On July 24, 2006, AMD and ATI announced a plan to join forces, in a transaction that will combine AMD’s technology leadership in microprocessors with ATI’s strengths in graphics, chipsets and consumer electronics. The result is a processing powerhouse: a new competitor, better equipped to drive growth, innovation and choice for its customers in commercial and mobile computing segments and in rapidly-growing consumer electronics segments. The transaction, valued at US $5.4 billion, is expected to close in Q4 2006 subject to approval by ATI shareholders, court approval, regulatory approvals and other customary closing conditions.

Headquartered in Sunnyvale, California with centers of excellence around the world, the new company will have a combined workforce of approximately 14,900 employees. This transaction breaks new ground for both companies and is expected to provide increased customer benefits in four key technology areas:

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