The document discusses strategic investing with Intel's 64 Fund to support the rollout of 64-bit processors. It describes strategic investors as focusing on both return on investment and building business relationships, unlike venture capitalists who primarily seek financial returns. The fund aims to establish compatibility of 64-bit chips with operating systems and databases, develop software that utilizes the power of the chips, and build an ecosystem to support Intel's new technology initiatives and accelerate business growth globally. It proposes a structure where Intel, OEMs, and an early adopter fund would collectively invest $100 million and make decisions as an investment committee.

1. Strategic Investing with Intel 64 Fund Deepak Motiramani, Mohit Chaturvedi, Pawan Tyagi, Team Pune May 9, 2008

2. Strategic Investors vs. Venture Capital Strategic Investors: value business relationship as well as ROI can help create a market/sales opportunity can help create visibility for small company create long-term relationship if strategy remains aligned, but may leave if strategy diverges but have lower financial return as benefit in strategic investment is not totally monetary.

3. Why Intel Invests Value Add and $ To accelerate it’s business growth… Global Focus Software & Services

4. Change in Focus Manufacturing equipment maker, Chip design S/w Early Investment Later Investment Complementors To improve process Develop market eco-system

5. Intel Capital Investment Philosophy Invest to grow the Global Internet Economy in support of Intel’s corporate strategy

6. Working Together Legal Treasury Business Unit Internal Investment Committee

7. Limitation for 64 bit processor roll out Limited expertise in market of high-end servers & their complex operations. Establish compatibility with multiple products i.e. OS & Databases having individual solution stack. Unavailability of s/w utilizing the true power of chip. Develop Business Ecosystem INTEL64 Fund

8. IA-64 Fund Concept Intel OEMs CIOs Auto Bank Insurance Health Investment Advisor In actual touch of end user with feedback from them. Provide info for tech relevant to end user. Transfer of their sticky information. can specify actual requirement. can give insight of uses of technologies. can smell future IT trend ahead of market which can be exploited in future. Single participation per industry to remove threat of exposure of ideas to competitors. Secures financial interests of CIO without a strategic agenda.

9. Proposed Structure Investment Committee 1 from each OEM 2 from Intel 2 from EAF Intel 64 operating fund Intel (coordinating mbr) $100 MM 3-5 OEM (Opt in/ Opt out) @ $20MM each EAF (Early Adopter Fund) Investment Advisor (Morgan Stanley) 8-10 customer @ $2-5 MM Blind Fund; Advisor directs Intel only present deals in committee without any recommendation. OEMs can opt in or out in each deal. If deal evaluations by advisor found positive, it will invest in deal Returns paid in ration of contribution Any deal finalized with consent of committee members for the deal .

10. Intel 64 Deal Profiles Targeted Support existing Intel businesses Ecosystem Build robust ecosystems around new Intel® technology initiatives by investing in a variety of companies across the value chain Category-Defining / “Eyes and Ears” Learn/gain influence in new emerging areas International All of the above, with localized strategies