Intel

(INTC) - Get Report

will shut down its Intel Online Services Web hosting business and take a $100 million pretax charge in its second quarter to cover the step.

The company cited "market trends and financial projections for the hosting services industry" for the decision, saying existing customers would be serviced for a year while Intel worked to ensure a transition to other providers.

IOS was rolled out in September 1999 to provide and manage facilities and network for Internet application hosting and to purchase, integrate and deploy the hardware and software necessary to run applications.

A list of partners in its inaugural press release sums up part of the story:

iXL

(merged into

Scient

in November 2001),

Proxicom

(folded into Compaq in June 2001),

Razorfish

(RAZF)

(last trade, 19 cents),

US Interactive

(USITQ.PK)

(last trade, 0.0001 cent), and

UUNET

, long since a division of

WorldCom

(WCOM)

.

Intel shares were off 82 cents, or 3.7%, to $21.20 in after-hours Instinet trading following the announcement.