-New Facility Will Help AMD Nearly Double its Output in the Next Three Years, Meet Growing Demand for AMD64 Processors and Achieve Aggressive Growth Objectives-

DRESDEN, Germany-Oct. 14, 2005-At a ceremony attended by top German government officials and leaders from across the semiconductor industry, AMD (NYSE: AMD) today announced the grand opening of its 300 millimeter(mm) Fab 36 in Dresden, Germany.

“The on-schedule, on-plan opening of Fab 36 is the latest achievement in AMD’s growing track record of flawless execution on our manufacturing strategies and goals,” said Hector Ruiz, chairman of the board, president and chief executive officer of AMD. “In AMD Fab 30, using our patented Automated Precision Manufacturing (APM) capabilities, we have had tremendous success in rapidly transitioning to new technology generations and quickly achieving mature yields. Fab 36 is designed to continue this rock-solid consistency, ensuring we can effectively and efficiently meet the growing demand for AMD 64-bit solutions worldwide.”

With the production ramp in Fab 36 progressing on schedule, the company intends to make 90nm production shipments in the first quarter of 2006 and begin 65nm production by the end of 2006. AMD has set a goal to be substantially converted to 65nm in Fab 36 by mid-2007.

Capacity gained through the use of larger 300mm wafers, combined with the speed and efficiencies enabled by APM, plays a fundamental role in the company’s growth plans for the next several years. Now in its third generation, APM consists of hundreds of AMD patented and patent-pending technologies that dynamically and automatically optimize fab operations.

This unique automated decision-making capability has allowed AMD to accelerate its responsiveness to customer needs, more quickly transition to new technologies, improve quality and operate at increasing levels of efficiency.