Original Document

AMD ANNOUNCES SHIPMENTS OF 350MHz AMD-K6®-2 PROCESSOR WITH 3DNow!(TM) TECHNOLOGY

SUNNYVALE, CA--AUGUST 27, 1998--AMD today announced that volume shipments of 350-megahertz AMD-K6®-2 processors with 3DNow!(TM) technology have begun to OEM partners and AMD-authorized resellers.

"OEMs and end users are embracing the value and leading-edge performance of 3DNow! technology with AMD processor-based systems for home and business applications, providing users with a rich 3D visual computing experience," said S. Atiq Raza, AMD executive vice president and chief technical officer. "In addition, the 350-MHz AMD-K6-2 provides competitive performance on mainstream business applications compared to a 350-MHz Pentium® II. We will continue to aggressively increase performance of the AMD-K6-2 processor product line, and plan to deliver speeds of 400-MHz in Q4 and 450-MHz in Q1 '99 to provide users with a full range of processor solutions."

The first system to use the new 350-MHz processor is IBM's Aptiva E4N announced today. The Aptiva E4N provides superior performance by taking advantage of the AMD-K6-2 processor's Super7(TM) platform with 100-MHz bus support and combining it with other high-performance features including 64 MB SDRAM and 3D sound and graphics support.

"Performance and affordability are the combination we strive to deliver in our IBM Aptiva systems," said Brian Connors, vice president, World Wide IBM Aptiva Brand. "The AMD-K6-2 processor with 3DNow! technology helps us to deliver high-performance, cutting-edge, expandable multimedia systems at a great price."

Many major PC vendors including Acer, Compaq, CTX and Fujitsu will introduce systems based on the 350-MHz AMD-K6-2 processor.

About the AMD-K6®-2 Processor
The AMD-K6-2 processor with 3DNow! technology delivers leading-edge, sixth-generation performance for today's demanding Microsoft® Windows® compatible home and office applications. The 9.3-million-transistor AMD-K6-2 processor is manufactured on AMD's 0.25-micron, five-layer-metal process technology using local interconnect and shallow trench isolation at AMD's Fab 25 wafer fabrication facility in Austin, Texas. The AMD-K6-2 processor is packaged in a Super7 100-MHz bus platform-compatible, 321-pin ceramic pin grid array (CPGA) package using C4 flip-chip interconnection technology.

About 3DNow!(TM) Technology
3DNow! technology is the first innovation to the x86 processor architecture that significantly enhances 3D graphics, multimedia, and other floating-point-intensive PC applications to enable the emerging "realistic computing platform." 3DNow! is a set of 21 new instructions that use SIMD (Single Instruction Multiple Data) and other performance enhancements to open the performance bottleneck in the 3D graphics pipeline between the host CPU and the 3D graphics accelerator card.

With 3DNow! technology, more powerful hardware and software applications can bring a new level of 3D performance and realism to Microsoft Windows compatible PCs. Microsoft's DirectX 6.0 API (Applications Programming Interface) is optimized for 3DNow! technology enabling software developers to achieve enhanced 3D performance for applications that use the floating-point-intensive geometry functions that are performed with Direct 3D. Applications written to Microsoft's new DirectX 6.0 API will seamlessly take advantage of the fast geometry processing power of 3DNow! technology. 3DNow! works hand-in-hand with leading 3D graphics accelerators to achieve faster frame rates on high-resolution scenes, improved physical modeling of real-world environments, realistic 3D graphics and images, and theater-quality audio and video.

3DNow! technology is compatible with today's existing x86 software. Leading game companies, including Microsoft, id Software, Epic Megagames and Rage, along with productivity software offerings from IBM, Viewpoint DataLabs and Pegasus, deliver titles supporting 3DNow! technology. Vendors continue to provide support and plan to deliver additional optimized titles.

Pricing and Availability
The 350-MHz AMD-K6-2 processor is available now for $317 in 1,000-unit quantities.

Cautionary Statement
Investors are cautioned that all forward-looking statements of management's expectations involve risks and uncertainties that could cause actual results to differ materially from current expectations.

Any forward-looking statement about the AMD-K6-2 processor involves risks and uncertainties including whether the company will be able to produce and distribute AMD-K6-2 processors at higher speed grades; the company will maintain or increase the current production yields; the company will be successful in expanding its customer base; customer demand for the AMD-K6-2 processors will continue at current or greater levels; and worldwide economic conditions will change and affect demand for microprocessors and other integrated circuits. Investors are urged to consult the risks and uncertainties detailed in the company reports filed with the Securities and Exchange Commission.