AMD Supports Office Of Management and Budget Memorandum Enforcing Neutral Specification Guidelines in Government Procurement

- OMB Memo Sends Strong Message to Government Agencies: Eliminate the Use of Brand Name Specifications in Contracts -

SUNNYVALE, CA -- 4/14/2005 -- AMD (NYSE: AMD) released the following statement today regarding the Office of Management and Budget’s (OMB) memorandum reinforcing the need for all chief acquisition officers, chief information officers and senior procurement officers in the government to maintain neutral contract specifications and asking them to comply with the Federal Acquisition Regulation (FAR) requirements on brand name specifications:

“We are pleased that the OMB is taking positive steps to address government agencies that are increasingly engaging in closed IT procurement bidding practices by stipulating certain brands in contracts,” said Sue Snyder, AMD vice president, international policy and relations and executive legal counsel. “Competitive procurement practices help ensure that public authorities have more choices and get the best value for taxpayer money. The OMB’s efforts to support open and lawful procurement are a positive step in encouraging fair and open competition.”

The memo addresses the ongoing concern that government agencies are increasingly using closed bidding practices by specifying certain brands in computer hardware – a practice that unnecessarily costs taxpayers money, and stifles competition and innovation in the IT industry.

Closed bidding practices deprive agencies the freedom to choose which product may be best suited to meet their needs, effectively blocking them from purchasing the right solution at the appropriate cost. When the government promotes a single brand to the exclusion of others, it discourages competitive pricing and product innovation.

AMD’s Position on Fair and Open Competition
AMD stands for fair and open competition and the value and variety competition delivers to consumers. Businesses and consumers should have the freedom to choose from a range of competitive products that come from continuous innovation on a level playing field where everybody plays by the same set of rules. When market forces work, consumers have choice and everyone wins.

About AMD
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