Under the terms of the settlement, AMD will acknowledge MMX as a trademark owned by Intel. AMD, in turn, will have rights to use the mark in the worldwide marketing of its sixth-generation AMD-K6™ processors. For example, AMD and its customers in any country can promote the AMD-K6 processor as "MMX™ Enabled" or "MMX™ Enhanced."

"We are very pleased to have this issue resolved for both ourselves and our customers," said Thomas McCoy, AMD vice president and general counsel. "Our agreement with Intel secures for AMD and its customers the ability, on a worldwide basis and in all channels of distribution, to continue promoting the MMX capabilities of the AMD-K6 processor, including the use of the term in the AMD-K6 processor logo. The settlement eliminates the potential for any confusion in the marketplace caused by protracted litigation in a number of different countries. The agreement also addresses and resolves non-related trademark issues that were the source of other potential disputes between AMD and Intel."

"This agreement is the result of several months of discussion between the two companies," said Peter Detkin, director of litigation for Intel Corporation. "We are gratified that both AMD and Intel have been able to reach an agreement which recognizes our rights and serves both our interests and ultimately benefits our PC customers and consumers."

Intel, the world¹s largest chip maker, is also a leading manufacturer of personal computer, networking and communications products. Information about Intel is available from the company's site on the World Wide Web at URL http://www.intel.com/pressroom.

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 billion in 1996. (NYSE: AMD). Press announcements and other information about AMD are available on the Internet via the World Wide Web. Type http://www.amd.com at the URL prompt.