FINANCIALLY BATTERED INTEL LAUNCHES NEW AD CAMPAIGN

Cuts Chip Prices Up to 60%; Reports 23% Revenue Drop

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NEW YORK (AdAge.com) -- Intel Corp. takes a different tack in a series of new print ads for its Pentium 4 chip.

The ads, which broke in Monday's edition of Time magazine, feature

the P 4 surrounded by a variety of digital devices including an MP3 player, digital camera, 3-D interactive games and more.

'Center of Your Digital World'
The spread included the P 4's new tagline, "The center of your digital world." The tag was introduced last month in TV spots for the P 4 featuring performance artists Blue Man Group.

"We're basically saying there's a whole new digital world out there, and to get the most out of it, you need to use a PC with a Pentium 4," said John Travis, Intel's director of worldwide consumer promotions.

The campaign was created by Intel's agency of record, Messner Vetere Berger McNamee Schmetterer/Euro RSCG, New York. The spreads and single-page ads will run through June in a variety of PC, tech enthusiast, music, entertainment and lifestyle publications including Newsweek, Family PC, Sports Illustrated and Rolling Stone.

Reeling from slowdown
Meanwhile, Intel, like other tech companies,

is reeling from the economic slowdown. The chipmaker today reported first-quarter revenue of $6.7 billion, down 16% from the first quarter 2000 and 23% from the fourth quarter 2000.

First-quarter earnings, excluding acquisition-related costs, were 16 cents per share, a decrease of 63%, from 43 cents in the first quarter of 2000, and down 58% from last quarter.

The chipmaker aggressively cut pricing on the P 4 on Monday, in the range of 50% to 60%. Intel has been clobbered in the chip market by faster, cheaper rivals such as Advanced Micro Devices, but inventory issues and pricing pressures continue to plague all chip marketers.

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