INTEL EXPANDS INTERNATIONAL MANUFACTURING SITES

Company Announces Two New Wafer Fabs

SANTA CLARA, Calif., October 20, 1995 -- Intel Corporation today announced
it will build new factories in three of its international sites. The
company will build an advanced logic wafer fabrication plant in Ireland, a
flash memory wafer fabrication plant in Israel, and a computer board
factory in Malaysia.

"Industry experts are predicting that personal computer sales will reach
100-million-units-per-year before the end of the decade. We are taking
steps to assure that Intel will be able to meet the demands of the rapidly
growing market," noted Dr. Craig Barrett, Intel's executive vice president
and chief operating officer. Leixlip, Ireland

Fab 14, the new advanced logic factory, will be built at Intel's Leixlip,
Ireland site (just outside Dublin). The plant joins Intel's Fab 10, a
logic factory also located at this site. Fab 14 will be approximately
750,000-square-feet, featuring 75,000-square-feet of "Class 1" clean room.
This factory will build advanced logic products, such as future
microprocessors beyond the Pentium Pro processor. Fab 14 is scheduled for
completion in 1998 and is projected to cost $1.5 billion (U.S.). Intel
established operations in Ireland in 1989.

KIRYAT GAT, ISRAEL

Fab 18 will be a dedicated flash memory factory. Located in Kiryat Gat
(approximately 35 miles from Jerusalem), this fab will produce advanced
flash memory product for world wide distribution. The plant joins Intel's
Fab 8, a logic factory located in Jerusalem, which opened in 1985. Fab 18
will be approximately 1-million-square-feet floor space, featuring
80,000-square-feet of "Class 1" clean room. The plant is scheduled for
completion in 1998 and is projected to cost $1.6 billion (U.S.). Intel
established operations in Israel in 1974.

KULIM HI-TECH PARK, MALAYSIA

The Kulim Hi-Tech Park computer board factory will build motherboards and
networking/communications boards for the Original Equipment Manufacturers
(OEM) market. The plant joins Intel's Penang assembly/test center
(approximately 30 miles away). The Kulim Hi-Tech Park factory, subject to
completion of agreements currently underway, will be approximately
250,000-square-feet and is scheduled for completion in 1996. Intel
established operations in Malaysia in 1972.

Intel currently has manufacturing expansions also underway at its Arizona,
California, Oregon and New Mexico sites.

Intel, the world's largest chip maker, is also a leading manufacturer of
personal computer, networking and communications products.
 
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