This is the mail from ATi CEO.

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TO: ATI Staff

 

July 24, 2006

 

ATI and AMD – Announcing a Merger for Growth, Innovation and Choice

 

Earlier today, the management teams of ATI and AMD (Advanced Micro Devices, Inc.) announced our intent to join forces.  We will create the industry’s processing powerhouse, one of the world’s top semiconductor companies.   

 

As the CEO for ATI, I believe this a great day for both of our companies. I am extremely excited about the opportunities this merger provides us.  ATI and AMD have a common vision for where computing and consumer electronics are heading, and through this combination we have the ability to reshape the market with new platform solutions, to innovate in new and exciting ways, and to grow our customer base.  All of these will drive growth and opportunities for the company, shareholders, and you.

 

AMD is one of the world’s largest and most innovative semiconductor companies in our industry. AMD has its traditional strengths in the corporate server and consumer segments of the personal computer market. The company is best known for its Athlon, Opteron, Turion 64, Sempron, and Duron lines of processors.

 

We share similar passions, goals and complementary strengths. We occupy adjacent “real estate” – microprocessors, graphics processors, chipsets, media processors, and TV processors – in a world that is looking for solutions, lower development costs, and faster-times-to-market.

This is a merger to drive growth, and there are very few overlapping areas between our two businesses. Because both companies have strong growth businesses, there will be great opportunities for you. As an organization, we will be able to accelerate our growth by leveraging new IP and technology for new devices and markets. We will be able to innovate by combining GPUs and CPUs in new ways and by developing new customer-targeted. 

 

The merger of our two companies should close within the next 90 to 120 days, at which time ATI will become a division of AMD. The current organizational structure remains intact with the exception of Rick Hegberg who will lead a combined worldwide sales organization.  The rest of the ATI organization will continue to report to me.

 

To fully understand the reasons for the merger, I’d like to briefly walk you through the process that led up to the announcement.  Over the course of the past year, the executive team has reviewed the company’s growth strategies for the next 3 to 5 years and set goals to ensure our continued success. Of all the available options, we made a strategic decision to align with AMD in order to define a path that we believe has more long-term potential.  With this merger, we will be able to play in a bigger market, and invest more heavily in R&D, and step up our pace of acquisitions.  

 

This is a merger about growth, innovation, and choice – all of which will enable us to deliver what our customers want. While our PC and consumer electronic groups will be essential to the growth of the new company, the fact is we need you to make this deal work for our collective benefit. The new company will be driven by your commitment, passion and dedication to deliver compelling technology solutions and products to our customers. Our opportunity to change the industry and markets will depend largely on your ideas, innovations, and drive.

 

ATI’s Toronto headquarters will continue to be an important part of the combined company’s operations, serving as one of the three major business centers for the graphics, chipset and the consumer electronics segments.

 

I would like to thank each of you for the enormous contributions you have made to help make ATI successful. We have enjoyed 20 years of innovation, growth and success, built on a foundation of entrepreneurship and a focus on the customer.

 

Please join me later today for a town-hall meeting in Chez Array. The logistics and details of the meeting will be communicated later this morning. Please make every effort to attend those sessions. In the interim, if you have questions, please visit the Intranet for information or speak with your Director or Vice President.

 

Throughout the day tomorrow, we will stage a series of town halls, web casts and conference calls to explain in detail what the merger means for you. You will also have the opportunity to have your questions answered.

 

This is a merger of growth, innovation and choice – and through your innovation and passion we have the opportunity to reshape our industry by developing and delivering a new range of future products and solutions.

 

Thank you

 

Dave O