Intel Announces A 2-For-1 Stock Split And Cash Dividend Increase

Split to Be Effected as a Special Stock Distribution

SANTA CLARA, Calif., May 17, 2000 -- Intel Corporation's Board of Directors has declared a 2-for-1 stock split to be effected as a special stock distribution of one share of common stock for each share of the Company's common stock outstanding. Stockholders of record on July 2, 2000, will receive one additional share of common stock for each share of the Company's common stock held on that date.

The Board of Directors' declaration of a special stock distribution is subject to stockholder approval of an increase in total authorized common shares from the current limit of 4.5 billion shares to 10.0 billion. Intel's stockholders will vote on the increase at the company's Annual Meeting later today.

The payment date will be July 30, 2000. On or about that date the new shares will be mailed from the Company's transfer agent, The Harris Trust and Savings Bank. The company expects that its outstanding common stock will begin to trade on a post-split basis on July 31, 2000.

The Board of Directors also approved an increase in the Company's quarterly cash dividend first paid after the stock split. On a post-split basis the dividend will be increased from $0.015 per share to $0.02 per share. That dividend is payable on September 1, 2000, to stockholders of record on August 7, 2000.

Appropriate adjustments will be made in accord with the relevant conversion and exercise terms of Intel instruments granting the right to acquire Intel common stock.

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