Exhibit 99.1

          Intel Updates Third-Quarter Business Expectations;
     Revenue Expected to be Between $8.3 Billion and $8.6 Billion

    SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 2, 2004--Intel
Corporation expects revenue for the third quarter to be between $8.3
billion and $8.6 billion, as compared to the previous range of $8.6
billion to $9.2 billion.
    Worldwide demand for Intel Architecture products is trending below
previous expectations driven by lower than expected end demand along
with customer reductions in component inventory levels. Communications
revenue is weaker than anticipated primarily due to lower than
expected growth in flash memory shipments.
    The third-quarter gross margin percentage is now expected to be
approximately 58 percent, plus or minus a couple of points, as
compared to the previous expectation of 60 percent, plus or minus a
couple of points. The gross margin percentage for 2004 is now expected
to be between 58 percent and 60 percent, as compared to the previous
range of 60 percent, plus or minus a couple of points.
    Spending for the third quarter is now expected to be approximately
$2.4 billion, below the previous expectation of approximately $2.5
billion. The tax rate for the third quarter is now expected to be
approximately 29.5 percent, below the previous expectation of
approximately 31 percent, reflecting the expectation that a higher
percentage of profits will be generated in lower-tax jurisdictions.
The tax rate for the fourth quarter is expected to be 30.5 percent,
below the previous expectation of approximately 31 percent. All other
expectations are unchanged.
    This Business Update is a scheduled update to the company's
Business Outlook for the quarter, which ends Sept. 25. Intel's
third-quarter Business Outlook was originally published in the
company's second-quarter 2004 earnings release, available at
www.intc.com. The company will discuss this update during a public
webcast at 2:30 p.m. PDT today at www.intc.com, with a replay
available until Oct. 12.
    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 July 13 Business Outlook are forward
looking and involve a number of risks and uncertainties. This Business
Update does not include the potential impact of any mergers,
acquisitions, divestitures or other business combinations that may be
completed after Sept. 1, 2004. The following are what we presently
consider to be the important factors that could cause actual results
to differ materially from our published expectations.
    Demand for Intel's products, which impacts revenue, the gross
margin percentage and expenses, is affected by business and economic
conditions as well as computing and communications industry trends and
changes in customer order 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 or materials and the development and timing of
introduction of compelling software applications and operating systems
that take advantage of the features of Intel's 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. The gross margin percentage varies with
revenue levels, 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, including the ramp of
90 nm process technology on 300 mm wafers, and associated costs. The
gross margin percentage could also be affected by excess or obsolete
inventory, variations in inventory valuation and impairment of
manufacturing or assembly and test assets. Expenses, particularly
certain marketing and compensation expenses, vary depending on the
level of revenue and profits.
    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, the resolution of issues arising
from tax audits with various tax authorities and the ability to
realize deferred tax assets.
    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.
    If terrorist activity, armed conflict, civil or military unrest or
political instability occurs in the United States, Israel or other
locations where Intel conducts its business, 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 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 Intel's business and impact
customer order patterns. Results could also be affected by adverse
effects associated with product defects and errata (deviations from
published specifications) and by litigation or regulatory matters
involving intellectual property, stockholder, consumer, antitrust and
other issues, such as the litigation and/or regulatory matters
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 June 26, 2004.

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