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INTEL CUTS PRICE OF PENTIUM CHIPS

Intel Corp. has reduced prices on its Pentium computer chips by an average of about 20 percent.

The chipmaker, which doesn't formally announce its pricing actions to the public, has been cutting prices for the chips each quarter. The latest price cuts are consistent with those made in previous quarters.Under the new prices, which are based on sales of 1,000-chip orders, a 133-megahertz Pentium chip now costs $694, down from $935, Intel told investors.

Intel's 100-megahertz Pentiums are selling for $398, down from $479. The 75-megahertz chip's new price is $184, compared with $275.