SANTA CLARA, Calif., Nov. 10, 2004 — Intel Corporation today announced that its board of directors has approved a doubling of the quarterly cash dividend to 8 cents per share beginning with a dividend payable on March 1, 2005 to stockholders of record on Feb. 7, 2005. The Intel board also authorized the repurchase of an additional 500 million shares of common stock under the company’s ongoing stock repurchase program.

"Intel is committed to investing for growth and returning excess cash to our stockholders," said Intel CEO Craig R. Barrett. "While Intel's investment in R&D and capital has averaged about $9 billion over the past five years, we have also been returning billions of dollars to our stockholders each year in the form of dividends and stock buybacks. Today I’m pleased to announce that we are doubling the dividend for the second time this year and increasing the stock buyback authorization by 500 million shares."

Intel began paying a cash dividend in 1992 and has paid out a total of about $4.1 billion to its stockholders over the past 48 consecutive quarters. The company expects to pay approximately $1 billion in cash dividends during 2004 and roughly $2 billion in 2005.

Intel’s stock buyback program began in 1990 and continues to be one of the largest today. From January through Nov. 9 of this year, Intel repurchased over 263 million shares at a cost of approximately $6.6 billion, up substantially from 2003. Since 1990, the company has repurchased over 2.1 billion shares costing approximately $41 billion.

As of Nov. 9, approximately 150.6 million shares remained available for repurchase by the company under previous authorizations.

RISK FACTORS REGARDING FORWARD-LOOKING STATEMENTS

The statements in this document that refer to plans and expectations for the fourth quarter, the year, 2005 and the future are forward-looking statements that involve a number of risks and uncertainties. Dividend declarations and the dividend rate are at the discretion of Intel’s Board of Directors, and plans for future dividends may be revised by the Board. Many factors could affect Intel’s financial results which could potentially impact Intel’s dividend and stock buyback programs, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the factors set forth below to be the important factors that could cause actual results to differ materially from Intel’s published expectations. A more detailed discussion of factors that could affect Intel’s results is contained in Intel’s SEC filings, including the report on Form 10-Q for the quarter ended September 25, 2004.

Intel operates in intensely competitive industries. Intel’s results could be affected by the demand for and market acceptance of Intel's products, pricing pressures and actions taken by our competitors, the timing of new product introductions and the availability of sufficient inventory to meet demand. Factors that could cause demand to be different from Intel’s expectations include changes in business and economic conditions, changes in customer order patterns and the level of inventory at customers.

Intel’s results could be impacted by unexpected economic, social and political conditions in the countries in which Intel, its customers or its suppliers operate, including security risks, possible infrastructure disruptions and fluctuations in foreign currency exchange rates.

Intel’s dividend and stock buyback programs could be affected by changes in its capital spending programs, changes in its cash flows and changes in tax laws, as well as by the level and timing of acquisition and investment activity.

Intel’s results could also be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports.