Exhibit 99.1

SANTA CLARA, Calif., Oct. 15, 2002 -- Intel Corporation today announced third-quarter revenue of $6.5 billion, up 3 percent sequentially and flat year-over-year.

     Third-quarter net income was $686 million, up 54 percent sequentially and up 547 percent year-over-year. Earnings per share were $0.10, up 43 percent sequentially and up 400 percent from $0.02 in the third quarter of 2001.

     Third-quarter net income excluding acquisition-related costs¹ of approximately $108 million was $768 million, up 24 percent sequentially and up 17 percent year-over-year. Earnings excluding acquisition-related costs were $0.11 per share, up 22 percent sequentially and up 10 percent from $0.10 in the third quarter of 2001.

     "Although the industry is experiencing one of its worst downturns ever, we continue to move our technology forward, introducing 18 new processors during the quarter, all on our leading-edge 0.13-micron technology," said Craig R. Barrett, Intel chief executive officer. "Our product and technology leadership, combined with solid execution, is paying off, bringing our microprocessor market segment share to its highest level in four years. Going forward, we remain committed to investments in new products and technologies, setting the stage for us to emerge

even stronger when the economy and demand recover."     

     The second-quarter 2002 results included a $106-million charge to cost of sales related to winding down the online services business, along with a $112-million write-off of acquired intangibles. The third-quarter 2001 results included a one-time tax benefit of $100 million related to export sales in 2000. The 2001 results reflect charges for the amortization of goodwill, which is no longer amortized under generally accepted accounting principles (GAAP) with the adoption of FASB rule 142.

     On October 10, a federal court in Texas ruled that Intel's Itanium^{(Registered Trademark)} processor infringes patents owned by Intergraph* Corporation. Under the terms of an April 2002 settlement agreement between the parties, Intel agreed to pay Intergraph liquidated damages of $150 million within 30 days of entry of final judgment of infringement, and an additional $100 million if Intergraph prevails on appeal. Intel plans first to seek reconsideration of the ruling by the trial court, and is currently analyzing the accounting treatment for the payments the company may ultimately be required to make. Based on a preliminary analysis, payments are expected to be capitalized and amortized over a period of years, and the ruling is not expected to have a material effect on Intel's reported results of operations for the third quarter of 2002. Further information concerning the accounting treatment is expected to be included in Intel's Form 10-Q for the third quarter, to be filed in early November.

BUSINESS OUTLOOK

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 $6.5 billion and $6.9 billion.

** Gross margin percentage in the fourth quarter is expected to be 49 percent, plus or minus a

couple of points, approximately flat with the third quarter. Intel's gross margin percentage varies primarily with revenue levels, product mix and pricing, changes in unit costs, capacity utilization, and timing of factory ramps and associated costs.

** Gross margin percentage for 2002 is expected to be approximately 49 percent, near the low end of the previous expectation of 51 percent, plus or minus a few points, primarily due to lower than expected revenue in the second half, unrealized manufacturing savings in the third quarter, and higher than expected excess capacity charges in the second half.

** Expenses (R&D, excluding in-process R&D, plus MG&A) in the fourth quarter are expected to be approximately flat with $2.1 billion in the third quarter. Expenses, particularly certain marketing- and compensation-related expenses, vary depending on the level of revenue and profits.

** R&D spending for 2002, excluding in-process R&D, is expected to be approximately $4.0 billion.

** Capital spending for 2002 is expected to be approximately $4.7 billion, lower than the previous expectation of between $5.0 billion and $5.2 billion. The majority of the spending reduction is being driven by cost savings within ongoing construction projects. In addition, the company is slightly reducing its fourth-quarter equipment spending by re-using certain equipment from older process technology.

** Gains or losses from equity investments and interest and other in the fourth quarter are expected to be a net loss of $50 million due to the expectation of a net loss on equity investments of approximately $90 million, primarily as a result of impairment charges. Gains or losses from equity securities and interest and other assume no unanticipated events and vary depending on equity market levels and volatility, gains or losses realized on the sale or exchange of securities, impairment charges related to non-marketable and other investments, interest rates, cash balances, and changes in the fair value of derivative instruments.

** The tax rate for 2002 is now expected to be approximately 27.4 percent, excluding the impact of acquisition-related costs and an expected fourth-quarter tax benefit of approximately $65 million related to a small divestiture that closed early in the fourth quarter. The tax rate is lower

than the previous expectation of 28.4 percent due to lower than expected profits for the year and a higher percentage of profits expected in low tax jurisdictions.

** Depreciation for the fourth quarter is expected to be approximately $1.2 billion.

** Amortization of acquisition-related intangibles and costs is expected to be approximately $90 million in the fourth quarter.

Intel, Pentium, Celeron, Itanium, Xeon and XScale 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.

The following pro forma supplemental information excludes the effect of acquisition-related costs. This pro forma information is not prepared in accordance with generally accepted accounting principles.