Intel subsidiary to pay fine for unauthorised exports, U.S. says

WASHINGTON (Reuters) - A subsidiary of Intel Corp will pay $750,000 (466,862.06 pounds) to settle charges that it sold encryption software products to certain foreign government customers as well as to prohibited organizations in China without the required licenses, the U.S. Department of Commerce said on Wednesday.

Wind River Systems of Alameda, Calif., sold operating software valued at $2.9 million to governments and various end users in China, Hong Kong, Russia, Israel, South Africa, and South Korea between 2008 and 2011, the department said. It voluntarily disclosed the sales in 2012.

The software is controlled for national security reasons, and some of the recipients in China were on the "Entity List" kept by the Bureau of Industry and Security within the Commerce Department.

Persons or organizations on that list have been identified as posing a greater risk of diversion to weapons of mass destruction programs, terrorism, or other activities contrary to U.S. national security or foreign policy interests.

Intel shares were down about 0.6 percent at $27.91 in morning U.S. trading on the Nasdaq.

(Reporting by Ros Krasny; Editing by Susan Heavey)