AMD Applauds Initiative Designed To Ensure Fair Competition In Chinese Government IT Procurement

- China’s Three Most Influential IT Industry Associations Launch Joint Initiative to End Brand-Specific Procurement Tenders -

BEIJING -- March 6, 2006 --AMD (NYSE: AMD) announced today that it supports a new initiative launched jointly by China’s three most influential IT industry associations designed to ensure fair competition in government IT procurement. The Initiative for No Pre-specified Brand in Computer Tendering was jointly announced in Beijing by the China Computer Users Association (CCUA), the China Computer Federation (CCF), and the China Semiconductor Industry Association (CSIA).

“AMD appreciates the decision by China’s top IT industry associations to actively promote brand-neutral specifications in government IT procurement tenders,” said Ms. Karen Guo, AMD corporate vice president and president of AMD Greater China. “We are hopeful that China will adopt a brand-neutral approach in IT procurement as a result of the joint initiative, which is a great step forward toward realizing the many benefits of fair and open competition. Time and again, the facts demonstrate that taking a brand-neutral, performance-based approach when drafting IT procurement tenders enables government agencies to obtain the best technologies at the most affordable prices, and that always saves taxpayers money.”

The central government and many local governments throughout China have adopted detailed regulations designed to promote and protect the principles of fair and open competition in government procurement. The Government Procurement Law of the People’s Republic of China (PRC) and the Tendering and Bidding Law of the PRC require that government procurement agencies abide by the principles of openness, fairness, and equality. Moreover, procurement tender documents must not designate specific brands or products of specific manufacturers, and tender documents must not exclude or discriminate against qualified potential bidders.

Today, governments around the world are becoming increasingly aware of the pitfalls associated with “closed door” procurement practices. In the past two years, governments of many countries, including Argentina, Austria, Belgium, Canada, Finland, France, Germany, Ireland, Italy, Japan, Sweden, the UK, and the US, have announced to be neutral to manufacturers in government procurement. They have removed stipulations on designated brands for processors, thus paving the way for government users to have more choices. The European Commission noted in a 2004 study that application of its new procurement rules has reduced prices by approximately 30 percent.

For more information regarding best practices in government procurement and fair and open competition in-general, please visit http://www.amd.com/breakfree.

AMD’s Position on Fair and Open Competition
AMD stands for fair and open competition and the value and variety competition delivers to the marketplace. Innovative AMD technology allows users to break free to reach new levels of performance, productivity and creativity. Businesses and consumers should have the freedom to choose from a range of competitive products that come from continuous innovation. When market forces work, consumers have choice and everyone wins. For more information, please visit http://www.amd.com/breakfree.

About AMD
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