New Pentium III to join 500 MHz Celeron, push prices down along the processor line.

Just in time for the back-to-school season, Intel Corp. on Aug. 2 will introduce two new PC processors and lower prices on two current ones. The new processors, a 600MHz Pentium III and a 500MHz Celeron, will cost $669 and $167, respectively, in units of 1,000, according to Intel officials in Santa Clara, Calif. Sources close to Intel said the company will lower prices on current Celeron models to make room for the new one. The price of a 466 MHz Celeron will be $114, down from $147 (in units of 1,000), while a 433 MHz version will cost $93, down from $113, the sources said. OEMs are expected to offer systems based on the new chips at record low prices. Compaq Computer Corp., for instance, plans to offer a PIII system that starts at $1,799 and a 500MHz Celeron-based system for $999, Intel officials said.