AMD Signs R&D Joint Venture Agreement With China Basic Education Software Company, Ltd. to Address China's Growing IT Education Market.

Business Editors & High Tech Writers

SHANGHAI, China--(BUSINESS WIRE)--Oct. 8, 2002

Agreement Calls for Hardware Platform Development Utilizing All Three

AMD Product Lines: Microprocessors, Embedded Processors and Flash

Memory Devices

AMD (NYSE: AMD) today announced it has signed a research and development joint venture agreement with China Basic Education Software Company, Ltd. (CBE). The new entity will be called the Beijing CBE AMD Information Technology Company, Ltd. (ITC JV).

With the aim to address China's large and expanding IT education market, the ITC JV is planning to develop three types of hardware platforms including a Student PC, a Teacher PC and a Classroom Server. The platforms are planned to contain AMD silicon crossing all three of AMD's product lines: x86 microprocessors, MIPS-based(TM) embedded processors, and Flash memory devices. With a combined focus on education and technology, the ITC JV will strive to provide powerful learning tools for the students, teachers, and classrooms of China. Both parties look forward to future joint developments in China.

The ITC JV agreement was formalized in a signing ceremony that took place today in Shanghai. AMD president and chief executive officer Hector Ruiz was present to sign the agreement with CBE board chairman Wang Xiao Wu.

"AMD is committed to advancing the technology market in China, a nation that is one of the world's largest and fastest growing semiconductor markets," said Ruiz. "This agreement reflects our belief that establishing solid partnerships with companies like CBE that share our passion for creating innovative solutions is the key for long term growth. We expect this relationship to solidly position AMD as a preferred supplier in China and expand AMD's participation in China's microprocessor, embedded processor and Flash memory markets."

Based in Beijing, CBE was formed in February of 2001 by the Shanghai Shenhua Holdings Company, Ltd. (also known as the Brilliance Group), China's Ministry of Education's state-owned company called the National Center for Curriculum and Text (NCCT), and the Beijing Normal University.

"AMD is one of the few companies in the world with the experience, technology, and industry relationships to provide complete connectivity solutions for this special opportunity in China's IT education market," said Wang Xiao Wu, board chairman, CBE. "AMD is the right partner with the right products at the right time."

"AMD has successfully established itself in the Chinese market through extensive and continuous cooperation with government departments, Chinese enterprises and local industry partners," said Joe Krystofik, vice president, AMD South Asia-Pacific and architect of the agreement. "We believe quality education and training opportunities for China's younger generation is critical to the future development of the country. We are pleased to participate in this historic moment which we believe helps build a brighter future for China."

The ITC JV agreement is subject to regulatory approval.

About AMD

AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE:AMD).

AMD, the AMD Arrow logo, and combinations thereof are trademarks of Advanced Micro Devices, Inc. MIPS-based is a trademark of MIPS Technologies, Inc. Other product names used in this publication are for identification purposes only and may be trademarks of their respective companies.