Technology Leaders Release Service Modeling Language (SML)

Technology Leaders Release New Specification to Simplify IT Management

Common Goal to Provide Standard for Describing System Information in XML Format

BEA, BMC, Cisco, Dell, EMC, HP, IBM, Intel, Microsoft and Sun today announced they have published a draft of a new specification that defines a consistent way to express how computer networks, applications, servers and other IT resources are described -- or modeled - in extensible markup language (XML) so businesses can more easily manage the services which are built on these resources.

As a result of joint collaboration, the open, industry-wide specification defines a common language for expressing information about IT resources and services. Called the Service Modeling Language (SML), the specification enables a hierarchy of IT resource models to be created from reusable building blocks, rather than requiring custom descriptions of every service - reducing costs and system complexity for customers. The group plans to submit the draft specification to an industry standards organization later this year.

SML addresses a growing industry need as a result of the numerous ways to represent the same IT resource. Besides being inefficient, the use of different formats leads to two problems. First, because the tools and management applications use different formats, they don't speak the same language. Therefore, the information must be translated, which can lead to technical details being lost or misinterpreted. Second, the use of different formats may require IT architects to use written descriptions or sketches to convey information about resources. Such descriptions must then be translated into a form that tools and management applications can consume, which is a manual, error-prone process.

SML has two unique properties that make it well-suited for modeling IT resources and services: support for rich constraints and alignment with XML message exchange architectures. SML allows developers to build modeling information for applications, devices and services that can be used during all stages of the application or service lifecycle including configuration, problem, change and release management. They are also useful for tactical processes such as service level, availability and capacity management. The SML specification will provide simplicity, integration and compatibility throughout this lifecycle for all components of an IT environment.

This common modeling language is an important step in simplifying IT management in multi-vendor environments, providing a way for information to be shared across diverse tools and applications. Constructing a complete picture of the IT environment out of a series of reusable building blocks, rather than requiring a fully custom description of every service, is key. It reduces both the cost and complexity associated with delivering the levels of service and responsiveness businesses need from IT today while increasing a business' IT agility: its ability to adapt its IT in time to meet changing needs.

In addition to the publication of the SML specifications, the companies also announced their intent to explore development of a library of core models to describe generic resources such as network elements, operating systems, storage devices, desktops, server systems, web servers, a directory service and more. With an agreed standard library of definition for this core set of resources and services, every vendor would be able to establish the generic nature of, and relationship between, every component comprising a specific IT service without prior knowledge of the objects that make up that service.

ADBE: Adobe And Lenovo to Deliver Digital Imaging And Video Solutions To Schools

Adobe Systems Incorporated (Nasdaq:ADBE) and Lenovo today announced an agreement to deliver digital imaging and video solutions to educational institutions. Under the terms of the agreement, Lenovo will include Adobe® Photoshop® Elements 4.0 and Premiere Elements 2.0 software on ThinkPad® laptop, tablet and ThinkCentre® desktops it sells in the U.S. education market.

The combination of Adobe Photoshop Elements and Premiere Elements with Lenovo ThinkPad notebook and ThinkCentre desktop product lines will provide students and faculty at both K-12 schools and higher education institutions with a powerful digital imaging and video editing solution. Using the solution, educators and students will be able to enhance learning across subjects with photo essays, video book reports, newscasts on current events and documentaries. The solution will also include product tutorials, sample lesson plans and training to jump-start the use of the software in the classroom.

"Students live in a universe filled with highly visual mediums such as video games, computers, portable DVD players and camera phones. By bringing those mediums to the classroom, digital images and video allow for more creative and engaging outlets for expression of new ideas and concepts," said Eugene Lee, vice president of vertical and solutions marketing at Adobe. "Working with Lenovo will enable us to provide our joint customers with an introduction to digital imaging and digital video - what will become essential 21st Century digital skills - along with the resources to enable institutions to deliver a richer educational experience in the classroom and campus-wide."

"Increasingly, digital communication skills are essential to succeed in the classroom as well as the global marketplace," said Scott Smith, president, Lenovo Americas. "Adobe Photoshop Elements and Premiere Elements help provide a foundation for developing those skills, and are an important part of Lenovo's offering to education customers. In addition, digital imaging and digital video are tools that can help teachers present subjects such as math, history or science in a more visual and interactive way."

