MIPS Technologies Welcomes AMD As Newest Licensee

MOUNTAIN VIEW and SUNNYVALE, Calif., February 5, 2002 - MIPS Technologies, Inc. (Nasdaq: MIPS, MIPSB), a leading provider of industry-standard processor architectures and cores for digital consumer and network applications, today welcomed semiconductor giant AMD (NYSE: AMD) as the newest member of MIPS Technologies' global licensee base that is using the MIPS architecture to gain design wins within the burgeoning worldwide wireless and wired device marketplaces.

AMD today announced the acquisition of Alchemy Semiconductor, an Austin-based startup that has been spearheading the development of the MIPS32[tm] architecture for the high performance, low-power microprocessor market. Personal connectivity devices such as personal digital assistants (PDAs), web tablets, gateways and portable Internet access devices require increased performance and lower power consumption over current technology offerings to provide consumers the features associated with "next-generation" applications. Alchemy's MIPS32-based products are designed to address these types of market requirements.

Alchemy Semiconductor was founded in 1999 by several of the most prominent microprocessor architects and developers in the world, including many members of the design team that created the StrongARM architecture. After licensing the MIPS32 architecture, Alchemy developed multiple ultra-low power, high-performance MIPS-based embedded processors that earned industry awards. Alchemy also drove a series of partnerships with technology leaders such as Microsoft, Monta Vista, Philips Semiconductor, Epson and others that increased the visibility of the MIPS architecture within the marketplace.

"Throughout its twenty-year history, the MIPS architecture has successfully scaled the entire spectrum of semiconductor designs," said Dr. Billy Edwards, vice president and general manager of AMD's Personal Connectivity Solutions group. "Alchemy's MIPS-based solutions provide an excellent architecture for addressing the performance and power requirements of the emerging Internet access device market. We look forward to expanding upon these current offerings to become a leader in this high-growth market segment."

"Today's combination is a validation of Alchemy Semiconductor's technology, innovation, and business plan," said Jim Moore, chief executive officer of Alchemy Semiconductor. "There is a great synergy between the customers, technologies, and cultures of these two companies that makes AMD and Alchemy a natural fit. This combination will allow Alchemy to continue its strong growth trajectory while invigorating our business plan with resources that only a large company like AMD can supply."

"We are pleased that AMD has chosen our long-time partner Alchemy Semiconductor - and the MIPS architecture - as a technology platform which will become a key part of its future strategy," said John Bourgoin, chairman and CEO of MIPS Technologies. "MIPS Technologies looks forward to working with AMD and others to further drive MIPS-based solutions into an increasing number of markets and applications. I also thank the entire team at Alchemy Semiconductor for their dedication and devotion to the MIPS community."

About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's 500 company, produces microprocessors, flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE: AMD).

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About MIPS Technologies
MIPS Technologies, Inc. is a leading provider of industry-standard processor architectures and cores for digital consumer and network applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, Calif., and can be reached at +1 (650) 567-5000 or www.mips.com.

MIPS® is a registered trademark in the United States and other countries, and MIPS32[tm] and MIPS-based[tm] are trademarks of MIPS Technologies, Inc. All other trademarks referred to herein are the property of their respective owners.