Digital Equipment Corp. Press Release
April 23, 1998.
Source: Digital Equip. Corp. This document has been edited for html, but not for content.

Federal Trade Commission Endorses DIGITAL's Alpha Technology as Microprocessor Market Alternative

MAYNARD, Mass, April 23, 1998 - The Federal Trade Commission's clearance of Digital Equipment Corporation's sale of its Hudson, Mass., fabrication facility to Intel Corp. and the consent order agreed to by the FTC and Digital, recognizes and reinforces the importance of Digital's innovative 64-bit microprocessor technology to the computer industry and its customers, company officials said today.

"We are very pleased that the FTC not only has cleared the Intel transaction, but also has endorsed Digital's plans to assure Alpha technology is available in volume quantities from a number of sources," said Digital Chairman Robert B. Palmer. "By eliminating any questions surrounding the future of the Alpha technology and its long- term availability, system makers looking to provide industry-leading, high-performance computing solutions can now embrace Alpha without hesitation."

In filed documents, the FTC recognized that, "For the last several years, Digital's Alpha devices have consistently demonstrated industry-leading performance as measured by processing speed and related performance criteria generally recognized in the industry."

In the consent order, the FTC indicated its strong support of Digital's decision to enter into a license agreement for Alpha technology with Samsung Electronics Co., Ltd. and to execute a memorandum of understanding with Advanced Micro Devices, Inc. In both cases, Samsung and AMD will have licenses to engineer, produce and market their own Alpha devices.

"Samsung and AMD have the ability and expertise to drive Alpha into volume applications," Palmer said. "They have indicated their desire to do so and make Alpha the industry standard for high-performance, 64-bit computing. This is great news for systems makers and customers who are looking for the best price/performance microprocessors from multiple suppliers."

In addition, Digital agrees in the order to qualify another company in addition to Intel to serve as a foundry for the Alpha microprocessor. In this "fabless" business model, third-party semiconductor manufacturers will produce the Alpha microprocessor for Digital, but not have control over the Alpha technology.

"As a result of the Intel agreement and agreements with other foundries, Digital will be able to put all its energies into pushing the envelope on its Alpha technology and not be distracted by the running of a fabrication facility," Palmer said. "For the past six years, Alpha has been the highest-performance microprocessor on the market and we have no intention of relinquishing that position. We have a clear roadmap into the next century and will be at 1000MHz before some of our competitors even get their first 64-bit implementations into the market."

Palmer maintained that customers can now immediately step-up to 64-bit computing with confidence.

"Through Digital, customers have access to true, high performance 64-bit systems," Palmer said. "Digital UNIX, a 64-bit operating system built from the ground-up, is available with more than 5,000 native applications while our 64-bit OpenVMS offering is still the leadership operating system many turn to when the highest availability is required. In addition, 64-bit Windows NT will be available first on the 64-bit Alpha platform."

"From a legal standpoint, Digital is pleased with this outcome," said Digital General Counsel Thomas Siekman. "We were able to work with the FTC to address its concerns while at the same time, support Digital's strategy of promoting Alpha as the industry-leading microprocessor architecture. And, in the end, it will be the marketplace that benefits by having a clear choice of microprocessor architectures available through multiple suppliers."

Digital Equipment Corporation, recognized for product and service excellence, is a leading supplier of high-performance, Web-based computing solutions that help enterprises compete in the global marketplace. Digital gives its customers a winning Internet advantage through a comprehensive portfolio of Internet solutions based on award-winning systems, advanced networking infrastructure, innovative software, and industry applications including those from its business partners. The expertise and experience of Digital employees help customers plan, design, implement, manage and support Internet solutions in countries throughout the world. For the latest company information, visit Digital on the World Wide Web at http://www.digital.com and/or http://www.newsdesk.com.