading to a sharp fall in prices. Moreover, with future demand expected to shift to LCD monitors, there are no prospects for growth of the monitor CRT market.

Hitachi's Display Group has been endeavoring to boost the cost-competitiveness of its products by transferring production overseas and moving to a lineup of higher-value-added products such as short-length CRTs, flat-face CRTs and large-screen CRTs for PC monitors. However, it was determined that any radical improvement in profitability would be difficult to achieve, leading to the decision to pull out of the monitor CRT business.

Looking ahead, the Display Group intends to concentrate resources on flat panel displays, particularly TFT LCDs including low-temperature poly-silicon TFT LCDs, and to utilize its leading-edge technology, including Super TFT, which offers high picture quality and a wide viewing angle and is well-suited for moving picture images. In addition, this month saw the start of TFT LCD production at a high-efficiency production line that uses the world's largest glass substrates, measuring 730 mm by 920 mm.
By utilizing these strengths, Hitachi will focus on expanding and improving the profitability of its display business, using a product lineup that ranges from small and medium-sized LCDs for mobile phones to large-screen models for multimedia applications.

Hitachi can be found on the Web at www.hitachi.com

July 27 - Infineon Plans Extensive Cost Reductions. In light of the continued weakness in the technology sector worldwide, Infineon is planning a comprehensive package of measures to further reduce costs. This package is to encompass extensive savings aimed at further streamlining processes such as procurement, logistics, information technology, and manufacturing in the company's various business units. After a rapid analysis of the savings potential, further decisions will be made over the next few weeks. In addition, Infineon is planning to introduce short-time work and reduce the size of its workforce worldwide. Altogether, roughly 5,000 jobs will be affected. The overall program named "Impact" should save roughly Euro 1 billion over the next 12 to 18 months and thus help improve significantly the company's cash position and earnings.

The planned workforce reductions are to be as socially compatible as possible, and specific plans are being prepared at the moment. The reduction of workforce and short-time work are to be implemented on a business-dependent basis and will differ in scope at individual locations and business units. Employees' representative bodies will be involved in the process in accordance with the prevailing requirements in their respective countries.

Market analysts currently estimate that in 2001 the worldwide semiconductor market will decrease by over US$ 60 billion compared to last year. Compared to previous market forecasts of October 2000 the market will decline by over US$ 100 billion, impacting Infineon's business severely. "Due to the fact that there are still no clear signs of a recovery in the global semiconductor market, we have informed our supervisory board on July 25 that additional, more extensive steps are now necessary on top of the cost-cutting program we already initiated," explained Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. "Regrettably, a cost-saving program on this scale inevitably means reduction of the workforce worldwide. But the dramatic developments in the market and our business situation leave us no choice."

Infineon had already announced an initial round of cost-cutting measures comprising the following: a reduction in investments over the current fiscal year by Euro 500 million to Euro 2.3 billion; a reduction of more than Euro 1 billion to Euro 1.5 billion in investments planned for the coming fiscal year; an almost complete hiring freeze; and no replacing of personnel lost through attrition.

Last Monday, Infineon announced an EBIT loss of Euro 598 million for the third quarter and a 30 percent drop in sales compared to the same quarter last year. Infineon also expects to report negative earnings for both the fourth quarter and fiscal year 2001 (ending September 30). There are currently no clear signs of a recovery in the marketplace, and demand is extremely weak in the mobile phone and PC markets. As a result of its extensive cost-reduction program, Infineon will be able to continue to invest in cutting-edge innovations such as 300mm technology and secure important competitive advantages by consistently stepping up productivity.

Further information is available at www.infineon.com.

July 27 - AOL Launches Instant Messenger 4.7 for Windows. America Online, Inc., the world's leading interactive services company, today announced the launch of the AOL Instant Messenger(SM) (AIM) (R) service, version 4.7 for Windows, now available for download at www.aol.com/aim. The AIM service, one of AOL's popular interactive brands, is a free instant messaging product that makes it convenient for consumers to see when friends, family and other contacts are online and to communicate with them in real time.

There have been more than 100 million registrations around the world for the AIM service, which is available for use on computers, mobile phones and other handheld devices.

The AIM 4.7 instant messaging software offers enhancements based on extensive user feedback and research, including a new AIM Today window that appears along side a user's Buddy List feature whenever they sign on. User feedback showed that people wanted more ways to use instant messaging as a community-building tool and a central meeting place where they can find people they know and meet new people with similar interests, get quick bits of information that they can share with friends, and learn tips on how to get the most out of instant messaging.

"One of the fundamental reasons that instant messaging is so popular is that we've made the AIM service simple and easy to use," said Raul Mujica, General Manager, AOL Instant Messenger. "As more and more people take advantage of the tremendous convenience of instant messaging, they're enthusiastic about learning new ways to enhance the way they communicate with others. We're pleased to provide version 4.7, which includes terrific new features for current AIM users and gives everyone who hasn't signed up yet more reason than ever to do so."

Other new features in AIM 4.7 include the ability to send customized, electronic greeting cards within instant messages; the ability to create and store personalized notes that will appear on screen whenever a user scrolls their mouse over names within the AIM (R) Buddy List feature; the ability to share names from the Buddy List feature with friends; and HTTP proxy support to make it easier for users to connect to the AIM service from work.

AIM 4.7 for Windows is available at www.aol.com/aim.

July 27 - Which company will dominate future PDA market? According to a recent report from NPD Intelect, Palm's own brand of devices accounted for 69.4 percent of the handhelds sold at U.S. stores in May, up from 62.1 percent in April. However, Handspring saw its market share slip to 15.3 percent in May, while Hewlett-Packard overtook Casio to own 6.1% of the market. Finally, market share for Compaq Computers accounted for only 2.9% in May.

