Following the lead of a smaller rival, Intel launched workstation microprocessors that handle data in 64-bit chunks and work with existing software. The new Intel Xeon processors will boost performance by as much as 30 percent over the previous generation of the chip, the company said.

With the added 64-bit memory extensions in the new microprocessors, software can access exponentially more memory than with a traditional 32-bit processor _ the current desktop computer standard.

Intel said its latest chip would reduce data bottlenecks, boost graphics performance and improve power management.

In April 2003, rival Advanced Micro Devices Inc. released its Opteron chip, which for the first time offered 64-bit extensions yet was capable of running software designed for existing 32-bit chips without requiring a performance-sapping emulation program.

At the time, Intel said it was sticking with its 64-bit Itanium processor, which is targeted at large companies and organizations running critical applications. In February, Intel changed its tune and confirmed it was working on 64-bit extensions to its existing lines of 32-bit chips.

A version of the new Xeon for servers is expected to ship later this year. Intel hasn't specified when the 64-bit extensions will be enabled on its Pentium 4 line of chips.

Shares of Intel were down 35 cents, to $27.43, in Monday trading on the Nasdaq Stock Market.