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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / JULY 21, 2003; VOL. 2 NO. 29

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Q2 Intel Earnings Exceed Expectations

Amid financial uncertainties throughout the industry, Intel Corporation, the world's largest producer of semiconductors, has reported Q2 earnings that actually surpassed previously noted expectations. This increase was driven by better than expected sales of Intel's high-end chips for personal and notebook computers.

Earnings expectations had lingered around 13 cents per share, but earnings closed out at 14 cents per share for the quarter. Earnings per share in Q2 2002 were only 7 cents.

Intel also showed a 1 percent improvement in revenue over Q1 2003, with quarterly revenues of $6.8 billion. The Net quarterly income of $896 million, however, represents a 2 percent drop from Q1 2003, but is more than double the revenue from this quarter last year.

Intel is also raising its expected gross profit margins for 2003 as a whole to almost 54 percent, plus or minus two points, from the initial number of 50.9 percent.

Q3 sales projections have also been raised to fall between $6.9 billion to $7.5 billion. Projected research spending has subsequently been raised $200 million, totalling $4.2 billion.

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