Intel CEO “unequivocally disagrees” with AMD lawsuit

June 30, 2005 – Intel Corp. president and CEO Paul Otellini yesterday addressed the antitrust lawsuit filed against Intel on Monday by Advanced Micro Devices Inc. The AMD lawsuit asserted a number of complaints regarding the business practices of Intel and its customers.

“Intel has always respected the laws of the countries in which we operate,” Otellini said. “We compete aggressively and fairly to deliver the best value to consumers. This will not change.

“Over the years, Intel has been involved in other antitrust suits and faced similar issues. Every one of those matters has been resolved to our satisfaction. We unequivocally disagree with AMD’s claims and firmly believe this latest suit will be resolved favorably, like the others.”

On Monday, Advanced Micro Devices Inc. filed an antitrust complaint accusing Intel of unlawfully maintaining a monopoly in the x86 microprocessor market through coercion of customers.

In the suit filed in U.S. federal district court, AMD identifies 38 companies that it says have been “victims” of coercion by Intel. AMD maintains that Intel has forced major customers into Intel-exclusive deals in return for cash payments, discriminatory pricing, or marketing subsidies that are based on agreement not to use any AMD products.

Intel’s illegal practices also extend to retailers, AMD claims. Intel has established and enforced quotas at key retailers such as Best Buy and Circuit City, requiring them to stock overwhelmingly or exclusively Intel-based computers.

AMD and Intel have battled in the courtroom numerous times over the past three decades.


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