Lenovo will also offer Photoshop Elements and Premiere Elements as part of its 1:1 computing initiative with IBM, a campus-wide mobile computing program for both K-12 schools and higher education institutions. One-to-one computing provides a computer for each student and faculty member giving them the flexibility to research, study or communicate with faculty, peers and the community virtually anywhere, anytime.

"Thinkpad notebooks have always been a popular choice for our mobile business students," said Kendall Whitehouse, senior director of information technology at the Wharton School of the University of Pennsylvania. "The addition of Adobe Photoshop Elements plus Premiere Elements will provide our business students with the professional authoring tools they need to create content that is richer and more compelling."

About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is dedicated to building the world's most innovative personal computers. Lenovo's business model is built on innovation, operational efficiency and customer satisfaction as well as a focus on investment in emerging markets. Formed by Lenovo Group's acquisition of the former IBM Personal Computing Division, the company develops, manufactures and markets reliable high-quality, secure, and easy-to-use technology products and services worldwide. Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information about Lenovo, see www.lenovo.com .

AMD:AMD Teams Up With Telmex To Provide Affordable Internet Connectivity Throughout Mexico

Advanced Micro Devices (NYSE: AMD) today announced nationwide availability of the Telmex Internet Box Personal Internet Communicator (PIC) for citizens across Mexico. Developed by AMD, the Telmex Internet Box provides an increasingly broad range of customers with a complete Internet experience, including hardware, software, Internet service and support.

“Telmex is committed to bringing technology to the social sectors of Mexico with the highest needs,” said Andres Vazquez del Mercado, director of Marketing, Telmex. “Together with AMD, the Telmex Internet Box not only offers an easy to use and maintain solution for first time Internet users, but also is priced affordably to eliminate the economic barrier that has previously prevented many of our citizens from getting online.”

As the leading telecommunications provider in Mexico, Telmex has played an instrumental role in providing connectivity to more than 16 percent of the country’s population. The Telmex Internet Box is available for purchase in Telmex shops all over Mexico and contains the PIC, a monitor, mouse and keyboard. The device comes preloaded with word processing, spreadsheet, presentation viewer, e-mail, media player (photos, music and video), and instant messaging software.

The Personal Internet Communicator is one of several devices in AMD’s 50x15 Initiative technology portfolio, targeted to provide affordable connectivity options to consumers in high-growth nations and increase educational and economic opportunities around the globe. Today, the PIC is being used by schools, universities, small businesses and a broad range of consumers worldwide including the Caribbean, India, Brazil, South Africa, Turkey and Russia.

“We collaborate with companies that share our vision for global connectivity forged through a vibrant, sustainable business model,” said Gino Giannotti, vice president, Innovation Solutions, AMD. “AMD and Telmex recognize that education and access to the Internet are crucial toward providing personal and professional development opportunities to consumers around the world. Bringing the Telmex Internet Box to market helps bridge the digital divide in Mexico and moves us closer to achieving our goal of connecting 50 percent of the world to the Internet by 2015.”

For many populations across the globe, Internet connectivity is a luxury they cannot obtain or even access. AMD’s 50x15 Initiative and the introduction of affordable, simple devices are opening doors previously thought impossible. AMD recognizes they cannot do this on their own and enlists the help of the world’s leading service providers. As part of AMD’s 50x15 technology portfolio, the PIC is setting the standard for innovative business practices that aid developing technology communities.

Availability
For more information on the Telmex Internet Box, including where to buy, visit http://www.amd.com/telmex_pic.

About 50x15
AMD's 50x15 initiative is a bold and far-reaching effort to develop new technology and solutions that will help enable affordable Internet access and computing capability for 50 percent of the world's population by the year 2015. With the global population estimated to reach 7.2 billion people in 2015, there is tremendous potential for 50x15 to bring billions of people into the digital age.

