AMD INTRODUCES 500MHz AMD-K6®-2 PROCESSOR WITH 3DNow!™ TECHNOLOGY
--IBM® to Power Upcoming Aptiva® Personal Computer with Fastest AMD-K6-2 Processor --

SUNNYVALE, CA--AUGUST 30, 1999--AMD today announced the introduction of its 500MHz AMD-K6®-2 processor with 3DNow!™ technology. The AMD-K6-2/500 processor is planned to power a soon-to-be-released IBM® Aptiva® consumer personal computer system targeted at the retail market.

"The AMD-K6-2/500 processor brings more processing power to consumer and small business users who demand high levels of performance from a cost-competitive system," said Dana Krelle, vice president of marketing for the Computation Products Group at AMD. "The AMD-K6-2/500 processor is another example of AMD's commitment to offer a complete range of processors for all system price points."

"IBM is pleased to announce plans to introduce Aptiva systems based on the new AMD-K6-2/500 processor," said Harry Nicol, general manager, Consumer Systems at IBM. "This new AMD-K6-2 processor provides us with a combination of value and performance that enables IBM to offer personal computing solutions that match the needs of today's consumer electronic lifestyles."

About the AMD-K6®-2 Processor
The AMD-K6-2 processor with 3DNow!™technology delivers excellent 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™ platform-compatible, 321-ceramic pin grid array (CPGA) package using C4 flip-clip interconnection technology.

About 3DNow!™ Technology
3DNow!™technology, developed by AMD, was the first innovation to the x86 architecture that significantly enhanced floating-point-intensive 3D graphics and multimedia applications. It uses single instruction multiple data (SIMD) and other performance enhancements to provide a compelling visual computing experience.

The worldwide installed base of 3DNow!™technology-enhanced PCs has grown to more than 15 million desktop and notebook systems spanning all price points. Support for 3DNow!™technology exists today in leading industry-standard application programming interfaces (APIs), including Microsoft's DirectX 6.x and SGI's OpenGL APIs. In addition, numerous hardware and software products have been optimized for 3DNow!™technology.

For a detailed list of hardware and software products that support 3DNow!™Technology, visit the AMD web site at http://www1.amd.com/products/cpg/3dnow/optimized. Leading software titles optimized for 3DNow!™Technology are available online at the 3DNow!™Technology Aisle on Chumbo.com.

Pricing
The AMD-K6-2/500 processor is priced at $167 each in 1,000-unit quantities.

Cautionary Statement
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally preceded by words such as "plans," "expects," "believes," "anticipates" or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Forward-looking statements in this release include the risk that the IBM Aptiva personal computer system incorporating the AMD-K6-2/500 processor will not be released on schedule or at all, and that the AMD-K6-2/500 processor will not achieve customer or market acceptance. We urge investors to review in detail the risks and uncertainties in the Company's filings with the Securities Exchange Commission.