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To: tejek who wrote (53422)	8/31/2001 3:21:42 PM
From: AK2004	Read Replies (1) \| Respond to of 275872

Ted thanks, I just checked for it. I do not see anything that earth shuttering Regards -Albert 01:29pm EDT 31-Aug-01 Salomon Smith Barney (Jonathan Joseph +1-415-951-1887) INTC: P4 Demand Picking Up SALOMON SMITH BARNEY Intel Corporation (INTC) INTC: P4 Demand Picking Up 1M (Buy, Medium Risk) Mkt Cap: $186,898.6 mil. August 31, 2001 SUMMARY * Our own market surveys suggest P4 demand may be SEMICONDUCTORS running ahead of our earlier expectation and the Jonathan Joseph company may be experiencing some spot shortages in +1-415-951-1887 certain configurations, particularly at the two ends jonathan.joseph@ssmb.com of the speed scale. Intel is seeking to move the Ramesh Misra market upscale, which creates a tighter market at +1-415-951-1883 the low end, while we hear the P4-2GHz product is "hot." * From all we have heard from numerous sources, the P4 production ramp is going smoothly for the company, and probably slightly ahead of plan. This usually means the "bin splits" are moving upscale. This allows the company to "end of life" product at the low-end (P4-1.3,1.4, and later this year 1.5GHz), where the White Box community tends to play, and move the "sweet spot" toward their target of 1.8GHz by yearend. FUNDAMENTALS P/E (12/01E) 57.7x P/E (12/02E) 38.8x TEV/EBITDA (12/01E) NA TEV/EBITDA (12/02E) NA Book Value/Share (12/01E) $5.33 Price/Book Value 5.1x Dividend/Yield (12/01E) $0.08/0.3% Revenue (12/01E) $26,218.0 mil. Proj. Long-Term EPS Growth 25% ROE (12/01E) 14.7% Long-Term Debt to Capital(a) 2.4% INTC is in the S&P 500(R) Index. (a) Data as of most recent quarter SHARE DATA . RECOMMENDATION Price (8/30/01) $27.13 Current Rating 1M 52-Week Range $74.88-$22.63 Prior Rating 1M Shares Outstanding(a) 6,889.0 mil. Current Target Price $40.00 Convertible No Previous Target Price $40.00 EARNINGS PER SHARE FY ends 1Q 2Q 3Q 4Q Full Year 12/00A Actual $0.36A $0.50A $0.41A $0.38A $1.66A 12/01E Current $0.16A $0.12A $0.08E $0.11E $0.47E Previous $0.16A $0.12A $0.08E $0.11E $0.47E 12/02E Current $0.14E $0.16E $0.19E $0.22E $0.70E Previous $0.14E $0.16E $0.19E $0.22E $0.70E 12/03E Current NA NA NA NA NA Previous NA NA NA NA NA First Call Consensus EPS: 12/01E $0.51; 12/02E $0.68; 12/03E NA SUMMARY (CONTINUED) * Though market demand could hardly be called robust, a successful and faster than anticipated transition of the market from PIII to P4, will almost certainly help lay in a Q3 bottom in the semiconductor sector and contribute to a natural recovery and re-acceleration going into 2002. * No change to our estimates at this time, but we are increasingly confident that the company will be able to circle analysts and investors around the low end of revenue guidance, a range of $6.2-6.8 billion, when they give their update on September 6 (Thursday) after the close. We reiterate our 1M (Buy) rating and $40 price target.