It is important to note NPD figures only track retail sales, and therefore don't reflect the entire handheld market. For instance, Compaq's iPaq are also sold to corporate customers or through direct sales. Market share statistics may be skewed.

Last year, the Handspring (Nasdaq: HAND - news) VisorPhone was one of the first products combining a hand-held computer, cellular phone, and Internet capabilities. Handspring's Visor hand-held computer strong value for consumers lied in the expansion port specially designed for hardware add-ons such as the VisorPhone, enabling users to place/receive calls, e-mail, and Web data.

Palm (Nasdaq: PALM - news) and Motorola (NYSE: MOT - news) are developing a phone for early 2002 featuring a color-display screen that is larger than most cell-phone displays. Additionally, the phone will contain Palm's address book and calendar features, Web access, and the ability to connect wirelessly or through a cradle to sync information with a computer.

According to Taylor Nelson Sofres (TNS) Intersearch, 7% of adults in the US own, or have someone in their household who owns a cell phone with internet access. Another 4% own personal digital assistants (PDAs) or handheld wireless devices. Although PDAs still account for a small percent of the U.S. Wireless Internet user, many feel a hybrid of the PDA and the cell phone will out as the device of choice among users.

No one knows what the wireless future holds, but many feel the Compaq iPaq has the ability to make a strong hold in the market place with its leading-edge color screen and processing speed. We will have to wait and see who will win out as the device of choice.

Visit Netpace, Inc. at www.netpace.com.

July 26 - BellSouth and Dell Deliver Broadband Solutions to Consumers. BellSouth (NYSE:BLS) and Dell (NASDAQ: DELL) today announced the availability of broadband enabled computer systems for new BellSouth FastAccess DSL customers.

This exclusive offer will provide consumers with a simple broadband experience backed by the reliability and know-how of two market leaders.

These broadband enabled PCs are pre-configured to support BellSouth FastAccess service. Dell pre-installs each FastAccess DSL modem before shipping, making the set up process easy for customers. This allows for a simple, hassle-free installation with no extra wires or devices. The offer features three power-packed BellSouth FastAccess DSL-enabled Dell Dimension desktops, which consumers can customize and enhance with additional components and service offerings to meet their individual needs. In addition, customers can enjoy savings on the system of $100, $200 or $300 based on which desktop computer they choose.

"BellSouth's goal is to give our customers the simplest access to broadband with BellSouth FastAccess Internet Service," said Ralph de la Vega, president of BellSouth broadband, Internet and data services. "This new offering with Dell takes the self-install process to the next level, making it an easy, out of the box experience that will have customers surfing at high speeds in minutes."

John Hamlin, vice president and general manager of Dell's U.S. consumer business, said, "This alliance further demonstrates our commitment to make it as easy as possible for customers to enjoy the benefits that computers and the Internet can offer. This makes high-speed Internet access virtually plug and play for customers."

BellSouth FastAccess Internet service works at speeds up to 50 times faster than a 28.8k modem. Large data files such as audio files and research documents can be downloaded or transferred in seconds rather than minutes. Also, users can talk on the telephone and surf the Internet at the same time, on the same phone line, at maximum download speeds of up to 1.5 Mbps and maximum speeds from the user's computer to the Internet of up to 256 Kbps.

Both companies have launched sales and marketing initiatives to promote BellSouth FastAccess DSL and the broadband enabled computer systems. To learn more about this offer, customers can qualify for BellSouth FastAccess Internet Service by visiting www.fastaccess.com/consumer.

July 26 - Remote Workers will Drive Demand for Business Broadband. Growing numbers of remote workers and telecommuters are driving increased demand for broadband services and equipment across businesses of all sizes, according to a set of recent reports from high tech market research firm, In-Stat/MDR.

In-Stat's research determined that over half of the U.S. workforce perform their jobs in what could be considered "remote sites." The bulk of these workers are in small remote branch offices or are telecommuters in 2001. By 2005, In-Stat expects more than 60% of the workforce to be considered remote, driving continued need for remote connectivity and high-speed Web access for remote workers.

"For several years, US businesses have slowly fragmented into multiple remote sites, including telecommuters' home offices. This trend has accelerated over the last few years. Increased availability of broadband access, like cable modem and DSL services, has certainly facilitated, if not enabled, the recent increase in remote workers," Sys Kneko Burney, Director -- eBusiness Infrastructure & Services for In-Stat. "In-Stat expects fragmentation to continue, as businesses continue to accommodate highly skilled professionals by allowing them to work from home, also in tandem with keeping employees closer to customers in branch offices around the globe."

However, businesses face a growing number of challenges supporting their remote workforce, adds Burney. She points out that remote workers can strain IT resources and, according to the research, are becoming more of a priority for business decision-makers in the U.S. This presents service providers with a host of opportunities to address the changing needs of these workers. "From VPN connectivity to hosted applications, U.S. businesses are looking for solutions for their remote workers' needs. Outside services, including broadband solutions, are becoming the best choices for these customers."

The research also found:

-- There are nearly 3 million remote offices in the U.S. business
market. By 2005, this number is expected to grow to nearly 5 million.

-- Another interesting opportunity is the growing number of
Internet-accessing telecommuters working for U.S. firms. There
will be more than 21 million telecommuters in 2001. By 2005,
service providers will have nearly 35 million telecommuters to
offer service to.

-- More than half of those surveyed expressed interest in
purchasing VPN services to connect remote locations and
employees, even among small businesses.

-- U.S. businesses are expected to spend more than $160 billion
on communications services and equipment in 2001, and nearly
$260 billion by 2005.

More information on In-Stat can be found at www.instat.com.

July 26 - June Electronic Components Orders Remain Flat. Orders for electronic components remained flat for the month of June, according to the latest index released by the Electronic Components, Assemblies & Materials Association (ECA).

