EC Ruling: Statement by Intel President and CEO Paul Otellini

SANTA CLARA, Calif., May 13, 2009 – Paul Otellini, Intel Corporation president and CEO today issued the following statement regarding the European Commission decision on Intel's business practices:

"Intel takes strong exception to this decision.

We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace – characterized by constant innovation, improved product performance and lower prices. There has been absolutely zero harm to consumers. Intel will appeal."

"We do not believe our practices violated European law. The natural result of a competitive market with only two major suppliers is that when one company wins sales, the other does not. The Directorate General for Competition of the Commission ignored or refused to obtain significant evidence that contradicts the assertions in this decision. We believe this evidence shows that when companies perform well the market rewards them, when they don't perform the market acts accordingly."

Bruce Sewell,

Intel legal Issues Reponsable

"Intel never sells products below cost. We have however, consistently invested in innovation, in manufacturing and in developing leadership technology. The result is that we can discount our products to compete in a highly competitive marketplace, passing along to consumers everywhere the efficiencies of being the world's leading volume manufacturer of microprocessors."

"Despite our strongly held views, as we go through the appeals process we plan to work with the Commission to ensure we're in compliance with their decision. Finally, there should be no doubt whatsoever that Intel will continue to invest in the products and technologies that provide Europe and the rest of the world the industry's best performing processors at lower prices."

More information about Intel and "Competition in the Innovation Economy" is available at www.intel.com/pressroom/legal.

About Intel
Intel (NASDAQ: INTC), the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about

Official Statement

Intel® is engaged in a series of private litigations and regulatory investigations prompted by complaints from its primary competitor. Intel's position on these matters is simple.

Intel believes that the worldwide microprocessor market is functioning normally and is highly competitive. Intel's conduct has always been lawful, pro-competitive and beneficial to consumers. As evidence of the existence of a highly competitive and innovative microprocessor market, consumers have benefited from prices that have gone down significantly, output has increased many times over, and the performance of products, including Intel's, has improved exponentially.

All companies, no matter their size or market share, are allowed to compete vigorously.

When a market is distorted by the anticompetitive behavior of a monopolist, three things are supposed to happen. First, the rate of innovation slows. Second, prices go up. And third, output of goods is curtailed. The opposite is happening in the microprocessor market. Innovation is flowing faster than ever. The average selling price of microprocessors are declining and output for microprocessor is continuing to grow.

This market is functioning normally and consumers are benefiting.

The purpose is to provide the public with Intel's perspective on the litigation, administrative actions and the various investigations underway. It is intended as an open resource for journalists, investors and consumers to have access to public legal documents, information on the status of the U.S. case and related cases, and background on the important underlying issues and legal concepts at hand.

Intel is a trademark of Intel Corporation in the United States and other countries.