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AMD EXPANDS SUCCESSFUL SEMICONDUCTOR TECHNOLOGY ALLIANCE WITH IBM

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AMD EXPANDS SUCCESSFUL SEMICONDUCTOR TECHNOLOGY ALLIANCE WITH IBM

SUNNYVALE, CA - November 1, 2005 - AMD (NYSE: AMD) today announced it has broadened the scope of its technology alliance with IBM. The expanded alliance now includes early exploratory research of new transistor, interconnect, lithography, and die-to-package connection technologies through 2011.

The agreement marks the first time a member of a technology development alliance will work directly with IBM's Research Division on R&D, electronic materials, and basic feasibility studies three-to-five years before commercialization. Further, the extended duration of the alliance makes it one of the longest IBM currently has with any of its semiconductor alliance associates.

Early exploratory research is a critical component of microprocessor R&D. This collaboration will enable both companies to identify and investigate future technology challenges earlier, allowing solutions to be found and fundamental technology choices to be made sooner.

"The industry-leading performance, power-efficiency and function of our AMD64 processors is made possible through a constant, uninterrupted cycle of improvements to our integrated circuit process technologies," said Craig Sander, corporate vice president of technology development at AMD.

"By expanding our successful IBM alliance, we can significantly increase our level of early-stage research, focusing on technologies for the 32nm and 22nm technology generations. By influencing and participating in this research, AMD can better align its process technologies with the needs of our products scheduled to be introduced late in this decade and beyond."

"This agreement is a perfect example of IBM's strategy of collaborative innovation," said Bernie Meyerson, IBM Fellow, vice president and chief technologist, IBM Systems & Technology Group. "Working closely with our key development associates like AMD, we are able to bring advanced technology to market faster and more economically, providing added benefit to our customers."

Research and development will take place in IBM's Watson Research Center in Yorktown Heights, N.Y., the newly announced Center for Semiconductor Research at Albany NanoTech, and at IBM's 300 millimeter state-of-the-art manufacturing facility in East Fishkill.