EXHIBIT 99.1

             INTEL THIRD QUARTER REVENUE TO BE BELOW EXPECTATIONS

                 Demand in Europe weaker than expected

SANTA CLARA, Calif., Sept. 21, 2000 -- Intel's third quarter revenue is
anticipated to be below the company's previous expectations, primarily
due to weaker demand in Europe, the company said today.  The company now
expects revenue for the third quarter to be approximately 3 to 5 percent
higher than second quarter revenue of $8.3 billion.
The company expects gross margin percentage for the third quarter to be
62 percent, plus or minus a point, lower than the company's previous
expectations of approximately 63 to 64 percent.  Interest and other is
expected to be approximately $900 million for the third quarter, up from
the company's previous expectations of $800 million.

                           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 or acquisitions that may be completed after the date of this
release.

**  The company expects revenue for the third quarter of 2000 to be
approximately 3 to 5 percent higher than second quarter revenue of $8.3
billion.
**  The company expects gross margin percentage for the third quarter to be
62 percent, plus or minus a point. Gross margin percentage for 2000 is
expected to be 63 percent, plus or minus a few points.  In the short term,
Intel's gross margin percentage varies primarily with revenue levels and
product mix as well as changes in unit costs.
**  Expenses (R&D, excluding in-process R&D, plus MG&A) in the third
quarter of 2000 are expected to be up 7 to 9 percent from second quarter
expenses of $2.2 billion, primarily due to higher spending on marketing
programs and R&D initiatives in new business areas.  Expenses are dependent
in part on the level of revenue.
**  R&D spending, excluding in-process R&D, is expected to be approximately
$4.0 billion for 2000.
**  The company expects interest and other income for the third quarter of
2000 to be approximately $900 million.  Interest and other is dependent in
part on interest rates, cash balances, equity market levels and volatility,
the realization of expected gains on investments, including gains on
investments acquired by third parties, and assuming no unanticipated items.
**  The tax rate for 2000 is expected to be approximately 31.8 percent,
excluding the impact of the previously announced agreement with the
Internal Revenue Service and acquisition-related costs.
**  Capital spending for 2000 is expected to be approximately $6.0 billion.
**  Depreciation is expected to be approximately $790 million in the third
quarter and $3.4 billion for the full year 2000.
**  Amortization of goodwill and other acquisition-related intangibles is
expected to be approximately $400 million in the third quarter and $1.5
billion for the full year 2000.

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;
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, including
the transition to the 0.18-micron process technology; shortage of
manufacturing capacity; the ability to grow new networking, communications,
wireless and other Internet-related businesses and successfully integrate
and operate any acquired businesses; 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 July 1, 2000 (Part
I, Item 2, Outlook section).