AMD and Gateway Sign First Relationship Agreement

--Agreement To Provide Customers With A Broader Choice Of PC Offerings--

AUSTIN, TX -- 2/19/1999 -- AMD today announced it has signed its first relationship agreement with Gateway. Under the terms of the agreement, AMD and Gateway will collaborate on future PC and system products to better serve the customer by providing a comprehensive choice of microprocessors in Gateway systems.

"Our decision to diversify our supplier base with AMD will allow Gateway to continue providing clients with the best computing value to meet their needs without compromising on features or computing speed," said Jim Booth, vice president of Global Materials and Supply Management, Gateway. "We made the decision to take advantage of AMD's offerings to add flexibility to our product line and to give our customers choice. Between our business and consumer segments, we have more than 600,000 PC configurations available to meet the specific requirements of our clients."

"Nine of the top 10 worldwide PC vendors are shipping systems based on AMD-K6-2® processors. Customers are speaking out and demanding more options in their PCs and OEMs are listening," said Rob Herb, senior vice president and co-chief marketing executive at AMD. "By providing OEMs with a choice, they can select from a wider range of products and solutions and this will ultimately benefit the end users."

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 involves risks and uncertainties, including whether the relationship between the companies will result in development of computer systems across a variety of price and performance points. Investors are urged to consult the risks and uncertainties detailed in the company reports filed with the Securities and Exchange Commission.