Like many other companies, the year 2000 computer issue creates risk for
Intel.  If internal systems do not correctly recognize date information when
the year changes to 2000, there could be an adverse impact on the Company's
operations. The Company has initiated a comprehensive project to prepare its
computer systems for the year 2000 and plans to have changes to critical
systems completed by the first quarter of 1999 to allow time for testing. The
Company is also assessing the capability of its products sold to customers
over a period of years to handle the year 2000 and has a plan in place to
address product issues during 1998. Management believes that the likelihood
of a material adverse impact due to problems with internal systems or products
sold to customers is remote and expects that the cost of these projects over
the next two years will not have a material effect on the Company's financial
position or overall trends in results of operations. Intel is also contacting
critical suppliers of products and services to determine that the suppliers'
operations and the products and services they provide are year 2000 capable
or to monitor their progress toward year 2000 capability. There can be no
assurance that another company's failure to ensure year 2000 capability would
not have an adverse effect on the Company.

From: edgar-online.com