AMD'S RECOMMENDATION FOR MULTI-CORE SOFTWARE LICENSING IS ENDORSED

-AMD applauds Microsoft's decision to license server software by
processor, not by core-

SUNNYVALE-OCT. 19, 2004-AMD supports Microsoft's software licensing
decision for their server software for multi-core processors. Microsoft
server software, which is currently licensed by the number of processors
in the server, will continue to be licensed in that model for server
hardware that contains dual-core and multi-core processors, and will not
be licensed according to the number of processor cores. Since AMD
furthered its industry leadership in multi-core computing by
demonstrating the industry's first x86 dual-core processor in August,
AMD has strongly advocated this customer-centric software licensing
strategy for both server and client software.

"AMD is committed to help businesses transition to multi-core technology
in the least disruptive way possible, and Microsoft's licensing decision
is a major component to enable that migration," said Marty Seyer,
corporate vice president and general manager for AMD's Microprocessor
Business Unit, Computation Products Group. "I haven't spoken with a
single IT manager who wants to swap out their current servers just to
upgrade to multi-core technology. With AMD Opteron(tm) processor-based
hardware, the upgradeability to upcoming dual-core AMD Opteron
processors, and Microsoft's software licensing plans, the IT community
will be able to reap the rewards of multi-core technology without the
pain of upheaval."

"Microsoft's licensing strategy will help facilitate the broad adoption
of multi-core server technology," said Brent Callinicos, corporate vice
president of Worldwide Licensing and Pricing at Microsoft Corp. "We are
continuing to work closely with industry-leading partners like AMD to
create a multi-core ecosystem that meets the needs of customers across
the industry."
Multi-core processors are a logical evolution in performance
improvements for multi-tasking environments, and dual-core AMD64
processors with Direct Connect Architecture are expected to more
efficiently support those multi-tasking demands.

Dual-core AMD
Opteron processors are expected to be socket compatible with the 90nm
single-core AMD Opteron packaging. This approach follows the AMD
customer-centric approach of safeguarding software investments while
delivering industry-leading processor innovation and enabling an easy
migration path. Dual-core AMD Opteron(tm) processors are scheduled to
be available in mid-2005, and by early 2006, AMD expects the majority of
its server processors being shipped will be dual core. Dual-core AMD64
processors for PCs are expected to be available beginning in the second
half of 2005.

About AMD64
AMD64 evolves the industry-standard 32-bit x86 architecture to support
the demanding 64-bit environment that will enable future generations of
computer functionality and productivity. AMD designed the AMD64 platform
to allow end users to enjoy reliable, best-in-class performance on the
32-bit software they own today while preparing for a seamless transition
to high-performance 64-bit applications. The AMD64 architecture is also
designed to enhance the security of your computing environment by
integrating Enhanced Virus Protection technology enabled by advanced
anti-virus features in Windows(r) XP Service Pack 2 and the upcoming
Windows Server 2003 Service Pack 1.

Since the introduction of the AMD64 architecture in 2003, the AMD
Opteron(tm) processor for servers and workstations and the AMD
Athlon(tm) 64 processors for desktop and notebook computers have earned
more than 60 awards for innovation and performance and the support of
more than 2,000 OEMs, hardware and software developers, system builders,
and distributors.

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 www.amd.com.

Cautionary Statement
This release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements are generally
preceded by words such as "plans," "expects," "believes," "anticipates"
or "intends." Investors are cautioned that all forward-looking
statements in this release involve risks and uncertainties that could
cause actual results to differ materially from current expectations.
Risks include the possibility that the company's future multi-core
processors will not be introduced on their current introduction
schedules, will not perform pursuant to their design specifications,
will not achieve customer and/or market acceptance, will not be produced
in the volume and performance grades demanded by customers, and will not
be supported by solution provider infrastructure, including operating
systems, applications and licensing models. 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 June 27, 2004.

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