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

SUNNYVALE, Calif. ‚ÄĒ8/22/2013 

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 docu¬≠ment con¬≠ta¬≠ins for¬≠ward-loo¬≠king state¬≠ments con¬≠cer¬≠ning AMD, the con¬≠sum¬≠ma¬≠ti¬≠on of a sale-lea¬≠se¬≠back tran¬≠sac¬≠tion, the expec¬≠ted cash gene¬≠ra¬≠ted from the tran¬≠sac¬≠tion, secu¬≠ring requi¬≠red appr¬≠ovals from the JTC, the expec¬≠ted gain from the tran¬≠sac¬≠tion and AMD‚Äôs stra¬≠tegy to redu¬≠ce invest¬≠ments and capi¬≠tal in non-core parts of the busi¬≠ness, which are made pur¬≠su¬≠ant to the safe har¬≠bor pro¬≠vi¬≠si¬≠ons of the Pri¬≠va¬≠te Secu¬≠ri¬≠ties Liti¬≠ga¬≠ti¬≠on Reform Act of 1995. For¬≠ward-loo¬≠king state¬≠ments are com¬≠mon¬≠ly iden¬≠ti¬≠fied by words such as ‚Äúbelie¬≠ves, ‚Äúexpects,‚ÄĚ ‚Äúmay,‚ÄĚ ‚Äúwill,‚ÄĚ ‚Äúshould,‚ÄĚ ‚Äúseeks,‚ÄĚ ‚Äúintends,‚ÄĚ ‚Äúpro for¬≠ma,‚ÄĚ ‚Äúesti¬≠ma¬≠tes,‚ÄĚ ‚Äúanti¬≠ci¬≠pa¬≠tes,‚ÄĚ ‚Äúplans,‚ÄĚ ‚Äúpro¬≠jects,‚ÄĚ and other terms with simi¬≠lar mea¬≠ning. Inves¬≠tors are cau¬≠tio¬≠ned that the for¬≠ward-loo¬≠king state¬≠ments in this release are based on cur¬≠rent beliefs, assump¬≠ti¬≠ons and expec¬≠ta¬≠ti¬≠ons, speak only as of the date of this release and invol¬≠ve risks and uncer¬≠tain¬≠ties that could cau¬≠se actu¬≠al results to dif¬≠fer mate¬≠ri¬≠al¬≠ly from cur¬≠rent expec¬≠ta¬≠ti¬≠ons. Risks include the pos¬≠si¬≠bi¬≠li¬≠ty that Intel Corp.‚Äôs pri¬≠cing, mar¬≠ke¬≠ting and reba¬≠ting pro¬≠grams, pro¬≠duct bund¬≠ling, stan¬≠dard set¬≠ting, new pro¬≠duct intro¬≠duc¬≠tions or other acti¬≠vi¬≠ties may nega¬≠tively impact the company‚Äôs plans, that the com¬≠pa¬≠ny will requi¬≠re addi¬≠tio¬≠nal fun¬≠ding and may be unable to rai¬≠se suf¬≠fi¬≠ci¬≠ent capi¬≠tal on favorable terms, or at all; that cus¬≠to¬≠mers stop buy¬≠ing the company‚Äôs pro¬≠ducts or mate¬≠ri¬≠al¬≠ly redu¬≠ce their ope¬≠ra¬≠ti¬≠ons or demand for the company‚Äôs pro¬≠ducts; that the com¬≠pa¬≠ny may be unable to deve¬≠lop, launch and ramp new pro¬≠ducts and tech¬≠no¬≠lo¬≠gies in the volu¬≠mes that are requi¬≠red by the mar¬≠ket at matu¬≠re yields on a time¬≠ly basis; that the company‚Äôs third par¬≠ty foundry sup¬≠pli¬≠ers will be unable to tran¬≠si¬≠ti¬≠on the company‚Äôs pro¬≠ducts to advan¬≠ced manu¬≠fac¬≠tu¬≠ring pro¬≠cess tech¬≠no¬≠lo¬≠gies in a time¬≠ly and effec¬≠ti¬≠ve way or to manu¬≠fac¬≠tu¬≠re the company‚Äôs