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- AMD teraFLOPS chip powering the Cinema 2.0 demo is more powerful than every generation of game console ever brought to market combined; achieves industry milestone that was presumed to be years away -

Mumbai, India – July 08, 2008 – AMD (NYSE:AMD) demonstrated a milestone achievement in ultra-realistic and interactive visual computing through the processing power of its teraFLOPS (trillion floating point operations per second) graphics cards, the ATI Radeon™ HD 4850 and ATI Radeon™ HD 4870.

Until today, content developers had to choose between cinematic realism rendered offline and absent of the rewarding sensory experience of interactivity, or an interactive experience that fell well short of photorealism. Today’s demonstration of what AMD terms the “Cinema 2.0 experience” punches a sizeable hole in the sensory barrier that separates today’s visionary content creators and the interactive experiences they desire to create for audiences around the world. The Cinema 2.0 demo shows the fusion of dynamic real-time interactivity with convincing cinematic digital effects that deliver environments rivaling the realism of video.

The AMD advancements in processing technology can now begin combining with the artistic passion of top ‘Bollywood’ movie directors, visual effects companies and game developers across India.

Dasaradha Gude, Managing Director, AMD India commented on how technology is increasingly closing the gap between cinema and gaming, revolutionizing the way they are being created and experienced in India. “You’re passive when you watch films. The game industry is interactive. But there are also limitations in video games. They don’t perfectly match the visual impact of cinema,” Gondal explained. “In each genre, the content directors want to take the experience to that next level, but until today, they just didn’t have the technology. The Holy Grail of Cinema 2.0 is taking the visual fidelity of films and pairing it with the interactivity of games, blurring the line between the two.”

“With Cinema 2.0 you won’t just watch movies, you’ll play in them,” said Raja Koduri, chief technology officer, Graphics Processing Group, AMD. “Imagine the ability to look around the environment in a sci-fi movie, put yourself in the driver’s seat in a race scene, duck behind things and pop up to see what’s going on in an intense gun fight – all of these things are possible with Cinema 2.0. The challenge for any director has always been taking a wonderful vision in the canvas of the mind and translating that to film for the audience to see. Cinema 2.0 breaks down the time and cost barriers of getting a scene or shot that’s ‘just right’, and what’s better, allows audiences to dive deeper into the experience to explore every part of that director’s vision.”

The secret of Cinema 2.0 is the blending of highly complex and realistic graphics that traditionally are the exclusive domain of blockbuster films, with the dynamic 3D interactivity of popular video games. Before now, a typical computer-generated scene could take up to 30 hours to render each frame on CPUs. To achieve the smooth interactivity seen in today’s games, a minimum of 25 to 30 frames per second of rendering speed is needed. Based on these numbers, conventional wisdom amongst prominent game developers and expert computer graphics artists estimated a Cinema 2.0-like technological milestone to be up to ten years away.

TeraFLOPS AMD Chip Accelerates Cinema 2.0 into the Present

AMD recently introduced the world’s highest performing graphics processor – a chip more powerful than every generation of video game console ever brought to market combined, with one full teraFLOPS of processing power per chip. This technology is available as the ATI Radeon™ HD 4850 and the ATI Radeon™ HD 4870.

AMD technology represents one foundational part of the ecosystem needed for Cinema 2.0, with the upcoming AMD graphics processor serving as a grand canvas for leading content creators. To bring Cinema 2.0 to life as a mainstream phenomenon, AMD is collaborating with movie directors and game developers, as well as software developers making the tools to harness many teraFLOPS of real-time visual computing power.

For more information on Cinema 2.0 and the technology that makes it possible, and to hear what top game developers and gamers have to say, visit www.amd.com/cinema2.

Cinema 2.0 Demo System Specifications

The Cinema 2.0 demo system in Mumbai featured two ATI Radeon™ HD 4870 graphics cards rated at over one teraFLOPS each, driven by an AMD Phenom™ X4 9850 quad-core processor and AMD 790 FX Chipset.

About AMD

Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative processing solutions in the computing, graphics and consumer electronics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. For more information, visit http://www.amd.com.

—ends—

©2008, Advanced Micro Devices, Inc. AMD, the AMD Arrow logo, ATI, the ATI logo, Radeon, The Ultimate Visual Experience and combinations thereof, are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

Cautionary Statement

This release contains forward-looking statements concerning product and technology introduction schedules and product features and performance capabilities, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation’s pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities targeting AMD’s business will prevent attainment of AMD’s current plans; AMD will require additional funding and may not be able to raise funds on favorable terms or at all; customers stop buying the company’s products or materially reduce their operations or demand for its products; the company will be unable to develop, launch and ramp new products and technologies in the volumes and mix required by the market and at mature yields on a timely basis; demand for computers and consumer electronics products and, in turn, demand for the company’s products will be lower than currently expected; there will be unexpected variations in market growth and demand for the company’s products and technologies in light of the product mix that it may have available at any particular time or a decline in demand; the company will be unable to transition to advanced manufacturing process technologies in a timely and effective way, consistent with planned capital expenditures; and the company will be unable to maintain the level of investment in research and development and capacity that is required to remain competitive. Investors are urged to review in detail the risks and uncertainties in the company’s Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2008.



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