AUSTIN, Texas--(BUSINESS WIRE)--July 31, 2000--

Portelligent to Provide Global Technology Intelligence For the Emerging Information Appliance Sector

The Microelectronics and Computer Technology Corporation (MCC), the nation's first high-tech R&D consortium, today announced that its board of directors has approved a spin-off of two of the organization's long-standing research programs to create a new company called Portelligent. MCC is combining its Portable and Consumer Electronics (PACE) program and Global Technology Services (GTS) group to create a company that will provide global technology intelligence to professionals working in the information appliance sector.

MCC is providing seed funding for the new venture and will maintain an equity position in the company. In addition, MCC has agreed to license the intellectual property developed by PACE and GTS to Portelligent, along with a transfer of physical assets, such as lab equipment, that the new firm will use in its analytic work. Portelligent, to be headed by David Carey as president and CEO, and Howard Curtis as vice president and COO, will be based in Austin. Approximately 10 MCC employees are expected to transfer to the new firm.

"The MCC Board of Directors' decision to fund the launch of the Portelligent start-up affirms the value that our companies find in global technology intelligence and assessment," said Denny Hamill, Chairman of the MCC Board and a veteran manager at 3M. "Timely analysis of trends in consumer electronics products and component technologies helps us to better focus R&D investments and to move rapidly in shifting high-tech markets."

The PACE program had a 7-year history at MCC and was funded by such companies as Eastman Kodak, Hewlett-Packard, 3M, Microsoft, Motorola, NCR, Nokia and Raytheon. PACE provided tactical information on trends in the portable and consumer electronics industry, as well as multi-disciplined strategic analysis of technologies, products, companies and markets. Many of the program's participants are expected to become Portelligent customers.

Global Technology Services provided MCC customers with news and analysis of European and Asian developments in emerging electronics and software technologies. The GTS program included an initiative in team-driven benchmarking called Global Technology Assessment Projects (G-TAPs), through which MCC member firms have evaluated their capabilities against those of off-shore players in target domains including low-voltage devices, nomadic computing, software engineering and MEMS (Micro-Electro Mechanical Systems). GTS, established early in MCC's history in 1983, has provided services to all firms participating in the MCC consortium.

"We are excited about the opportunity to extend our services to the rapidly developing information appliance industry," said Dave Carey, president and CEO of Portelligent. "The timing is right to enhance the bottom-line impact of technical intelligence by exploiting World Wide Web and database technologies, and to broaden our customer base to include smaller high-tech firms."

In June, MCC announced a major restructuring of its business model. Under the new model, MCC is investigating the spin-off of all or part of its major projects as separately funded start-ups, and transforming the R&D consortium into a company that will administer the stock and intellectual property assets of MCC on behalf of the MCC shareholders. Portelligent is the first spin-off created by the restructured MCC. This restructuring was driven by the need to explore the most effective ways to invest in promising technologies.

About MCC

MCC was created in 1982 by leading companies within the electronics industry in response to international initiatives in advanced research that threatened the competitive position of U.S. industry. It was the first high-tech R&D consortium in this country and, over the years, has pioneered research in advanced electronics and information systems, including artificial intelligence and intelligent systems, electronic commerce, electronic packaging technologies, and human interface.

MCC's member companies have included the world's leading computer, semiconductor and electronics manufacturers, along with users and producers of information technology. MCC shareholders include 3M, Eastman Kodak Company, General Dynamics, Hewlett-Packard, Lockheed Martin Corporation, Motorola Inc., NCR, Nortel Networks, Raytheon Company, SAIC/Telcordia Technologies (formerly Bellcore), and Texas Instruments Inc.

About Portelligent Inc.

Portelligent Inc. provides global product and technology intelligence for companies in the emerging personal and consumer electronics industry. Founded in August 2000 as a spinout from the MCC Research Consortium, the company's information products enable personal and consumer electronics businesses to make faster, better, and more cost-effective decisions about competitive positioning, technology options, and marketplace opportunities. Clients include 3M, Agilent, Eastman Kodak, Hewlett-Packard, Honeywell, Intel, Motorola and Raytheon.

CONTACT: Portelligent Inc., Austin Don Stroud, 512/338-3600 dstroud@portelligent.com