AMD Drives Next Generation of EE Computing with 65nm

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(tm) 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(tm) 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(tm) 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(tm) 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 www.amd.com/pricing.