INTEL, VLSI CANCEL AGREEMENT ON POLAR CHIP

SANTA CLARA, CA, August, 1994 -- Intel and VLSI announced that 
they won't extend their two-year old agreement to develop the 
Polar Chip for Personal Digital Assistants. Also, Intel has 
announced it will sell its shares in VLSI, which it bought two 
years ago for $50 million. It has been speculated that Intel's 
original interest in VLSI was to prevent AMD from out-right 
buying the company at the time.  Neither company will be hurt 
by the divesture.

The Polar chip is a 386 CPU core integrated with I/O modules 
developed for PDAs.  The sell-off also shelves plans for a jointly 
developed integrated CPU based on the 486.  Both companies agreed 
to continue supporting existing Polar-based designs. 

However, Intel does not plan to leave the PDA market.  It has 
plans to develop a 16-bit 486 chip, code-named Hummingbird, to be
designed for operation at 2.8V. There is also plans down the road 
to develop even lower voltage devices.