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To: Amy J who wrote (90090)	10/13/1999 1:32:00 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Thank you very much for the notes, Amy. The tone of the CC that you present seems more positive than the tone that some of the fly-by-night INTC detractors gave. Tenchusatsu

To: Amy J who wrote (90090)	10/13/1999 1:53:00 AM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Amy - Re: "I just listened to the conference call. Andy did not say "significantly" higher revenue - he said "up." He did not sound defensive to me - just a little serious. Here's the summary: " I'm listening to the call right now. Paul

To: Amy J who wrote (90090)	10/13/1999 1:57:00 AM
From: Paul Engel	Read Replies (3) \| Respond to of 186894

Amy - Re: "- IMPORTANT: INVENTORY LESS THAN EXPECTED... WE DIDN'T ANTICIPATE THIS MUCH DEMAND SO WE ARE PUSHING OUR FABS AS MUCH AS POSSIBLE. Right now, with fabs, we are trying to, I would like to build up inventory in Q4, don't know if we will be able to or not !!! [Note: This translates to me: a very healthy demand for Q4]" This looks to be one of the TWO MOST significant points, looking forward - the other being gross margins looking higher by 2% from Q3. We may have to wait until January for the stock to reflect this. Paul

To: Amy J who wrote (90090)	10/13/1999 11:02:00 AM
From: Tony Viola	Read Replies (2) \| Respond to of 186894

Hi Amy, just a couple additions to your very concise recap of the CC, thanks much for that: Q4 GM will be a couple of points higher (GM 58.7 for Q3, so that's 60.7 for Q4!) because of improvement from .18 lower unit costs, inventory costs, and something else which I missed What I wrote down about GM improvement prediction for 4Q was: seasonal improvement (guess this is a supply/demand driver, 4Q always being the best Q), plus better ASP (0.18 chips are faster, can sell for more) plus 0.18 efficiencies (more die/wafer, etc.). Also, he said that microprocessor production costs have been coming in lower than estimations for a while now. I'll give Process Boy some of the credit here. And you're right, he didn't say significantly up revs for 4Q. I guess I manufactured that term myself when he said up vs. slightly up and he did say that his prediction for 4Q over 3Q is stronger than his prediction was for 3Q over 2Q, and the latter was up 8 or 9% as I recall. I know, a lot of hanging on words here and taking things all over the place re context. But you did report on this better than I did. Did you say that Paul O. said that both microprocessors and chipsets set new records for shipments (revs or units?) in 3Q? And, he said that PIII is now the #1 selling micro in the world. I think I was the first or among the first here to say yesterday that the CC was quite positive about 4Q, and I took some heat. On waking up to the news this morning, it looks like most of the analysts agree with me. You did your summaries last night and it looks like you see things as not so bad also. Thanks again for the reporting and correcting. Tony