Intel Updates Second-Quarter
Business Expectations

SANTA CLARA, Calif., June 6, 2002 -- Intel Corporation
today provided a planned update to the company's
Business Outlook for the second quarter, which ends June
29.

Intel expects second-quarter revenue to be between $6.2
billion and $6.5 billion, compared to the previous range of
$6.4 billion to $7.0 billion. The lower revenue expectation
is primarily due to softer than expected demand in
Europe. Microprocessor units are at the low end of the
normal seasonal pattern, with a weaker than expected
mix. Intel's enterprise, mobile and communications
businesses are in line with expectations. The company
continues to expect a seasonally stronger second half.

The second-quarter gross margin percentage is expected
to be approximately 49 percent, plus or minus a couple of
points, compared to the previous range of 53 percent,
plus or minus a couple of points, primarily due to the lower
than expected revenue and product mix.

Amortization of acquisition-related intangibles and costs
is expected to be approximately $230 million in the
second quarter, compared to the previous expectation of
$115 million, primarily due to a write-off of acquired
intangibles related to Xircom PC cards for wireline
networking. The full year amount is expected to be
approximately $530 million, compared to the previous
expectation of $440 million. All other expectations are
unchanged.

Intel's second-quarter 2002 Business Outlook was
originally published in the company's first-quarter 2002
earnings release, available on the Intel Investor Relations
Web site at www.intc.com.

Intel will host a public webcast at 2:30 p.m. PDT today on
the Investor Relations Web site. A replay of the webcast
will be available until June 13 on the Web site and by
phone at (719) 457-0820, passcode 473768.

Intel, the world's largest chip maker, is also a leading
manufacturer of computer, networking and
communications products. Additional information about
Intel is available at www.intel.com/pressroom

The statements contained in this Business Update and in the April
16 Business Outlook are forward-looking statements that involve a
number of risks and uncertainties. Gross margin percentage varies
primarily with revenue levels, product mix, product pricing, changes in
unit costs, capacity utilization, and timing of factory ramps and
associated costs. Expenses, particularly certain marketing- and
compensation-related expenses, vary depending on the level of
revenue and profits. The expectation as to gains or losses from
equity investments and interest and other will vary depending on
equity market levels and volatility, gains or losses realized on the
sale or exchange of investments, determination of impairment
charges, including potential impairment of non-marketable
investments, interest rates, cash balances, mark-to-market of
derivative instruments, and assuming no unanticipated items. Other
factors that could cause actual results to differ materially include the
following: business and economic conditions and trends in the
computing and communications industries in various geographic
regions; factors associated with doing business outside the United
States, including currency controls and fluctuations, and tariff, import
and other related restrictions and regulations; possible disruption in
commercial activities related to terrorist activity or armed conflict in
the United States, Israel and other locations, such as changes in
logistics and security arrangements and communications
infrastructure, and reduced end-user purchases relative to
expectations; civil or military unrest or political instability in a locale;
changes in customer order patterns; changes in the mixes of
microprocessor types and speeds sold as well as the mix of related
chipsets, motherboards, purchased components and other
semiconductor and non-semiconductor products; competitive factors,
such as competing chip architectures and manufacturing
technologies, competing software-compatible microprocessors and
acceptance of new products in specific market segments; pricing
pressures; development and timing of introduction of compelling
software applications; excess or obsolete inventory and variations in
inventory valuation; continued success in technological advances,
including development and implementation of new processes and
strategic products for specific market segments; execution of the
manufacturing ramp, including the transition to 0.13-micron
manufacturing process technology; excess manufacturing capacity;
the ability to sustain and grow networking, communications, wireless
and other businesses, and successfully integrate and operate any
acquired businesses; unanticipated costs or other adverse effects
associated with processors and other products containing errata
(deviations from published specifications); litigation involving
intellectual property, stockholder and other issues; and other risk
factors listed from time to time in the company's SEC reports,
including but not limited to Form 10-Q for the quarter ended March
30, 2002.

Intel is a registered trademark of Intel Corporation or its subsidiaries
in the United States and other countries.

* Other marks and brands may be claimed as the property of others.

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