Intel released the following news release today. What they've done is create
a memory chip that now has two distinct graded levels -- and thus more than
one bit per memory cell. The new chips are trinary [that is, three states
exist in cell (which is most likely a capacitor/field-effect transistor
combination) instead of the usual two states that lead to a binary
representation].

It is my understanding that they're actually capable of producing chips in
the lab that have many more graded states (3, 4, 5, etc.) so that we may well
soon be dealing no longer in bits ("binary digits") but in trits, quits, and
quints. (As an aside, I doubt that we will ever actually abandon bits. More
likely, the multilevel information held in a memory chip will simply be
translated into a standard long-bit word).

As the story below indicates, storing data in this manner breaks any sense of
Moore's Law in two dimensions. If each cell could previously contain only one
bit, then the only way to get more memory on a chip was to make each cell
smaller. But this tack now proceeds to store information essentially in a
perpendicular direction to the x-y array, in the z direction. The individual
cells can stay at their current sizes but the "capacity" of such chips can be
now evolutionarily increased for some time to come as the capacity to
recognize a finer and finer levels of charge differences becomes increasingly
reliable.

Wirt Atmar

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NEWS RELEASE -----------------------

FOLSOM, Calif.--(BUSINESS WIRE)--Sept 17, 1997-- Intel Corporation today
announced its multiple-bit-per-cell flash memory technology, called
StrataFlash(TM) memory.

Intel's new 64-Mbit StrataFlash memory stores two pieces of information (or
bits) in each memory cell compared to current memory technologies that store
only one.  This breakthrough technology enables Intel to market higher
density flash memory
products at a lower cost-per-bit than traditional single-bit-per-cell
components.

"Two bits in the space of one starts a new direction in memory technology,"
said Gordon Moore, co-founder and chairman emeritus of Intel Corporation.
 "This will lead to lower cost and new applications."

Over 30 years ago in "Electronics Magazine," Moore said that the power and
complexity of the silicon chip will double every 18 months with proportionate
decreases in cost -- a statement that has come to be known as Moore's Law.
 Over the past nine years, Intel flash memory paralleled Moore's Law by
increasing density from 256-kbits in 1988 to 32-megabits in 1997.

However, by storing multiple bits of information in one memory cell, Intel
moves beyond Moore's law.  Today's new Intel StrataFlash memory, with 64Mbits
per chip, offers twice the density originally projected.  This breakthrough
technology
sets a new density level that allows Intel to be one chip generation ahead of
the industry.

With today's introduction of Intel StrataFlash memory products, the
applications and benefits of flash memory will expand dramatically.  For
consumers, this means that digital cameras will be able to take better
pictures and more of them; PC companions will get smaller and smarter; and
exciting new products will be available sooner at more affordable prices.

As an example, video arcade game manufacturers such as Namco Ltd. implement
these components into their games and track the game players' responses to
determine exactly what level of play will encourage "repeat"  game players.
 Once this ideal level is found, game manufacturers can reprogram the
StrataFlash memory in the already-existing games to match that level. -

                         Cost Comparison

    Product     Samples  Production  Pricing  Part Number

Intel StrataFlash
memory (64Mbit)   Now        Q1'98    $29.90   28F640J5

Intel 16 Mbit
single bit/cell  Sept. '96   Q3'96    $32.70   28F016SA

Intel demonstrated its multiple-bit-per-cell capability as early as 1995 at
the International Solid-State Circuits Conference. With today's product
announcement, Intel becomes the first company to offer multiple-bit-per-cell,
64-Mbit flash components for volume production.

Intel will manufacture StrataFlash memory using its 0.4 micron ETOX(TM)
process technology in Fab 7 and Fab 9 facilities in New Mexico. Intel will
migrate production to the company's new Fab18 facility under construction in
Israel in the second half of 1998.

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