Intel Q1 business at high end of expectations

Revenue expected to be between $9.2 Billion and $9.4 Billion

Intel Corporation expects revenue for the first quarter to be between $9.2 billion and $9.4 billion, as compared to the previous range of $8.8 billion to $9.4 billion.

The first-quarter gross margin percentage is expected to be approximately 57 percent, plus or minus a point, as compared to the previous expectation of 55 percent, plus or minus a couple of points, primarily due to lower than expected 65nm start-up costs and microprocessor unit costs. All other expectations are unchanged.

This Business Update is a scheduled update to the company's Business Outlook for the quarter, which ends April 2. Intel's first-quarter Business Outlook was originally published in the company's fourth-quarter 2004 earnings release, available at www.intc.com. The company will discuss this update during a public webcast at 2:30 p.m. PST today at www.intc.com, with a replay available until April 19.