AMD and Palm Sign Flash Memory Supply Agreement

AMD and Palm Sign Flash Memory Supply Agreement

Sunnyvale and Santa Clara, CA. -- 1/17/2001 -- AMD (NYSE: AMD) and Palm, Inc. (Nasdaq: PALM), a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers, today announced that Palm has named AMD its primary provider of Flash memory devices through 2003.

"Since the introduction of our first handheld computer in 1996, Palm has shipped more than 11 million handhelds, including 2.1 million units in our last fiscal quarter. This new agreement with AMD represents an important step forward in our continuing efforts to obtain increasing volumes of best-of-breed components to support our planned growth," said Dinesh Raghavan, vice president of Global Supply Chain Operations at Palm, Inc. "AMD's industry-leading Flash technology will help Palm™ products remain among the most competitive handheld solutions on the market and provide Palm handheld users with the ability to upgrade their handhelds with future editions of the Palm OS®."

"AMD is extremely excited about our alliance with Palm, the pioneer and leader in the handheld marketplace," said Walid Maghribi, group vice president of AMD's Memory Group. "AMD's innovative chip-scale packaging and advanced power management will help Palm deliver platforms with a smaller form factor and longer battery life. This agreement underscores AMD's strategy to diversify its penetration into the highest growth markets for Flash memory."

About AMD Flash Memory Devices
AMD technology is employed by the world's largest producer of Flash memory devices, Fujitsu AMD Semiconductor Ltd. (FASL). AMD Flash memory products encompass a broad spectrum of densities and features to support a wide range of markets. AMD Flash memory customers represent leaders in the automotive, networking, telecommunications, and handheld mobile terminal markets. AMD offers many Flash memory products, such as the award-winning Simultaneous Read-Write (SRW) product family; Super Low Voltage 1.8V Flash memory devices; and Burst- and Page-Mode devices. AMD developed the robust Known Good Die (KGD) program and the patented negative gate erase technology, and refined the industry-standard Fine-pitch Ball Grid Array (FBGA).

All AMD Flash memory devices are guaranteed by AMD for a minimum of one million write cycles per sector and 20 years' data retention, making them the most reliable non-volatile memory devices in the industry.

About Palm, Inc. Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers (source: IDC, December 1999). Based on the Palm OS(R) platform, Palm's handheld solutions allow people to carry and access their most critical information with them wherever they go. Palm handhelds address the needs of individuals, enterprises and educational institutions through thousands of application solutions. The Palm OS platform is also the foundation for products from Palm's licensees and strategic partners, such as CreSenda Wireless; ePocrates, Inc.; Franklin Covey; Handspring; IBM; Sony; Symbol Technologies; and TRG. Platform licensees also include Kyocera and Samsung. The Palm Economy is a growing global community of industry leading licensees, world class OEM customers, and more than 130,000 innovative developers and solution providers that have registered to develop solutions based on the Palm OS platform. Palm went public on March 2, 2000. Its stock is traded on the Nasdaq national market under the symbol PALM.