AMD to Use 100 Percent Renewable Energy in Austin; New Energy Contract Makes AMD the Largest Private Green Power Subscriber in Texas and 5th Largest Private EPA Green Power Partner in the Nation

AMD (NYSE:AMD) today announced a new agreement with theAustin Energy GreenChoice(R) Program to purchase green energy derivedfrom renewable resources that will power all AMD Austin operations forthe next 10 years, including the new AMD Austin Campus which isexpected to be operational in 2007. The new agreement makes AMD thelargest private Environmental Protection Agency (EPA) Green PowerPartner in Texas, the fifth largest private Partner in the U.S. and12th largest overall Partner in the nation. AMD was one of the firstcompanies in Austin to purchase green power through the Austin EnergyGreenChoice Program and has subscribed to all four batches of greenenergy offered since the program was launched in 2000.

"AMD's long-term commitment to green energy is an important stepforward in encouraging wide adoption of renewable energy sources,"said Kurt Johnson, director, EPA Green Power Partnership. "AMD isproviding an outstanding example of environmental leadership."

"AMD is proud to play a role in stimulating the adoption of greenenergy because AMD recognizes that the movement towards alternativeenergy sources today is critical to improving the livelihood andwell-being of our communities," said Craig Garcia, director of globalcorporate services, AMD. "The use of green energy is good for theenvironment and good for business. It helps AMD reduce overall energycosts because as the price of energy derived from traditional fossilfuels continues to increase, green power is purchased at a fixed rateover the life of the contract. According to Austin Energy, AMD'spurchase of green energy over the 10 year period is expected toeliminate the equivalent pollution created by 9,055 cars in Austineach year or the amount of energy needed to power 5,263 homes inAustin annually."

Partnering with Austin Energy's GreenChoice Program is one of manyAMD initiatives aimed at protecting the environment both in Austin andaround the world. In Austin, the use of 100 percent green power at thenew AMD campus in Austin builds on plans to use green buildingtechniques and materials to set a new standard for environmentaldevelopment. The consolidation of multiple non-manufacturing officesspread throughout the city into a unified campus located in closerproximity to the majority of local employees will reduce traffic,minimize fuel consumption and improve air quality.

On a global scale, AMD has committed to reduce energy use by 30percent, water use by 40 percent and greenhouse gas emissions by 40percent by the end of 2007, normalized and relative to 2002performance levels. In addition, AMD uses cogeneration facilities tosupply nearly 100 percent of the energy required by Fab 30 and Fab 36in Dresden, Germany, achieving 20 percent higher efficiency thanconventional systems. These commitments are also reflected in AMD'sleadership in developing power-efficient, environmentally-consciousinnovations such as Cool'n'Quiet(TM) technology. In 2005, Cool'n'Quiettechnology received special ENERGY STAR(R) recognition from the EPAfor the advancement of energy-efficient computer technology.

Austin Energy's GreenChoice program is recognized as the leadingutility-sponsored green power program in the nation by the Departmentof Energy's National Renewable Energy Laboratory. Austin Energyutilizes local wind power and landfill methane gas to provide cleanenergy, improving air quality by lowering power plant emissions andreducing reliance on non-replaceable fossil fuels. State of the artturbines at three West Texas wind farms harness the wind to supplypollution-free energy. Two landfills, one located just outside Austinand the other located near San Antonio, collect methane produced bydecay to generate electricity.

About AMD

AMD (NYSE:AMD) designs and produces innovative microprocessors,Flash memory devices and low-power processor solutions for thecomputer, communications and consumer electronics industries. AMD isdedicated to delivering standards-based, customer-focused solutionsfor technology users, ranging from enterprises to government agenciesand individual consumers. For more information visit www.amd.com.

Cautionary Statement

This release contains forward-looking statements concerning AMD'sefforts to reduce the use of energy, water and greenhouse gasemissions, which are made pursuant to the safe harbor provisions ofthe Private Securities Litigation Reform Act of 1995. Investors arecautioned that the forward-looking statements in this release involverisks and uncertainties that could cause actual results to differmaterially from the company's current expectations. Risks that thecompany considers to be important factors that could cause actualresults to differ materially from those set forth in theforward-looking statements include the possibility that AMD's effortswill not lead to the reduction in the use of energy, water andgreenhouse gas emissions or to the extent expected; that the currentprojected reductions will not produce sufficient energy or powerneeded by the company, requiring the company to increase usage; orthat the company may not achieve its current introduction orimplementation schedules. We urge investors to review in detail therisks and uncertainties in the company's Securities and ExchangeCommission filings, including but not limited to the Annual Report onForm 10-K for the year ended December 26, 2004, and the QuarterlyReport on Form 10-Q for the quarter ended June 26, 2005.

AMD, the AMD Arrow logo, and combinations thereof, are trademarksof Advanced Micro Devices, Inc. Other names are for informationalpurposes only and may be trademarks of their respective owners.