Advanced Micro Devices, Inc. Announces Price To Be Paid For 11 Percent Senior Secured Notes Due 2003 Tendered in Tender Offer

SUNNYVALE, CA -- 7/31/2000 -- Advanced Micro Devices, Inc. ("AMD") announced today that it has determined the price to be paid for its 11 percent Senior Secured Notes due 2003 (the "Notes") tendered pursuant to AMD's Offer to Purchase and Consent Solicitation Statement dated July 6, 2000.

The purchase price for each $1,000 principal amount of Notes validly tendered and not withdrawn prior to 5:00 p.m., New York City time, on August 2, 2000, will be $1,064.35. The purchase price will be in addition to accrued and unpaid interest to, but not including, the payment date, which AMD currently expects to be August 4, 2000.

In conjunction with its tender offer, AMD is also soliciting consents from the registered holders of the Notes to effect certain amendments to the indenture under which the Notes were issued. In addition to the purchase price, holders who provided their consents to the proposed amendments and tendered their Notes by the Consent Payment Deadline, which was 5:00 p.m., New York City time, on July 19, 2000, will also receive a consent payment of $25.00 per $1,000 principal amount of Notes tendered and accepted for purchase pursuant to the tender offer in addition to the purchase price. A majority in aggregate principal amount of the outstanding Notes is required to adopt the proposed amendments to the indenture. As of the Consent Payment Deadline, AMD had obtained consents and tenders from registered holders of the Notes representing more than 85 percent of the $400,000,000 aggregate principal amount of the outstanding Notes.

The tender offer and consent solicitation is currently scheduled to expire at 5:00 p.m., New York City time, on August 2, 2000, unless extended by AMD. Holders of Notes who have not already done so must properly tender their Notes and consent to the proposed amendments on or prior to 5:00 p.m., New York City time, on August 2, 2000, in order to be eligible to receive the purchase price.

Salomon Smith Barney is the dealer manager and solicitation agent and Georgeson Shareholder Communications Inc. is the information agent for the tender offer and the consent solicitation. Requests for documentation should be directed to the information agent at (800) 223-2064. Questions regarding the transaction should be directed to Salomon Smith Barney at (800) 558-3745.

This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consent with respect to any Notes. The tender offer and consent solicitation are being made solely by the Offer to Purchase and Consent Solicitation Statement.