AMD to Use 100 Percent Renewable Energy in Austin; New Energy Contract Makes AMD the Largest Private Green Power Subscriber in Texas and 5th Largest Private EPA Green Power Partner in the Nation.

AUSTIN, Texas -- AMD (NYSE:AMD) today announced a new agreement with the Austin Energy GreenChoice(R) Program to purchase green energy derived from renewable resources that will power all AMD Austin operations for the next 10 years, including the new AMD Austin Campus which is expected to be operational in 2007. The new agreement makes AMD the largest private Environmental Protection Agency (EPA) Green Power Partner in Texas, the fifth largest private Partner in the U.S. and 12th largest overall Partner in the nation. AMD was one of the first companies in Austin to purchase green power through the Austin Energy GreenChoice Program and has subscribed to all four batches of green energy offered since the program was launched in 2000.

"AMD's long-term commitment to green energy is an important step forward in encouraging wide adoption of renewable energy sources," said Kurt Johnson, director, EPA Green Power Partnership. "AMD is providing an outstanding example of environmental leadership."

"AMD is proud to play a role in stimulating the adoption of green energy because AMD recognizes that the movement towards alternative energy sources today is critical to improving the livelihood and well-being of our communities," said Craig Garcia, director of global corporate services, AMD. "The use of green energy is good for the environment and good for business. It helps AMD reduce overall energy costs because as the price of energy derived from traditional fossil fuels continues to increase, green power is purchased at a fixed rate over the life of the contract. According to Austin Energy, AMD's purchase of green energy over the 10 year period is expected to eliminate the equivalent pollution created by 9,055 cars in Austin each year or the amount of energy needed to power 5,263 homes in Austin annually."

Partnering with Austin Energy's GreenChoice Program is one of many AMD initiatives aimed at protecting the environment both in Austin and around the world. In Austin, the use of 100 percent green power at the new AMD campus in Austin builds on plans to use green building techniques and materials to set a new standard for environmental development. The consolidation of multiple non-manufacturing offices spread throughout the city into a unified campus located in closer proximity to the majority of local employees will reduce traffic, minimize fuel consumption and improve air quality.

On a global scale, AMD has committed to reduce energy use by 30 percent, water use by 40 percent and greenhouse gas emissions by 40 percent by the end of 2007, normalized and relative to 2002 performance levels. In addition, AMD uses cogeneration facilities to supply nearly 100 percent of the energy required by Fab 30 and Fab 36 in Dresden, Germany, achieving 20 percent higher efficiency than conventional systems. These commitments are also reflected in AMD's leadership in developing power-efficient, environmentally-conscious innovations such as Cool'n'Quiet(TM) technology. In 2005, Cool'n'Quiet technology received special ENERGY STAR(R) recognition from the EPA for the advancement of energy-efficient computer technology.

Austin Energy's GreenChoice program is recognized as the leading utility-sponsored green power program in the nation by the Department of Energy's National Renewable Energy Laboratory. Austin Energy utilizes local wind power and landfill methane gas to provide clean energy, improving air quality by lowering power plant emissions and reducing reliance on non-replaceable fossil fuels. State of the art turbines at three West Texas wind farms harness the wind to supply pollution-free energy. Two landfills, one located just outside Austin and the other located near San Antonio, collect methane produced by decay to generate electricity.

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 to government agencies and individual consumers. For more information visit www.amd.com.

Cautionary Statement

This release contains forward-looking statements concerning AMD's efforts to reduce the use of energy, water and greenhouse gas emissions, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company's current expectations. Risks that the company considers to be important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include the possibility that AMD's efforts will not lead to the reduction in the use of energy, water and greenhouse gas emissions or to the extent expected; that the current projected reductions will not produce sufficient energy or power needed by the company, requiring the company to increase usage; or that the company may not achieve its current introduction or implementation schedules. 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 26, 2004, and the Quarterly Report on Form 10-Q for the quarter ended June 26, 2005.

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