Exhibit 99.1

          INTEL UPDATES FOURTH-QUARTER BUSINESS EXPECTATIONS

    Company Narrows Revenue Range to $8.5 Billion to $8.7 Billion;
       Goodwill Impairment Charge of Approximately $600 Million
                     Likely in the Fourth Quarter

    SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 4, 2003-- Intel Corporation
today provided a scheduled update to the company's Business Outlook for
the fourth quarter, which ends Dec. 27.
    Intel expects revenue to be between $8.5 billion and $8.7 billion,
as compared to the previous range of $8.1 billion to $8.7 billion. The
gross margin percentage is expected to be 62 percent, plus or minus a
point, as compared to the previous expectation of 60 percent, plus or
minus a couple of points. The company's Intel Architecture business is
experiencing solid seasonal growth while demand for communications
products remains on track with the company's expectations for the
quarter.
    Intel anticipates taking a fourth-quarter goodwill impairment
charge related to the Wireless Communications and Computing Group
(WCCG). The long-term growth expectations for this business are no
longer projected to be as high as previously expected. The impairment
charge is likely to be approximately $600 million. The amount of the
charge will be reported in the company's fourth-quarter earnings
release following completion of the valuation analysis required under
accounting rules.
    R&D spending is expected to be $4.4 billion for the year, as
compared to the previous expectation of $4.3 billion. Expenses are
expected to be approximately $2.3 billion, at the high end of the
previous expectation of $2.2 billion to $2.3 billion.
    The tax rate for the fourth quarter is expected to be
approximately 32 percent, as compared to the previous expectation of
31.5 percent. The revised tax rate expectation assumes the impact of a
$600 million goodwill impairment charge related to WCCG, which would
not be deductible for tax purposes, and includes other anticipated
tax-related items.
    The net earnings-per-share impact of the assumed $600 million
goodwill impairment charge and the other anticipated tax-related items
is $.06 per share.
    All other expectations are unchanged.
    Intel's fourth-quarter Business Outlook was originally published
in the company's third-quarter earnings release, available at
www.intc.com. The company will hold a public webcast at 2:30 p.m. PST
today at www.intc.com, with a replay available until Jan. 14.
    Intel, the world's largest chip maker, is also a leading
manufacturer of computer, networking and communications products.
Additional information about Intel is available at
www.intel.com/pressroom.

    This Business Update and the Oct. 14 Business Outlook are forward
looking and involve a number of risks and uncertainties. Demand for
Intel's products, which impacts revenue and the gross margin
percentage, is affected by business and economic conditions as well as
computing and communications industry trends and changes in customer
ordering patterns. Revenue and the gross margin percentage are
affected by competing chip architectures and manufacturing
technologies, competing software-compatible microprocessors, pricing
pressures and other competitive factors, as well as market acceptance
of Intel's new products, the availability of sufficient inventory to
meet demand, the availability of externally purchased components and
the development and timing of introduction of compelling software
applications and operating systems that take advantage of the features
of our products. Future revenue is also dependent on continuing
technological advancement, including developing and implementing new
processes and strategic products, as well as the timing of new product
introductions, sustaining and growing new businesses and integrating
and operating any acquired businesses. In addition to the impact of
changes in revenue, the gross margin percentage varies with product
mix and pricing, changes in unit costs, capacity utilization and the
existence of excess capacity, and the timing and execution of the
manufacturing ramp and associated costs. The gross margin percentage
could also be affected by excess or obsolete inventory, variations in
inventory valuation and impairment of manufacturing assets. Intel
conducts much of its manufacturing, assembly and test and sales
activities outside the United States and is thus subject to a number
of other factors, including currency controls and fluctuations, tariff
and import regulations and regulatory requirements which may limit our
or our customers' ability to manufacture, assemble and test or sell
products in particular countries. If terrorist activity, armed
conflict, civil or military unrest or political instability occurs in
the United States, Israel or other locations, such events may disrupt
manufacturing, assembly and test, logistics, security and
communications, and could also result in reduced demand for Intel's
products. The impacts of major health concerns, such as the SARS
illness, or of large-scale outages or interruptions of service from
utility or other infrastructure providers, on Intel, its suppliers,
customers or other third parties could also adversely affect our
business and impact our customer order patterns. Expenses,
particularly certain marketing and compensation expenses, vary
depending on the level of revenue and profits. The expectation
regarding gains or losses from equity securities and interest and
other assumes no unanticipated events and varies 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
fair value of derivative instruments. Expectations of impairment
charges on investments are based on experience, and it is not possible
to know which specific investments are likely to be impaired or the
extent or timing of individual impairments. The tax rate expectation
is based on current tax law and current expected income, and assumes
Intel continues to receive tax benefits for export sales. The tax rate
may be affected by the closing of acquisitions or divestitures, the
jurisdiction in which profits are determined to be earned and taxed,
and the ability to realize deferred tax assets. Results could also be
affected by adverse effects associated with product defects and errata
(deviations from published specifications) and by litigation, such as
that described in Intel's SEC reports, as well as other risk factors
listed in Intel's SEC reports, including the report on Form 10-Q for
the quarter ended Sept. 27. The statements in this release are based
on current expectations and do not include the potential impact of any
mergers, acquisitions, divestitures or other business combinations
that have not been completed by Dec. 3 or are not expected to be
completed shortly.

    * Intel is a registered trademark of Intel Corporation or its
subsidiaries in the United States and other countries.