Monday October 27 2:43 PM EST 

Digital deal includes Strongarm chips

BOSTON, Oct 27 (Reuters) - Digital Equipment Corp (DEC) Chief Executive
Robert Palmer said on Monday that its Strongarm microprocessor technology is
included in the broad deal announced with Intel Corp (INTC). 

``It is our intention that the Strongarm product and the design engineers
associated with that will become part of Intel,'' Palmer told analysts and
reporters on a conference call. 

Digital's Strongarm chips were designed to offer high performance to
low-power consumption products such as portable devices and Internet
appliances. 

Palmer said that under the deal, Digital will continue to upgrade its Alpha
microprocessor but with greater flexibility and at a lower cost. 

``Digital will continue to enhance the Alpha architecture through multiple
implementations,'' he said. ``It doesn't fundamentally change the strategy
of the company. But it will give us greater flexibility and certainly reduce
the cost of being in this business going forward,'' he added. 

Palmer said the Intel deal will have no effect on its relationship with
Samsung Electronics Co Ltd (64050.KS) and Mitsubishi Electric Corp (6503.T),
which are alternate sources of the Alpha microprocessor. 

``This agreement doesn't preclude a continuing relationship with Mitsubishi
and Samsung and it is Digital's intent to maintain that relationship,''
Palmer said. 

``It's also quite possible that we will license other semiconductor
manufacturers,'' he added. 

Palmer and Intel President Craig Barrett declined to answer many specific
questions about financial details of the deal.