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To: Investor A who wrote (24151)	2/27/1998 7:36:00 PM
From: Joe NYC	Respond to of 33344

More on AMD/IBM agreement: zdnet.com AMD nabs IBM chip deal By Charles Cooper, ZDNN 02.27.98 5:28 pm ET Advanced Micro Devices Inc., looking to resolve a nagging production logjam, Friday announced that IBM will help it manufacture K6 microprocessors. Under terms of the two-year deal, IBM (IBM) will make AMD's K6, a low-priced competitor to Intel Corp.'s (INTC) Pentium II processor line. The deal comes as AMD (AMD) continues to struggle to increase supply amid strong demand for the K6 even after investing heavily in a new plant in Austin, Texas. Last month, the company dropped plans to appear at a series of conferences hosted by Wall Street investment houses and planned to avoid such forums until it could meaningfully respond to questions related to the transition to 0.25 production of the microprocessor. Separately, talks between Big Blue and National Semiconductor Corp. (NSM), first reported Thursday on ZDNN, continue, according to people familiar with the negotiations, which began two months ago. Shares of AMD, which soared after news of the talks surfaced on Thursday, were off more than $1 in early afternoon trading. IBM, which will produce the chips at its Burlington, Vt., plant may also produce the K6 at one of its other foundries in Essones, France. The deal does not give IBM rights to use the chip. The IBM PC Co. already buys microprocessors from AMD. AMD said actual production at IBM's facilities are scheduled to commence during the third quarter of 1998. But a spokesman for IBM, said that "significant volumes" are not expected until the fourth quarter. "IBM would certainly consider investigating other potential cooperate endeavors in the future to achieve business goals specific to each company," said the spokesman, who declined to discuss specific terms of the agreement. Joe