The Heart of A New Generation The Heart of A New Generation Update to AnalystsUpdate to Analysts

AnandAnand

ChandrasekherChandrasekher

Senior Vice President, IntelSenior Vice President, Intel

General Manager, Ultra Mobility GroupGeneral Manager, Ultra Mobility Group

TodayToday’’s presentation contains forwards presentation contains forward--looking statements. All looking statements. All statements made that are not historical facts are subject to a nstatements made that are not historical facts are subject to a number umber of risks and uncertainties, and actual results may differ materiof risks and uncertainties, and actual results may differ materially. ally. Please refer to our most recent Earnings Release and our most rePlease refer to our most recent Earnings Release and our most recent cent Form 10Form 10--K filing for more information on the risk factors that could K filing for more information on the risk factors that could cause actual results to differ materially.cause actual results to differ materially.

If we use any nonIf we use any non--GAAP financial measures during the presentation, GAAP financial measures during the presentation, you will find on our website, you will find on our website, www.intc.comwww.intc.com, the required , the required reconciliation to the most directly comparable GAAP financial reconciliation to the most directly comparable GAAP financial measure.measure.

TodayToday’’s News s News

New groundbreaking low power high performance technology for MobNew groundbreaking low power high performance technology for Mobile ile Internet Devices, enabling the best Internet experience in Internet Devices, enabling the best Internet experience in pocketablepocketabledevicesdevices

––

Intel is introducing its first groundbreaking lowIntel is introducing its first groundbreaking low--power power IntelIntel®®

AtomAtom™™

processors and Centrinoprocessors and Centrino®®

AtomAtom™™

processor technology for Mobile Internet processor technology for Mobile Internet DevicesDevices

––

A number of device manufacturers are planning to ship and range A number of device manufacturers are planning to ship and range of service of service providers planning to deploy Intelproviders planning to deploy Intel--based based MIDsMIDs

beginning this summerbeginning this summer

**

Announcing IntelAnnouncing Intel®® AtomAtom™™ Architecture for the Embedded Market Segment Architecture for the Embedded Market Segment with 7 year extended life support. Offers Ultrawith 7 year extended life support. Offers Ultra--Low Power forLow Power for FanlessFanlessand Small Form Factorand Small Form Factor applications.applications.

Latest trends in personalizing the mobile computing experience, Latest trends in personalizing the mobile computing experience, including including NetbooksNetbooks, Intel, Intel’’s 2009 notebook platform and the new Intels 2009 notebook platform and the new Intel®® AntiAnti--theft theft technology. technology.

Intel architecture from Intel architecture from MilliwattsMilliwatts to to PetaflopsPetaflops: : MIDsMIDs to HPC to Visual to HPC to Visual ComputingComputing

––

* Intel forecast* Intel forecast

IntelIntel’’s lowest power CPUs lowest power CPU0.650.65--2.4 watts TdP2.4 watts TdP11

Low average powerLow average power22

(160(160--220mW) 220mW) Low idle powerLow idle power33(80(80--100mW)100mW)

IntelIntel’’s smallest processor built with s smallest processor built with the worldthe world’’s smallest transistorss smallest transistors< 25 mm2 die size< 25 mm2 die size45nm High45nm High--K CMOSK CMOS47 million transistors47 million transistors

Ground Up Design with CoreGround Up Design with Core

® 2 Duo 2 Duo ((MeromMerom) ISA Compatibility) ISA CompatibilityIntelIntel

® Virtualization TechnologyVirtualization TechnologySSE3, SSSE3 SupportSSE3, SSSE3 Support

IntelIntel

®®

AtomAtom™™

ProcessorProcessor

Fastest processor in sub 3W spaceFastest processor in sub 3W space800MHz 800MHz ––

1.86Ghz1.86Ghz533MHz & 400MHz FSB533MHz & 400MHz FSBHT TechnologyHT Technology11

IntelIntel

® Digital Media BoostDigital Media Boost

1. HT Technology can add 200mW of power above quoted TDP for HT SKUs when multi-threaded applications are run.2. Average power is defined as measured CPU power whilst running BAPCo MobileMark’05 Office Productivity suite on Microsoft*

Windows* XP for a period of 90min at 50°C . 3. Idle power is measured when running Windows Vista in idle at 50C

A Second IA Core

IntelIntel

®®

AtomAtom™™

ProcessorProcessor Performance AND Low PowerPerformance AND Low Power

Netbook/Nettop

MID

Sodaville

DiamondvilleEmb. Menlow

CE

Embedded

Menlow

Optimized by Segment

Mobile Internet DevicesMobile Internet Devices The Heart of a New GenerationThe Heart of a New Generation

Global Internet Growth Continues UnabatedGlobal Internet Growth Continues Unabated––

Best Internet: PC Internet + Interactive + Fast + VisualBest Internet: PC Internet + Interactive + Fast + Visual

