Intel Announces Third-Quarter Revenue Of $US7.8Bn

News Release

Intel Announces Third-Quarter Revenue Of $US7.8 Billion

Intel today announced third-quarter revenue of $US7.8 billion, up 15 percent sequentially and up 20 percent year-over-year.

Third-quarter net income was $US1.7 billion, up 85 percent sequentially and up 142 percent year-over-year. Earnings per share were $US0.25, up 79 percent sequentially and up 150 percent from $US0.10 in the third quarter of 2002.

“Intel delivered excellent results in the quarter led by global strength in our computing-related business, resulting in record unit shipments of microprocessors and chipsets,” said Craig R. Barrett, Intel chief executive officer. “Our resolve to invest aggressively during the downturn is paying off with double-digit revenue growth and a doubling of profit compared to a year ago.

“Our product and technology leadership make us well positioned to take advantage of improving demand. Going forward, our strategy remains the same: Invest in leading-edge capacity, develop innovative new products, and target growth opportunities worldwide.”

BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. (These statements do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after Oct. 13, 2003. Continuing uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters).

** Revenue in the fourth quarter is expected to be between $US8.1 billion and $US8.7 billion.
** Gross margin percentage in the fourth quarter is expected to be approximately 60 percent, plus or minus a couple of points, as compared to 58.2 percent in the third quarter, primarily due to higher revenue. Intel's gross margin percentage varies primarily with revenue levels, product mix and pricing, changes in unit costs and inventory valuation, capacity utilisation, and the timing of factory ramps and associated costs.
** The R&D spending expectation for 2003 is $US4.3 billion, as compared to the previous expectation of $US4.2 billion.

Status of Business Outlook and Mid-Quarter Business Update
During the quarter, Intel's corporate representatives may reiterate the Business Outlook during private meetings with investors, investment analysts, the media and others. Intel intends to publish a Mid-Quarter Business Update on Dec. 4. For more information about the Outlook, Update and related Quiet Periods, please refer to the Outlook section of the Web site at www.intc.com.

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

Intel, Pentium, Celeron, Intel Centrino, Itanium, Intel Xeon, Intel SpeedStep, Intel Wireless MMX, Intel StrataFlash, Intel XScale and Intel NetStructure are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

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

ENDS

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