Intel To Deliver Pentium III

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January 09, 1999 (12:00 AM EST)

By Marcia Savage ,

When Intel releases the 450-MHz version of its next-generation Pentium chip, it is expected to cost less than the current fastest Pentium II processor costs now.

The company is also expected to drop prices on its existing lineup of Pentium II processors, sources said.

The new Pentium chip is expected to debut in early March at speeds of 450 MHz and 500 MHz.

On Monday, the chip giant is expected to officially rename its next-generation Pentium chip the Pentium III, sources said. Previously, Santa Clara, Calif.-based Intel referred to the processor by the code-name Katmai.

Sources familiar with Intel's plans also said a preliminary price sheet showed the 450-MHz version of the Pentium III would cost $530 in volume quantities. The current 450-MHz Pentium II now costs $562 and is expected to drop with the introduction of Pentium III. The 500-MHz version of the Pentium III is slated to cost $764, according to sources.

Intel declined to comment on the upcoming chip's name or cost.

"We're expecting Intel's going to do what they traditionally do," said Kelly Spang, an analyst at Technology Business Research, in Hampton, N.H. "They introduce a high-end processor, and as a result, the existing processors will drop in price, which actually makes sense to move the older stuff out and make room for the new."

The Pentium III will feature 70 new instructions that provide enhanced 3-D graphics, audio, and video capabilities. Sources said Intel will release a 533-MHz version of Pentium III later this year.

"I think sticking with the Pentium brand certainly makes sense," Spang said. "Intel has invested billions of dollars starting with the initial Pentium, and moving through Pentium with MMX, and now Pentium II, and we're going to Pentium III."