Raza Microelectronics, Inc. and AMD Announce Broad Strategic Relationship, Transfer of AMD Alchemy Processor Product Line

Acquisition of Alchemy Product Line is Key Part of Relationship Accelerating RMI’s Growth and Bolstering its MIPS^® based Product Offering

CUPERTINO, CALIF. AND SUNNYVALE, CALIF. -- June 13, 2006 --Raza Microelectronics, Inc. (RMI^®), a worldwide leader in advanced semiconductor solutions for the next-generation Information Infrastructure, and AMD (NYSE: AMD) today announced that the two companies have entered into a broad strategic relationship.

As a key part of this cooperation, RMI will acquire the MIPS-based AMD Alchemy™ processor product line and operations from AMD, and AMD will become an investor in RMI. The Alchemy product line acquisition forms the basis for a broad strategic relationship between AMD and RMI to cooperate in a number of different areas, including the recently announced "Torrenza" platform.

“We are extremely pleased to enter into a strategic relationship with AMD and to bring them on as an investor. RMI is continuing to expand its product offerings and customer base, and the acquisition of the Alchemy product family bolsters our portfolio significantly,” said Atiq Raza, chairman and chief executive officer, RMI. “Having a high-performance offering optimized for low-power applications enables us to leverage our existing successes in the networking and security markets and significantly extends our customer penetration into the Consumer Electronics markets. RMI endorses AMD64 as the innovation platform for the industry, and fully embraces the ‘Torrenza’ ecosystem development initiative.”

Both AMD and RMI have committed to a seamless customer transition and RMI is committed to a significant investment in designing and extending the Alchemy product family and roadmap.

“RMI is a well-respected company and we believe that RMI is in an excellent position to leverage their MIPS technology leadership to invest in the future growth of the world-class Alchemy processor family,” said Hector Ruiz, chairman of the board and chief executive officer of AMD. “We anticipate that the cooperation between AMD and RMI will help further accelerate RMI’s success while benefiting Alchemy customers, and we look forward to participating in that future success.”

The Alchemy product family from AMD consists of a portfolio of processors that are designed to address customer needs for high-performance, low-power embedded solutions. The technologies offered in the Alchemy processor line cover a wide range of applications targeted at multimedia, access and computing devices as well as growth opportunities in the communications and consumer markets.

RMI’s products push the edge of processor technology in performance and integration and are used by system and original equipment manufacturers to quickly respond to changing market needs. The company’s XLR™ and Orion™ processor families are complex, highly-integrated designs incorporating hundreds of millions of transistors and built on leading-edge TSMC silicon process technologies.

About Raza Microelectronics, Inc. (RMI)
RMI^® is a fabless semiconductor company with more than 150 employees dedicated to the design, development and sale of its cutting-edge semiconductor products. The company offers a rich portfolio of solutions, led by the XLR™ Processor family – a power-efficient solution optimized for embedded communications and networking applications – and solutions for the next-generation Information Infrastructure. The company is headquartered in Cupertino, CA with subsidiaries in Beijing and Shenzhen, China, Tokyo, Japan and Bangalore, India. More information about Raza Microelectronics, Inc. can be found on the Company's website at www.razamicroelectronics.com.

About AMD
Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide. For more information visit www.amd.com.

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