*Cooperation for accelerating RDRAM supply
Samsung Electronics Co. Ltd and Intel Corporation announced today that they have signed a letter of intent for Intel to invest $100 million in Samsung Electronics. In the proposed deal, Intel will acquire convertible bonds exchangeable for common stock representing approximately 1 percent of Samsung Electronics' outstanding common stock. Samsung Electronics has agreed to use the proceeds from this investment and additional funds to invest in RDRAM fabrication, assembly and test. Samsung is already shipping sample RDRAM devices and ready for volume production in second quarter of 1999.
The proposed deal is subject to the approval of Intel's and Samsung Electronics' board of directors, Korean government approval, and agreement on definitive documents. Full approval is expected by the beginning of February.
The proposed investment in Samsung Electronics is part of Intel's strategy to support the supply of next generation memory products. The goal is to help drive PC industry growth by accelerating the adoption of Direct RDRAM memory technology. Intel believes that Direct RDRAM memory technology can help enhance balanced PC system performance as processor performance increases and more and more multimedia and 3D functions are used.
"Samsung is committed to be the leader in development and production of Direct RDRAM technology to support the needs of Intel and OEM customers," said Yoon-Woo Lee, President and CEO of Samsung Electronics' Semiconductor Business. "From a PC industry perspective, it's important for memory technology to move ahead as quickly as possible. We are pleased to be working with Intel on this next-generation technology and look forward to working with them on future technologies."
"This investment continues our long relationship with Samsung, the world's largest supplier in the memory market segment." said Patrick Gelsinger, Vice President and General Mankager, Desktop Products Group at Intel. "With this investment our goal is to help ensure an adequate supply of Direct RDRAM for the personal computer market segment over the next few years."
Samsung Electronics Co., Ltd. with 1998 sales revenue of approximately 17 billion dollars (US) is a world leader in electronics, with operations in more than 50 countries and 60,000 employees worldwide. The company consists of three main business units : Multimedia & Home Appliances, Semiconductors and Information & Telecommunications. For more information, please visit our website, http://www.samsungelectronics.com
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information and about Intel is available at www.intel.com
Samsung Electronics Co.Ltd.