AMD Announces Proposed Sale and Lease-back of AMD Singapore Facility to Sabana Shari’ah Compliant Industrial Real Estate Investment Trust

SUNNYVALE, Calif. —8/22/2013 

AMD (NYSE: AMD) today announ­ced that its Sin­ga­po­re sub­si­dia­ry, Advan­ced Micro Devices (Sin­ga­po­re) Pte Ltd. (AMD Sin­ga­po­re), has ente­red into a con­di­tio­nal put-and-call opti­on agree­ment to sell and lea­se-back its Sin­ga­po­re faci­li­ty loca­ted at 508 Chai Chee Lane, Sin­ga­po­re 469032 to HSBC Insti­tu­tio­nal Trust Ser­vices (Sin­ga­po­re) Limi­t­ed, in its capa­ci­ty as trus­tee of Saba­na Shari’ah Com­pli­ant Indus­tri­al Real Estate Invest­ment Trust (Saba­na REIT). The tran­sac­tion is expec­ted to gene­ra­te pro­ceeds of appro­xi­m­ate­ly 59 mil­li­on Sin­ga­po­re dol­lars (USD$46 mil­li­on), net of all fees, which will be reflec­ted in AMD’s third quar­ter 2013 finan­cial state­ments when repor­ted on Oct. 17, 2013. AMD expects to record a gain of appro­xi­m­ate­ly $16 mil­li­on in the third quar­ter of 2013. AMD Sin­ga­po­re will con­ti­nue its ope­ra­ti­ons in a por­ti­on of the Sin­ga­po­re faci­li­ty and has nego­tia­ted a 10-year sub-lea­se agree­ment with Saba­na REIT with exten­si­on opti­ons to con­ti­nue tho­se ope­ra­ti­ons. The sub-lea­se would be effec­ti­ve upon the clo­se of the sale of the property.

Pri­or to tran­sac­tion clo­se, AMD Sin­ga­po­re needs to secu­re final appr­oval from the JTC Cor­po­ra­ti­on (JTC), the Sin­ga­po­re enti­ty tas­ked with mana­ging the country’s indus­tri­al infra­struc­tu­re. The com­pa­ny anti­ci­pa­tes secu­ring all requi­red appr­ovals from the JTC as part of clo­sing the transaction.

The sale of AMD’s Sin­ga­po­re faci­li­ty is in kee­ping with AMD’s stra­tegy to redu­ce invest­ments and capi­tal in non-core parts of the busi­ness, inclu­ding real estate. AMD laun­ched ope­ra­ti­ons in Sin­ga­po­re in 1984 and remains com­mit­ted to the site as a vital part of the company’s glo­bal ope­ra­ti­ons. In 2012, AMD Sin­ga­po­re com­ple­ted its trans­for­ma­ti­on from a high-volu­me manu­fac­tu­ring site to an engi­nee­ring cen­ter of excel­lence and curr­ent­ly employs appro­xi­m­ate­ly 500 people.

About AMD

AMD (NYSE: AMD) designs and inte­gra­tes tech­no­lo­gy that powers mil­li­ons of intel­li­gent devices, inclu­ding per­so­nal com­pu­ters, tablets, game con­so­les and cloud ser­vers that defi­ne the new era of sur­round com­pu­ting. AMD solu­ti­ons enable peo­p­le ever­y­whe­re to rea­li­ze the full poten­ti­al of their favo­ri­te devices and appli­ca­ti­ons to push the boun­da­ries of what is pos­si­ble. For more infor­ma­ti­on, visit www.amd.com.

Cau­tio­na­ry Statement

This docu­ment con­ta­ins for­ward-loo­king state­ments con­cer­ning AMD, the con­sum­ma­ti­on of a sale-lea­se­back tran­sac­tion, the expec­ted cash gene­ra­ted from the tran­sac­tion, secu­ring requi­red appr­ovals from the JTC, the expec­ted gain from the tran­sac­tion and AMD’s stra­tegy to redu­ce invest­ments and capi­tal in non-core parts of the busi­ness, 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 “belie­ves, “expects,” “may,” “will,” “should,” “seeks,” “intends,” “pro for­ma,” “esti­ma­tes,” “anti­ci­pa­tes,” “plans,” “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 Corp.’s pri­cing, mar­ke­ting and reba­ting pro­grams, pro­duct bund­ling, stan­dard set­ting, new pro­duct intro­duc­tions or other acti­vi­ties may nega­tively impact the company’s plans, that the com­pa­ny will requi­re addi­tio­nal fun­ding and may be unable to rai­se suf­fi­ci­ent capi­tal on favorable terms, or at all; that cus­to­mers stop buy­ing the company’s pro­ducts or mate­ri­al­ly redu­ce their ope­ra­ti­ons or demand for the company’s pro­ducts; that the com­pa­ny may be unable to deve­lop, launch and ramp new pro­ducts and tech­no­lo­gies in the volu­mes that are requi­red by the mar­ket at matu­re yields on a time­ly basis; that the company’s third par­ty foundry sup­pli­ers will be unable to tran­si­ti­on the company’s pro­ducts to advan­ced manu­fac­tu­ring pro­cess tech­no­lo­gies in a time­ly and effec­ti­ve way or to manu­fac­tu­re the company’s pro­ducts on a time­ly basis in suf­fi­ci­ent quan­ti­ties and using com­pe­ti­ti­ve pro­cess tech­no­lo­gies; that the com­pa­ny will be unable to obtain suf­fi­ci­ent manu­fac­tu­ring capa­ci­ty or com­pon­ents to meet demand for its pro­ducts or will not ful­ly uti­li­ze its pro­jec­ted manu­fac­tu­ring capa­ci­ty needs at GLOBALFOUNDRIES (GF) micro­pro­ces­sor manu­fac­tu­ring faci­li­ties; that the company’s requi­re­ments for wafers will be less than the fixed num­ber of wafers that it agreed to purcha­se from GF or GF encoun­ters pro­blems that signi­fi­cant­ly redu­ce the num­ber of func­tion­al die it recei­ves from each wafer; that the com­pa­ny is unable to suc­cessful­ly imple­ment its long-term busi­ness stra­tegy; that the com­pa­ny inac­cu­ra­te­ly esti­ma­tes the quan­ti­ty or type of pro­ducts that its cus­to­mers will want in the future or will ulti­m­ate­ly end up purcha­sing, resul­ting in excess or obso­le­te inven­to­ry; that the com­pa­ny is unable to mana­ge the risks rela­ted to the use of its third-par­ty dis­tri­bu­tors and add-in-board (AIB) part­ners or offer the appro­pria­te incen­ti­ves to focus them on the sale of the company’s pro­ducts; that the com­pa­ny may be unable to main­tain the level of invest­ment in rese­arch and deve­lo­p­ment that is requi­red to remain com­pe­ti­ti­ve; that the­re may 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; that glo­bal busi­ness and eco­no­mic con­di­ti­ons, inclu­ding PC mar­ket con­di­ti­ons, will not impro­ve or will wor­sen; that demand for com­pu­ters will be lower than curr­ent­ly expec­ted; and the effect of poli­ti­cal or eco­no­mic insta­bi­li­ty, dome­sti­cal­ly or inter­na­tio­nal­ly, on the company’s sales or sup­p­ly chain. 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 quar­ter ended June 29, 2013.

AMD and the AMD Arrow logo are trade­marks of Advan­ced Micro Devices, Inc. Other names are for infor­ma­tio­nal pur­po­ses only and may be trade­marks of their respec­ti­ve owners.