SUNNYVALE, CA--NOVEMBER 16, 1998--AMD today introduced versions of the AMD-K6®-2 processor with 3DNow!^(TM) technology operating at speeds of 400, 380 and 366 MHz. Today, Compaq Computer Corporation also introduced the Presario 5190 and the Presario 5100c Series, the first desktop systems powered by the AMD-K6-2/400 processor.

"AMD is delighted to be allied with Compaq and other leading PC makers as we introduce our fastest AMD-K6-2 processors to date," said S. Atiq Raza, AMD co-chief operating officer and chief technical officer. "AMD's broad range of processor speed grades gives OEMs such as Compaq greater flexibility to deliver high-performance desktop systems tailored to specific end user needs, price point objectives, and market opportunities."

"Today's introduction of the Presario Internet PCs featuring the AMD-K6-2/400 processor reinforces Compaq's commitment to delivering the most remarkable computing value in the industry," said Rod Schrock, senior vice president and group general manager of Compaq's Consumer Products Group. "Only Compaq has combined the AMD-K6-2/400 with our exclusive 1.5Mb Max Digital modem to deliver the world's first broadband Internet-ready PCs. Equally important, these tremendous values are available wherever customers choose to buy, whether over the web, via retail stores, or at 'Compaq Built For You' custom configuration stations available at thousands of retail locations nationwide."

Delivering on the AMD Processor Roadmap
"The debut of our 400 MHz AMD-K6-2 processor now puts AMD within one speed grade of Intel's fastest Pentium® II and demonstrates that we are continuing to deliver on our processor roadmap," said Raza.

"We congratulate AMD for delivering on an aggressive processor roadmap, and we are excited by the tremendous value that the combination of Compaq Internet PCs and the AMD-K6-2 processor can deliver to consumers," added Schrock.

The AMD-K6-2/400 processor, combined with the 100 MHz system bus, delivers leading-edge performance within the Super7^(TM) platform while maintaining the cost benefits of the Socket 7 infrastructure. The world's fastest CPU with 3DNow! technology, the AMD-K6-2/400 processor enables a superior visual computing experience.

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 100 MHz Super7 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 a superior visual computing experience. 3DNow! is a set of 21 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 (Application 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 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. Software applications optimized for 3DNow! technology include gaming titles from Microsoft, id Software, Epic Megagames, and Rage, along with productivity software offerings from IBM, Viewpoint DataLabs, and Pegasus. New optimized titles continue to be added.

Pricing and Availability
The new AMD-K6-2 processor speed grades are available now. The AMD-K6-2/400 processor is priced at $283; the AMD-K6-2/380 processor at $213; and the AMD-K6-2/366 processor at $187, each 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 AMD-K6-2 processors at speed grades higher than 400 MHz; the company will produce the AMD-K6-2 processor in volumes required by customers; and the company will be able to produce high-performance parts in the future to meet customer demand. Investors are urged to consult the risks and uncertainties detailed in the company reports filed with the Securities and Exchange Commission.