AMD And IBM Unveil New, Higher Performance, More Power Efficient 65nm Process Technologies At Gathering Of Industry’s Top R&D Firms

—Achievements Can Help Both Companies Meet Aggressive Goals for Increasing Performance, While Decreasing Power Requirements, of Future Microprocessors—

WASHINGTON, D.C. -- December 6, 2005 --In papers presented at the International Electron Devices Meeting (IEDM) in Washington, D.C., IBM (NYSE: IBM) and AMD (NYSE: AMD) today detailed their progress in bringing new, advanced semiconductor process technologies and materials to the 65 nanometer (nm) technology generation.

The companies announced that they have successfully combined embedded Silicon Germanium (e-SiGe) with Dual Stress Liner (DSL) and Stress Memorization technology (SMT) on Silicon-On-Insulator (SOI) wafers, resulting in a 40 percent increase in transistor performance compared to similar chips produced without stress technology, while controlling power consumption and heat dissipation. The new process technologies reduce interconnect delay through the use of lower dielectric constant (lower-K) insulators, which can improve overall product performance and lower power consumption. In addition, the new technologies have shown ability to be manufactured at the 65nm generation and scaleable for use in future generations.

“Our joint work on developing advanced process technologies continues to ensure we can create and provide the highest performance, lowest power processors on the market,” said Nick Kepler, vice president of logic technology development at AMD. “Yet again, we can add another achievement to our list of successes that demonstrate how shared expertise and skills can result in overcoming roadblocks and creating more valuable innovations for customers.”

“At IBM, we strongly believe that our unique joint development partnership with AMD at East Fishkill, N.Y. is key to overcoming power and heat challenges as the industry reaches near atomic scales,” said Gary Patton, vice president, technology development at IBM’s Semiconductor Research and Development Center. “The successful integration of leadership technologies from IBM, AMD and our partners at 65nm demonstrates the strength of our collaborative innovation model.”

Additional details about third generation strain technology innovations from AMD and IBM will be disclosed at the 2005 IEEE International Electron Devices Meeting, December 5-7, 2005 in Washington, D.C. This technology was developed as part of the AMD and IBM joint development alliance at AMD’s fabrication facilities in Dresden, Germany, and at the IBM Semiconductor Research and Development Center in East Fishkill, N.Y.

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.

About IBM
IBM semiconductors are a major contributor to the company’s position as the world’s largest information technology company. Its chip products and solutions power IBM eServer and TotalStorage systems as well as many of the world’s best-known electronics brands. IBM semiconductor innovations include dual-core microprocessors, copper wiring, silicon-on-insulator and silicon germanium transistors, strained silicon, and eFUSE, a technology that enables computer chips to automatically respond to changing conditions. More information is available at: http://www.ibm.com/chips.

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 the forward-looking statements in this release involve risks and uncertainties that could cause actual results to differ materially from the company’s current expectations. Risks include the possibility that AMD will not achieve its current product and technology introduction schedules, and its future products, including products based on initial testing of new technologies not being sustainable or having similar performance enhancements, or difficulties in production or manufacturing. We urge investors to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended December 26, 2004 and the Quarterly Report on Form 10-Q for the quarter ended June 26, 2005.

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