- OEMs and Solution Providers can now offer enterprises the highest-performing x86 2P and 4P platforms, based on the AMD Opteron(tm) processor -

SUNNYVALE, CALIF.-May 18, 2004-AMD (NYSE: AMD) today announced new additions to the award-winning AMD Opteron(tm) processor family - Models 850, 250 and 150 - once again equipping servers and workstations with the highest performing two-way and four-way x86 processors. The AMD Opteron processor offers industry-leading 32-bit performance with the power of 64-bit computing.

"Our newest models of the AMD Opteron processor feature Direct Connect Architecture, which supplies benefits and system advantages well beyond extending the instruction set," said Marty Seyer, vice president and general manager of the Microprocessor Business Unit, AMD. "Our product line will be further enhanced by our rapid transition to 90 nanometer manufacturing, which will provide us a greater flexibility to boost processor performance, lower power or both. We have already begun initial production of 90nm AMD64 processors, and we are on target to begin shipping 90nm processors for revenue in the third quarter."

Record-setting performance for two-way systems
"Our AMD Opteron processor-based Sun Fire V20z server continues to set new standards for two-processor server performance. The Sun Fire V20z server, equipped with the new AMD Opteron processor Model 250, currently holds the record as the fastest two CPU secure web server1. This is in addition to achieving a 37 percent improvement in the price/performance ratio over the nearest competing 32-bit system based on the SPECjAppServer2002(tm) benchmark2 and setting a world record for dual CPU systems on
two-tier SAP(r) Sales and Distribution Standard Application Benchmark3," said Souheil Saliba, vice president of marketing and strategy at Sun Microsystems, Inc. "For Sun, the AMD Opteron processor means high-performance 32- and 64-bit x86 systems with the flexibility to support multiple operating systems including the Solaris Operating System, Red Hat Linux and SuSE Linux, and is Microsoft(r) Windows(r) Hardware Qualification List (WHQL) certified."

The SPECjAppServer2002 is a client/server benchmark for measuring the performance of Java Enterprise Application Servers in a complete, end-to-end Web application. The two-tier SAP SD Standard Application Benchmark simulates full business workloads with complete order, delivery, and invoice processing and represents the critical tasks performed in real-world e-business environments.

IBM recently announced the addition of AMD Opteron processor-based systems to its Deep Computing Capacity on Demand Center in Poughkeepsie, NY. Now, IBM customers will have access via the Internet to immensely powerful, highly secure AMD Opteron processor-based supercomputers.

"As the first top-tier vendor to offer AMD Opteron processor-based servers and workstations, and the only vendor to offer deep computing on demand, IBM continues to see excellent response and adoption from HPC environments that demand flexibility and performance, especially in floating-point intensive workloads," said Bob Lenard, director, IBM eServer products. "The latest models of the AMD Opteron processor will further strengthen our lead with our eServer 325 and IntelliStation offerings and give customers the scalability of 64-bit computing without sacrificing 32-bit compatibility or performance."

The AMD Opteron processor Model 250 is immediately available worldwide. High-performance dual-processor workstations and servers from leading system builders worldwide are expected to be available at launch.

Re-energizing the four-way market
"AMD's approach with Direct Connect Architecture tackles many of the I/O and scalability challenges in the x86 server market," said Mark Melenovsky, director, server research, IDC. "The company's AMD Opteron processor and its Direct Connect Architecture will help to make four-way processor and greater systems a more economical alternative to clustering multiple two-way servers for a number of customer workloads."

"This powerful processor delivers the outstanding performance customers expect from the HP ProLiant server line," said James Mouton, vice president, platform division, Industry Standard Servers, HP. "In fact, with the AMD Opteron processor Model 850, the HP ProLiant DL585 four-way server recently beat previous x86 four-processor Windows performance records on the two-tier SAP SD Benchmark, breaking new ground for performance on these benchmarks."

HP recently achieved the leading result for four-way Windows-based servers in the two-tier SAP(r) Sales and Distribution (SD) Standard Application Benchmark, with 770 SAP SD Benchmark users, as of May 10, 20044. The benchmark was run on the HP ProLiant DL585 with SAP R/3(r) Enterprise Release 4.70 running Windows Server 2003 Enterprise Edition and Microsoft SQL Server 2000 Enterprise Edition (Certification Number 2004024). The configuration consisted of four-way AMD Opteron processors Model 850 Series at 2.4 GHz, with 1 MB of L2 cache and 12 GB main memory. The achieved throughput was 77,330 fully processed order line items per hour. The standardized and well-defined SAP benchmarking procedure helps to determine the optimal hardware configuration for customers' IT solutions.

Pricing and Availability
The AMD Opteron processor Model 250 is priced at $851 in 1,000-unit quantities; the AMD Opteron processor Model 850 will be priced at $1,514 in 1,000-unit quantities; and the AMD Opteron processor Model 150 will be priced at $637 in 1,000-unit quantities. For additional pricing information, please see http://www.amd.com/pricing.

The AMD Opteron processor Model 150, for single-processor workstations and entry-level servers, and the AMD Opteron processor Model 850, for enterprise-class servers, are scheduled to be available within 30 days.

About the AMD Opteron(tm) Processor
The AMD Opteron processor continues to transform the enterprise with groundbreaking architecture, world-class 32-bit performance and an ecosystem committed to the development of an industry-standard 64-bit solution. The world's first 32-bit and 64-bit processor compatible with the x86 architecture, the AMD Opteron processor is based on AMD64 technology. AMD64 with Direct Connect Architecture helps eliminate the bottlenecks inherent in a front-side bus and, instead, directly connects the processors, the memory controller and the I/O to the central processor unit, improving overall system performance and efficiency.

Cautionary Statement
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the 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. Risks include the possibility that the company may not achieve its current product and technology introduction schedules; and that the company's transition to 90nm manufacturing processes for processors will not occur in the expected timeframe and that the company will not recognize the expected benefits from such technology transition. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 28, 2003, and the Quarterly Report on Form 10-Q for the quarter ended March 28, 2004.

About AMD
AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to delivering standards-based, customer-focused solutions for technology users, ranging from enterprises and governments to individual consumers. For more information visit http://www.amd.com.