Inventories of electronic components in the supply channel continue to decrease and could soon reach acceptable levels based on current demand. But, a serious problem still looms: end-product manufacturers have not been able to reduce their inventories to buyers at the same rate. A rise in consumer confidence and the arrival of tax rebate checks might spur demand in the second half of 2001. This could lead to an upturn for the electronic components industry in the latter part of 2001.

"The orders index remained down, but steady compared to last year," says Bob Willis, ECA president. "Orders are expected to remain flat through the end of the summer."

ECA's monthly index is based on weekly order reports from approximately 30 electronic component companies. Although derived mostly from passive and electro-mechanical component companies, the index is representative of the economic trends in the general component industry.

The Electronic Components, Assemblies & Materials Association (ECA) represents manufacturers and producers of passive and active electronic components, component arrays and assemblies, and materials and support services. It is a sector of the Electronic Industries Alliance (EIA), comprising more than 2,100 members that represent 80 percent of the $550-billion U.S. electronics industry. For more information, visit www.ec-central.org.

July 26 - Satellite and Cable TV Industries Announce Support for Digital Visual Interface. In a move that promises to significantly enhance home entertainment for consumers across America, a number of leading industries today announced their support of Digital Visual Interface (DVI) with high-bandwidth digital content protection (HDCP) for transmission from set-top boxes and television monitors for high definition video content.

Supporting the new protected digital interface are CableLabs(R), DIRECTV, Inc., EchoStar's DISH Network, the Fox Entertainment Group, Satellite Broadcasting & Communications Association, Sony Pictures Entertainment, The Walt Disney Company, Thomson multimedia (NYSE: TMS) and Warner Bros.

Industry-wide support for the new protected interface will ensure consistent standards and foster greater availability of high definition video content with optimum viewing for up to 85 million television viewing households in the United States, as well as high definition set-top boxes and display devices.

DVI/HDCP delivers video in an uncompressed format and therefore supports real-time complex graphics displays and user interfaces found in program guides and other interactive features for high-definition digital television. The sheer capacity delivered via the DVI connection permits display devices to fully support features developed by content and set-top box providers that enrich and enhance the overall user experience.

Satellite Industry Supports DVI

Beginning next year, all DIRECTV-licensed consumer electronic manufacturers will begin to incorporate a DVI connector with high-bandwidth digital content protection into new DIRECTV-enabled high definition digital set-top boxes.

"Cross-industry acceptance of DVI/HDCP ensures both content providers and set-top box and display device manufacturers the flexibility of securely offering more high quality, high definition content, which ultimately benefits the consumer," said David Baylor, executive vice president, DIRECTV, Inc. "DIRECTV has taken the initiative to support this new digital interface to ensure that there will be a greater selection of high definition content and digital receiving devices available to consumers in the future."

EchoStar's DISH Network is also a proponent of DVI in its HDTV satellite TV receivers.

"DISH Network is already working to incorporate a DVI with high bandwidth digital content protection (HDCP) in our next-generation HDTV set-top box," said Dave Kummer, senior vice president of Engineering at EchoStar. "In fact, DISH Network was the first satellite TV provider to demonstrate DVI technology in satellite TV receivers at the 2001 International Consumer Electronics Show in January."

Kummer added, "DVI with HDCP will be a key component to expanding DISH Network HDTV programming and equipment offerings that allow for digital video recording (DVR) and Web browsing functionality by providing uncompressed video data to the television monitor. If the connection from the set-top to the TV were limited to only 1394CP (5C), these functions would be much more difficult to achieve."

DISH Network does recommend the use of 1394CP (5C) as the interface between recordable high definition devices while DVI/HDCP should become the standard for connection to the display device.

"The addition of DVI in both set-top receivers and digital HDTV displays is important to the consumer because it opens new opportunities for expanded availability of HDTV programming," said Thomson's Tim Saeger, vice president Research & Development. "We view the addition of DVI as an enabler for viewers to access the best of satellite home entertainment with the most realistic video performance available today."

Andy Paul, senior vice president, Government Affairs of the Satellite Broadcasting and Communications Association, said, "The DVI standard will allow the satellite industry to provide its ultra-high digital picture resolution and delivery to a multitude of uses and formats for digital home distribution. Adoption of the standard is a clear win for consumers. It will give them increased flexibility and enable even greater program quality and enjoyment in the digital home video environment."

July 26 - Principal Benefit to E-Learning/Online Training Is Anytime, Anywhere Availability. The results of the e-learning industry's landmark user study, conducted by e-learning magazine , indicate that 79 percent of users feel the principal advantage to e-learning/online training is that students, trainees or employees can access courses on their computers wherever they are and whenever they want.

Fifty-nine percent say it allows for self-paced learning, and the same number say it saves money. Fifty percent say it provides "just-in-time" learning, while one-third like the "ease of use," fast distribution and the ease with which content can be altered.

In addition to determining the perceived benefits of e-learning, the study contributes statistically valid data on how organizations deliver e-learning; how they develop e-learning content; what they teach via e-learning; how they measure results; and what they perceive as challenges to e-learning/online training. Staff and personnel involved in the e-learning decision-making process are also disclosed.

For complete e-learning user survey results, visit http://www.elearningmag.com and on the home page, click on the link under E-LEARNING NEWS.

July 25 - SOYO Unleashes Athlon SY-K7V DRAGON Motherboard. SOYO Computer, Inc. expects to breathe fire into the AMD motherboard market when it today releases its SY-K7V DRAGON motherboard for high-performance AMD Thunderbird and Duron CPUs with VIA's KT266 chipset.

The new SY-K7V DRAGON motherboard is an acronym for success that could spell significant sales for SOYO's AMD-supported products, according to VP of Engineering Ming Chok. The board's nickname defines its many advanced features. The "D" in DRAGON stands for DDR memory support; R = RAID (0,1) on board; A = Audio on board; G = AGP Pro Slot; O = Overclocking Features, which are all adjustable via the BIOS; and N = NIC 10/100 Ethernet onboard. The SOYO SY-K7V DRAGON will have a single board list price of $170 (U.S.) and will be available from SOYO's worldwide network of authorized dealers and distributors in July.

