Intel’s Preferred Supplier Program: An Overview August 2006

Intel Confidential2 What is the Preferred Supplier Program? The Preferred Supplier Program is An Intel strategy aimed at helping Intel focus resources on enhancement of purchasing processes and tools for optimization of product quality, cycle time, cost, and customer experience. A managed group of suppliers that Intel has selected to provide goods and services. A tool to enable educated decision-making by Intel employees on the selection of qualified and approved suppliers to fulfill the purchase request of a specific good or service in a Product Category for an Intel location –Indirect Material / Services = goods and services that are not used for making of a product –Covers everything from advertising to construction to the kitchen sink (literally)

Intel Confidential3 How are Suppliers Selected? Criteria Selected as “preferred” based on their ability to help Intel maintain its competitive advantage. Offer appropriate balance of “world class” quality, technology, total cost, customer service, and availability for their products and services. Process Teams of experienced Intel procurement professionals around the world, representing a range of expertise, work together to contribute to the decision making process.

Intel Confidential4 Small Businesses and Diversity Small Businesses and Diversity (Minority/Women Owned) Suppliers Intel maintains a strong commitment to supplier diversity spending and to meeting annual goals. We will continue to increase our diversity goal reflective of supplier market availability. Intel is committed to economic development and to supplier diversity goals and the development of small business. The Preferred Supplier Program will enable Intel purchasing professionals to spend more time developing diversity and small businesses to meet Intel’s needs.

Intel Confidential5 Supplier Benefits What are the benefits to Preferred Suppliers? Better positioned to actively compete for Intel’s business Closer engagement with Intel procurement orgs –Better understanding of Intel’s goods and service needs and requirements –Better understanding of Intel’s procurement related plans Access to supplier improvement programs Faster order processing

Intel Confidential6 Am I a “preferred” supplier? How will I know if I am a preferred supplier? If you are selected as a Preferred Supplier, you will receive a letter from an Intel Purchasing representative. To be considered for the Intel Preferred Supplier Program Submit company information to Intel for review through the Supplier Intake Tool (SIT) located at supplier.intel.com.supplier.intel.com All suppliers are reviewed at least annually to assure Intel has the best qualified world-class supply base providing a competitive advantage. Should potential suppliers be identified through the Supplier Intake Tool, the procurement professionals will engage the supplier. Intel’s Supplier Intake Tool provides access opportunity to suppliers globally. The Preferred Supplier Program is for suppliers who can pass and meet the rigorous qualification criteria and requirements. For more information please visit the Intel Preferred Supplier Program pages at supplier.intel.com. supplier.intel.com