Intel Announces 12.5 Percent Increase in Cash Dividend.

SANTA CLARA, Calif. -- Intel Corporation today announced that its board of directors has approved a 12.5 percent increase in the quarterly cash dividend to 11.25 cents per share beginning with the dividend that will be declared in the first quarter of 2007.

"Intel's product leadership, focus on new growth opportunities, efforts to drive greater efficiencies and continued emphasis on R&D and manufacturing, have put the company on a solid footing for the future," said Paul Otellini, president and CEO. "With one of the highest dividend yields in the technology industry, today's announcement is yet another sign of our confidence in the future of our business."

Intel began paying a cash dividend in 1992 and has paid out approximately $8.0 billion to its stockholders over the past 56 quarters. Intel cash dividends for 2006 will total approximately $2.3 billion.

The above statements and any others in this document that refer to plans and expectations for 2007 and the future are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect Intel's actual results, 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 the corporation's published expectations:

* Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term, significant pricing pressures, and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of new Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings, marketing programs and pricing pressures and Intel's response to such actions; Intel's ability to respond quickly to technological developments and to incorporate new features into its products; and the availability of sufficient inventory of Intel products and related components from other suppliers to meet demand. Factors that could cause demand to be different from Intel's expectations include customer acceptance of Intel and competitors' products; changes in customer order patterns, including order cancellations; changes in the level of inventory at customers; and changes in business and economic conditions.

* 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. Intel's dividend program could be affected by changes in Intel's operating results, its capital spending programs, changes in its cash flows and changes in the tax laws, as well as by the level and timing of acquisition and investment activity.

* Intel's results could be impacted by unexpected economic, social, political and physical/infrastructure conditions in the countries in which Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates.

* Intel's results could 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.

A more detailed discussion of these and other factors that could affect Intel's results is included in Intel's SEC filings, including the report on Form 10-Q for the quarter ended September 30, 2006.

Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom.

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