AMD Celebrates 10 Years of Innovation in Dresden.

German Chancellor Angela Merkel Visits AMD Dresden to Commemorate Significant Corporate Milestone

SUNNYVALE, Calif. & DRESDEN, Germany -- Today in Dresden, Germany, AMD (NYSE:AMD) commemorated the 10-year anniversary of its Dresden-based operations with a ceremony attended by German Chancellor Dr. Angela Merkel and an employee celebration. Joining the Chancellor was Governor of Saxony, Professor Georg Milbradt, AMD chairman and CEO, Hector Ruiz and general manager of AMD Dresden, Hans Deppe. On October 24, 1996 AMD broke ground for its first Dresden based microprocessor production facility, Fab 30, initiating ten years of continuous technology innovation and launching a unique German-American success story.

"AMD's success rests in large part on our ability to manufacture and deliver innovative products in volume," said Hector Ruiz, chairman and CEO of AMD. "Thanks to tremendous government support and our great Dresden employees, Fab 30 and Fab 36 have unmatched reputations for delivering the solutions our customers need. Technology leadership and a fair and competitive business environment will enable AMD Dresden to continue to grow and set new standards of operational efficiency."

During the last decade, AMD's Fab 30 has developed a reputation as one of the semiconductor industry's most efficient manufacturing facilities. AMD extended this facility several times to increase capacity, and invested further in two Dresden-based joint ventures: the Advanced Mask Technology Center and the Center for Nanoelectronic Technologies. In October 2005, AMD significantly expanded its presence in Dresden by bringing online Fab 36, a state-of-the art 300mm wafer production facility. In May 2006, AMD announced the planned 300mm transformation of Fab 30 to Fab 38. By the end of 2008, AMD Dresden will have two leading edge 300mm production facilities with the capability of delivering up to 45,000 wafers per month.

"AMD's presence has significantly contributed to the region of Saxony becoming the creative hotbed for the semiconductor industry in Europe," said Professor Georg Milbradt, Governor of the Free State of Saxony. "I would like to cordially congratulate AMD and its employees on ten successful years in Dresden. We look forward to continuing our strong partnership with AMD in the future."

Over the last ten years AMD Dresden has seen its employee population grow dramatically. In 1996, the company planned to have 1,400 employees once fully staffed. In August 2006, AMD Dresden welcomed its 3,000th employee. It is expected that AMD Dresden is responsible for more than 8,000 direct and indirect jobs in the Free State of Saxony and the surrounding regions. As one of the largest private investors in Germany, AMD's presence has been instrumental in establishing Dresden as a thriving center for semiconductor innovation in the European Union.

AMD's Dresden-based operations have pioneered the use of innovative new manufacturing technologies and processes including Automated Precision Manufacturing (APM), lean methodologies, copper interconnects and Silicon on Insulator (SOI) technology. Currently, AMD is successfully ramping 65nm process technology in Fab 36, and revenue shipments remain on track for the fourth quarter of 2006.

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Advanced Micro Devices (NYSE:AMD) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide. For more information visit www.amd.com.

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