Broadcom to Acquire Digital TV Business from AMD

  Acquisition Expected to Bring Broadcom Scale, a Complete Product Line to

 Address All Segments of the Digital TV Market and Expand Tier One Customer

                                    Base



    IRVINE, Calif. and SUNNYVALE, Calif., Aug. 25 /
EMWNews
/ --

Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for

wired and wireless communications, and AMD (NYSE: AMD) today announced that

the companies have entered into a definitive agreement for Broadcom to

acquire AMD's digital TV (DTV) business.



    The acquisition of AMD's DTV business is expected to enable Broadcom to

immediately scale its DTV business, and, in conjunction with its existing

products, to offer a complete product line that covers all segments of the

DTV market ranging from low-end value and mid-range quality to high-end

interactive platforms and panel processors. The acquisition also is

intended to expand Broadcom's existing tier one customer base, which

includes the top DTV brands worldwide. This deal aims to enhance and

strengthen Broadcom's innovative DTV system solution offerings while

delivering the scale and focus needed to forge a market-leading DTV

business.



    In connection with the transaction, approximately 530 members of AMD's

dedicated DTV team, in addition to certain employees directly supporting

this team, located in six primary design centers around the world, will be

invited to join Broadcom. AMD's DTV product line includes all Xilleon(TM)

integrated DTV processors and complete turnkey reference designs, as well

as NXT receiver ICs, the Theater(TM) 300 DTV processor, and a line of panel

processors that perform advanced motion compensation, frame rate conversion

and scaling.



    "The acquisition of AMD's DTV business, which will become the core of

Broadcom's DTV line of business, will enable us to significantly scale and

accelerate the completion of our digital TV product portfolio while also

expanding our tier one customer base and positions us to achieve leadership

and long-term growth in this important market segment," said Daniel

Marotta, Senior Vice President & General Manager of Broadcom's Broadband

Communications Group. "We believe our combined DTV team will be in an

excellent position to grow and thrive in this burgeoning market by bringing

best-in-class people, technology, solutions and support to our customers."



    "AMD is executing a strategic plan to transform the company, becoming

leaner and more focused while seeking to create a business model to deliver

sustainable profitability," said Dirk Meyer, President and Chief Executive

Officer of AMD. "The sale of our DTV business is a key step in AMD's

transformation, helping to strengthen our balance sheet, lower our

breakeven point, and hone our focus in order to take full advantage of our

position as a leader in both microprocessors and graphics technology.

Broadcom will be a great fit for our talented DTV employees and the DTV

products they have created."



    In connection with the acquisition, Broadcom will pay approximately

$192.8 million in cash in exchange for AMD's DTV assets. A portion of the

consideration payable to AMD will be placed into escrow pursuant to the

terms of the definitive asset purchase agreement. The board of directors of

each company has approved the transaction and shareholder/stockholder

approval of the transaction is not required by either company. The closing,

which is targeted to occur during Broadcom's fourth quarter ending December

31, 2008, remains subject to customary closing conditions and review by

relevant regulatory organizations. Broadcom may record a one-time charge

for purchased in-process research and development expenses related to the

acquisition in the quarter in which the transaction closes. The amount of

that charge, if any, has not yet been determined.



    Conference Call Information



    Broadcom will conduct a conference call with analysts and investors

today at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time). The company will

broadcast the conference call via webcast over the Internet and will post

its presentation material on the Investors section of the Broadcom website

at http://www.broadcom.com/investors. To listen to the webcast, please dial

(847) 619-6368 or visit the Investors section of the Broadcom website. The

webcast will be recorded and available for replay until 12:59 a.m. Eastern

Time, Tuesday, September 9, 2008 (9:59 p.m. Pacific Time, Monday, September

8, 2008).

    About Broadcom



    Broadcom Corporation is a major technology innovator and global leader

in semiconductors for wired and wireless communications. Broadcom(R)

products enable the delivery of voice, video, data and multimedia to and

throughout the home, the office and the mobile environment. Broadcom

provides the industry's broadest portfolio of state-of-the-art

system-on-a-chip and software solutions to manufacturers of computing and

networking equipment, digital entertainment and broadband access products,

and mobile devices. These solutions support Broadcom's core mission:

Connecting everything(R).



    Broadcom is one of the world's largest fabless semiconductor companies,

with 2007 revenue of $3.78 billion, and holds over 2,800 U.S. and 1,200

foreign patents, more than 7,300 additional pending patent applications,

and one of the broadest intellectual property portfolios addressing both

wired and wireless transmission of voice, video, data and multimedia.



    Broadcom is headquartered in Irvine, Calif., and has offices and

research facilities in North America, Asia and Europe. Broadcom may be

contacted at +1.949.926.5000 or at http://www.broadcom.com.