––

Users want to carry this Internet experience with themUsers want to carry this Internet experience with them

Mobile Internet Devices enable the Mobile Internet Devices enable the ““Best Internet Best Internet Experience in Experience in PocketablePocketable DevicesDevices””

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Ultra Mobile PerformanceUltra Mobile Performance

––

Internet and Software CompatibilityInternet and Software Compatibility

––

Wireless ConnectivityWireless Connectivity

Launching IntelLaunching Intel®® CentrinoCentrino®® AtomAtom™™ processor technologyprocessor technology––

IntelIntel’’s FIRST Mobile Internet Device platforms FIRST Mobile Internet Device platform

IntelIntel®®

CentrinoCentrino®®

AtomAtom™™

processor processor technoloytechnoloy

Intel®

Atom™

processorGround up design with Core ® 2 Duo ISA compatibilityIntel’s smallest processor built with world’s smallest transistorsFastest CPU in sub 3W spaceIntel’s lowest power CPU

13mm13mm

14mm14mm

22mm22mm

22mm22mm19mm19mm

Intel®

System Controller HubGround up design, Highly integrated low power solutionBest Graphics in handheld spaceHD VideoCombines Handheld IO with PC Standards

Industry Momentum and AnnouncementsIndustry Momentum and AnnouncementsMIDs

Coming to Market Service Providers Getting Ready

Software Ecosystem Gathering Steam

Embedded Markets Growth OpportunityEmbedded Markets Growth Opportunity

In-Vehicle Infotainment

Digital Surveillance& Security

Medical

Fueling >18% CAGR for Embedded*Fueling >18% CAGR for Embedded*

>40 Early Access Design Wins*>40 Early Access Design Wins*

IP Phones Digital Signage Point of Sale

New Growth in Existing MarketsNew Growth in Existing Markets

* Source: Intel

QuestionsQuestions

Risk FactorsRisk FactorsThis presentation contains forwardThis presentation contains forward--looking statements that involve a number of risks and uncertaintlooking statements that involve a number of risks and uncertainties. These statements do not reflect the ies. These statements do not reflect the potential impact of any mergers, acquisitions, divestitures, invpotential impact of any mergers, acquisitions, divestitures, investments or other similar transactions that had not been completestments or other similar transactions that had not been completed in the ed in the future, with the exception of the Numonyx transaction. Our forwafuture, with the exception of the Numonyx transaction. Our forwardrd--looking statements for 2008 reflect the expectation that the Numlooking statements for 2008 reflect the expectation that the Numonyx onyx transaction will close during the first quarter. The informationtransaction will close during the first quarter. The information presented is accurate only as of todaypresented is accurate only as of today’’s date and will not be updated. In addition s date and will not be updated. In addition to any factors discussed in the presentation, the important factto any factors discussed in the presentation, the important factors that could cause actual results to differ materially includeors that could cause actual results to differ materially include the following: the following: Factors that could cause demand to be different from Intel's expFactors that could cause demand to be different from Intel's expectations include changes in business and economic conditions, iectations include changes in business and economic conditions, including ncluding conditions in the credit market that could affect consumer conficonditions in the credit market that could affect consumer confidence; customer acceptance of Inteldence; customer acceptance of Intel’’s and competitorss and competitors’’ products; changes in products; changes in customer order patterns, including order cancellations; and chancustomer order patterns, including order cancellations; and changes in the level of inventory at customers. Intelges in the level of inventory at customers. Intel’’s results could be affected by s results could be affected by the timing of closing of acquisitions and divestitures. Intel opthe timing of closing of acquisitions and divestitures. Intel operates in intensely competitive industries that are characterizeerates in intensely competitive industries that are characterized by a high d by a high percentage of costs that are fixed or difficult to reduce in thepercentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and diffishort term and product demand that is highly variable and difficult to forecast. cult to forecast. Additionally, Intel is in the process of transitioning to its neAdditionally, Intel is in the process of transitioning to its next generation of products on 45 nm process technology, and therext generation of products on 45 nm process technology, and there could be could be execution issues associated with these changes, including producexecution issues associated with these changes, including product defects and errata along with lower than anticipated manufactut defects and errata along with lower than anticipated manufacturing yields. ring yields. Revenue and the gross margin percentage are affected by the timiRevenue and the gross margin percentage are affected by the timing of new Intel product introductions and the demand for and marng of new Intel product introductions and the demand for and market ket acceptance of Intel's products; actions taken by Intel's competiacceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing ptors, including product offerings and introductions, marketing programs and rograms and pricing pressures and Intelpricing pressures and Intel’’s response to such actions; Intels response to such actions; Intel’’s ability to respond quickly to technological developments and ts ability to respond quickly to technological developments and to incorporate new o incorporate new features into its products; and the availability of sufficient cfeatures into its products; and the availability of sufficient components from suppliers to meet demand. The gross margin percenomponents from suppliers to meet demand. The gross margin percentage could tage could vary significantly from expectations based on changes in revenuevary significantly