Kevin KahnKevin KahnIntel Senior FellowIntel Senior Fellow

Director Communications Technology LabDirector Communications Technology LabIntel CorporationIntel Corporation

December 10, 2008December 10, 2008

Innovating the Future of Mobile Computing

Risk Factors

TodayToday’’s presentation contains forwards presentation contains forward--looking looking statements. All statements made that are not statements. All statements made that are not historical facts are subject to a number of risks and historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. uncertainties, and actual results may differ materially. Please refer to our most recent Earnings Release and Please refer to our most recent Earnings Release and our most recent Form 10our most recent Form 10--Q filing for more information Q filing for more information on the risk factors that could cause actual results to on the risk factors that could cause actual results to differ.differ.

+ Web Applications

Location Relevance

Wireless Sync

Uncompromised Internet Experience

Nearby Devices Improve the Experience

Gestures & Voice Interface

TomorrowTomorrow

Mobility Tomorrow: Mobility Tomorrow: What People WantWhat People Want

Local Applications

Location-aware

Wired Sync

Limited View of Internet

Limited by Form Factor

Touch Interface

Today

3

Redefining MobilityRedefining Mobility

More More PowerfulPowerful

Mobile DevicesMobile Devices

More More AwareAware

Mobile DevicesMobile Devices

More More PersonalPersonal

Mobile DevicesMobile Devices

4

A Research Vision For Our FutureA Research Vision For Our Future……

Carry Small, Live Large

5

Carry Small: Carry Small: MoreMore

Performance, Smaller PlatformPerformance, Smaller Platform

A Vision of tomorrow’s mobile device:

•

Carry essential computational resources•

More compute & graphics power

•

Anytime, anywhere connectivity•

Sensors to understand world around you

•

Platform-wide power efficiency

6

Live Large: Live Large: BetterBetter

ExperienceExperienceThat knows No Bounds…

•

Delivers amplified, more robust mobile experience

•

Seamless access to new Devices, Networks and Services

•

Understands & Anticipates what you want to do

7

Example: Context Aware Travel AdvisorExample: Context Aware Travel Advisor

Proactive experience demands substantial resources8

Making The Vision Real: What’s the Technology?

9

Intel®

Atom™

Processor Enables New Devices

MIDMID

CECE

EmbeddedEmbedded

NetbookNetbook

and and NettopNettop

Intel®

Atom™

Processor Enables New Devices

10

Further Integration Will Continue to Help

Today Future

Smaller Silicon Footprint

Less Power Consumption

Less Complexity

Fewer Connectors

Lower Cost

Required to deliver the Carry Small Vision

CPU

IO

RadioCard

SoC

CPU

11

The Future of CommunicationsThe Future of Communications Two primary paths forwardTwo primary paths forward

Wireless

Optical

WWAN

WLAN

WPAN WPANWLANWWAN

12

The Need for Flexible Radio Technologies

3G WiMAX802.16

Wi-Fi802.11n

UWB&

60Ghz

0

1000

2000

3000

4000

5000

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FutureFuture13

Technologies for Multi-Radio Integration

Scalable Communication

Core

Tunable Front End Modules / Antenna

Digitally Enhanced Radio

Radio PlatformSystem on Chip

Interference Mitigation

Energy Efficient Communications

Seamless connectivity

Standards

Keys: Size, Efficiency, Flexibility14

Intel’s Silicon Photonics Research

SiliconModulators

1GHz ( Feb ‘04)

10 Gb/s

(Apr ‘05)40 Gb/s

(July ’07)8-channel integrated

200Gb/s (May ’08)40 Gb/s

PIN Photodetectors

(Aug. ’07)

Avalanche Photodetectors with 340 GHz Gain*BW (Today)

Innovating with low-cost silicon to create new optical devices

Hybrid Silicon Laser (Sept. ‘06)

1st

Continuous Wave Silicon Raman Laser (Feb ‘05)

15

DEMUXElec-

tronics

APD Array

What does Silicon Photonics Enable?

