http://www.infobeat.com/stories/cgi/story.cgi?id=2557044656-388 07:20 PM ET 11/10/98 Intel executive unshaken in cross examination (New throughout, adds cross examination of McGeady) By David Lawsky WASHINGTON (Reuters) - An Intel Corp. executive was unshaken by intense cross examination from a Microsoft lawyer Tuesday, sticking to his story that the Redmond, Wash. firm ``stomped'' some of his company's software out of existence. Microsoft Corp. lawyer Steven Holley tried to demonstrate that the testimony from Intel Vice President Steven McGeady was at odds with the videotaped deposition of his superior at Intel. The Justice Department and 20 states allege that Microsoft violated the nation's antitrust laws by trying to protect a monopoly in the operating system for personal software and competed unfairly against Netscape Communications Corp. in the market for Web browsers. McGeady testified Monday that Microsoft Chairman Bill Gates threatened his company's $500 million investment in new computer chip technology unless it abandoned a software project that the software giant thought might compete with it. The software project, called Native Signal Processing, was aimed at making it easier for computer users to listen to audio, watch video and use graphics. When Holley asked why Intel had failed to tell Microsoft about the software project early on, McGeady shot back: ``The fear that was ultimately realized, the fear that Microsoft would stomp it out of existence.'' Holley played videotaped testimony from Ron Whittier, who was McGeady's boss at Intel. Whittier had his own explanation for why Intel dropped the project and it differed from that of McGeady. ``We were looking out for our own best interests,'' Whittier said in a deposition taken on Aug. 25. ``It was in our best interest not to compromise Windows 95.'' Most significantly, Intel's Whittier said the reason for dropping the project ``was not because Mr. Gates was upset.'' On questioning, McGeady dismissed that as ``PR spin.'' ``At his deposition?'' asked Holley. ``Yes,'' responded McGeady. Earlier, McGeady testified that former Intel Chief Executive Officer Andy Grove had explained publicly why the software project was dropped. Grove said in a Fortune Magazine interview that he had ``caved'' to Gates on the matter. But when Microsoft spokesman Mark Murray was asked about Grove's interview in Fortune he replied: ``I'm not familiar with those remarks.'' McGeady -- who studied both physics and philosophy at Reed College and who recently took a one-year sabbatical from work to research and teach at the elite MIT Media Lab -- is regarded with grudging respect at the highest levels of Microsoft. Paul Maritz, a Microsoft executive who was in the courtroom on Tuesday observing the questioning, complained in a 1996 e-mail to Microsoft Chairman Bill Gates that McGeady ''unfortunately ... has more IQ than most there'' at Intel. The government introduced notes by McGeady that showed Gates had at one point seemed not to take the threat of government action seriously. ``This antitrust thing will blow over,'' Gates said at a July 11, 1995, meeting according to the verbatim notes taken by McGeady. ``We haven't changed our business practices at all.'' McGeady was the fourth of at least 24 witnesses. Court was to be out of session Wednesday for Veteran's Day and does not meet on Friday. With only one day left of the trial this week, McGeady's cross-examination may not be finished until Monday, which will mark the start of the fifth week of the trial. ^REUTERS@ ____________________________________________________________________ -------------------------------------------------------------------- Join The Web Consultants Association : Register on our web site Now Web Consultants Web Site : http://just4u.com/webconsultants If you lose the instructions All subscription/unsubscribing can be done directly from our website for all our lists. ---------------------------------------------------------------------
