Intel Launches Second-Generation Internet Hosting

Intel Online Services Discloses Customers, Initial Locations, and Key Industry Relationships

First Internet Service Centers Operational

SANTA CLARA, Calif., Sept. 28, 1999 -- Intel Corporation today announced its new Internet services hosting business, Intel Online Services, Inc., with a mission to provide second-generation Web hosting to companies worldwide.

Intel Online Services said that its first two Internet service centers - a major production facility in Santa Clara, Calif., and a development facility in Folsom, Calif. - are operational. The company also said it was developing a major Internet service center in Northern Virginia, and plans to develop centers in Japan and England. Initial customers include the e-Citi unit of Citigroup, Excite@Home Shopping Service, and NEC, among others.

Intel Online Services also announced it is working with industry leaders, including iXL, PricewaterhouseCoopers, Proxicom, Razorfish, US Interactive, and UUNET, to help increase the reliability and performance of hosted e-Business solutions and to speed their development.

Second-Generation Hosting
Intel Online Services' primary focus is the delivery of second-generation Internet application hosting services. This approach offers better hosting reliability and faster development of e-Business solutions. In addition to providing and managing the facilities and network, the company purchases, integrates, and deploys all the hardware and software necessary to run applications.

"We believe Intel Online Services' second-generation approach fills an important need in a surge economy which is characterized by the dynamic unpredictability of Internet demand," said Mike Aymar, Intel vice president and general manager, Intel Online Services. "The benefit of Intel Online Services is the rapid time-to-market it provides solutions developers, as well as optimal hosting reliability for customers."

First Internet Service Centers Operational
Intel Online Services' 85,000 square-foot Internet service center in Santa Clara is part of what will be a worldwide network of facilities. The Santa Clara facility can host more than 10,000 servers and delivers capabilities for second-generation application hosting services as well as first generation co-location. The facility is built to support an ultra-dense server environment, with network provisioning and redundancy and heightened levels of physical security. The center also houses the North American command center for Intel Online Services.

In the company's development facility in Folsom, Calif., new services are validated and characterized in a production environment before being deployed broadly. This enables Intel Online Services to offer a high degree of reliability across multiple service centers.

Intel Online Services also announced today that its next major Internet service center will be located in Fairfax County, Virginia. Encompassing 73,000 square feet, it is expected to house more than 8,000 servers and will be fully operational in the first quarter of 2000. The company also is developing Internet service centers in Japan and England, which should be operational in the first half of 2000.

e-Business Solution Alliances
Intel Online Services and UUNET, an MCI WorldCom company and a global leader in Internet communications solutions, plan to work together to jointly define a set of Internet service center offerings based on second-generation hosting from Intel and high-performance network services from UUNET. Intel's "copy exactly" methodology, service integration, and validation techniques will become the model for second-generation hosting services which can be deployed consistently in each company's Internet service centers. UUNET will work with Intel to create new network management capabilities for Internet service centers using enhanced routing that enables the higher end-to-end performance required by businesses using the Internet to host mission-critical applications.

Top e-Business consulting firms iXL, PricewaterhouseCoopers, Proxicom, Razorfish, and US Interactive today announced their support for Intel Online Services' second generation hosting solution and said that they will work with Intel to continue to enhance, define, and market a broad preferred hosting platform based on Intel's services. The preferred platform will enable consulting firms to develop rapid e-Business solutions and deploy them quickly and efficiently in Intel's global network of Internet service centers.

PricewaterhouseCoopers, a leading professional services organization, will work directly with Intel Online Services to define and deploy integrated e-Business solution development and hosting capabilities based on Intel's second-generation hosting services. These solutions will help the firm's clients enhance the value of technology investments in areas such as Enterprise Resource Planning and Customer Relationship Management.

Intel Online Services will work with Pandesic to offer hosting services for companies using the Pandesic e-business solution. eHobbies.com, launching in October, will be one of the first Pandesic customers hosted by Intel.

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