AMD Comments on Intel's Answer to AMD'S U.S. Federal District Court Antitrust Complaint

"Intel's response is not surprising considering what they aretrying to hide, but the facts of illegal monopoly abuse are clear andundeniable," said Thomas M. McCoy, AMD executive vice president, legalaffairs and chief administrative officer. "Intel's anticompetitivebusiness practices are under intense scrutiny by governments aroundthe world. The Fair Trade Commission of Japan found Intel guilty ofantitrust violations that harmed consumers based on direct evidence,and still Intel refuses to acknowledge wrongdoing. Intel's illicitconduct forces customers and consumers to pay artificially higherprices and limits their ability to choose the best productsavailable."

On June 27th, AMD filed an antitrust lawsuit against Intel underSection 2 of the Sherman Antitrust Act, and Sections 4 and 16 of theClayton Act, as well as the California Business and Professions Code.The complaint addresses how Intel has unlawfully maintained its x86microprocessor market monopoly by engaging in worldwide coercion ofcustomers to refrain from dealing with AMD. To view the full text ofthe complaint, visit http://www.amd.com/breakfree.

"We look forward to presenting our evidence in front of the entireindustry and the entire world. Let's put the truth on the table andlet the court decide," McCoy continued.

The Japanese Government recognized Intel's competitive harms onMarch 8, 2005, when its Fair Trade Commission (JFTC) recommended thatIntel be sanctioned for its exclusionary misconduct directed at AMD.Intel chose not to contest the charges. AMD Japan also filed twoclaims against Intel K.K., its Japanese subsidiary, in the Tokyo HighCourt and Tokyo District Court for antitrust violations.

Additionally, the European Commission -- in coordination withnational competition authorities -- recently raided Intel officesacross Europe, as well as a number of other IT firms manufacturing orselling computers, as part of its ongoing investigation into Intel forantitrust violations.

South Korean antitrust authorities are also investigating themarketing and rebate practices of Intel. They have conductedpreliminary investigations into five South Korean PC makers suppliedby Intel for the case and asked Intel to provide related documents bythe end of August.

AMD's Position on Fair and Open Competition

AMD stands for fair and open competition and the value and varietycompetition delivers to the marketplace. Innovative AMD technologyallows users to break free to reach new levels of performance,productivity and creativity. Businesses and consumers should have thefreedom to choose from a range of competitive products that come fromcontinuous innovation. When market forces work, consumers have choiceand everyone wins. For more information, please visithttp://www.amd.com/breakfree.

About AMD

AMD (NYSE:AMD) designs and produces innovative microprocessors,Flash memory devices and low-power processor solutions for thecomputer, communications and consumer electronics industries. AMD isdedicated to delivering standards-based, customer-focused solutionsfor technology users, ranging from enterprises to government agenciesand individual consumers. For more information, visit www.amd.com.

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