from expectations based on changes in revenue levels; product mix and pricing; capacity utilization; variatiolevels; product mix and pricing; capacity utilization; variations in inventory ns in inventory valuation, including variations related to the timing of qualifyvaluation, including variations related to the timing of qualifying products for sale; excess or obsolete inventory; manufacturiing products for sale; excess or obsolete inventory; manufacturing yields; ng yields; changes in unit costs; impairments of longchanges in unit costs; impairments of long--lived assets, including manufacturing, assembly/test and intangilived assets, including manufacturing, assembly/test and intangible assets; and the timing and ble assets; and the timing and execution of the manufacturing ramp and associated costs, includexecution of the manufacturing ramp and associated costs, including starting start--up costs. Expenses, particularly certain marketing and up costs. Expenses, particularly certain marketing and compensation expenses, vary depending on the level of demand forcompensation expenses, vary depending on the level of demand for Intel's products, the level of revenue and profits, and impairmIntel's products, the level of revenue and profits, and impairments of longents of long--lived assets. Intel is in the midst of a structure and efficienclived assets. Intel is in the midst of a structure and efficiency program that is resulting in several actions that could have ay program that is resulting in several actions that could have an impact on n impact on expected expense levels and gross margin. We expect to complete expected expense levels and gross margin. We expect to complete the divestiture of our NOR flash memory assets to Numonyx. A delthe divestiture of our NOR flash memory assets to Numonyx. A delay or ay or failure of the transaction to close, or a change in the financiafailure of the transaction to close, or a change in the financial performance of the contributed businesses could have a negativl performance of the contributed businesses could have a negative impact on our e impact on our financial statements. Intelfinancial statements. Intel’’s equity proportion of the new companys equity proportion of the new company’’s results will be reflected on its financial statements below ops results will be reflected on its financial statements below operating erating income and with a one quarter lag.income and with a one quarter lag. The tax rate expectation is based on current tax law and currentThe tax rate expectation is based on current tax law and current expected income. The tax rate may be expected income. The tax rate may be affected by the jurisdictions in which profits are determined toaffected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefbe earned and taxed; changes in the estimates of credits, benefits and its and deductions; the resolution of issues arising from tax audits witdeductions; the resolution of issues arising from tax audits with various tax authorities , including payment of interest and peh various tax authorities , including payment of interest and penalties; and the nalties; and the ability to realize deferred tax assets. Gains or losses from equability to realize deferred tax assets. Gains or losses from equity securities and interest and other could vary from expectatioity securities and interest and other could vary from expectations depending on ns depending on fixed income and equity market volatility; gains or losses realifixed income and equity market volatility; gains or losses realized on the sale or exchange of securities; gains or losses from zed on the sale or exchange of securities; gains or losses from equity method equity method investments; impairment charges related to marketable, noninvestments; impairment charges related to marketable, non--marketable and other investments; interest rates; cash balances;marketable and other investments; interest rates; cash balances; and changes in and changes in fair value of derivative instruments. Intelfair value of derivative instruments. Intel’’s results could be affected by the amount, type, and valuation os results could be affected by the amount, type, and valuation of sharef share--based awards granted as well based awards granted as well as the amount of awards cancelled due to employee turnover and tas the amount of awards cancelled due to employee turnover and the timing of award exercises by employees. Intel's results couldhe timing of award exercises by employees. Intel's results could be be impacted by adverse economic, social, political and physical/infimpacted by adverse economic, social, political and physical/infrastructure conditions in the countries in which Intel, its custrastructure conditions in the countries in which Intel, its customers or its omers or its suppliers operate, including security concerns, natural disastersuppliers operate, including security concerns, natural disasters, infrastructure disruptions, health concerns and fluctuations s, infrastructure disruptions, health concerns and fluctuations in currency in currency exchange rates. Intel's results could be affected by adverse effexchange rates. Intel's results could be affected by adverse effects associated with product defects and errata (deviations fromects associated with product defects and errata (deviations from published published specifications), and by litigation or regulatory matters involvispecifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and ong intellectual property, stockholder, consumer, antitrust and other issues, such ther issues, such as the litigation and regulatory matters described in Intel's SEas the litigation and regulatory matters described in Intel's SEC reports. A detailed discussion of these and other risk factorsC reports. A detailed discussion of these and other risk factors that could affect that could affect IntelIntel’’s results is included in Intels results is included in Intel’’s SEC filings, including the report on Form 10s SEC filings, including the report on Form 10--K for the fiscal year ended December 29, 2007.K for the fiscal year ended December 29, 2007.

Rev. 2/26/08Rev. 2/26/08