AMD Drives Next Generation of Energy-Efficient Computing with 65nm Technology Transition

Launching the next generation of energy-efficient computing, AMD
(NYSE: AMD) today announced the transition to 65nm process technology,
beginning with the immediate availability of energy-efficient AMD
Athlon(TM) 64 X2 dual-core desktop processors. The move to 65nm
process technology enables AMD to produce more processors on a 300mm
wafer, for increased production capacity, while continuing to
aggressively scale performance and reduce power consumption. AMD
processors built with 65nm line-widths are designed to deliver
exceptional performance when running multiple applications, as well as
enable small form factor PCs that complement both home and office
environments. By mid-2007, AMD expects to be fully converted to 65nm
production at Fab 36. With the rapid conversion to 65nm process
technology, AMD is scaling capacity intelligently to meet growing
demand worldwide for x86 processors.

"With AMD's established leadership in desktop and server
performance-per-watt, both businesses and consumers can benefit
greatly from our energy-efficient AMD Athlon 64 X2 dual-core
processors," said Bob Brewer, corporate vice president, Desktop
Division, AMD. "Customers continue to demand solutions that focus on
low-power consumption and quieter operation. AMD is responding by
increasing manufacturing efficiency to deliver on the next generation
of energy-efficient desktop processors, enabling OEMS to innovate
using highly reliable AMD64 processors and without compromising
performance."

OEMS offering systems ready to experience responsive and
spectacular high-resolution 3D visual effects of Microsoft Windows
Vista(TM) with 65nm AMD Athlon 64 X2 dual-core processors immediately,
and beginning in Q1 of 2007, include Acer, Dell, Founder, Gateway, HP,
Lenovo, Packard Bell, and TongFang, as well as leading system builders
worldwide.

"Acer is committed to delivering cutting-edge, dependable systems
that enhance the efficiency and productivity of our customers," said
Jim Wong, president of IT Products Business Group, Acer Inc. "Our
Aspire family of high-performing desktop systems with the new energy
efficient AMD Athlon 64 X2 dual-core processors can enable powerful
and cooler computing experiences that help break the barriers between
people and technology."

"Dell leads the industry in worldwide desktop computer shipments
because we listen to customers and deliver innovative technology
products at a high value and quality," said Vivek Mohindra, vice
president of desktop product marketing, Dell Product Group. "With the
new energy-efficient AMD Athlon 64 X2 dual-core processors, Dell
OptiPlex and Dimension desktops can provide customers breadth of
choice and personalized, dual-core performance and power efficiency to
meet their office productivity or entertainment needs."

"As the world's leading PC manufacturer, HP is committed to
providing our customers with the latest, industry-leading technology
as it becomes available," said Shagorika Dixit, senior product
marketing manager, Consumer Computing - North America, HP. "With the
next generation of energy-efficient desktop processors from AMD, HP
can continue to proactively develop energy-saving solutions for a
variety of affordable, environmentally-friendly desktop products to
help consumers and business customers reduce energy costs."

Advancing Silicon Process and Manufacturing Technology

Building on AMD's industry-leading 90nm high-performance,
low-power Silicon-on-Insulator (SOI) technology, AMD's 65nm SOI
technology takes full advantage of our 90nm high-performance
technology, scalability and power efficiency. The move to 65nm allows
for reductions in line widths which enable AMD to produce more
processors on a 300mm wafer, for increased production capacity. As a
result, AMD can deliver high output volumes and enhanced products for
its customers. AMD's 65nm processes have evolved from a technology
agreement with IBM that has been highly beneficial to AMD.

Semiconductor Insights (SI), a leading technical advisor to the
global microelectronics industry recently performed an analysis on the
65nm AMD Athlon 64 X2 dual-core desktop processor. Upon completion of
the analysis, Semiconductor Insights awarded AMD with their 2006
INSIGHT Award for Most Innovative Process Technology.

"Our analysis of the device has confirmed that the 65nm AMD Athlon
64 X2 dual-core processor, produced at AMD Fab 36, uses minimum gate
lengths of 35nm, nine copper and one aluminum metal levels, strained
silicon channel and a Silicon on Insulator (SOI) substrate," said Don
Scansen, lead process analyst at Semiconductor Insights. "Put
altogether, it is an impressive technology package."

