Intel 1998 Step-Up Warrant Buyback Authorized

SANTA CLARA, Calif., Jan. 22, 1998 - - Intel Corporation's Board of Directors has authorized the repurchase of Intel 1998 Step-Up Warrants prior to their expiration on March 14, 1998, as part of the company's ongoing Common Stock repurchase program.

The Intel stock repurchase program was initiated by the Board of Directors in 1990. The company is currently authorized to repurchase up to 280 million shares of its Common Stock in open market or negotiated transactions.

During 1997 the company repurchased 43.6 million shares at a cost of $3.4 billion under the program. Since the program began in 1990, the company has repurchased 213.4 million shares at a total cost of $6.9 billion. Of the total 280 million shares authorized for repurchase under the program, approximately 213.4 million shares have been repurchased and 40.3 million shares of common stock remain available for repurchase, after allowing for 26.3 million shares to cover outstanding put warrants. Each 1998 Step-Up Warrant repurchased by the company will be treated as a repurchase of one share of Common Stock for purposes of determining shares remaining available for repurchase under the program.

The company's 1998 Step-Up Warrants entitle the holder to buy one share of Intel Common Stock at the current exercise price of $20.875 per warrant. The 1998 Step-Up Warrants expire on March 14, 1998. Since this date falls on a Saturday, the warrants must be exercised prior to the close of business on Friday March 13, 1998.

Copies of this earnings release and Intel's 1996 annual report can be obtained via the Internet at www.intc.com or by calling Intel's transfer agent, Harris Trust and Savings Bank, at 1-800-298-0146.

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