SOYO's new board is optimized for performance for the latest DDR-capable AMD Socket A processors with 200/266 Frontside System Bus (FSB). The Via KT266 chipset provides up to a 40% performance boost over the current 133Mhz chipsets. SOYO has also developed several system management and protection features to make the SY-K7V DRAGON one of the most innovative motherboards for high-performance system builders in its class, according to Chok.

The SY-K7V DRAGON comes in an ATX form factor. The board includes five 32-bit Bus Mastering PCI slots (V2.2 compliant), and one Universal AGP Pro slot with support for 1x/2x/4x mode graphics. With its AGP Pro slot, the DRAGON motherboard offers a dedicated, high-speed port for the movement of large blocks of 3D texture data between the PC's graphics controller and system memory. This makes it an excellent board for real-time video editing, digital content creation, 3-D graphics processing, commercial 3-D modeling, CAD/workstation applications, image compression, speech recognition, and a variety of mainstream applications.

The DRAGON's memory is expandable with three 184-pin DDR SDRAM 2.5V DIMM sockets, and support for up to 3GBs of DDR memory.

The SY-K7V includes an on board CMI 8738 audio chip, which provides 6-channel speaker support with 3D surround sound. On board 10/100 Mbps Ethernet functionality is also available with VIA's PHY controller. The board's Ultra I/O Chip includes two RS-232 serial ports (16550 UART compatible); one parallel printer port (SPP/EPP/ECP mode), one FDD port (supports 3 mode, 1.2/1.44/2.88 MB FDD; an IrDA port with optional cable for transceiver, and six USB ports (2 rear, 4 front). The board's Ultra DMA IDE ports provide support for four independent channels, which can accommodate eight IDE devices, including two for RAID.

For more information, visit www.soyousa.com.

July 24 - ADS Technologies Ships USB Analog Video Capture Device. ADS Technologies, a leader in consumer video editing solutions, today announced that USB Instant Video is now shipping.

USB Instant Video is an external analog video capture device that enables users to transfer analog video from a camcorder or VHS tape to their PC. Once the video is captured in a digital format to their computer, users can edit, add special effects, and then share their home movies on CD or over the Internet via video mail or streaming video.

For less than $70, users can give their old home movies on VHS tape new life with USB Instant Video and included video editing software, Interactive's MovieWorks LE for the Mac platform and Ulead's VideoStudio 5.0 for the PC. With the USB interface, users also can use their analog camcorders as live Web cams for videoconferencing over the Internet.

"We developed USB Instant Video to meet the demands of some 40 million analog camcorder owners who need an easy and simple way to edit and share their home movies," said Mike McCoy, president of ADS Technologies Inc. "Earlier generation USB capture devices produced inferior results with grainy video at 320x240 resolution and sound that was out of sync. USB Instant Video delivers outstanding audio and smooth video quality at up to 640x480 resolution."

Pricing was not announced. For more information, visit the ADS Technologies' Web site at www.adstech.com.

July 25 - AMD and other industry leaders form HyperTransport Technology Consortium. A coalition of high-tech industry leaders today announced the formation of the HyperTransport(TM) Technology Consortium, a nonprofit corporation that supports the future development and adoption of AMD's HyperTransport I/O Link specification.

Technology leaders AMD (NYSE:AMD), API NetWorks, Inc., Apple(R), Cisco Systems, NVIDIA Corporation, PMC-Sierra (NASDAQ:PMCS), Sun Microsystems, Inc., and Transmeta have joined together as promoters of HyperTransport technology, and will now manage the development and evolution of the technology's specifications. More than 180 companies throughout the computer and communications industries have been engaged with AMD in working with the HyperTransport technology.

HyperTransport technology is an innovative solution that enables the chips inside of high-performance compute devices, and networking and communications devices -- such as those that power the Internet --to communicate with each other up to 24 times faster compared with existing technologies.

"The consortium represents the commitment of its members to develop industry-wide adoption of HyperTransport technology, and to drive this state-of-the-art technology into the market," said Gabriele Sartori, newly elected president of the HyperTransport Technology Consortium. "HyperTransport technology is a popular new chip-to-chip communications technology that is endorsed by major industry players. It is designed to provide a smooth transition from existing technologies and to support the necessary scalability and bandwidth for future product innovations."

The consortium was formed to promote the adoption and deployment of HyperTransport technology, manage and refine its specifications, and proliferate an infrastructure of test and verification tools to speed up market delivery of devices enabled with this technology. Product samples using HyperTransport are currently available, and other components are planned to be in volume production by the end of the year.

"The HyperTransport Technology Consortium is a good example of collaboration between AMD and its partners responding to industry needs, and promoting a new standard for improving overall system performance," said Richard Heye, vice president of AMD's Platform & Infrastructure Engineering & Microprocessor Business Management.

"As a major contributor to the development of HyperTransport technology, API NetWorks was the first company to have HyperTransport technology in silicon, and recently introduced the industry's first HyperTransport-to-PCI bridge chip, the AP1011. This announcement marks a significant milestone for the industry and its lead promoters, as we deliver on the promise of HyperTransport technology-based products today and address the bandwidth and performance issues of the future," said David Rich, API NetWorks' general manager of HyperTransport product development.

"Apple is delighted to participate as one of the leaders in the HyperTransport Technology Consortium," said Jon Rubinstein, Apple's senior vice president of Hardware Engineering. "HyperTransport represents a great technology with exciting future potential."

"By participating as a promoter of HyperTransport Technology Consortium, Cisco Systems expects to play a leading role in bringing to market a new generation of intelligent, high-performance, processor-based networks," said John Wakerly, vice president and CTO for Cisco's Enterprise Line of Business.

