Arvind Sodhani's Oct 27 letter.

To: Intel Capital Portfolio Company CEOs

As the events over the past few months have played out, the global economy has been in turmoil. We are likely to see a recession in many parts of the world and a slowdown in emerging countries in 2009. The market is likely to remain unstable, with limited visibility to the depth and duration of the downturn. The environment has become extremely capital constrained and the investment community will be largely unwilling or unable to take risks in 2009. Funding will become difficult if not nonexistent; many of you remember that after the bubble burst in 2000, a number of VCs stopped investing. Recently, many companies have expressed concerns about the availability of funding for follow-on rounds from other VCs in 2009.

We invested in your company because you demonstrated a compelling value proposition that should be attractive to customers even during a downturn. History does repeat itself and we learned from history that great technologies and products will win in an economic downturn. Innovation does not stop during slowdowns. Nor should you! Innovation attracts customers. New technologies are the drivers of change that help lead economies back to prosperity. Business and consumers seek value and innovation and will prioritize their spending for compelling products and solutions.

Intel Capital remains committed to investing in technology innovation globally. We are not wavering.

Intel Capital is also here to help you refine your strategies and build your customer base. One of the unique benefits of Intel Capital is the opportunity to participate in events such as Intel Capital Technology Days and the annual Intel Capital CEO Summit to introduce your company to marquee customers globally. These events are designed to present your products and services directly to key decision makers from Global 2000 enterprises.

I strongly encourage you to work with Intel Capital investment directors to adapt your strategies and business models to the new economic realities and offer innovative technologies and cost competitive value-added products and services to outperform your competition.

Best regards,

Arvind Sodhani

President, Intel Capital

Executive Vice President, Intel Corporation


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