SUNNYVALE, CA--FEBRUARY 26, 1999--AMD today introduced the 450-MHz AMD-K6®-2 processor with 3DNow!^(TM) technology. This fastest version of the AMD-K6-2 processor offers a superior combination of system price and performance and matches the clock speed of Intel's fastest Pentium® II processor. The AMD-K6-2/450 processor powers IBM's new Aptiva model 520 consumer desktop system, announced today by IBM.

"The 450-MHz AMD-K6-2 processor now gives PC users the same fast clock rate as our competition and the visual experience provided by 3DNow! technology," said S. Atiq Raza, AMD co-chief operating officer and chief technical officer. "More life-like images and graphics together with big-screen sound and video are now available in a 450-MHz processor."

"By including the fastest available AMD-K6-2 processor in our Aptiva line of consumer PCs we are able to deliver outstanding performance and 3D graphics to our customers," said Brian Connors, general manager, IBM Consumer Systems. "It is our goal to deliver PCs that match consumer lifestyles in a connected world. The inclusion of this new AMD processor contributes to our ability to offer a broad range of products and capabilities that meet these needs."

In addition to including the AMD-K6-2/450 processor with 3DNow! technology, the new Aptiva model 520 PC features 64MB of memory, a 10GB hard drive, 32x CDROM, and IBM's Rapid Access Keyboard. The Aptiva system comes pre-loaded with the Microsoft® Windows® 98 operating system, Lotus SmartSuite software, and ViaVoice 98 Home Edition software. Optimized for 3DNow! technology, IBM's award-winning ViaVoice 98 software enables home PC consumers to create documents and e-mail using spoken, natural language commands. Priced at $1,299, the Aptiva model 520 PC is planned to be available soon in retail stores throughout the United States.

About the AMD-K6®-2 Processor

The AMD-K6-2 processor with 3DNow! technology delivers leading-edge, sixth-generation performance for today's demanding Microsoft Windows compatible home and office applications. The 9.3-million-transistor AMD-K6-2 processor is manufactured on AMD's 0.25-micron, five-layer-metal process technology using local interconnect and shallow trench isolation at AMD's Fab 25 wafer fabrication facility in Austin, Texas. The AMD-K6-2 processor is packaged in a 100 MHz Super7^(TM) platform-compatible, 321-pin ceramic pin grid array (CPGA) package using C4 flip-chip interconnection technology.

About 3DNow!^(TM) Technology

3DNow! technology, the first innovation to the x86 architecture that significantly enhances floating-point-intensive 3D graphics and multimedia applications, uses SIMD (Single Instruction Multiple Data) and other performance enhancements to enable a superior visual computing experience. Introduced as a key feature of the AMD-K6-2 processor in May 1998, 3DNow! technology has more than a nine-month time-to-market head start over competing CPU-based 3D enhancement technologies. The worldwide installed base of 3DNow! technology-enhanced PCs is planned to grow to about 14 million systems by the end of this quarter. AMD processors with 3DNow! technology span the complete range of desktop and mobile computing, from sub-$1,000 PCs to high-performance laptops based on the Mobile AMD-K6-2 processor to high-end multimedia desktop systems powered by the new AMD-K6-III processor.

Support for 3DNow! technology exists today in the leading industry-standard application programming interfaces (APIs), including Microsoft's DirectX 6.x and SGI's OpenGL APIs. In addition, numerous hardware and software products have been optimized for 3DNow! technology. Accolade, Activision, Criterion Studios, Digital Anvil, Eidos, GT Interactive, Gremlin, id Software, Interplay, Psygnosis, Rage, and 3DO recently announced their support for 3DNow! technology in several of their forthcoming software titles. These publishers and developers join a growing list of software and hardware developers, including Microsoft, IBM, Epic Games, 3Dfx, and Matrox, that already support 3DNow! in their leading 3D graphics-intensive applications and hardware. New titles supporting 3DNow! technology continue to be added. For a complete list of hardware and software products that support 3DNow! technology, visit the AMD web site at www.amd.com/products/cpg/k623d/optimized.html.

Pricing and Availability

The AMD-K6-2/450 processor is priced at $203 each in 1,000-unit quantities.

Cautionary Statement
Investors are cautioned that all forward-looking statements of management's expectations involve risks and uncertainties that could cause actual results to differ materially from current expectations. Any forward-looking statement about AMD-K6-III processors involves risks and uncertainties, including whether the company will be successful in producing the processors at higher speed grades; the company will produce the processors in volumes required by customers; or customer demand for the processors will continue at current or greater levels. Investors are urged to consult the risks and uncertainties detailed in the company reports filed with the Securities and Exchange Commission.