Intel Announces 25 Percent Cash Dividend Increase

[Apoptosis]

Intel Announces 25 Percent Cash Dividend Increase And Authorizes $25 Billion In Share Repurchase

SANTA CLARA, Calif., Nov. 10, 2005 – Intel Corporation today announced that its board of directors has approved a 25 percent increase in the quarterly cash dividend to 10 cents per share beginning with the dividend that will be declared in the first quarter of 2006. The Intel board also authorized the repurchase of up to $25 billion in shares of common stock under the company’s ongoing stock repurchase program.

“Intel’s investments in R&D and capital are enabling the company to post its third consecutive year of double-digit revenue growth,” said Paul Otellini, Intel president and CEO. “At the same time, we are returning record amounts of cash to our stockholders with one of the highest dividend yields in the technology industry and one of the largest share buyback programs of any company. Today’s announcement signals our confidence in the growth, earnings and cash generating potential of our business.”

Intel began paying a cash dividend in 1992 and has paid out approximately $5.8 billion to its stockholders over the past 52 quarters. Intel cash dividends for 2005 will total approximately $2 billion.

Since the company’s stock buyback program began in 1990, Intel has repurchased approximately 2.5 billion shares for about $49 billion. For the first three quarters of this year, Intel repurchased over 300 million shares at a cost of approximately $7.5 billion, which compares to $7.5 billion in repurchases for all of 2004, the previous record for a full year. The average number of Intel common shares outstanding declined by over 10 percent from their peak during 1998 to approximately 6.1 billion as of the end of the third quarter of this year.

As of the end of the third quarter, approximately 313 million shares of stock remained available for repurchase under previous authorizations expressed in share amounts, representing approximately $7.8 billion of stock at the current stock price level. The board’s authorization to repurchase up to $25 billion in shares includes this $7.8 billion of shares available for repurchase under previous authorizations.
Risk Factors Regarding Forward-Looking Statements

The statements in this document that refer to plans and expectations for the fourth quarter, the current year, 2006 and the future are forward-looking statements that involve a number of risks and uncertainties. Dividend declarations, the dividend rate and the scope of the stock buyback program are at the discretion of Intel’s Board of Directors, and plans for future dividends and buybacks may be revised by the Board. Many factors could affect Intel’s financial results which could potentially impact Intel’s dividend and stock buyback programs, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the factors set forth below to be the important factors that could cause actual results to differ materially from Intel’s published expectations. A more detailed discussion of factors that could affect ! Intel’s results is contained in Intel’s SEC filings, including the report on Form 10-Q for the quarter ended Oct. 1, 2005.

* Intel operates in intensely competitive industries. Intel’s results could be affected by the demand for and market acceptance of Intel’s products, manufacturing yields and the availability of sufficient inventory to meet demand, pricing pressures and actions taken by our competitors, the timing of new product introductions and the timing and execution of the manufacturing ramp. Factors that could cause demand to be different from Intel’s expectations include changes in customer order patterns, including order cancellations, changes in the level of inventory at customers, and changes in business and economic conditions.
* Intel’s results could be impacted by unexpected economic, social and political conditions in the countries in which Intel, its customers or its suppliers operate, including security risks, possible infrastructure disruptions and fluctuations in foreign currency exchange rates.
* Intel’s dividend and stock buyback programs could be affected by changes in its capital spending programs, changes in its cash flows and changes in tax laws, as well as by the level and timing of acquisition and investment activity.
* Intel’s 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 regulatory matters described in Intel’s SEC reports.