pro¬≠ducts on a time¬≠ly basis in suf¬≠fi¬≠ci¬≠ent quan¬≠ti¬≠ties and using com¬≠pe¬≠ti¬≠ti¬≠ve pro¬≠cess tech¬≠no¬≠lo¬≠gies; that the com¬≠pa¬≠ny will be unable to obtain suf¬≠fi¬≠ci¬≠ent manu¬≠fac¬≠tu¬≠ring capa¬≠ci¬≠ty or com¬≠pon¬≠ents to meet demand for its pro¬≠ducts or will not ful¬≠ly uti¬≠li¬≠ze its pro¬≠jec¬≠ted manu¬≠fac¬≠tu¬≠ring capa¬≠ci¬≠ty needs at GLOBALFOUNDRIES (GF) micro¬≠pro¬≠ces¬≠sor manu¬≠fac¬≠tu¬≠ring faci¬≠li¬≠ties; that the company‚Äôs requi¬≠re¬≠ments for wafers will be less than the fixed num¬≠ber of wafers that it agreed to purcha¬≠se from GF or GF encoun¬≠ters pro¬≠blems that signi¬≠fi¬≠cant¬≠ly redu¬≠ce the num¬≠ber of func¬≠tion¬≠al die it recei¬≠ves from each wafer; that the com¬≠pa¬≠ny is unable to suc¬≠cessful¬≠ly imple¬≠ment its long-term busi¬≠ness stra¬≠tegy; that the com¬≠pa¬≠ny inac¬≠cu¬≠ra¬≠te¬≠ly esti¬≠ma¬≠tes the quan¬≠ti¬≠ty or type of pro¬≠ducts that its cus¬≠to¬≠mers will want in the future or will ulti¬≠m¬≠ate¬≠ly end up purcha¬≠sing, resul¬≠ting in excess or obso¬≠le¬≠te inven¬≠to¬≠ry; that the com¬≠pa¬≠ny is unable to mana¬≠ge the risks rela¬≠ted to the use of its third-par¬≠ty dis¬≠tri¬≠bu¬≠tors and add-in-board (AIB) part¬≠ners or offer the appro¬≠pria¬≠te incen¬≠ti¬≠ves to focus them on the sale of the company‚Äôs pro¬≠ducts; that the com¬≠pa¬≠ny may be unable to main¬≠tain the level of invest¬≠ment in rese¬≠arch and deve¬≠lo¬≠p¬≠ment that is requi¬≠red to remain com¬≠pe¬≠ti¬≠ti¬≠ve; that the¬≠re may be unex¬≠pec¬≠ted varia¬≠ti¬≠ons in mar¬≠ket growth and demand for the company‚Äôs pro¬≠ducts and tech¬≠no¬≠lo¬≠gies in light of the pro¬≠duct mix that it may have available at any par¬≠ti¬≠cu¬≠lar time; that glo¬≠bal busi¬≠ness and eco¬≠no¬≠mic con¬≠di¬≠ti¬≠ons, inclu¬≠ding PC mar¬≠ket con¬≠di¬≠ti¬≠ons, will not impro¬≠ve or will wor¬≠sen; that demand for com¬≠pu¬≠ters will be lower than curr¬≠ent¬≠ly expec¬≠ted; and the effect of poli¬≠ti¬≠cal or eco¬≠no¬≠mic insta¬≠bi¬≠li¬≠ty, dome¬≠sti¬≠cal¬≠ly or inter¬≠na¬≠tio¬≠nal¬≠ly, on the company‚Äôs sales or sup¬≠p¬≠ly chain. Inves¬≠tors are urged to review in detail the risks and uncer¬≠tain¬≠ties in the company‚Äôs Secu¬≠ri¬≠ties and Exch¬≠an¬≠ge Com¬≠mis¬≠si¬≠on filings, inclu¬≠ding but not limi¬≠t¬≠ed to the Quar¬≠ter¬≠ly Report on Form 10‚ÄĎQ for the quar¬≠ter 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.