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AMD Supplies World's Highest Clock Speed Mobile Processors For Business-Class Compaq Notebooks

380- and 350-MHz Mobile AMD-K6®-2 P Processors Used in Compaq Prosignia Notebook PCs, Delivering Leading-Edge Mobile Performance to Small/Medium Business Market

SUNNYVALE, CA -- March 29, 1999 --AMD today announced that Compaq Computer Corporation has chosen AMD's fastest Mobile AMD-K6®-2 P processors with 3DNow!™ technology to power new Prosignia notebook PCs designed specifically for small and medium business users.

Compaq introduced the Prosignia 150 Series with models featuring both the 380-MHz Mobile AMD-K6-2 P and the 350-MHz Mobile AMD-K6-2 P processors.

"With the announcement of the Compaq Prosignia 150 notebook PCs, AMD-K6 processor-based solutions are available to a much broader segment of the business market," said Dana Krelle, vice president of marketing for the Computation Products Group at AMD. "AMD-K6-2 processor-based notebook PCs offer business users the highest mobile clock speeds available, with excellent performance in the Microsoft® Windows® and Microsoft Office environment."

"Fast-growing small and medium businesses need access to the best and latest technology available to gain a competitive advantage. The new Compaq Prosignia notebooks based on the Mobile AMD-K6-2 P processors give customers a price/performance edge in the business arena," said Lisa Baker, director of Commercial Business Product Marketing, Compaq Computer Corporation.

Today's announcement marks the first time that Compaq has used AMD-K6-2 family processors in its Prosignia product line aimed at SMB customers in the United States. According to PC Data, AMD's overall U.S. retail desktop PC market share reached 51.6 percent for the month of February. AMD's share of the February retail notebook market exceeded 33 percent--more than twice its notebook market share in July 1998.

"Compaq's decision to offer Mobile AMD-K6-2 P processor-based Prosignia notebooks reflects AMD's growing momentum in the SMB marketplace and commercial channel," added Krelle. "Now, the world's top two notebook PC makers are shipping AMD processor-based systems in both their retail and commercial channels. AMD is committed to bringing the same price/performance advantages to the business user that the retail customer has enjoyed since the introduction of the AMD-K6 processor family."

About the AMD Mobile Processor-Based Compaq Prosignia Notebooks
The Prosignia Notebook 150 powered by the Mobile AMD-K6-2 P/380 processor, is the highest clock speed notebook available today for the SMB market. This system, along with the Prosignia 150 based on the Mobile AMD-K6-2 P/350, features a Super7™ platform design compatible with a 95/100-MHz frontside bus, 2X AGP graphics, and a large L2 cache, enabling enhanced overall system performance.

The AMD processor-based Prosignia 150 Series includes high-performance configuration options and feature brilliant displays, one-touch access buttons to Internet services and commonly used business applications, and a preloaded suite of business applications. The systems' standard one-year limited warranty offered by Compaq can be augmented by Compaq's comprehensive CarePAQ service and support packages.

Compaq Prosignia notebooks are available to SMB customers in the United States through a variety of channels, including Compaq DirectPlus (at www.directplus.compaq.com or 1-800-888-5858) and authorized Compaq resellers.

About the Mobile AMD-K6®-2 P Processor
The Mobile AMD-K6-2 P processor complements AMD's existing low-power Mobile AMD-K6-2 processors introduced earlier this year. Both AMD mobile processors share a number of performance-boosting features, including 3DNow! technology and support for Super7 notebook platforms. The Mobile AMD-K6-2 P processors operate at a core voltage of 2.2 volts, have an extended case temperature rating of 80oC, and dissipate less than 12 watts of power running typical applications.

All AMD-K6-2 processors deliver leading-edge, sixth-generation performance for today's demanding Microsoft® Windows® compatible home and office applications. These 9.3-million-transistor processors are manufactured on AMD's 0.25-micron, five-layer-metal process technology at AMD's Fab 25 wafer fabrication facility in Austin, Texas.

About 3DNow!™ Technology
3DNow! technology, the first innovation to the x86 architecture that significantly enhances floating-point-intensive 3D graphics and multimedia applications, uses SIMD (Single Instruction Multiple Data) and other performance enhancements to enable a superior visual computing experience. Introduced as a key feature of the AMD-K6-2 processor in May 1998, 3DNow! technology has more than a nine-month time-to-market head start over competing CPU-based 3D enhancement technologies. The worldwide installed base of 3DNow! technology-enhanced PCs is 13 million systems to date. AMD processors with 3DNow! technology span the complete range of desktop and mobile computing, from sub-$1,000 PCs to high-performance laptops based on the Mobile AMD-K6-2 P processor, and high-end multimedia desktop systems powered by the new AMD-K6-III processor.

Support for 3DNow! technology exists today in the leading industry-standard application programming interfaces (APIs), including Microsoft's DirectX 6.x and SGI's OpenGL APIs. In addition, numerous hardware and software products have been optimized for 3DNow! technology. Leading software titles optimized for 3DNow! technology are available online at the 3DNow! Technology Aisle on Chumbo.com.

Cautionary Statement
Investors are cautioned that all forward-looking statements of management's expectations involve risks and uncertainties that could cause actual results to differ materially from current expectations. Any forward-looking statement about AMD processors involves risks and uncertainties, including whether AMD will be able to meet customer volume and performance requirements, whether demand will continue at current or greater levels, and whether AMD will be able to maintain or increase market share generally or in particular channels of distribution. Investors are urged to consult the risks and uncertainties detailed in the company reports filed with the Securities and Exchange Commission.


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