Stockholder Northstar Asset Management Inc., owner of $2,000 or more of Intel common stock, proposes the following resolution:

Policy on Human Right to Water

WHEREAS Intel uses vast quantities of water in its semiconductor manufacturing process and operates in water-scarce areas of the world like Israel and the American Southwest.

Water is used to clean silicon wafers during fabrication and packaging. One Intel manufacturing plant in Chandler, AZ uses over 600 million gallons of water per year, while worldwide; Intel reports it used 7.5 billion gallons of water in 2007;

Intel is recognized as a leader in water reclamation programs, has won water efficiency awards, and is known a thoughtful and engaged corporate citizen;

Even though Intel's worldwide water use has increased at a rate less than its production growth (according to the Global Environmental Management Initiative), Intel's water use is still a concern. Because it operates in countries that enforce the Human Right to Water through the assurance of a healthy environment and life as well as in countries that have constitutional provisions protecting this right, its water usage and respect for local communities will remain under scrutiny;

The UN High Commissioner for Human Rights has issued a report on the scope of the human rights obligations related to equitable access to safe drinking water and sanitation, and her comments place responsibility for ensuring this level of access not only on governments, but on corporations as well;

We believe that global corporations operating without strong human rights and environmental policies face serious risks to their reputation and share value if they are seen to be responsible for or complicit in human rights violations, specifically the violation or erosion of the Human Right to Water;

We believe that significant commercial advantages may accrue to our Company by adopting a comprehensive Human Right to Water policy, including enhanced corporate reputation, improved employee recruitment and retention, improved community and stakeholder relations, and reduced risk of adverse publicity, consumer boycotts, divestment campaigns, and lawsuits;

BE IT RESOLVED that the shareholders request that the Board of Directors create a comprehensive policy articulating our Company's respect for and commitment to the Human Right to Water.

Supporting Statement

Proponents believe the policy should address potability, volume, physical accessibility and affordability of water. In defining "human rights," proponents suggest that the Board could use the Universal Declaration of Human Rights as a nonbinding benchmark or reference document.

Board of Directors' Response

In summary, Intel has a very comprehensive and successful sustainable water program and does not believe that a separate "Human Right to Water" policy is necessary or appropriate.

Supporting Discussion

Intel recognizes the importance of water to its business, the communities in which it operates, and generally to the citizens of the world. Accordingly, Intel has a long history of strong water conservation programs for its business operations. The Board believes that adopting a policy on "Human Right to Water" is duplicative of existing policies and adds no real value to the company or our stockholders. We already have a sustainable water management system in place, and we have an existing policy document on Human Rights Principles that includes not only language on conserving natural resources such as water, but also covers other topics such as non-discrimination and child labor.

Our annual Corporate Responsibility report includes information on water programs and use, and our Human Rights Principles policy document is posted on our web site. A separate policy on human rights related to water would be overly narrow and prescriptive. Intel's commitment to the environment and corporate social responsibility is expressed in Intel's Code of Conduct, which states:

Our focus on sustainable water management begins before we ever manufacture a semiconductor. As part of our site selection criteria, we conduct a thorough analysis and review of water availability and quality in the local area by analyzing information such as historic droughts and weather patterns, projected supply and growth rates, location and reliability of the water supplies, and potential changes in water demand in the community. We work with government agencies, the local community, and stakeholders to understand how our needs might impact the water availability in that area and how we can minimize our impact. Once we have selected a location, taking into account these considerations, we then design our operations to be highly water-efficient, incorporating ways to maximize our water reuse and recycling and minimize our needs for incoming fresh water. In some locations, we have arranged, with government clearance, to treat the water we use and return it to the aquifer, and in other locations our water is treated and used for local irrigation. Working diligently on water management enabled us to conserve over 3 billion gallons of water last year and more than 30 billion gallons over the last decade alone.

Intel's position as a global benchmark in sustainability is long-standing. In 2007, Intel received the U.S. Environmental Protection Agency's Water Efficiency Leader Award in the Corporate category for the comprehensive water management strategies at one of our Arizona facilities. Intel has been a member of the Dow Jones Sustainability Index for 10 consecutive years (since inception of the list) and the Supersector Leader of all technology companies for eight consecutive years. Innovest Strategic Value Advisors gave Intel an AAA rating and named Intel one of the 100 Most Sustainable Corporations in the World for five years in a row.

In the area of water use, conservation, and sustainability, Intel details its actions and initiatives in its annual Corporate Responsibility Report. As noted in our most recently published report, which is posted on our web site, over the past 10 years we have invested more than $100 million in water conservation programs at our global facilities. In Arizona, Intel and the local government developed a cooperative water sustainability program that results in purified water being directed into the local aquifer for immediate reuse as a potable water source. In India, our efforts include a wastewater treatment plant and a rainwater harvesting unit. Our newest plant in China is being designed to use a reduced amount of city water. The facility's ultra-pure reclaim water system will capture and recycle over 50% of the water used at the facility, which will then be used in the facility's mechanical closed-loop systems. Our Corporate Responsibility report also provides updated information on Intel's progress in meeting our corporate goal to reduce its water consumption.

Intel's activities and existing disclosures demonstrate our recognition of water usage as a significant social and environmental issue and the need to be good stewards of this resource. A separate policy on "the Human Right to Water" would not enhance Intel's existing disclosures or practices regarding our water conservation and sustainability efforts and would just be broad, aspiring language that adds nothing to our existing commitments and endeavors. We believe it is more effective to continue to highlight our goals and work with local governments and through research and public-private partnerships to further conserve, reuse, and manage sustainable use of water.