    About AMD



    Advanced Micro Devices (NYSE: AMD) is a leading global provider of

innovative processing solutions in the computing and graphics markets. AMD

is dedicated to driving open innovation, choice and industry growth by

delivering superior customer-centric solutions that empower consumers and

businesses worldwide. For more information, visit http://www.amd.com.



    Cautions regarding Forward Looking Statements:



    All statements included or incorporated by reference in this release,

other than statements or characterizations of historical fact, are forward-

looking statements. These forward-looking statements are based on Broadcom

and AMD's respective current expectations, estimates and projections about

their respective industry and businesses, respective management's beliefs,

and certain assumptions made by Broadcom and AMD, all of which are subject

to change. Forward-looking statements can often be identified by words such

as "aims," "anticipates," "becoming," "expects," "intends," "plans,"

"predicts," "believes," "seeks," "estimates," "may," "will," "should,"

"would," "could," "potential," "continue," "ongoing," "targeted" similar

expressions, and variations or negatives of these words. Examples of such

forward-looking statements include, but are not limited to, references to

the anticipated benefits to Broadcom related to its acquisition of AMD's

DTV business, the expected market and demand for DTV products, the expected

completion and timing of the transaction, potential accounting charges

taken by Broadcom, and references to the anticipated benefits to AMD

relating to the transaction. These forward-looking statements are not

guarantees of future results and are subject to risks, uncertainties and

assumptions that could cause actual results to differ materially and

adversely from those expressed in any forward-looking statement.



    Important factors that may cause such a difference for Broadcom in

connection with the acquisition of AMD's DTV business include, but are not

limited to,




    -- the ability of the parties to successfully consummate the transactions

       contemplated by the asset purchase agreement and related transaction

       documents,

    -- unexpected variations in market growth and demand for the DTV products

       and technologies,

    -- the risks inherent in acquisitions of technologies and businesses,

       including the timing and successful completion of technology and

       product development through volume production,

    -- integration issues,

    -- costs and unanticipated expenditures,

    -- changing relationships with customers, suppliers and strategic

       partners,

    -- potential contractual, intellectual property or employment issues,

    -- the risk that anticipated benefits of the acquisition may not be

       realized, and

    -- accounting treatment and charges.



    Additional factors that may cause Broadcom's actual results to differ

materially from those expressed in forward-looking statements include, but

are not limited to the list that can be found at

http://www.broadcom.com/press/additional_risk_factors/Q32008.php.



    Important factors that may cause such a difference for AMD in

connection with the sale of its DTV business include, but are not limited

to,




    -- the ability of the parties to successfully consummate the transactions

       contemplated by the asset purchase agreement and related transaction

       documents,

    -- the successful fulfillment (or waiver) of all conditions included in

       the asset purchase agreement, including the possibility that there may

       be unexpected delays in obtaining required regulatory approvals and

       completing SEC required financial audits,

    -- actions that may be taken by the competitors, customers and suppliers

       of Broadcom or AMD that may cause the transaction to be delayed or not

       completed,

    -- the possibility that the revenues, cost savings, growth prospects and

       any other synergies expected from the proposed transaction may not be

       fully realized by AMD or may take longer to realize than expected,

    -- changing relationships with customers, suppliers and strategic

       partners,

    -- delays associated with transitioning the DTV business, including

       employees and operations, after the transaction is completed.



    The respective Annual Reports on Form 10-K, subsequent Quarterly

Reports on Form 10-Q, recent Current Reports on Form 8-K, and other

Securities and Exchange Commission filings, of AMD and Broadcom discuss

other important risk factors that could contribute to such differences or

otherwise affect their respective businesses, results of operations and

financial condition. The forward-looking statements in this release speak

only as of this date. Neither AMD nor Broadcom undertakes any obligation to

revise or update publicly any forward-looking statement for any reason,

except as required by law. All statements made by or concerning Broadcom or

AMD, respectively, are made solely by such applicable party and such party

is solely responsible for the content of such statements.



    Broadcom(R), the pulse logo, Connecting everything(R) and the

Connecting everything logo are among the trademarks of Broadcom Corporation

and/or its affiliates in the United States certain other countries and/or

the EU. AMD, the AMD Arrow logo, Xilleon, Theater and combinations thereof,

are trademarks of Advanced Micro Devices, Inc. Any other trademarks or

trade names mentioned are the property of their respective owners.






     Broadcom Press Contact

     Laura Brandlin

     Senior Director, Marketing Communications

     949-926-5108

     [email protected]



     Broadcom Investor Relations Contact

     T. Peter Andrew

     Vice President, Corporate Communications

     949-926-5663

     [email protected]



     AMD Press Contact

     Jo Albers

     Manager, Public Relations

     512-602-3526

     [email protected]



     AMD Investor Relations Contact

     Irmina Blaszczyk

     Manager, Investor Relations

     408-749-3398

     [email protected]