AMD CEO Hector Ruiz Advises Congress That Innovation, Competition Are Keys to Ensuring U.S. Competitiveness in 21st Century

-- Warns U.S. Leadership at Risk in Globalized Economy

-- Cites Increased Federal Support for Research and Education; Fair and Open Competition as Critical Success Factors in Testimony Before House Committee on Government Reform

Innovation and competition are vital to U.S. competitiveness inthe 21st century, said AMD (NYSE:AMD) Chairman and Chief ExecutiveOfficer Hector Ruiz in testimony before the U.S. House ofRepresentatives' Committee on Government Reform today.

"Here's the bottom line: You can't have competitiveness withoutcompetition," said Ruiz. "All the investment, research and specializededucation in the world won't amount to a growing, dynamic economywithout competition."

Ruiz continued, "Competition is the heart and soul of innovation.It's what drives us to turn innovation into real advantages forconsumers and citizens. That's the key to U.S. competitiveness in the21st century, and we have a responsibility to ensure that no one issheltered from it."

In his testimony, Ruiz outlined three keys to enhancing U.S.competitiveness. "First, fair and open competition is essential to ourcountry's competitiveness. Second, government procurement practicesshould act as a model for fair competition -- obtaining the bestpossible technology for the lowest possible cost on behalf oftaxpayers. And finally, investment in K-12 education is the best wayto make sure that we have a competitive society -- not justcompetitive economic sectors."

Citing the results of a recent AMD-commissioned study by R.Preston McAfee, J. Stanley Johnson Professor of Business, Economicsand Management at the California Institute of Technology, Ruiz toldCommittee members that brand-name specifications in governmentprocurement contracts for computer hardware have potentially costAmerican taxpayers upwards of $563 million. He asserted that thepublic sector should serve as an example of fair and open competitionfor the private sector, and that the U.S. government should adoptperformance-based specifications in federal procurement contracts.

He also urged members of the Committee to invest in the future byimproving the nation's public education system and promoting ongoingworkforce training, increasing federal investment in basic researchand development, making the research and development tax creditpermanent, and building a public policy infrastructure that encouragesand supports innovation in both the public and private sector.

Ruiz called upon leaders in the private sector to formcollaborative partnerships with other leaders in business, governmentand academia around the world to advance these goals. He pointed toAMD's groundbreaking 50x15 initiative, a commitment to empower 50percent of the world's population with affordable Internet access bythe year 2015, as an example. Ruiz explained that America's futurecompetitiveness is directly intertwined with the success of othernations. He said the United States should encourage other nations intheir efforts to grow their economies and enhance their owncompetitiveness, because more competition will benefit all in the end.

For a copy of Mr. Ruiz's written testimony, please visitwww.amd.com/breakfree.

AMD's Position on Fair and Open Competition

AMD stands for fair and open competition and the value and varietycompetition delivers to the marketplace. Innovative AMD technologyallows users to break free to reach new levels of performance,productivity and creativity. Businesses and consumers should have thefreedom to choose from a range of competitive products that come fromcontinuous innovation. When market forces work, consumers have choiceand everyone wins. For more information, please visithttp://www.amd.com/breakfree.

About AMD

Advanced Micro Devices (NYSE:AMD) is a leading global provider ofinnovative microprocessor solutions for computing, communications andconsumer electronics markets. Founded in 1969, AMD is dedicated todelivering superior computing solutions based on customer needs thatempower users worldwide. For more information visit www.amd.com.

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