SUNNYVALE, CALIF. — Dec. 5, 2006 — Launching the next generation of energy-efficient computing, AMD (NYSE: AMD) today announced the transition to 65nm process technology, beginning with the immediate availability of energy-efficient AMD Athlon™ 64 X2 dual-core desktop processors. The move to 65nm process technology enables AMD to produce more processors on a 300mm wafer, for increased production capacity, while continuing to aggressively scale performance and reduce power consumption. AMD processors built with 65nm line-widths are designed to deliver exceptional performance when running multiple applications, as well as enable small form factor PCs that complement both home and office environments. By mid-2007, AMD expects to be fully converted to 65nm production at Fab 36. With the rapid conversion to 65nm process technology, AMD is scaling capacity intelligently to meet growing demand worldwide for x86 processors.

“With AMD’s established leadership in desktop and server performance-per-watt, both businesses and consumers can benefit greatly from our energy-efficient AMD Athlon 64 X2 dual-core processors,” said Bob Brewer, corporate vice president, Desktop Division, AMD. “Customers continue to demand solutions that focus on low-power consumption and quieter operation. AMD is responding by increasing manufacturing efficiency to deliver on the next generation of energy-efficient desktop processors, enabling OEMS to innovate using highly reliable AMD64 processors and without compromising performance.”

OEMS offering systems ready to experience responsive and spectacular high-resolution 3D visual effects of Microsoft Windows Vista™ with 65nm AMD Athlon 64 X2 dual-core processors immediately, and beginning in Q1 of 2007, include Acer, Dell, Founder, Gateway, HP, Lenovo, Packard Bell, and TongFang, as well as leading system builders worldwide.

“Acer is committed to delivering cutting-edge, dependable systems that enhance the efficiency and productivity of our customers,” said Jim Wong, president of IT Products Business Group, Acer Inc. “Our Aspire family of high-performing desktop systems with the new energy efficient AMD Athlon 64 X2 dual-core processors can enable powerful and cooler computing experiences that help break the barriers between people and technology.”

“Dell leads the industry in worldwide desktop computer shipments because we listen to customers and deliver innovative technology products at a high value and quality,” said Vivek Mohindra, vice president of desktop product marketing, Dell Product Group. “With the new energy-efficient AMD Athlon 64 X2 dual-core processors, Dell OptiPlex and Dimension desktops can provide customers breadth of choice and personalized, dual-core performance and power efficiency to meet their office productivity or entertainment needs.”

“As the world’s leading PC manufacturer, HP is committed to providing our customers with the latest, industry-leading technology as it becomes available,” said Shagorika Dixit, senior product marketing manager, Consumer Computing – North America, HP. “With the next generation of energy-efficient desktop processors from AMD, HP can continue to proactively develop energy-saving solutions for a variety of affordable, environmentally-friendly desktop products to help consumers and business customers reduce energy costs.”

Advancing Silicon Process and Manufacturing Technology

Building on AMD’s industry-leading 90nm high-performance, low-power Silicon-on-Insulator (SOI) technology, AMD’s 65nm SOI technology takes full advantage of our 90nm high-performance technology, scalability and power efficiency. The move to 65nm allows for reductions in line widths which enable AMD to produce more processors on a 300mm wafer, for increased production capacity. As a result, AMD can deliver high output volumes and enhanced products for its customers. AMD’s 65nm processes have evolved from a technology agreement with IBM that has been highly beneficial to AMD.

Semiconductor Insights (SI), a leading technical advisor to the global microelectronics industry recently performed an analysis on the 65nm AMD Athlon 64 X2 dual-core desktop processor. Upon completion of the analysis, Semiconductor Insights awarded AMD with their 2006 INSIGHT Award for Most Innovative Process Technology.

