Original Document

AMD CELEBRATES ONE YEAR ANNIVERSARY OF AMD ATHLON™ PROCESSOR AND COMMENCES SHIPMENTS OF 1.1GHZ PROCESSORS

SUNNYVALE, CA -- AUGUST 14, 2000 -- AMD today announced it has commenced shipments of 1.1GHz processors to leading computer manufacturers. Numerous partners will be introducing systems featuring 1.1GHz AMD Athlon processors on August 28, 2000.

"What a difference a year makes," said W.J. Sanders III, chairman and chief executive officer. "The AMD Athlon™ and AMD Duron™ processors are reshaping the landscape of the PC industry. AMD is supplying the highest performing products in volume, creating vital new partnerships to bring innovative solutions to market, and offering business and home users a broad and powerful portfolio of computing solutions.

"AMD's superior product architectures, outstanding execution, and ability to manufacture high volumes of high-frequency parts have resulted in tremendous changes in the marketplace. AMD's success in these three areas has redefined the performance segment of the market, which now extends from 800MHz to 1.1GHz, and the value PC, characterized by systems that typically sell for less than $1,000, ranging from 600 to 700MHz. The result: at any system price point, business and home users will get a more powerful PC with an AMD processor-based system," Sanders continued.

One year ago, a leading-edge $2500 PC featured the 650MHz AMD Athlon processor. This month, for approximately $2500, users will be able to unleash the power of a 1.1GHz AMD Athlon processor-based system.

AMD today publicly released its new pricing, energizing the market as the industry moves into the seasonally strongest buying cycles. The PC market outlook is strong and AMD is on track to meet its goal of doubling shipments of seventh generation PC processors to 3.6 million units in this quarter, and again doubling shipments to 7.2 million units in the fourth quarter. AMD expects that its total PC processor shipments, including AMD Athlon, AMD Duron, and AMD-K6 -2 processors, could approach 7 million units this quarter and 9 million units in the fourth quarter.

"AMD is well poised to elevate the performance and value markets and continue our success," Sanders concluded.

Global Demand
Hundreds of computer manufacturers worldwide, including Compaq, Fujitsu, Fujitsu-Siemens, Gateway, Hewlett-Packard Company, IBM, and NEC, offer AMD Athlon processor-based PCs.

The AMD Duron processor, a derivative of the award-winning AMD Athlon processor, was introduced in June 2000 and has reinvented the value PC space. More than 75 computer manufacturers worldwide are currently selling AMD Duron processor-based systems, including Fujitsu-Siemens, IBM, and NEC Packard Bell.

Worldwide Awards
The AMD Athlon processor and AMD Athlon processor-based systems have won more than 60 awards from publications in 17 countries around the globe including: the PC World Product of the Year award, the Analyst's Choice Award for Best PC Processor from Microprocessor Report , the Technical Excellence Award for Best Hardware Component from PC Magazine. Workstation publications such as Cadalyst, 3D Design, Pro/E and Windows NT have also given the AMD Athlon processor and AMD Athlon processor-based systems awards of distinction. Internationally, the AMD Athlon processor has won 36 awards from publications in Australia, Canada, China, Croatia, Denmark, England, Finland, France, Germany, Israel, Japan, Mexico, The Netherlands, Norway, Poland, and Russia.

Pricing
The 1.1GHz, 1GHz, 950MHz, 900MHz, 850 MHz, and 800 MHz AMD Athlon processors are priced at $853, $612, $460, $350, $282, and $215 respectively, each in 1,000-unit quantities. The 700MHz, 650MHz, and 600MHz AMD Duron processors are priced at $138, $103, and $79 respectively, 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 U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. There can be no assurance that demand for the company's products will continue at current or greater levels, or that the company will continue to grow revenues, operating profits, or earnings. There are also risks that the company will not be able to produce the AMD Athlon and AMD Duron processors in the volume, speed mix or with the feature set necessary to meet customer requirements and the company's plans and goals; that Intel Corporation pricing, marketing programs, new product introductions or other activities targeting the company's processors business will prevent attainment of the company's current processor sales plans; that third parties may not provide timely or adequate infrastructure solutions to support the AMD Athlon and AMD Duron processors; that computer manufacturers will not introduce systems featuring AMD Athlon processors in the time frame the company expects; that the PC market and the seasonal buying cycles will not remain strong; and that the company will not be able to grow demand for its PC processors sufficiently to utilize fully its processor production capacity. We urge investors to review in detail the risks and uncertainties in the company's U.S. Securities and Exchange Commission filings, including but not limited to the report on Form 10-K for the year ended December 26, 1999.

2000 Advanced Micro Devices, Inc.