"AMD enthusiastically endorses Windows 98 for bringing new features and technologies, performance improvements, and enhanced Internet functionality to the world's most popular operating system," said S. Atiq Raza, AMD executive vice president and chief technical officer.

"Just as Windows 98 makes personal computing easier and more productive, the new AMD-K6-2 processor makes PCs more powerful. The combination of these two innovations is a boon for PC consumers?especially for those who want a higher performance, 3D-enhanced computing experience," added Raza.

"The improved performance and graphics capabilities of Windows 98 provide users with an enhanced multimedia experience," said Rob Bennett, group product manager, Windows Platform, Microsoft Corp. "Windows 98 and the AMD-K6-2 processor make a great combination for PC users who want heightened 3D performance and realism."

About the AMD-K6®-2 Processor with 3DNow!(TM) Technology AMD introduced the AMD-K6-2 processor on May 28. The first Windows compatible processor with 3DNow! technology, the AMD-K6-2 combines 3DNow! instructions and superscalar MMX capability to deliver lifelike images and graphics, big-screen sound and video and an enhanced Internet experience. Top PC makers, including IBM and Fujitsu, intend to use the AMD-K6-2 processor in forthcoming systems. Dozens of OEMs worldwide offer AMD-K6-2 processor-based systems through retail and direct channels. Numerous 3DNow! technology-optimized software titles are available in the marketplace, with many more planned for 1998.

3DNow! technology is a set of 21 new instructions that use SIMD (Single Instruction Multiple Data) and other enhancements to open the performance bottleneck in the 3D graphics pipeline between the host CPU and the 3D graphics accelerator card. 3DNow! works hand-in-hand with leading 3D graphics cards to achieve faster frame rates on high-resolution scenes, improved physical modeling of real-world environments, realistic 3D graphics and images, and theater-quality audio and video. 3DNow! technology was defined and implemented with input from Microsoft, application developers, graphics vendors, and x86 processor suppliers, and has received enthusiastic industry support.

About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices, and products for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.4 billion in 1997. (NYSE: AMD).

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements regarding AMD microprocessors that involve risks and uncertainties that could cause actual results to differ materially including the timely development and market acceptance of new products, the impact of competitive products and pricing, the timely development of wafer fabrication process technologies, the effect of changing economic conditions, and such risks and uncertainties detailed from time to time in the company's SEC reports.