AMD Supports Korean Fair Trade Commission Dawn Raids as Part of Investigation into Possible Intel Antitrust Violations.

SUNNYVALE, Calif. -- AMD (NYSE:AMD)

--KFTC Raids Intel Offices, Offices of Major Korean PC Manufacturers

--Intensifying Global Scrutiny into Intel's Illegal, Anti-competitive Business Practices

AMD (NYSE:AMD) released the following statement today regarding the Korean Fair Trade Commission's (KFTC) dawn raids as part of their investigation into possible violations by Intel Corporation of that country's Monopoly Regulation and Fair Trade Act:

"The dawn raids in Korea make it abundantly clear that competition authorities worldwide are intensifying their investigative efforts into Intel's anticompetitive business practices because they have good reason to believe evidence of illegal monopoly abuse is there to be found," said Thomas M. McCoy, AMD executive vice president, legal affairs and chief administrative officer. "Similar dawn raids conducted by competition authorities in Japan revealed evidence of illegal business practices that violated that country's Antimonopoly Act. The JFTC ruled that Intel conditioned deals with Japanese PC OEMs based on excluding competition. Last year, the European Commission also conducted dawn raids across Europe to gather evidence of Intel monopoly abuse within the European Union. How many raids in how many countries need to happen before Intel accepts responsibility for its anticompetitive actions and ceases its unlawful business practices?"

The KFTC's dawn raids are part of an investigation into Intel's business dealings with four South Korean PC makers. AMD continues to believe -- as specified in its private U.S. antitrust complaint filed on June 27, 2005 in U.S. federal court in Delaware -- that PC manufacturers worldwide are victims of Intel's monopoly power.

The dawn raids in Korea take place against a backdrop of increasing scrutiny of Intel's business practices.

AMD's complaint against Intel explains in detail how Intel unlawfully maintained its monopoly in the x86 microprocessor market by engaging in worldwide coercion of customers from dealing with AMD. It identifies 38 companies that have been victims of coercion by Intel -- including large scale computer-makers, small system-builders, wholesale distributors, and retailers, through seven types of illegality across three continents. AMD's complaint is available for download at http://www.amd.com/breakfree.

The U.S. litigation follows a March, 2005 ruling from the Fair Trade Commission of Japan (JFTC), which found that Intel abused its monopoly power to exclude fair and open competition, violating Section 3 of Japan's Antimonopoly Act. These findings reveal that Intel deliberately engaged in illegal business practices to stop AMD's increasing market share by imposing limitations on Japanese PC manufacturers. Intel did not contest these charges.

AMD Japan filed two claims on June 30, 2005 against Intel Corporation's Japanese subsidiary, Intel K.K., in the Tokyo High Court and the Tokyo District Court for damages arising from violations of Japan's Antimonopoly Act. On December 16, 2005, the Tokyo District Court issued a ruling which denied Intel K.K.'s request to keep evidence of its illegal business practices from the public record and required the JFTC to turn over the evidence it obtained during its year-long investigation of Intel to the court, AMD and Intel.

In July 2005, the European Commission -- in close coordination with national competition authorities -- conducted dawn raids against Intel offices and the offices of major European PC manufacturers and retailers to gather evidence as part of their ongoing investigation into Intel's business practices.

AMD continues to work with antitrust authorities around the world to look at the market failure and consumer harm Intel's business practices are causing in their nations.

AMD's Position on Fair and Open Competition

AMD stands for fair and open competition and the value and variety competition delivers to the marketplace. Innovative AMD technology allows users to break free to reach new levels of performance, productivity and creativity. Businesses and consumers should have the freedom to choose from a range of competitive products that come from continuous innovation. When market forces work, consumers have choice and everyone wins. For more information, please visit http://www.amd.com/breakfree.

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