AMD began first revenue shipments of AMD64 processors manufactured at Fab 36 in Dresden, Germany. AMD ramped the new 300 mm fab to 90 nm volume production in record time, hitting every major milestone on schedule and beginning production at mature yields. AMD has been producing a significant number of 65nm development test chips in parallel with 90nm products at the fab, in preparation for volume 65nm production later this year. Fab 36 remains on track to begin 65nm production shipments in the second-half of this year, and be substantially converted to 65nm production by mid-2007.

At a press conference held here today, AMD (NYSE: AMD) announced that in
March it began first revenue shipments of AMD64 processors manufactured at Fab
36 in Dresden, Germany. AMD ramped the new 300 millimeter (mm) fab to 90
nanometer (nm) volume production in record time, hitting every major milestone
on schedule and beginning production at mature yields.

The company also disclosed that it has been producing a significant number of
65nm development test chips in parallel with 90nm products at the fab, in
preparation for volume 65nm production later this year. Fab 36 engineers, with
the help of AMD’s patented Automated Precision Manufacturing (APM) systems, are
constantly analyzing data collected from the test chips and making consistent
improvements. Fab 36 remains on track to begin 65nm production shipments in the
second-half of this year, and be substantially converted to 65nm production by
mid-2007.

“Our manufacturing strategy execution continues to be flawless,” said Dirk
Meyer, president and chief operating officer at AMD. “The increased capacity
provided by Fab 36 will contribute to our goal of doubling total production
output from 2005 through 2008. We are positioned better than ever to serve our
customers long-term needs and achieve our aggressive growth objectives.”

The success of Fab 36 builds upon the tremendous achievements of Fab 30,
which is located adjacent to Fab 36 and manufactures chips on 200mm wafers.
Through the use of APM and other ongoing productivity and efficiency
enhancements, AMD increased total production output at Fab 30 by approximately
80 percent from the first quarter of 2004 through the fourth quarter of 2005.
The fab, which was originally designed to produce a maximum of 20,000 wafers per
month, now produces approximately 30,000 wafers per month thanks to continuous
improvements and innovative new operational methods developed and used at the
fab.

Fab 30 and Fab 36 are the cornerstones of AMD’s flexible capacity growth
plan, which focuses on bringing the right amount of capacity online at the right
time through ongoing, incremental increases to total output. Using this
approach, AMD can continue to meet demand for its products and grow market
share, while continuing to keep fab utilization levels high.

AMD continues to also increase its operational speed, accuracy and agility
using APM, which includes hundreds of AMD patented technologies that dynamically
and automatically optimize fab operations. Leveraging APM’s unique capabilities,
AMD continues to accelerate its responsiveness to customer needs, more quickly
transition to new technologies, improve quality and operate at increasing levels
of efficiency.

“Over the past decade we’ve perfected new, more innovative operational models
such as APM that have made us faster, more accurate, more agile and more
efficient,” said Daryl Ostrander, senior vice president of manufacturing and
technology at AMD. “As a result, we are introducing advanced technologies more
seamlessly than ever before. We are ramping to high yields and volume production
on new products faster. We are fully converting our fabs to the next technology
generation at consistently accelerated rates.”