INTEL BOOSTS INVESTMENT IN THE DIGITAL HOME

December 29th 2004

SANTA CLARA, Calif., Dec. 29, 2004 – Intel Corporation today
announced that its venture investing organization, Intel Capital, has made three
additional investments in companies developing innovative technologies for the
digital home.

The new investments, made from the $200 million Intel Digital
Home Fund, include a first-time investment in Gteko Ltd., an ease-of-use
networking and support software company, and follow-on financing for Synacor
Inc., a provider of portals and technology for delivering bundled online
services, and Zinio Systems Inc., a digital magazine distributor.

Financial terms of the new investments were not disclosed.

"These new investments were made to support widespread
adoption, use and sharing of digital entertainment and information – including
music, games, news and video – among multiple devices in the home and
elsewhere," said Scott Darling, Intel Capital vice president and director of
Enterprise and Digital Home sectors. "We plan to continue to invest next year in
companies that enable PC and CE devices to work together easily and in companies
that deliver premium content services over IP networks."

Gteko, based in Ra’anana, Israel, provides software and
support services for leading technology companies, including HP, Cisco-Linksys
and Canon, to automate certain technical support functions, such as first-time
set up of a home network, for millions of computer users worldwide. For more
information about Gteko, visit www.gteko.com.

Synacor, based in Buffalo, N.Y., provides portals and
technology to Internet Service Providers (ISPs) enabling them to easily bundle a
wide variety of free and paid subscription-only entertainment, educational and
other services into their Internet portals. The company has integrated over 30
content and service providers into its product platform, Portelus™. Applying the
cable TV business model to the Internet, Synacor offers ISPs one of the largest
catalogs of subscription service providers available from one source today. The
company’s ISP network currently comprises over 5 million broadband subscribers.
Intel Capital first invested in Synacor in 2003. For more information about
Synacor, please visit www.synacor.com.

Zinio converts magazines to a digital format, replicating the
printed version’s look, and electronically delivers it to subscribers. The San
Francisco company has delivered more than 26 million digital magazines from 200
popular titles, such as BusinessWeek, Motor Trend, Popular Science and U.S. News
& World Report, to more than 1.6 million customers in 232 countries. According
to the latest Audit Bureau of Circulation and BPA Worldwide publisher
statements, the company has captured 61 percent market segment share for audited
digital magazine circulation. Intel Capital first invested in Zinio in 2002. For
more information about Zinio, please visit
www.zinio.com.

"Since we created the Intel Digital Home Fund one year ago,
we’ve now announced 12 investments," Darling added. "The companies we’ve
invested in have contributed significantly to industry progress connecting PC
and CE devices together, ensuring their ease-of-use, and paving the way for new
services to deliver digital entertainment and information."

Intel Digital Home Fund investments announced earlier this
year include BridgeCo AG, Cablematrix Inc., Digital 5, Inc., Envivio Inc.,
Mediabolic Inc., Pure Networks Inc., Staccato Communications Inc., Trymedia
Systems Inc. and Wisair Ltd.

Intel Capital, Intel’s strategic investment program, focuses
on making equity investments and acquisitions to grow the Internet economy in
support of Intel’s strategic interests. Intel Capital invests in hardware,
software and services companies in several market segments, including computing,
networking, and wireless communications. For more information, visit
www.intel.com/capital.

Intel, the world’s largest chip maker, is also a leading
manufacturer of computer, networking and communications products. Additional
information about Intel is available at
www.intel.com/pressroom.

Intel is a registered trademark of Intel Corporation or its
subsidiaries in the United States and other countries.

*Other names and brands may be claimed as the property of
others.