Intel(R) Corp. 1999 Annual Report

Intel's Investor Relations home page on the Internet contains background on the company and its products, financial information, frequently asked questions and our animated online annual report, as well as other useful information.

For investor information, including additional annual reports, 10-Ks, 10-Qs or any other financial literature, please see our Web site at www.intc.com or contact Computershare Investor Services, L.L.C. at (800) 298-0146 (U.S. and Canada) or (312) 360-5123 (worldwide); or call Intel at (44) 1793 403 000 (Europe); (852) 3955 4555 (Hong Kong); (81) 298 47 8511 (Japan).

Intel's common stock trades on The Nasdaq Stock Market* under the symbol INTC.

Intel's Dividend Reinvestment Program allows stockholders to reinvest dividends and contribute additional cash to purchase Intel common stock on an occasional or monthly basis. For more information, call Intel's transfer agent, Computershare Investor Services, at (800) 298-0146 (U.S. and Canada) or (312) 360-5123 (worldwide).

Computershare Investor Services, L.L.C., 2 North LaSalle Street, P.O. Box A3504, Chicago, IL 60690-3504 USA. Stockholders may call (800) 298-0146 (U.S. and Canada) or (312) 360-5123 (worldwide) with any questions regarding transfer of ownership of Intel stock.

Ernst & Young LLP, San Jose, California, USA

Intel employees continued to improve their world-class health and safety performance by again dramatically reducing workplace injuries and illnesses in 1999. Over the past four years, the company has reduced the Occupational Safety and Health Administration (OSHA) recordable injury rate an average of 40% each year and the lost-day case rate an average of 38% each year. The Center for Office Ergonomics, an external organization of computer users and manufacturers, recognized Intel with its annual Outstanding Office Ergonomics Award for promoting the successful implementation of a sound office ergonomics program that is measurable and sustainable. Our Design for Environment efforts have reduced air emissions as well as water and energy use per manufacturing unit in each of our last five product generations. Intel's Northwest Region received the U.S. Environmental Protection Agency's Evergreen Award for environmental excellence, and our Costa Rica site received the Preventico Global Award for exhibiting the highest OSHA standards. Our inaugural Environmental Excellence Award went to a team implementing a program for reusing shipping trays that reduced waste generation and saved Intel more than $50 million.

Please see our Environmental, Health and Safety Performance Report. For a printed copy, call (800) 316-5542 (U.S. and Canada) or (480) 552-2771 (worldwide).

We strive to be a workplace in which people of diverse backgrounds are valued, challenged, acknowledged and rewarded, leading to increasingly higher levels of fulfillment and productivity. For more information, see our Workplace of Choice report at www.intel.com/intel/employment/workplace/choice.htm.

Our vision of a billion connected computers around the world can only become a reality if our industry and others continue to be driven by bright, creative, educated employees. We are committed to empowering teachers with the skills and resources necessary to prepare students for success in higher education and the competitive workforce of the 21st century.

Intel now donates more than $100 million per year to initiatives that support education in math, science and technology. We have a particular goal to provide professional development for 400,000 K-12 math and science teachers by training them how to incorporate computers into their curriculum. Teachers' skills and motivation are critical to improving student achievement in mathematics and science.

We are pleased that Craig Barrett was appointed to the National Commission on Mathematics and Science Teaching for the 21st Century. This area is a priority not just for Intel or our industry, but for the future of the country. As we work to build the Internet economy, we also intend to support the educational initiatives that will make it a success.