Microsoft Corp. has issued a warning that hackers are targeting a critical unpatched bug in Internet Explorer. The attackers could use the flaw to seize control of a user's system, it said. The bug was first disclosed in May but was not considered to be serious until U.K.-based security firm Computer Terrorism Ltd. last week showed how hackers could exploit it and possibly take over a Windows system.

Cognos warns of poor Q3 results

Cognos Inc. warned of grim financial results in its just-ended third quarter. CEO Rob Ashe said that sales forecasting and execution was poor and that the transition to the company's new Cognos 8 software "proved challenging." The Ottawa-based company now projects revenue of US$209 million to $212 million. It had previously projected revenue of $233 million.

Intel to build $3.5B chip plant in Israel

Intel Corp. is set to begin construction of a $3.5 billion advanced semiconductor manufacturing facility called Fab 28 in Kiryat Gat, Israel. The plant will be the seventh Intel facility that can produce 300mm silicon wafers, from which the company's microprocessors are cut. Intel currently has five 300mm chip plants in the U.S. and a sixth in Ireland. The new facility is expected to create 2,000 jobs over the next several years.