June 7, 2001- Santa Clara, CA – Intel Corp. affirmed its earlier projections for the second quarter, which ends June 30, in the company’s first-ever mid-quarter update, giving some credence to the industry’s hope for a light at the end of the downturn tunnel.

Intel stated that it expects that revenue, gross margin percentage and expenses for the second quarter will be within the previous expectations and slightly below the midpoint of the ranges provided in April. Intel said it still expects a seasonally stronger second half.

In April, Intel forecast second-quarter sales of $6.2 billion to $6.8 billion, a decline of as much as 25 percent from $8.3 billion a year earlier and also down from first-quarter levels.

After this week’s announcement, Intel’s shares rose to $32.20 in after-hours trading from $31.14 at the close on the Nasdaq.

“We are sitting pretty comfortably,” said Intel CFO Andy Bryant in the mid-quarter update. “Could it wiggle around some from being slightly below? Sure, but again, it’s a pretty comfortable forecast at this point in the quarter.”

All other expectations remain unchanged, with the exception of amortization of goodwill and other acquisition related intangibles and costs, which is expected to be higher due to the impact of acquisitions that have closed within the current quarter.