Intel, STMicroelectronics and Francisco Partners Close Transaction to Create Numonyx

New Company to Deliver Innovative, Cost-Effective Non-Volatile
Memory Solutions;

Intel to Take Impairment Charge for First Quarter 2008
SANTA CLARA, Calif.--(Business Wire)--
Intel Corporation today announced that the company has finalized
and closed its transaction with STMicroelectronics and Francisco
Partners to create a new independent semiconductor company Numonyx
B.V. that will design, develop and manufacture NOR and NAND flash
memory products. As part of the transaction, Intel has transferred the
assets associated with its NOR flash memory business and certain
assets related to the company's phase change memory initiatives to
Numonyx in exchange for 45.1 percent ownership in Numonyx. ST
Microelectronics acquired a 48.6 percent ownership interest in
Numonyx. Francisco Partners acquired a 6.3 percent ownership interest
in exchange for a cash investment of $150 million. As part of the
overall transaction, Numonyx will receive $450 million of debt
financing at closing from Intesa Sanpaolo S.p.A and Unicredit Banca
d'Impresa S.p.A in addition to a $100 million committed revolving
credit facility. The loan has a 4-year term and Intel and
STMicroelectronics have each provided Numonyx and the banks with a
guarantee of 50 percent of the indebtedness.

Intel estimates that it will record additional non-cash impairment
of approximately $300 million related to the assets transferred to
Numonyx and other costs associated with this transaction in the first
quarter of 2008. Approximately 2,500 Intel employees are joining
Numonyx as part of this transaction.

Intel, the world leader in silicon innovation, develops
technologies, products and initiatives to continually advance how
people work and live. Additional information about Intel is available
at www.intel.com/pressroom.

Intel and the Intel logo are trademarks of Intel Corporation in
the United States and other countries.

* Other names and brands may be claimed as the property of others.

Intel Corporation
Chuck Mulloy, 408-765-3484
Chuck.mulloy@intel.com

Copyright Business Wire 2008