AMD has an aggressive yet disciplined approach to transistor
development through Continuous Transistor Improvement (CTI) and Shared
Transistor Technology (STT). CTI involves making consistent
improvements on an ongoing basis to the transistor. This continuous
improvement cycle helps AMD stay at the forefront of transistor level
performance and power efficiencies, while also allowing for the rapid
and smooth introduction of the latest technologies into volume
production. With STT, AMD uses its most advanced transistor from the
previous generation as the starting point for next-generation process
technology. This approach helps obtain maximum transistor reliability
and performance within a new process node.

This combined approach continues to be highly successful in
driving rapid technology transitions at world-class yields, as
evidenced by AMD's continued leadership in product performance and
power management.

Continued Commitment to Global Environment

Energy-efficient AMD Athlon 64 X2 dual-core processors can deliver
improved performance-per-watt and reduced power consumption. AMD will
continue within the 65nm technology generation to enhance both AMD64
processors and process technology, to offer even more energy-efficient
processors that demonstrate AMD's commitment to an improved global
environment. The next generation of energy-efficient processors
complement AMD's award-winning Cool'n'Quiet(TM) technology, allowing a
system to match processor utilization to the performance actually
required.

In March 2005, the U.S. Environmental Protection Agency (EPA)
awarded AMD's Cool'n'Quiet technology special recognition for the
advancement of energy efficient computer technologies. As a company
committed to environmental stewardship, AMD supports the U. S.
Environmental Protection Agency (EPA) and other worldwide
organizations that promote the development and delivery of
energy-efficient technologies. Based on energy consumption data from
AMD, AMD expects that systems built with our desktop and mobile
processors can meet, and in many instances, exceed the EPA's newly
announced ENERGY STAR Version 4 computer specifications revised on
October 20, 2006 and effective July 20, 2007.

"The innovative spirit of the computer industry is now powering an
energy efficiency revolution," said Bill Wehrum, EPA's acting
assistant administrator of Air and Radiation. "Through ENERGY STAR,
the EPA and our partners are trying to preserve a sustainable
environment for future generations. We celebrate innovative leaders
like AMD for developing energy efficient microprocessor technologies
that help computer users reduce their impact on the environment."

Stable Platform for Innovative Solutions

AMD enables best-of-breed technologies designed for outstanding
mainstream PC experiences that result in superior graphics
performance, enhanced video quality and minimal idle power draw.
Through relationships with leading OEMs and system builders, as well
as major chipset, graphics and motherboard vendors, AMD provides an
open platform approach that allows our customers to select
leading-edge, stable technologies and build differentiated and
innovative solutions. Socket AM2- compatible processors are designed
to enhance the award-winning AMD64 architecture, enabling
next-generation platform innovations such as AMD-Virtualization(TM)
technology and high-performance, un-buffered DDR2 memory.
Additionally, the use of socket AM2 streamlines the work for
motherboard manufacturers, while reducing costs through economies of
scale, which can result in better products at lower prices.

AMD64 processors are ready and capable today to provide users with
the foundation needed to experience the power of Windows Vista.

"Microsoft and AMD have been working together to ensure customers
get the quality, security and computing experience they deserve and
expect using the upcoming Windows Vista operating system," said Mike
Sievert, corporate vice president, Windows, Microsoft. "We look
forward to processor advances in energy efficiency and performance
made possible with AMD's transition to 65nm technology, and expect
that they will continue to enhance the customers' experience using
Windows Vista."

Pricing

Pricing for the 65nm AMD Athlon 64 dual-core processors 5000+,
4800+, 4400+, and 4000+ are $301, $271, $214, and $169, respectively
in 1KU PIB. For pricing details, please visit www.amd.com/pricing.

About AMD

Advanced Micro Devices (NYSE: AMD) is a leading global provider of
innovative processing solutions in the computing, graphics and
consumer electronics markets. AMD is dedicated to driving open
innovation, choice and industry growth by delivering superior
customer-centric solutions that empower consumers and businesses
worldwide. For more information, visit www.amd.com.

AMD, the AMD Arrow logo, AMD Athlon, and combinations thereof, AMD
Virtualization and Cool'n'Quiet are trademarks of Advanced Micro
Devices, Inc. Vista is a trademark and Microsoft and Windows are
registered trademarks of Microsoft Corporation in the U.S. and/or
other countries. Other names are for informational purposes only and
may be trademarks of their respective owners.