Intel Announces Restructuring

Subject: General Tech | September 6, 2006 - 11:12 AM |

SANTA CLARA, Calif., Sept. 5, 2006
— Intel today announced plans for restructuring following an analysis
of the company's structure and efficiency. As a result of the
restructuring, the company expects to generate savings in costs and
operating expenses of approximately $2 billion in 2007. In 2008 the
company expects savings from this restructuring to grow to
approximately $3 billion annually.

The savings are a combination of
non-workforce related steps and a significant reduction in Intel's
workforce. The company's employee population will decline to
approximately 95,000 by the end of this year, resulting from workforce
reductions, attrition and previously announced actions. The workforce
will decline to approximately 92,000 by the middle of 2007 — 10,500
fewer than the company's employee population at the end of the second
quarter of 2006. In addition to the savings from the workforce
reduction, the company expects savings in merchandising expenses,
capital and materials.