"NVIDIA was one of the first to incorporate HyperTransport technology into the market with the introduction of its new nForce platform processing architecture. As founding members of the consortium, we are committed to continue utilizing HyperTransport technology," said Dan Vivoli, vice president of marketing at NVIDIA.

"As the leading supplier of high performance MIPS processors for networking, PMC-Sierra has incorporated HyperTransport technology into our RM9000x2 Gigahertz multiprocessor to offer higher inter-connect bandwidth," said Tom Riordan, vice president and general manager, MIPS Processor Division for PMC Sierra.

"Sun is committed to driving open standards and delivering the most advanced technologies to our customers. HyperTransport technology will represent the next level of bus performance and functionality for workstations and servers. Sun is delighted to be a leader in the HyperTransport Technology Consortium," said Pete Rado, vice president of Engineering, Volume System Products, Sun Microsystems, Inc.

"Transmeta believes that HyperTransport technology is the right choice for the next generation of lower power PCs, networking and communications devices. By joining the leaders in the HyperTransport Technology Consortium, and cooperating together on this exciting new technology, customers will be the winners," added Doug Laird, executive vice president of product development of Transmeta.

Visit the consortium Web site at www.hypertransport.org.

July 25 - AT&T Details Results and Outlines Growth Plans For Broadband Business. In a teleconference briefing today, AT&T presented a comprehensive financial and operational update on the company's broadband business.

"We want investors to see that AT&T Broadband is not just the nation's largest cable TV company but the leading provider of integrated residential broadband services," said AT&T Chairman and CEO C. Michael Armstrong.

AT&T said its Broadband unit is meeting or exceeding its targets for clustering systems, upgrading facilities, and accelerating the rollout of advanced new services.

"AT&T Broadband is only a year old, and it is already the industry leader in providing advanced digital services such as telephony, high-speed data and digital video," Armstrong said. "Transforming two cable companies into a leading broadband business certainly put some pressure on margins, but it was a strategic decision to maximize the growth potential of our cable infrastructure."

"Revenue from advanced services grew more than 60 percent compared to last year," said Daniel E. Somers, President and CEO of AT&T Broadband. "Digital video is highly profitable. High-speed data is expected to break even in the third quarter. And telephony is expected to break even in nine months. Our investment in advanced services is paying off."

Advanced services drove AT&T Broadband's average revenue per subscriber to $55.34 in the second quarter, well above the industry average. The company said it expects overall revenue growth for the full year to be at a mid-teens rate.

The unit's continuing rapid growth of subscribers for new services was also seen in the second quarter when AT&T Broadband added, on a pro forma basis, about 553,000 advanced service subscribers. This represented an increase of approximately 46 percent from the number added in the year-ago quarter. As of June 30, AT&T Broadband had 848,000 broadband telephony customers, 1.3 million high-speed data customers and 3.1 million digital video customers for a total of 5.3 million advanced service subscribers.

AT&T Broadband plans to spend $3.6 billion in capital in 2001, with the majority focused on providing advanced services and plant upgrades.

The company said the total number of potential customers who subscribe to its advanced services has significantly increased since it acquired TCI and MediaOne, and AT&T Broadband outpaces the industry in providing these new services across its markets.

July 25 - Logitech Posts Record Q1 Earnings. Logitech International (Nasdaq:LOGIY) (Switzerland:LOGN)(Switzerland:LOGZ) today posted record first-quarter earnings, with revenue of $177.9 million, a 26 percent growth over last year's Q1 sales of $141.4 million. Net income reached $6.3 million ($1.30 per share; $0.13 per ADS), compared with $5 million for the same quarter last year. Operating income of $8.2 million was more than double that of the previous year. Gross margin was 34 percent, an improvement of 60 basis points year-over-year.

"We are pleased with these strong results, which underscore the customer appeal of our product lines and validate our focus on attractive aftermarket opportunities," said Guerrino De Luca, president and chief executive officer. "Today, consumers look to enhance their existing systems with peripherals that enable them to take advantage of new technologies and applications such as cordless connectivity, visual communication on the Internet and emerging audio applications such as voice-over-IP and interactive entertainment.

"Several of our newest retail products merit special mention. Cordless MouseMan(R) Optical, the first and only mouse on the market to combine cordless freedom with optical precision, has sold more than half a million units since its debut in March. Likewise, the GT Force(TM) Racing Wheel for PlayStation(R) 2, our first entry into the rapidly growing console market, is a success worldwide, with excellent prospects as more and more developers write to this exciting new entertainment platform.

"In June, we made a significant announcement with regard to our video business -- a marketing agreement with Yahoo! under which Logitech's QuickCam(R) family will be promoted as an ideal means to take advantage of webcam functionality now integrated within Yahoo! Messenger and other Yahoo! properties. According to industry analysts, instant messaging has become today's fastest growing communications platform. The marketing agreement with Yahoo! places Logitech in an ideal position to benefit from this phenomenon.

"As we approach the holiday selling season," Mr. De Luca concluded, "we will be introducing additional innovative products across our entire product portfolio. We continue to be committed to our business model, and we remain optimistic about our opportunities for further growth."

The Company reiterated its financial guidance for fiscal 2002, stating that it expects sales to grow by approximately 25 percent, with operating income increasing by 40 to 45 percent. For the second quarter, ending September 30, 2001, the Company expects 12 to 14 percent growth in revenue and 35 to 40 percent increase in operating income.

For more information about Logitech and its products, visit the company's Web Site at www.logitech.com.

July 24 - Excite@Home Reports Second Quarter Loss. Excite@Home (Nasdaq:ATHM) today reported its financial and operating results for the second quarter of 2001.

Net operating loss was $65.1 million for the quarter, or $0.16 per share, compared to a net operating loss of $38.6 million, or $0.10 per share, in the second quarter of 2000. The increase in net operating loss was driven primarily by the decline in media revenues and higher net interest expense.

