SANTA CLARA, Calif., Dec. 8, 2005 — Intel Corporation expects revenue for the fourth quarter to be between $10.4 billion and $10.6 billion, as compared to the previous range of $10.2 billion to $10.8 billion.

The fourth-quarter gross margin percentage expectation has been narrowed to 63 percent, plus or minus a point, and is expected to be slightly above the midpoint of the new range. The previous expectation was 63 percent, plus or minus a couple of points. Capital spending is expected to be below the midpoint of the previous expectation of $5.9 billion, plus or minus $200 million. All other expectations are unchanged.

This Business Update is a scheduled update to the company’s Business Outlook for the quarter, which ends Dec. 31. Intel’s fourth-quarter Business Outlook was originally published in the company’s third-quarter 2005 earnings release, available at http://www.intc.com/. The company will discuss this update during a public webcast at 2:30 p.m. PST today at http://www.intc.com/, with a replay available until Jan. 17.

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