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SUPERCOMPUTING GIANT CRAY, INC. ADOPTS UPCOMING AMD OPTERON PROCE SSOR FOR SANDIA NATIONAL LABS

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SUNNYVALE, CA - Oct. 21, 2002 - AMD (NYSE: AMD) today announced the upcoming AMD Opteron(tm) processor based on Hammer technology is planned to power a supercomputer developed by Cray, Inc. intended for nuclear weapon engineering simulations by the Department of Energy's Sandia National Laboratories in Albuquerque, N.M.

Cray has been selected to develop the massive parallel processing supercomputer, code-named "Red Storm." The supercomputer is expected to be at least seven times more powerful than Sandia's current "ASCI Red" supercomputer on Sandia's 3D, full-physics simulation codes. The system is scheduled to be deployed in 2004.

The computer is expected to use more than 10,000 AMD Opteron processors and will have a theoretical peak performance of 40 trillion calculations per second, or 40 teraflops. The AMD Opteron processor technology will provide 64-bit capability, advanced processing power, on-chip high memory bandwidth, and high on-chip I/O bandwidth required for Sandia's simulations. It will also feature a simple building block approach with HyperTransport(tm) technology that will enable easy implementation, and reduce engineering, design and component costs for manufacturers.

"To have renowned institutions such as Cray and Sandia place their trust in us is a huge testament to AMD, and a tremendous endorsement of the upcoming AMD Opteron processor," said Marty Seyer, vice president of Server Business for AMD. "The architectural advantages of the AMD Opteron processor allowed us to meet the stringent processor design requirements for
a world-class supercomputer. This win validates the importance of 64-bit computing for scientific research, and demonstrates AMD's credibility in the high performance computing market."

"It is exciting to see new innovative high performance computing designs enter the marketplace. The combination of 10,000 AMD Opteron processors; Cray's design and integration skills; plus Sandia's HPC experience creates a new approach to building multi-Tflop/s supercomputers. AMD's collaboration with these two leaders will help raise the bar for high performance computing innovation, and speaks well to AMD's growing capability in delivering solutions for this market," said, Earl Joseph II, IDC HPC Research Director.

About the AMD Opteron(tm) Processor

The upcoming AMD Opteron processor based on Hammer technology extends AMD's long, rich history of semiconductor solutions based on customer-centric innovations. It will provide simultaneous 32-bit and 64-bit capability, a smooth migration path from 32- to 64-bit technology, investment protection, and a lower cost of ownership. The AMD Opteron processor is designed to deliver high-performance server and workstation solutions for today's most demanding enterprise applications. It will provide beneficial technology to the enterprise by innovating with open standards, compatibility, and businesses' best interests in mind. Key AMD Opteron processor innovations include an integrated memory controller, which reduces memory bottlenecks, and HyperTransport(tm) technology, which increases overall performance by removing or reducing I/O bottlenecks, increasing bandwidth and reducing latency. The AMD Opteron processor is scheduled to be available in the first half of 2003.

About AMD

AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE: AMD).

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