Revenues for the second quarter totaled $138.6 million, a decrease of 7% compared to the second quarter of 2000. The decrease in revenues was driven by a decline in media and advertising revenues, which was partially offset by strong growth in residential broadband subscription revenues.

Demand for Excite@Home's residential broadband service remained strong, as net subscriber additions in the quarter totaled 474,000, an increase of 62% from the 292,000 added in the second quarter of 2000. Excite@Home's worldwide subscriber base grew to 3,674,000 at June 30, 2001, an increase of 115% from 1,708,000 at June 30, 2000.

Commenting on the quarter, Excite@Home chairman and CEO Patti Hart said, "Despite facing a number of tough challenges, we executed solidly this quarter, posting results in line with our targets and delivering ever-higher levels of network reliability and customer satisfaction. Demand for broadband services remains high, our access revenues continue to grow rapidly and we continue to work towards the break-even mark on operating EBITDA."

"We are working quickly to reshape our company in order to lead the next phase of the growth in broadband," Hart continued. "We are unique in our ability to deliver highly reliable broadband network services and applications, and we are focused on leveraging these capabilities to deliver a wider array of services to a broader set of customers."

Excite@Home can be found on the Web at www.excitehome.net.

July 24 - Addonics Announces USB 2.0 Host Controller For PCs or Mac. Addonics Technologies today announced a USB 2.0 Host Controller, which allows PC or Macintosh users to add five USB 2.0 ports through a PCI expansion slot to deliver 40 times faster data transfer rates over current USB 1.1 standard storage devices.

The new USB 2.0 Host Controller provides users with a simple upgrade path to the high-speed 480 m/bits per second throughput of USB 2.0. The controller will work with all USB external storage devices such as DVD, CDRW or hard drives as well with all USB peripheral devices such as scanners, printers and digital cameras or camcorders. Users can connect up to 127 devices through the host controller.

The Addonics USB 2.0 host controller is backward compatible with the USB 1.1 standard and will transfer data at the USB 1.1 speed of 12 Mbits/sec when used with USB 1.1 peripheral devices. Addonics offers a complete line of USB mobile peripherals, which includes Addonics Pocket DVD players, CD-ROM, hard drives, CDRW devices, and combination DVD/CDRW drives.

Driver software is included for Windows 98SE, Me and 2000, and Mac OS X or greater. The USB 2.0 Host Controller has a list price of $59.

Visit Addonics at www.addonics.com.

July 24 - Worldwide Broadband Subscribers Will Total Over 15 Million in 2001. Worldwide broadband Internet subscribers will total over 15 million in 2001 and over 30 million by 2004, according to a new report by Multimedia Research Group, Inc., "IP Video & Streaming Media 2001: Worldwide Server, Services, Content & ROI Analysis with Market Forecast-2001-2004". Add to that another 50 million who have access to broadband at work in 2004, and there will be a new audience of about 80 million (worldwide) broadband users by 2004.

Revenues for IP (streaming) media servers and storage are at $3.2 billion worldwide, with a forecast of over $5 billion in 2004. This report shows that continued growth in streaming is driven mainly by demand for high-speed (broadband) Internet, by high expectations of broadband users, and by big advances in corporate use of streaming media.

While cable broadband Internet is likely to stay ahead of DSL in the US, DSL is likely to pass cable in global markets. In North America, massive last-mile upgrades for cable broadband have continued on schedule in 2001 - in contrast to last-mile infrastructure pullbacks by large US Telcos. "This pull-back can be very dangerous for the big Telcos," states MRG CEO, Gary Schultz, "because large (and well-run) cable companies like Comcast and AOL/Time Warner have the ability to stay ahead of DSL and steal some voice business as well". MMDS and Satellite broadband services (to the desktop), like cable, are well poised to provide new threats to Telco-dominated DSL.

July 24 - AT&T Posts Second Quarter Loss. AT&T today announced second-quarter results for AT&T Common Stock Group.
On a reported basis, AT&T's Common Stock Group continuing operations lost $0.10 per diluted share compared to earnings per diluted share of $0.48 for the second quarter of 2000. The second-quarter 2001 continuing operations loss includes the effect of a $1.1 billion pre-tax write-down to market of AT&T's investment in Net2Phone ($0.19 per share after tax) and a $470 million pre-tax gain on the sale of AT&T's stake in Japan Telecom ($0.08 per share after tax).
The company said its investment in Net2Phone was impacted by the market-wide decline in technology companies as well as consumer demand developing more slowly than initially expected. On a reported basis, including both continuing and discontinued operations, AT&T loss per diluted share was $0.05.
AT&T reported second-quarter revenue from its continuing operations of approximately $13.33 billion, a 3 percent decline from the year-ago quarter. AT&T noted that revenue from AT&T Wireless, which is now a separate company, is not included in the company's total revenue results. The revenue decrease is primarily due to a continued decline in long distance voice revenue, which was partially offset by strong results from AT&T's Broadband unit and from Business data/Internet Protocol (IP) services.
"While our total revenue reflects the impact of the industry-wide decline in long distance voice, we are growing revenue in Business data and IP services and our Broadband business by nearly 14 percent," said AT&T Chairman and CEO C. Michael Armstrong. "That means later this year, AT&T Business will for the first time reach a crossover point where revenue from growth services will exceed long distance voice revenue, and we are well on our way to full-year revenue growth in the mid-teens in AT&T Broadband.
"When we split off AT&T Wireless earlier this month, it had a market cap of more than $40 billion. It's the first business we launched in our planned restructuring and a good example of the value we expect to unlock for AT&T shareowners."
Visit AT&T at www.att.com.

