ACCE Conference: Sacramento, CA Michael Jacobson Corporate Affairs Manager Intel Corporation August 2, 2007 Introduction Page

Agenda Intel Corporation Investment Trends Role of Economic Development The Economic Development Imperative Why Intel cares Conclusion Agenda Page

Nearly 40 Years of Experience From our founding in 1968, we’ve grown into the world’s leading silicon innovator with nearly 92,000 employees, approximately 300 facilities in 50 countries, and $36 billion in revenues. Within the industry, and the market at large, we are uniquely positioned. Intel is the world's largest and leading innovator in silicon technology, with nearly 40 years of history. The fact is, we define the industry we lead. Presenter: review facts on slide: Year founded: 1968 Number of employees: Approximately 99,000 Revenues: $38.8 Billion (2005) Products and services: over 450 Worldwide offices and facilities: approximately 300 Employees in 50 countries worldwide We have sales and marketing programs in more than 1,200 cities worldwide, and our global distribution network includes 160,000 members in over 100 countries. Having a presence in more than 50 countries means we can tap into markets, talent and cost advantages available in those locations. This allows us to best serve our customer base and remain competitive on a worldwide basis. Our global presence continues to grow as emerging markets embrace information technology to increase competitiveness, productivity and economic development. At the same time, Intel will continue to increase its reach in high growth regions overseas, investing in important new markets and tapping into local talent.

Intel’s Worldwide Manufacturing & Assembly Test Operations Washington Systems Mfg. Ireland Fab 14/24 China Pudong A/T Colorado Fab 23 Chengdu A/T Oregon D1C/D1D Fab 20 Israel Fab 8/18 Mass. Fab 17 Board Mfg. California D2 Vietnam HCMC A/T Costa Rica San Jose A/T Arizona Fab12/22 New Mexico Fab 11/11X Note: SCM – Subcon Manufacturing TMG represents about ½ the employees within Intel (~40K), and are located world-wide. Fab plants located in the US, Europe, and the Middle East. We have substantial portions of our fab capacity in 300 mm and continuing to grow our capacities. Our Fab process development is in CA and OR. Our A/T locations are located in Asia and Latin America. we recently began a new factory in china which is producing our microprocessors, in addition to chipsets and flash products. world-wide presence. our a/t development is in AZ and in Asia. Our boards business is significantly outsourced with our primary locations in Asia. Our board development is in OR and Asia. We are truly a global enterprise. A/T Dev Malaysia Penang A/T Kulim A/T Philippines Cavite A/T

Investment Trends Are Changing Capital investment has shifted dramatically to emerging economies Alignment of capability, cost and marketplace Reliable infrastructure with quality service is now more readily available Education commitment in emerging economies has created a competitive workforce The market place changed with the growth in Asia, Eastern Europe, Latin America and META If you provide the infrastructure and workforce needs, the cost of doing business becomes the competitive advantage

Role of Economic Development Create policy to promote economic growth, via the attraction of investment, that is designed to: Increase job growth Increase capital flows and investment Increase research, development and technological transfers Stimulate economic growth And ultimately to produce and maintain a sustainable economic base that can support the underlying needs of the community or society

Economic Development Imperative To compete you need a strategy To develop a strategy you need to understand community capability data gathering community desire stakeholder management To implement the strategy you need commitment resources A strategic and tactical economic development plan is the key to success

Why does Intel care? Intel’s success is intrinsically tied to the success of the regions we call home Sufficient technical workforce capacity Reliable, quality infrastructure at competitive price Ease and cost of doing business Employee amenities Supply chain The sum of the whole is greater than the sum of the parts Direct link between being a “good corporate citizen “ and shareholder value If done right it is an investment that drives quantitative results

Examples Fort Worth Chamber of Commerce Intel Sacramento “Controlling Our Destiny” 5 year funding model 1997 – Fort Worth reached Site Selection magazines top five Intel The Portland Business Alliance, The Greater Phoenix Economic Council 26K jobs $10B Annual Economic Impact (AEI) Sacramento “Partnership for Prosperity” Green Energy; Workforce development & Civic Amenities Metro Pulse Business retention program

Conclusions Competition is global Need strategy to compete Build from strength Think regionally Gain multi-year commitment Be both strategic and tactical