Intel must be feeling the pressure from the AMD / Transmeta axis. From ZDNet:
It will begin this month by launching what it has described as an “ultra-low power” mobile Pentium III chip.
The 500-MHz chip originally had been planned for introduction in the second half of the year but was moved up in direct response to a perceived threat from Transmeta (Nasdaq: TMTA), Intel representatives have said.
Intel also plans to introduce an ultra-low-power 500-MHz mobile Celeron chip this month for around $100.
Transmeta will respond with faster chips that consume even less power.