Very low cost, high speed

Cost-effective, super high speed

100 Gigabit/sec

for the masses

Terabit/sec

16

••

User and usage understandingUser and usage understanding

••

Basic researchBasic research

••

Engineering innovationEngineering innovation

••

InvestmentInvestment

••

Industry cooperation andIndustry cooperation and standardsstandards

Making all of this Happen

17

Risk Factors

This presentation contains forwardThis presentation contains forward--looking statements that involve a number of risks and uncertaintlooking statements that involve a number of risks and uncertainties. These statements do not reflect the potential impact ies. These statements do not reflect the potential impact of any mergers, acquisitions, divestitures, investments or otherof any mergers, acquisitions, divestitures, investments or other

similar transactions that may be completed in the future. The isimilar transactions that may be completed in the future. The information presented is nformation presented is accurate only as of todayaccurate only as of today’’s date and will not be updated. In addition to any factors discus date and will not be updated. In addition to any factors discussed in the presentation, the important factors that could causessed in the presentation, the important factors that could cause

actual actual results to differ materially include the following: Current unceresults to differ materially include the following: Current uncertainty in global economic conditions pose a risk to the overallrtainty in global economic conditions pose a risk to the overall

economy as consumers and economy as consumers and businesses may defer purchases in response to tighter credit andbusinesses may defer purchases in response to tighter credit and

negative financial news, which could negatively affect product negative financial news, which could negatively affect product demand and other related demand and other related matters. Consequently, demand could be different from Intel's ematters. Consequently, demand could be different from Intel's expectations due to factors including changes in business and ecoxpectations due to factors including changes in business and economic conditions, including nomic conditions, including conditions in the credit market that could affect consumer conficonditions in the credit market that could affect consumer confidence; customer acceptance of Inteldence; customer acceptance of Intel’’s and competitorss and competitors’’

products; changes in customer order products; changes in customer order patterns including order cancellations; and changes in the levelpatterns including order cancellations; and changes in the level

of inventory at customers. Intelof inventory at customers. Intel’’s results could be affected by the timing of closing of s results could be affected by the timing of closing of acquisitions and divestitures. Intel operates in intensely compeacquisitions and divestitures. Intel operates in intensely competitive industries that are characterized by a high percentage oftitive industries that are characterized by a high percentage of

costs that are fixed or difficult costs that are fixed or difficult to reduce in the short term and product demand that is highly vato reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin priable and difficult to forecast. Revenue and the gross margin percentage are affected by the ercentage are affected by the timing of new Intel product introductions and the demand for andtiming of new Intel product introductions and the demand for and

market acceptance of Intel's products; actions taken by Intel'smarket acceptance of Intel's products; actions taken by Intel's

