AMD (NYSE: AMD) and ATI (TSX: ATY, NASDAQ: ATYT) today announced plans to join forces in a transaction valued at approximately $5.4 billion.

ATI has agreed to pay AMD a termination fee of $162.0 million under circumstances specified in the acquisition agreement.

INFO SOURCES

AMD (NYSE: AMD) and ATI (TSX: ATY, NASDAQ: ATYT)

FIRMS

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.

ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost graphics processor unit (GPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With fiscal 2005 revenues of US $2.2 billion, ATI has approximately 4,000 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).

ADVISORS

TRANSACTION

Under the terms of the transaction, AMD will acquire all of the outstanding common shares of ATI for a combination of $4.2 billion in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21, 2006. All outstanding options and RSUs of ATI will be assumed. Based upon the closing price of AMD common stock on July 21, 2006 of $18.26 a share, the consideration for each outstanding share of ATI common stock would be $20.47, comprised of $16.40 of cash and 0.2229 shares of AMD common stock.

PRIOR ACQUISITIONS - ATI

Year Acquired  | Company and details

2005 | CuTe Solutions Pvt. Ltd., audio and digital media solutions provider

2005 | (select assets) Terayon Communication Systems, Inc., acquired Terayon's cable modem silicon intellectual property

2003 | (select assets) AMI Technologies, a sales & marketing organization

2002 | NxtWave Communications, an industry leader in demodulation technology

2001 | FGL Graphics, maker of advanced graphics accelerators -  division of SONICblue

2001  | Hydravision, software & multi-monitor display capability

2000 | ArtX, a leader in visual processing and integrated graphics

1998 | Chromatic Research, Inc.

1997 | Graphics Design Assets of Tseng Labs

FORMER NAMEs - ATI

Array Technology Inc.; Array Technologies Inc.