Microsoft and AMD Announce ``Pay-As-You-Go'' PC Program to Drive Personal Computing in Emerging Markets, Innovative New Business Model is Essential to Meeting the Goals of AMD's 50x15 Digital Inclusion Initiative

Seattle, United States , 2006-05-22

AMD (NYSE:AMD) and Microsoft Corp. (Nasdaq:MSFT) today announced an agreement to jointly support flexible business models for emerging markets powered by Microsoft(R) FlexGo(TM) technology.

The initiative reflects both companies' efforts to bring affordable access to technology to consumers around the world. At the 2006 Microsoft Windows(R) Hardware Engineering Conference (WinHEC) in Seattle, the companies stated their commitment to support the initiative through a pilot program that provides consumers the opportunity to purchase PCs through a combination of innovative technology and a pay-as-you-go computing model. Through the joint development that is underway between AMD and Microsoft, Microsoft's FlexGo technology will also be incorporated within key AMD microprocessor products.

"AMD's joint effort with Microsoft on pay-as-you-go computing will help us reach our shared customers with technology they want in ways they can afford," said Will Poole, senior vice president of Microsoft's Market Expansion Group. "We are pleased to embark on this new initiative together, utilizing AMD's deep knowledge of emerging markets to expand our trials to China, India and beyond."

Today's announcement with Microsoft represents a key strategic component of AMD's 50x15 Initiative, which seeks to apply new and sustainable business models to help narrow the global digital divide. Through AMD's 50x15 Initiative, the company and its partners are building sustainable ecosystems that incorporate the full range of hardware, software, infrastructure, micro-financing, and entrepreneurial experience necessary to provide affordable, relevant technology to people in high-growth markets.

"We've seen in our 50x15 Initiative learning labs around the world that consumers benefit most when companies develop flexible business models tailored specifically to meet the unique needs of people living in high-growth markets," said Dr. William T. "Billy" Edwards, AMD's chief innovation officer and senior vice president.

Dr. Edwards is responsible for a diverse set of forward-looking efforts at AMD, including establishing a new set of businesses known as Innovative Systems, which focus on creating new solutions that will help expand AMD's ability to reach and serve greater portions of the global community.

"Pay-as-you-go powered by Microsoft FlexGo does exactly that by delivering affordable, modern computing technology to people around the world," Dr. Edwards continued. "We have seen great success under this same model with cell phones and we're very optimistic that Microsoft and AMD will enjoy the same kind of success with PCs. More importantly, this new program will greatly accelerate AMD's 50x15 Initiative, which aims to connect 50 percent of the world's population to the Internet by the year 2015."

Unveiled today, the pay-as-you-go computing model enabled by Microsoft's FlexGo technology allows customers to have a fully featured PC at home by paying only for the time as they use it through the purchase of prepaid activation cards or tokens. Microsoft has been running trials of the program in Brazil for more than a year and will soon be expanding to select markets in India, Russia, China and Mexico. As Microsoft's lead technology partner, AMD intends to develop processors designed specifically to support Microsoft FlexGo technology.

About 50x15

AMD's 50x15 initiative is a bold and far-reaching effort to develop new technology and solutions that will help enable affordable Internet access and computing capability for 50 percent of the world's population by the year 2015. With the global population estimated to reach 7.2 billion people in 2015, there is tremendous potential for 50x15 to bring billions of people into the digital age.

Pay-as-you-go computing with Microsoft FlexGo extends current joint efforts by AMD and Microsoft to connect the world to accessible and relevant technology. AMD's Personal Internet Communicator (PIC), for example, is now in use in every major region of the world and runs a modified version of the Microsoft Windows CE operating system. The PIC is just one of a fast-growing portfolio of devices that includes everything from modern 64-bit computers and servers, to thin clients and Internet access devices which will be enhanced by the upcoming addition of Microsoft FlexGo technology and capabilities.

About AMD

Advanced Micro Devices (NYSE:AMD) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide. For more information visit www.amd.com.

AMD, the AMD Arrow logo, and combinations thereof are trademarks of Advanced Micro Devices, Inc. Microsoft, Windows and FlexGo are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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