AMD likes Austria and Ireland's Procurement Practices

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AMD likes Austria and Ireland's Procurement Practices

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AMD Welcomes Actions by Austria and Ireland to Promote Competition in Government IT Procurement Practices

- Governments issue new guidelines aimed at eradicating discrimination in public tenders-
SUNNYVALE, CA-OCTOBER 5, 2005-AMD (NYSE: AMD) supports the publication
of new computer hardware procurement guidelines by Austria's
Bundeskanzleramt and the National Public Procurement Policy Unit (NPPPU)
of Ireland's Department of Finance. The guidelines are intended to
assist procurement authorities in the two countries promote competition
and obtain the best technology at the best price by avoiding
descriptions that could lead to discriminatory and non-competitive bids.

"AMD welcomes the Austrian and Irish governments' actions precisely
because they are designed to fuel competition in public technology
procurement," said Giuliano Meroni, AMD's corporate vice president,
Sales and Marketing, for Europe, the Middle East and Africa. "In
countries across Europe and around the world, ensuring that public
sector IT procurement is based on tried and true principles of fair and
open competition brings value to taxpayers and governments alike. By
taking measures to eliminate discrimination based on product or brand
names or other partial technical features, governments worldwide can
ensure that they obtain the best technology at the best price."

The use of certain supplier brands or products in public tender
documents as well as of some partial technical features such as the
clock rate or the cache of the microprocessor are illegal under
established European Union procurement law (e.g. EU directive .93/36).
The publication of the Austrian and Irish guidelines follows similar
publications already issued by the Belgian, French, German, Italian,
Swedish, UK, Japanese, Canadian and U.S. governments.

The guidelines issued by the Irish NPPPU stipulate that "in the award of
public contract, contracting authorities must avoid the use of
restrictive technical specifications...Technical specifications must not
refer to a specific brand, source, trade mark, patent or particular
process which would have the effect of favouring or eliminating certain
undertakings or certain products." Instead, the NPPPU stipulates the use
of performance-based specifications using appropriate benchmark
methodologies, specifically SYSmark(r) 2004. The full text of
NPPPU-issued Guidance on use of Generic Technical Specifications can be
found on http://www.etenders.gov.ie/guides/Guide ... spx?id=523

The Austrian Bundeskanzleramt guidelines similarly forbid the use in
public tenders of brand names and other parameters such as the clock
rate of the microprocessor that are not directly related to
performances, because of their discriminatory nature. Instead, the
Bundeskanzleramt designates that technical specifications should include
a general use-based description of the computer, the type of processors
it requires, and guidelines for benchmark procedures. The full text of
its circular regarding technical specifications for invitations for
tenders in the IT field can be found on
http://www.bka.gv.at/Docs/2005//1/18/IT ... bungen.pdf

AMD's Position on Fair and Open Competition

AMD stands for fair and open competition and the value and variety
competition delivers to consumers. Businesses and consumers should have
the freedom to choose from a range of competitive products that come
from continuous innovation on a level playing field where everybody
plays by the same set of rules. When market forces work, consumers have
choice and everyone wins.

About AMD

AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash
memory devices and low-power processor solutions for the computer,
communications and consumer electronics industries. AMD is dedicated to
delivering standards-based, customer-focused solutions for technology
users, ranging from enterprises to government agencies and individual
consumers. For more information visit http://www.amd.com
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