competitors, including product competitors, including product offerings and introductions, marketing programs and pricing presofferings and introductions, marketing programs and pricing pressures and Intelsures and Intel’’s response to such actions; Intels response to such actions; Intel’’s ability to respond quickly to technological s ability to respond quickly to technological developments and to incorporate new features into its products; developments and to incorporate new features into its products; and the availability of sufficient supply of components from suand the availability of sufficient supply of components from suppliers to meet demand. The ppliers to meet demand. The gross margin percentage could vary significantly from expectatiogross margin percentage could vary significantly from expectations based on changes in revenue levels; product mix and pricing; ns based on changes in revenue levels; product mix and pricing; capacity utilization; capacity utilization; variations in inventory valuation, including variations related variations in inventory valuation, including variations related to the timing of qualifying products for sale; excess or obsoletto the timing of qualifying products for sale; excess or obsolete inventory; manufacturing yields; e inventory; manufacturing yields; changes in unit costs; impairments of longchanges in unit costs; impairments of long--lived assets, including manufacturing, assembly/test and intangilived assets, including manufacturing, assembly/test and intangible assets; and the timing and execution of the ble assets; and the timing and execution of the manufacturing ramp and associated costs, including startmanufacturing ramp and associated costs, including start--up costs. Expenses, particularly certain marketing and compensatup costs. Expenses, particularly certain marketing and compensation expenses, vary depending on ion expenses, vary depending on the level of demand for Intel's products, the level of revenue athe level of demand for Intel's products, the level of revenue and profits, and impairments of longnd profits, and impairments of long--lived assets. Intel is in the midst of a structure and lived assets. Intel is in the midst of a structure and efficiency program that is resulting in several actions that couefficiency program that is resulting in several actions that could have an impact on expected expense levels and gross margin. Tld have an impact on expected expense levels and gross margin. The tax rate expectation is he tax rate expectation is based on current tax law and current expected income. The tax rabased on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are dette may be affected by the jurisdictions in which profits are determined to be earned and ermined to be earned and taxed; changes in the estimates of credits, benefits and deductitaxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with varioons; the resolution of issues arising from tax audits with various tax authorities, including us tax authorities, including payment of interest and penalties; and the ability to realize depayment of interest and penalties; and the ability to realize deferred tax assets. The recent financial crisis affecting the banferred tax assets. The recent financial crisis affecting the banking system and financial markets king system and financial markets and the going concern threats to investment banks and other finaand the going concern threats to investment banks and other financial institutions have resulted in a tightening in the credit mncial institutions have resulted in a tightening in the credit markets, a low level of liquidity in arkets, a low level of liquidity in many financial markets, and extreme volatility in fixed income, many financial markets, and extreme volatility in fixed income, credit and equity markets. There could be a number of followcredit and equity markets. There could be a number of follow--on effects from the credit crisis on effects from the credit crisis on Intelon Intel’’s business, including insolvency of key suppliers resulting in ps business, including insolvency of key suppliers resulting in product delays; inability of customers to obtain credit to financroduct delays; inability of customers to obtain credit to finance purchases of our e purchases of our products and/or customer insolvencies; counterparty failures negproducts and/or customer insolvencies; counterparty failures negatively impacting our treasury operations; increased expense or atively impacting our treasury operations; increased expense or inability to obtain shortinability to obtain short--

term financing of Intelterm financing of Intel’’s operations from the issuance of commercial paper; and increases operations from the issuance of commercial paper; and increased impairments from the inability of d impairments from the inability of investeeinvestee

companies to obtain companies to obtain financing. Gains or losses from equity securities and interest afinancing. Gains or losses from equity securities and interest and other could also vary from expectations depending on gains ornd other could also vary from expectations depending on gains or

losses realized on the sale or losses realized on the sale or exchange of securities; gains or losses from equity method invesexchange of securities; gains or losses from equity method investments; impairment charges related to debt securities as well astments; impairment charges related to debt securities as well as

equity and other equity and other investments; interest rates; cash balances; and changes in fair investments; interest rates; cash balances; and changes in fair value of derivative instruments. The current volatility in the fvalue of derivative instruments. The current volatility in the financial markets and overall inancial markets and overall economic uncertainty increases the risk that the actual amounts economic uncertainty increases the risk that the actual amounts realized in the future on our debt and equity investments realized in the future on our debt and equity investments will differ significantly from the will differ significantly from the fair values currently assigned to them. The majority of our nonfair values currently assigned to them. The majority of our non--marketable equity investment portfolio balance is concentrated imarketable equity investment portfolio balance is concentrated in companies in the flash n companies in the flash memory market segment, and declines in this market segment or chmemory market segment, and declines in this market segment or changes in managementanges in management’’s plans with respect to our investments in this market segment s plans with respect to our investments in this market segment could result in significant impairment charges, impacting gains could result in significant impairment charges, impacting gains /losses on equity investments and interest and other. Intel's re/losses on equity investments and interest and other. Intel's results could be impacted by sults could be impacted by adverse economic, social, political and physical/infrastructure adverse economic, social, political and physical/infrastructure conditions in the countries in which Intel, its customers or itsconditions in the countries in which Intel, its customers or its

suppliers operate, including military suppliers operate, including military conflict and other security risks, natural disasters, infrastrucconflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency eture disruptions, health concerns and fluctuations in currency exchange rates. Intel's results could xchange rates. Intel's results could be affected by adverse effects associated with product defects abe affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litnd errata (deviations from published specifications), and by litigation or regulatory matters igation or regulatory matters involving intellectual property, stockholder, consumer, antitrusinvolving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory mattert and other issues, such as the litigation and regulatory matters described in Intel's SEC reports.s described in Intel's SEC reports.