July 23 - AOL Music Announces New Initiatives in Online Music. America Online, Inc., the world's leading interactive services company (NYSE: AOL), today announced a range of initiatives that will transform the online music experience for AOL members and other Internet users by offering new ways to discover, experience and own music in one familiar, easy-to-use environment, and lay a foundation for innovations ranging from new forms of music programming to subscription-based online music services.
The company announced two new offerings, the Artist Discovery Network, an all-new outlet for music fans featuring content from major and independent record companies, and Radio@AOL, a breakthrough new service that transforms the conventional radio experience. These initiatives, together with a range of new enhancements to the service's popular music offerings and content, will allow AOL to provide the online audience -ranging from die-hard fans to the casual listener - with a depth, breadth and level of convenience that consumers have not had before in a single, integrated music platform.New AOL Music Initiatives


- AOL(R) Artist Discovery Network lets members discover the best of online music such as premiere original programming, in-depth artist information, genre-based "Listening Lounges," and localized content via direct zip code links to AOL Local's music pages. Artist Discovery Network will feature content from major and independent record labels including Arista, Ark 21, Atlantic, Dreamworks, Elektra, Grand Royal, J Records, Priority, RCA, RLG, TVT and Warner Bros., as well as the rich programming and editorial perspectives of partners such as Digital Club Network CNN Worldbeat, and National Public Radio (AOL Keyword: Artist Discovery Network).
- Radio@AOL blends traditional radio features with top-of-the-line original content, programming from leading partners and integrated retail offerings. Launching this fall, the breakthrough new radio service will take its place on the toolbar of America Online's next-generation AOL 7.0, where it will become a key part of the AOL experience for the service's over 30 million members. Among the 50-plus channels of innovative programming at Radio@AOL, members will find news, information and entertainment, as well as AOL exclusive programming, including an interactive weekly countdown show, celebrity-programmed and kids-only channels, holiday features and other original offerings.
Artist Discovery Network and Radio@AOL join a wide range of enhanced features and services to help consumers discover, experience and own music online, including:

- Ground Zero(TM), AOL Music's weekly new music show featuring host
Chris Douridas, will now offer members in search of the hottest
new music the chance to peruse archives of content from Chris'
wide-ranging, intimate interviews and live performances from both
established and up-and-coming musicians. This week Ground Zero
presents singer/songwriter Ani DiFranco performing songs from her
all-new album Revelling/Reckoning.

- "Artist of the Month," AOL Music's innovative multimedia showcase
for top artists - such as Janet Jackson and Sugar Ray and current
"Artist of the Month," P. Diddy - brings members content ranging
from video sneak previews and global listening parties to
exclusive tracks, advance ticket sales, news, photos and more
across AOL's music properties. Next month, AOL Music will
spotlight 'NSYNC.

- Spinner(TM) 4.0, the recently released version of AOL's number one
Internet-based radio service featuring easier access to the
richest selection of original audio programming. Available now at
www.spinner.com, Spinner gives listeners over 150 channels of
originally programmed music.

- AOL(R) Media Player, a new enhanced version of the popular and
easy-to-use multimedia player that supports all major audio
formats will debut in the new AOL 7.0 service this fall and offer
CD playback.

- AOL(R) Music Search, a new music-centric search engine that
enables members to easily explore the music universe via song
clips, images and links to both leading content and retailing
partners such as Rolling Stone and CD Now.

- MusicNet(TM), the online subscription music service scheduled to
launch later this year, will give members the ability buy and
listen to digital music within the convenient AOL environment from
one of the world's largest libraries.

Later this year, AOL will also launch a variety of new music features such as customizable radio, a sophisticated music recommendation tool for a more personal listening experience and expanded access to exclusive broadband content. All products will focus on making it easy for consumers to explore the music they love, to interact with artists and other fans, and to obtain digital music, concert tickets and related products.
Mr. Conroy continued: "With broadband poised to become more widely available, we're also taking the lead in building a bridge for consumers between today's products and services and the online music future. By seamlessly integrating a complementary range of music-related offerings, we're able to redefine online music for the mass market today and lay a foundation for exciting new experiences to come."

More information about AOL can be found at www.aol.com.

July 23 - Lexmark International posts record second quarter revenue. Lexmark International, Inc. (NYSE: LXK) today announced record revenue, operating income and earnings per share for the second quarter of 2001. Second quarter revenue was $988 million, up 11 percent (14 percent in constant currency) from the same period in 2000. Diluted net earnings per share were 65 cents compared to 62 cents reported a year ago.
"We are pleased to report these solid second quarter financial results, which are in line with our expectations," said Paul J. Curlander, chairman and CEO. "We continue to grow sales, market share and profits in the face of challenging macroeconomic conditions and intense competition, which attests to the long-term attractiveness of our business model."

Printers and associated supplies revenue up 17 percent in constant currency

Revenue for the second quarter ended June 30 was $988 million, an increase of 11 percent versus $893 million in the same period of 2000. Revenue growth would have been 14 percent versus last year without the negative impact of foreign currency translation. Printers and associated supplies revenue was up 13 percent from a year earlier, and would have grown 17 percent if not for the negative currency impact. Gross profit margin was 34.7 percent for the quarter, an improvement of 0.2 points from 34.5 percent a year ago due to higher sales of printer supplies, partially offset by lower hardware margins.

New inkjet and laser families launched

During the quarter, Lexmark introduced a wide range of new laser and inkjet products. In April, the company unveiled its 2001 Z-line of Color Jetprinters, with multiple sub-$100 printers that feature 2400 x 1200 dots per inch resolution and seven picoliter color drop size for brilliant photo quality. The Lexmark X83 and X73 All-In-One Print Centers were also launched during the quarter, combining Lexmark's award-winning inkjet output with the convenience of scan and copy capabilities, both at unprecedented price points under $200.
For the corporate business customer, a new family of Lexmark monochrome laser and multifunction solutions were introduced, establishing new industry standards for price performance. These highly versatile products deliver print speeds from 20 to 45 pages per minute at prices beginning as low as $699.

