SANTA CLARA, Calif., Jan. 17, 2005 – Intel Corporation today announced a broad reorganization bringing all major product groups in line with the company’s strategy to drive development of complete technology platforms based on Intel ingredients.

In addition, two new organizations have been created to address growing opportunities for Intel-based technologies in digital healthcare and in serving Intel’s worldwide distribution channel. The company also said that Jason Chen, vice president and director, Sales and Marketing Group, plans to leave Intel at the end of January to attend full time to a family health matter.

Intel first provided customers with full sets of technology ingredients — such as microprocessors, chipsets, communications chips, base software capabilities, and other enabling tools that work together as a platform to improve the way technology is used — with the 2003 introduction of Intel® Centrino™ mobile technology. Today’s announcement aligns Intel’s organizational structure fully with this approach by creating three groups to lead the company’s efforts in platforms for mobility, the digital enterprise and digital home. The platform-based organizations also reflect the ongoing convergence of computing and communications by incorporating both capabilities across the new groups.

“Intel is putting the people and resources in place to sharpen our focus on the development of platforms that meet the demands of our customers and provide innovative and exciting new technologies for the marketplace,” said Paul Otellini, Intel president and COO. “The new organization will help address growth opportunities by better anticipating and addressing market needs, speeding decision making, and ensuring world-class operational excellence. Each operating unit has the autonomy to allocate computing and communications resources to be successful, making Intel’s entire structure consistent with our platform products strategy.”

The new business units, which will report to Otellini and CEO Craig Barrett, are:

The Mobility Group, led by Sean Maloney, 48, and Dadi Perlmutter, 51, will develop platforms for notebook PCs and handheld computing and communications devices, and is aimed at making the growing numbers of different mobile devices work together better and easier to use.

The Digital Enterprise Group as led by Pat Gelsinger, 43, and Abhi Talwalkar, 40, will develop computing and communications infrastructure platforms for end-to-end solutions in businesses.

The Digital Home Group, led by Don MacDonald, 42, will develop computing and communications platforms for use by consumers in the emerging digital home, with emphasis on living room entertainment applications and consumer electronics devices.

The Digital Health Group, led by Louis Burns, 47, will develop products and explore business opportunities for Intel architecture products in healthcare research, diagnostics and productivity, as well as personal healthcare.

The Channel Products Group, led by Bill Siu, 53, will seek to expand on Intel’s success in global markets by combining into one organization existing groups focused on developing and selling Intel products to meet the unique needs of local markets worldwide.

Justin Rattner, 56, will serve in an acting capacity overseeing Intel’s Corporate Technology Group until a replacement for Gelsinger is named.

Anand Chandrasekher, 41, will become director, Sales and Marketing Group replacing Chen. He will jointly run the SMG organization with Eric Kim, 50, vice president and director of Sales and Marketing.

Reporting structures and assignments in other Intel organizations, including the company’s Technology and Manufacturing Group, remain unchanged.

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.