“Our analysis of the device has confirmed that the 65nm AMD Athlon 64 X2 dual-core processor, produced at AMD Fab 36, uses minimum gate lengths of 35nm, nine copper and one aluminum metal levels, strained silicon channel and a Silicon on Insulator (SOI) substrate,” said Don Scansen, lead process analyst at Semiconductor Insights. “Put altogether, it is an impressive technology package”

AMD has an aggressive yet disciplined approach to transistor development through Continuous Transistor Improvement (CTI) and Shared Transistor Technology (STT). CTI involves making consistent improvements on an ongoing basis to the transistor. This continuous improvement cycle helps AMD stay at the forefront of transistor level performance and power efficiencies, while also allowing for the rapid and smooth introduction of the latest technologies into volume production. With STT, AMD uses its most advanced transistor from the previous generation as the starting point for next-generation process technology. This approach helps obtain maximum transistor reliability and performance within a new process node.

This combined approach continues to be highly successful in driving rapid technology transitions at world-class yields, as evidenced by AMD’s continued leadership in product performance and power management.

Continued Commitment to Global Environment

Energy-efficient AMD Athlon 64 X2 dual-core processors can deliver improved performance-per-watt and reduced power consumption. AMD will continue within the 65nm technology generation to enhance both AMD64 processors and process technology, to offer even more energy-efficient processors that demonstrate AMD’s commitment to an improved global environment. The next generation of energy-efficient processors complement AMD’s award-winning Cool‘n’Quiet™ technology, allowing a system to match processor utilization to the performance actually required.

In March 2005, the U.S. Environmental Protection Agency (EPA) awarded AMD’s Cool’n’Quiet technology special recognition for the advancement of energy efficient computer technologies. As a company committed to environmental stewardship, AMD supports the U. S. Environmental Protection Agency (EPA) and other worldwide organizations that promote the development and delivery of energy-efficient technologies. Based on energy consumption data from AMD, AMD expects that systems built with our desktop and mobile processors can meet, and in many instances, exceed the EPA’s newly announced ENERGY STAR Version 4 computer specifications revised on October 20, 2006 and effective July 20, 2007

“The innovative spirit of the computer industry is now powering an energy efficiency revolution,” said Bill Wehrum, EPA's acting assistant administrator of Air and Radiation. “Through ENERGY STAR, the EPA and our partners are trying to preserve a sustainable environment for future generations. We celebrate innovative leaders like AMD for developing energy efficient microprocessor technologies that help computer users reduce their impact on the environment.”

Stable Platform for Innovative Solutions

AMD enables best-of-breed technologies designed for outstanding mainstream PC experiences that result in superior graphics performance, enhanced video quality and minimal idle power draw. Through relationships with leading OEMs and system builders, as well as major chipset, graphics and motherboard vendors, AMD provides an open platform approach that allows our customers to select leading-edge, stable technologies and build differentiated and innovative solutions. Socket AM2- compatible processors are designed to enhance the award-winning AMD64 architecture, enabling next-generation platform innovations such as AMD-Virtualization™ technology and high-performance, un-buffered DDR2 memory. Additionally, the use of socket AM2 streamlines the work for motherboard manufacturers, while reducing costs through economies of scale, which can result in better products at lower prices.

AMD64 processors are ready and capable today to provide users with the foundation needed to experience the power of Windows Vista.

“Microsoft and AMD have been working together to ensure customers get the quality, security and computing experience they deserve and expect using the upcoming Windows Vista operating system,” said Mike Sievert, corporate vice president, Windows, Microsoft. “We look forward to processor advances in energy efficiency and performance made possible with AMD's transition to 65nm technology, and expect that they will continue to enhance the customers' experience using Windows Vista.”

Pricing

Pricing for the 65nm AMD Athlon 64 dual-core processors 5000+, 4800+, 4400+, and 4000+ are $301, $271, $214, and $169, respectively in 1KU PIB. For pricing details, please visit http://www.amd.com/pricing.

About AMD

Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative processing solutions in the computing, graphics and consumer electronics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. For more information, visit www.amd.com.

AMD, the AMD Arrow logo, AMD Athlon, AMD Opteron, AMD Geode, AMD Turion, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Spansion is a trademark of Spansion, Inc. Other names used are for identification purposes only and may be trademarks of their respective owners.