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To: Joe NYC who wrote (66325)	12/26/2001 9:50:36 PM
From: whortso	Read Replies (2) \| Respond to of 275872

Re: "Are you saying that Intel, as of today, repurchased #of shares that is equaled to all the options ever exercised, and all the potential exercise liability? Can you document that?" I'm saying Intel buys back shares today to provide for the options they grant today. They did the same thing 5 years ago, so the ones exercised today are not the ones bought today but they are the ones bought 5 years ago. Can you document otherwise? I think Pete's argument is the ones bought today are the same ones sold today at the price set 5 years ago. The Whort

To: Joe NYC who wrote (66325)	12/26/2001 10:07:55 PM
From: Elmer	Read Replies (2) \| Respond to of 275872

Are you saying that Intel, as of today, repurchased #of shares that is equaled to all the options ever exercised, and all the potential exercise liability? Can you document that? Suppose your hypothesis are correct, and Intel buys shares ahead of time, not after the fact (as every else understands it), how does Intel know today if the shares will be exercised? I think it's a bit of a stretch to claim that Intel has purchased enough shares on the open market to cover all options they have ever granted but I think the point is valid at least over recent years. They know how many they are going to budget for grants so they know roughly how many they need to buy. The number is reduced by the use of puts and further reduced by the knowledge that some options will never be exercised due to attrition. So the point remains, why must we consider those exercised this year to be the same ones repurchesed this year? I know some people want to make that association but it's not the only way to look at it, unless they have an agenda. EP