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Intersil Teams with Intel to Accelerate the Deployment of Wi-Fi (IEEE 802.11b) Wireless LAN Solutions

-- Intel incorporates Intersil's PRISM 2.5 chip set in 2.4 GHz WLAN products

IRVINE, CA, October 19, 2001 - Intersil Corporation (NASDAQ: ISIL), the world's leading developer of silicon technology for Wireless Local Area Networks (WLANs), announced today that it has teamed with Intel® Corporation to accelerate deployment of current and future Wi-Fi (IEEE 802.11b) wireless technology and products.

Intel has incorporated Intersil's PRISM® 2.5 chip set in the recently announced Intel® PRO/Wireless 2011B LAN products, a suite of products that can wirelessly transmit voice, data and video content at speeds up to 11 megabits-per-second (Mbps). The Intel PRO/Wireless 2011B LAN products include access points, PC cards, PCI adapters, embedded Mini-PCI cards and USB modules for use in notebook computers and other mobile devices, as well as residential gateways that will manage voice, data and video traffic to and among devices in the home.

"We are very pleased to team with Intel to further develop the Wi-Fi (802.11b) industry. The market for 802.11b is growing, applications are increasing and this relationship will further strengthen upward momentum in the 2.4 GHz band," said Greg Williams, president and CEO of Intersil. "We look forward to applying our silicon expertise to Intel's forthcoming products and helping deliver on this vision."

A recent research report issued by leading analyst firm Allied Business Intelligence (ABI) reported that Wi-Fi (802.11b) based WLAN products have achieved a 71 percent share of the home wireless networking market in 2001, up from 42 percent last year. ABI also reported that the market is also expected to be worth $2.4 billion by 2006.

"Wi-Fi systems deliver users the freedom of mobility plus increased productivity through untethered access to e-mail, the Internet and network servers anywhere in a home, corporate campus or public space such as airports or hotels," said Stephen Saltzman, director of Wireless LAN Products at Intel. "We're confident that coupling Intersil's PRISM WLAN technology with Intel's networking expertise will yield high performance solutions for current and future Wi-Fi (IEEE 802.11b) wireless products in the 2.4 GHz band."

Intersil's PRISM 2.5 wireless networking chip set is optimized for smaller form factors and embedded WLAN applications such as mini-PCI, USB or Compact Flash that are much smaller and are typically installed directly into the system during product assembly. PRISM 2.5 delivers wireless Ethernet networking with compliance to the Wi-Fi (IEEE's 802.11b) global standard. Optimized for high data rate (11 Mbps) performance, PRISM-based systems are feature-rich and provide fast, reliable performance in all types of networking environments. Advanced design and process technologies reduce power consumption, design complexity and total system cost. PRISM 2.5-based products will provide users with wireless access to networks and the Internet for fast and efficient transmission of data, video and Voice over Internet Protocol (VoIP) services.

The Global Wireless Market Embraces PRISM WLAN Technology
"Intersil is the number one manufacturer of wireless LAN chipsets and has been a driving force behind the success of WLANs," said a May 2001 WLAN report from Cahners In-Stat Group. Since introducing the PRISM WLAN chip set in 1996, industry-leading companies including Actiontec, Alcatel, ASUS, Casio, Cisco, Compaq, 3Com, Dell, D-Link, GemTek, Hewlett Packard, IBM, Intel, Legend, Linksys, Nokia, Nortel, Panasonic, Quanta, Samsung, Sharp, Siemens, SOHOware, Sony, SpectraLink, Symbol, Z-Com and Zoom have incorporated PRISM chips in WLAN product designs. PRISM technology is designed to comply with the IEEE's 802.11 global standard, and Intersil is a founding sponsor of the Wireless Ethernet Compatibility Alliance (WECA), whose Wi-Fi brand is a mark of compatibility for 802.11-based systems. About Intersil
Intersil is a global leader in designing innovative wireless networking and high performance analog solutions that enable wireless access to video, data and voice in homes, offices and public places. Creating advanced power management products, Intersil provides reliable solutions for file servers, portable information appliances and over half of all computer microprocessors manufactured today. With a rich high performance analog and mixed signal portfolio, Intersil brings added value in providing complete silicon, software and reference design solutions to new products that bring portable connectivity to people wherever they live, work or travel. Headquartered in Irvine, California, Intersil has offices in cities throughout the US, Europe and Asia. For more information about Intersil or to find out how to become a member of our winning team, visit the company's Web site and career page at www.intersil.com.

This press release contains information relating to certain projections and business trends concerning the WLAN market that are forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based upon management's current expectations, estimates, beliefs, assumptions, and projections about our business and industry. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Furthermore, any forward-looking statements and projections made by others in this press release are not adopted by Intersil Holding Corporation ("Intersil") and Intersil is not responsible for the forward-looking statements and projections of others. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various risk factors. Important risk factors that may cause such material differences for Intersil in connection with WLAN market include, but are not limited to: the recent economic slowdown in the technology sector and the semiconductor industry; the rate at which consumers adopt small handheld Internet appliances and portable computing devices in enterprises and in homes; the rate at which our present and future customers and end-users adopt Intersil's wireless technologies and products, including our embedded LAN applications; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon wafer pricing and the availability and quality of foundry and assembly capacity and raw materials; the effectiveness of Intersil's expense and product cost control and reduction efforts; intellectual property disputes, customer indemnification claims, and other litigation risks; Intersil's ability to develop, market, and transition to volume production new products and technologies in a timely manner; risks inherent in acquisitions and divestitures, such as the anticipated benefits not being realized, integration issues, unanticipated costs, changing relationships with customers and suppliers, accounting treatment and charges; the success of our recently public offering of securities, as well as other risk factors. Intersil's Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Registration Statement of Form S-3, and other Intersil filings with the U.S. Securities & Exchange Commission ("SEC") (which you may obtain for free at the SEC's Web site www.sec.gov) discuss some of the important risk factors that may affect our business, results of operations, and financial condition. These forward-looking statements are made only as of the date of this press release and Intersil undertakes no obligation to update or revise these forward-looking statements. PRISM is a registered trademark of Intersil Americas Inc.
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