ANNEX B
 
CONTACT:
 
     Chuck Malloy
     Intel Corporation
     (408) 765-3684
     chuck malloy@ccm.oc.intel.com
 
    Tim Christofferson
     Chips & Technologies
     (408) 434-0601, ext. 2310
 
     INTEL AND CHIPS AND TECHNOLOGIES ANNOUNCE AGREEMENT IN PRINCIPLE TO SETTLE
DELAWARE LITIGATION
 
     Santa Clara, Calif., October 2, 1997 -- Intel Corporation and Chips and
Technologies, Inc. jointly announced today that they have reached an agreement
in principle to settle shareholder class action litigation brought in the
Delaware Court of Chancery. The Delaware litigation was filed against Chips and
Technologies on July 31, 1997, and was amended by the plaintiffs to include
Intel and a subsidiary on Sept. 19, 1997. The suit sought to halt the
consummation of the previously proposed acquisition of Chips and Technologies by
Intel.
 
     The terms of the settlement agreement, which must still be presented to and
approved by the Delaware Court of Chancery at a settlement hearing, call for
Chips and Technologies to make additional disclosure in a Securities and
Exchange Commission Filing which will then be mailed to Chips shareholders. The
settlement also calls for Chips and Technologies and Intel to amend their
current Merger Agreement to extend to Nov. 30, 1997, the date after which either
Intel or Chips and Technologies may unilaterally terminate the transaction if
the tender offer has not been consummated. The settlement also provides that, in
the event that Chips seeks to terminate the Merger Agreement due to an
unsolicited higher offer meeting the standards set forth in the Merger
Agreement, the maximum fee payable to Intel would be reduced from $15 million to
$7.5 million.
 
     The settlement contains no agreement to pay plaintiffs' attorneys fees. The
plaintiffs have reserved the right to apply to the Delaware Court of Chancery
for a fee and expense award, and defendants have reserved the right to oppose
any such application.
 
     The Merger Agreement between the parties provides that Chips may not
solicit other offers, but may, under certain conditions, entertain negotiations
with parties who make unsolicited superior proposals to purchase Chips and
Technologies.
 
     Chips and Technologies is the world's number one supplier of flat panel
video graphics controllers and accelerators to the portable computer market.
Chips and Technologies can be reached on the worldwide web at
http:/www.chips.com.
 
     Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer, networking and communications products. Additional
information is available at www.intel.com/pressroom.
 
                                       B-1