SUNNYVALE, CA--JUNE 23, 1999--AMD today announced that it has commenced shipments of its new seventh-generation microprocessor, the AMD Athlon™ processor, to computer manufacturers. Formerly code-named the AMD-K7 processor, the AMD Athlon processor is initially available in speed grades of 600, 550, and 500 MHz.

"For the first time in the history of the computer industry, AMD leads the competition in delivering an entirely new generation of processors that offers not just higher clock speeds, but higher performance and processing capabilities clock-for-clock based on a more advanced architectural design," said W.J. Sanders III, chairman and chief executive officer of AMD. "This announcement is truly a watershed for AMD and the entire industry because it heralds new choices based on superior processor technology for system platforms in the enterprise space."

About the AMD Athlon™ Processor Family Name
The AMD Athlon processor is a true seventh-generation processor in terms of its architectural capabilities and delivered performance. In choosing the product name, AMD wanted to emphasize that the new product represents a champion of competition and delivers capabilities and performance significantly better than the existing AMD-K6® processor family.

About the AMD Athlon™ Processor Architecture
The AMD Athlon processor is an x86-compatible, seventh-generation design featuring a super-pipelined, nine-issue superscalar microarchitecture optimized for high clock frequency; the industry's first fully pipelined, superscalar floating point unit for x86 platforms; high-performance cache technology, including 128KB of on-chip level-one (L1) cache and a programmable, high-performance backside L2 cache interface; enhanced 3DNow!™ technology and multimedia performance; and the AMD Athlon system bus--a 200-MHz system interface based on the Alpha™ EV6 bus protocol with support for scalable multiprocessing. The initial versions of the AMD Athlon processor are manufactured on AMD's 0.25-micron process technology in Fab 25 in Austin, Texas.

AMD Athlon™ Processor Pricing and Availability
The 600-MHz AMD Athlon processor is priced at $699, the 550-MHz AMD Athlon is priced at $479, and the 500-MHz AMD Athlon is priced at $324, each in 1,000-unit quantities. End-user systems based on the AMD Athlon processor are planned to be available in Q3.

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. Forward-looking statements are generally preceded by words such as "expects," "plans," "believes," "anticipates," or "intends." Investors are cautioned that all forward-looking statements in this release involve risks and uncertainty that could cause actual results to differ materially from current expectations. Forward-looking statements in this release about the AMD Athlon processor involve the risk that AMD will not be able to produce the processor in the volume required by customers on a timely basis; that AMD may not be successful in developing an infrastructure to support the processor; that third parties may not provide infrastructure solutions to support the processor; and that the processor will not achieve customer and market acceptance. We urge investors to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including the most recently filed Form-10K.