<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>q101ex99.txt
<DESCRIPTION>Q1 01 PRE-RELEASE EXHIBIT 99
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                                                                 EXHIBIT 99.1

            INTEL FIRST QUARTER REVENUE TO BE BELOW EXPECTATION

SANTA CLARA, Calif., Mar. 8, 2001   Intel Corporation today announced that
first quarter revenue is anticipated to be below the company's previous
expectation. The economic slowdown affecting PC demand has continued and
spread to the networking, communications and server sectors. The company
now expects revenue for the first quarter to be down approximately 25
percent from fourth quarter revenue of $8.7 billion, lower than the
previous outlook that first quarter revenue would be down 15 percent, plus
or minus several points.
     The company's outlook for gross margin percentage for the first
quarter is now 51 percent, plus or minus a couple of points, down from
the previous expectation of 58 percent, plus or minus a couple of
points, primarily due to lower revenue. Expenses (R&D, excluding in-
process R&D, plus MG&A) in the first quarter are now expected to be down
approximately 15 percent from the fourth quarter. This is lower than the
previous expectation that first quarter expenses would be approximately
flat with fourth quarter expenses of $2.4 billion, primarily due to
lower revenue and profit-dependent expenses as well as cost cutting
measures.
     Additionally, the company expects to reduce headcount by approximately
5,000 people over the next 9 months predominantly through attrition. The
planned reduction excludes any headcount additions from potential future
acquisitions.
     The company will be holding a conference call for press and
analysts at 3:00 p.m. PST to discuss matters covered in this release.
The conference call is open to the general public via the web at
www.intc.com.

                             BUSINESS OUTLOOK

The following statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially. These statements do not reflect the potential impact of any
mergers, acquisitions or other business combinations that may be
completed after the date of this release.

**  The company expects revenue for the first quarter of 2001 to be down
approximately 25 percent from fourth quarter revenue of $8.7 billion.


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**  The company expects gross margin percentage for the first quarter to be
approximately 51 percent, plus or minus a couple of points. The company
plans to give its full-year 2001 gross margin percentage expectation in its
first quarter earnings release, scheduled for April 17. In the short term,
Intel's gross margin percentage varies primarily with revenue levels,
product mix, changes in unit costs and timing of factory ramps and
associated costs.
**  Expenses (R&D, excluding in-process R&D, plus MG&A) in the first
quarter of 2001 are expected to be down approximately 15 percent from
fourth quarter expenses of $2.4 billion.  Expenses are dependent in part on
the level of revenue and profits.
**  R&D spending, excluding in-process R&D, is expected to be approximately
$4.2 billion in 2001, lower than the previous expectation of $4.3 billion.
**  Capital spending for 2001 is expected to be approximately $7.5 billion.
**  The company expects gains from investments and interest and other
income for the first quarter of 2001 to be approximately $180 million. This
expectation assumes no net gains from the sale of equity investments, and
will vary depending on equity market levels and volatility, the realization
of expected gains on investments, including gains on investments acquired
by third parties, interest rates, cash balances, mark-to-market of
derivative instruments and assuming no unanticipated items.
**  The tax rate for 2001 is expected to be approximately 30.3 percent,
excluding the impact of acquisition-related costs.
**  Depreciation is expected to be approximately $880 million in the first
quarter, and $4.0 billion for the full year 2001.
**  Amortization of goodwill and other acquisition-related intangibles is
expected to be approximately $465 million in the first quarter, higher than
the previous expectation of $455 million. For the full year 2001,
amortization of goodwill and other acquisition-related intangibles is now
expected to be $1.9 billion, up from the previous expectation of $1.8
billion.

     The above statements contained in this Outlook are forward-looking
statements that involve a number of risks and uncertainties. In addition to
factors discussed above, among other factors that could cause actual
results to differ materially are the following: business and economic
conditions and growth in the computing industry in various geographic
regions; changes in customer order patterns; changes in the mixes of
microprocessor types and speeds, purchased components and other products;
competitive factors, such as rival chip architectures and manufacturing
technologies, competing software-compatible microprocessors and acceptance
of new products in specific market segments; pricing pressures; development
and timing of introduction of compelling software applications;


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insufficient, excess or obsolete inventory and variations in inventory
valuation; continued success in technological advances, including
development and implementation of new processes and strategic products for
specific market segments; execution of the manufacturing ramp;  the ability
to grow new networking, communications, wireless and other Internet-related
businesses and successfully integrate and operate any acquired businesses;
impact of events outside the United States such as the business
impact of fluctuating currency rates or unrest or political instability in
a locale, such as unrest in Israel; unanticipated costs or other adverse
effects associated with processors and other products containing errata
(deviations from published specifications); litigation involving antitrust,
intellectual property, consumer and other issues; and other risk factors
listed from time to time in the company's SEC reports, including but not
limited to the report on Form 10-Q for the quarter ended Sept. 30, 2000
(Part I, Item 2, Outlook section).

Status of Business Outlook and Related Risk Factors Statements

Beginning March 10, 2001, Intel will observe a "Quiet Period" during which
the Outlook as provided in this press release and other company documents
no longer constitute the company's current expectations. During the Quiet
Period, the Outlook in these documents should be considered to be
historical, speaking as of prior to the Quiet Period only and not subject
to update by the company. During the Quiet Period, Intel representatives
will not comment concerning Outlook or Intel's financial results or
expectations. The Quiet Period will extend until the day when Intel's next
quarterly Earnings Release is published, presently scheduled for April 17,
2001.
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