Looking forward:

"Last September, we provided guidance for full year 2001 earnings per share growth of 15 to 20 percent," stated Curlander. "Since that time, there has been a considerable slowdown in market demand, compounded with more aggressive laser and inkjet printer price competition. In addition, foreign currency comparisons continue to be negative. While Lexmark's supplies-driven business model provides some insulation from these factors, our expected earnings growth is being affected.
We do, however, expect to achieve solid year-over-year growth. For the third quarter, we expect revenue to increase by 8 to 12 percent and earnings per share to be in a range of 50 to 60 cents, compared to 50 cents per share last year. For the fourth quarter, we expect earnings per share to be in the range of 70 to 80 cents, compared to 64 cents per share last year."

Lexmark can be found on the Internet at www.lexmark.com.

July 23 - BiTMICRO NETWORKS Announces 75.7 GB SCSI Solid-State Disk. BiTMICRO NETWORKS today unveiled E-Disks(TM) SUD35 and SCD35 with up to 75.7 GB in 3.5-inch form factor -- the highest capacity and the fastest Solid-State Flash Disk in the world.
Rated at 9500 random I/Os per second (IOPS), 48 usec random access time and 34 MB/sec sustained random read and write transfer rates, the solid state E-Disks SUD and SCD are ideal for "Hot Files" caching.
"Hot Files" usually comprise less than 5 percent of application's database but account for more than 50 percent of I/O waiting time. By adding the SUD/SCD E-Disk as an architectural solution, overall system performance will improve significantly.
In general, the E-Disk SUD and SCD solid state storage devices are great I/O and throughput performance booster for DAS (Direct Attached Storage), NAS (Network Attached Storage) and SAN (Storage Area Network) architectures and RAID configurations -- by either replacing the hard disk drives used or acting as a cache or parity disk.
"Using the new generation of 15K RPM HDDs in NAS environment as baseline, Netbench 6.0 Random Performance Test results demonstrate that our Ultra Wide SCSI E-Disks dramatically improve random access throughput by more than 1,000 times," said Dave Bultman, VP of engineering and operations. "The test results are consistent and the random write throughput improvement becomes even more significant as the number of users increases," Bultman added.
Besides having higher performance, the desired small form factor, reliability (2 million hours MTBF), and ruggedness (16.4 G rms and up to 1000 Gs of operating shock), BiTMICRO's E-Disk offers additional security and data protection features required by these applications and not offered by any other flash-based SSD.
For product pricing and information, contact BiTMICRO NETWORKS at http://www.bitmicro.com.

July 23 - Infineon Announces Third Quarter Loss. Infineon Technologies AG (FSE/NYSE: IFX), one of the world's leading semiconductor manufacturers, today announced results for its third quarter ended June 30, 2001, with revenues of Euro 1.28 billion, a decrease of 30 percent year-on-year and of 23 percent from the previous quarter of this fiscal year. Revenues declined in the Wireline and Wireless Communications, Security & Chip Card ICs and Memory Products businesses compared to the previous quarter. Weaker demand, lower product prices and order cancellations affected each of these segments, while Infineon's Automotive and Industrial electronics business remained strong.
EBIT (earnings before interest and tax) decreased to a loss of Euro 598 million, down from a positive EBIT of Euro 366 million in the same quarter last year and down from a positive EBIT of Euro 10 million in the second quarter of this year. Infineon's loss was caused by strong price erosion, especially for memory products, and costs of carrying currently unused capacity in most segments. The loss also reflects charges of Euro 209 million in connection with inventory write-downs in all segments other than Automotive & Industrial, Euro 30 million of acquisition related expenses, and Euro 21 million related to investments in a research and development venture. Without these charges and expenses, EBIT amounted to a loss of Euro 338 million.
"Infineon has managed to grow faster than the market in the first half of the fiscal year with a 37 percent revenues growth in our non-memory businesses based on our strong position in system solutions despite an increasingly difficult market environment. However, market conditions significantly deteriorated in the third quarter and finally had a negative impact on Infineon's overall business", commented Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. "Our balanced product portfolio did not help to ease the current weakness in the memory market any longer. This dynamic development and the magnitude of the current downturn, especially in communications, was not expected."

Major developments in the Memory Products segment for the third quarter included:

-- the validation by Intel of Infineon's 288Mb RDRAM in 0.17 micron technology, currently the smallest 288 RDRAM on the world market

-- successful pilot production of memory products in the next generation 0.14 micron technology, this next generation technology has also successfully been implemented on 300mm wafers

-- based on design wins at strategic customers, development of new specialty memory products such as RLDRAM, Mobile-RAM and SGRAM for high-performance applications.

Infineon maintained world market leadership for chip card ICs for the third consecutive year, with a 34 percent market share in calendar year 2000 according to data recently published by Gartner Dataquest. The company also dominated the market for secure memories for chip card applications with a 60 percent market share in units. According to Dataquest, Infineon also improved to fourth rank in the DRAM market with a 9.4 percent world wide market share in calendar year 2000.

Outlook for 2001

During the third quarter market conditions in the semiconductor industry further deteriorated. Most leading market analysts currently predict a negative growth rate of 20 to 30 percent for calendar year 2001. Visibility for the market development in the second half of calendar year 2001 remains low and there are no clear signs of a market recovery in the coming months. Due to the current negative market conditions Infineon expects to incur a net loss in the fourth quarter as well as a loss for its fiscal year 2001.
Market conditions for memory products remain difficult. Weak demand, especially in the PC market, has led to significantly higher inventory levels at memory producers. Even though Infineon's inventory levels have stabilized towards the end of the quarter, the company expects a continued low price level for memory products during the next quarter.

More information can be found on Infineon's web site at www.infineon.com.

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