SANTA CLARA, Calif., June 27, 2006 — Marvell Technology Group, Ltd. and Intel Corporation today announced that they have signed an agreement for Intel to sell its communications and application processor business to Marvell for a purchase price of $600 million plus the assumption by Marvell of certain liabilities. The planned sale will give Marvell a strong presence in the growing market segment for processors used in smart handheld devices. The sale also will enable Intel to focus its investments on its core businesses, including high-performance, low-power Intel Architecture-based processors and emerging technologies for mobile computing, including Wi-Fi and WiMAX broadband wireless technologies. The transaction is expected to close in approximately four to five months and is subject to regulatory review and other normal closing conditions.
Intel’s communications and application processor business develops and sells processors for handheld devices including smart phones and personal digital assistants. The business’ processors, based on IntelÂ® XScale technology, include the IntelÂ® PXA9xx communications processor, codenamed ‘Hermon,’ which powers Research in Motion’s (RIM) Blackberry* 8700 device. The Intel PXA27x applications processor, codenamed ‘Bulverde,’ is used in the Palm Treo* smart phone, the Motorola Q* and other devices.