AMD's Recommendation for Multi-Core Software Licensing is Endorsed; AMD Applauds Microsoft's Decision to License Server Software by Processor, Not by Core.

SUNNYVALE, Calif. -- AMD (NYSE:AMD) supports Microsoft's software licensing decision for their server software for multi-core processors. Microsoft server software, which is currently licensed by the number of processors in the server, will continue to be licensed in that model for server hardware that contains dual-core and multi-core processors, and will not be licensed according to the number of processor cores.

Since AMD furthered its industry leadership in multi-core computing by demonstrating the industry's first x86 dual-core processor in August, AMD has strongly advocated this customer-centric software licensing strategy for both server and client software.

"AMD is committed to help businesses transition to multi-core technology in the least disruptive way possible, and Microsoft's licensing decision is a major component to enable that migration," said Marty Seyer, corporate vice president and general manager for AMD's Microprocessor Business Unit, Computation Products Group. "I haven't spoken with a single IT manager who wants to swap out their current servers just to upgrade to multi-core technology. With AMD Opteron(TM) processor-based hardware, the upgradeability to upcoming dual-core AMD Opteron processors, and Microsoft's software licensing plans, the IT community will be able to reap the rewards of multi-core technology without the pain of upheaval."

"Microsoft's licensing strategy will help facilitate the broad adoption of multi-core server technology," said Brent Callinicos, corporate vice president of Worldwide Licensing and Pricing at Microsoft Corp. "We are continuing to work closely with industry-leading partners like AMD to create a multi-core ecosystem that meets the needs of customers across the industry."

Multi-core processors are a logical evolution in performance improvements for multi-tasking environments, and dual-core AMD64 processors with Direct Connect Architecture are expected to more efficiently support those multi-tasking demands. Dual-core AMD Opteron processors are expected to be socket compatible with the 90nm single-core AMD Opteron packaging. This approach follows the AMD customer-centric approach of safeguarding software investments while delivering industry-leading processor innovation and enabling an easy migration path.

Dual-core AMD Opteron(TM) processors are scheduled to be available in mid-2005, and by early 2006, AMD expects the majority of its server processors being shipped will be dual core. Dual-core AMD64 processors for PCs are expected to be available beginning in the second half of 2005.

About AMD64

AMD64 evolves the industry-standard 32-bit x86 architecture to support the demanding 64-bit environment that will enable future generations of computer functionality and productivity. AMD designed the AMD64 platform to allow end users to enjoy reliable, best-in-class performance on the 32-bit software they own today while preparing for a seamless transition to high-performance 64-bit applications. The AMD64 architecture is also designed to enhance the security of your computing environment by integrating Enhanced Virus Protection technology enabled by advanced anti-virus features in Windows(R) XP Service Pack 2 and the upcoming Windows Server 2003 Service Pack 1.

Since the introduction of the AMD64 architecture in 2003, the AMD Opteron(TM) processor for servers and workstations and the AMD Athlon(TM) 64 processors for desktop and notebook computers have earned more than 60 awards for innovation and performance and the support of more than 2,000 OEMs, hardware and software developers, system builders, and distributors.

About AMD

AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to delivering standards-based, customer-focused solutions for technology users, ranging from enterprises and governments to individual consumers. For more information, visit www.amd.com.

Cautionary Statement

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as "plans," "expects," "believes," "anticipates" or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that the company's future multi-core processors will not be introduced on their current introduction schedules, will not perform pursuant to their design specifications, will not achieve customer and/or market acceptance, will not be produced in the volume and performance grades demanded by customers, and will not be supported by solution provider infrastructure, including operating systems, applications and licensing models. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 28, 2003, and the Quarterly Report on Form 10-Q for the quarter ended June 27, 2004.

AMD, the AMD Arrow logo, AMD Athlon, AMD Opteron and combinations thereof, are trademarks of Advanced Micro Devices Inc. Microsoft and Windows are registered trademarks of Microsoft Corp. in the U.S. and other jurisdictions. Other names are for informational purposes only and may be trademarks of their respective owners.