AMZN: Amazon.com Announces Library Processing for Public and Academic Libraries Across the United States

Amazon.com (NASDAQ:AMZN) today announced it has launched Library Processing, enabling its thousands of library customers to receive Machine-Readable Cataloging (MARC) records and have books and other media they order from Amazon.com fitted with Mylar jackets, barcodes, and other essential preparation services. This end-to-end processing service will significantly reduce library overhead costs and decrease the time from "box to shelf" so that library patrons will have faster access to newly ordered media titles.

"Libraries already use Amazon.com when they need fast and reliable delivery of products at competitive prices, but our library customers have told us they would like Library Processing in order to better serve their patrons," said Greg Greeley, vice president of books, magazines and corporate accounts. "Amazon.com is proud to offer libraries this seamless, end-to-end processing service which will make it even easier for libraries to shop with us."

When library customers order products from Amazon.com, they will have the option of including MARC records, labels and barcodes as part of their order. Amazon.com library customers will also have the option of having hardcover books delivered with Mylar jacketing - a protective covering used by most libraries - taped over the jackets. Each of these services can be tailored to meet the needs of each library, and each library will be able to manage their processing profile online.

"Now, more than ever, libraries are under enormous pressure to meet the increased demand of library services while doing so with less money and resources," said Julie Brinkley of the Dauphin County Library in Pennsylvania. "We're very eager to have Amazon.com provide Library Processing. It will be a great time-saver for the library system."

To create a "Processing Profile," a customer simply needs to go to http://www.amazon.com/processing. From there, they can complete a web-based form to provide all the information Amazon.com needs to tailor their processing. Once a library creates a profile, the library can decide which orders they want to apply processing to.

Over the last year, Amazon.com has introduced several new library-specific features including the Librarians' Store, online invoicing, approval slips, and partnerships with sellers that enable libraries to more easily sell their used books. Library Processing represents another step forward in providing libraries with an easy way to meet their collection and acquisition needs. For the latest list of new features and services for libraries, visit www.amazon.com/libraries.

INTC: Intel Unveils 10 Intel Core 2 Duo and Intel Core 2 Extreme processors

Intel Corporation unveiled 10 Intel® Core™ 2 Duo and Intel® Core™ 2 Extreme processors for consumer and business desktop and laptop PCs and workstations, reshaping how computers perform, look and consume power—and most importantly—transform how people use them.

"The Core 2 Duo processors are simply the best processors in the world," said Paul Otellini, president and CEO of Intel. "Not since Intel introduced the Pentium® processor has the industry seen the heart of the computer reinvented like this. The Core 2 Duo desktop processor is an energy-efficient marvel, packing 291 million transistors yet consuming 40 percent lower power, while delivering the performance needed for the applications of today and tomorrow."

The highly anticipated processor family already has very broad support with more than 550 customer system designs underway—the most in Intel's history. Ultimately, tens of thousands of businesses will sell computers or components based on these processors.

The Intel Core 2 Duo processors are built in several of the world's most advanced, high-volume output manufacturing facilities using Intel's leading 65-nanometer silicon process technology. The desktop PC version of the processors also provide up to a 40 percent increase in performance and are more than 40 percent more energy efficient versus Intel's previous best processor. According to multiple independent review organizations, the processors win more than nine out of 10 major server, desktop PC and gaming PC performance benchmarks.

The Intel Core 2 Duo processor family consists of five desktop PC processors tailored for business, home, and enthusiast users, such as high-end gamers, and five mobile PC processors designed to fit the needs of a mobile lifestyle. Intel Core 2 Duo processor-based workstations will also deliver industry leading performance for such areas as design, content creation and technical computing.

The processor family is based on the revolutionary Intel® Core™ microarchitecture, designed to provide powerful yet energy-efficient performance. With the power of dual cores, or computing engines, the processors can manage numerous tasks faster. They also can operate more smoothly when multiple applications are running, such as writing e-mails while downloading music or videos and conducting a virus scan. These dual-core chips also improve tasks, such as viewing and playing high-definition video, protecting the PC and its assets during e-commerce transactions, and enabling improved battery life for sleeker, lighter notebooks.

Consumers and businesses will have the option to purchase Intel Core 2 Duo processors as part of Intel's premier market-focused platforms, which are made up of Intel hardware and software technologies tailored to specific computing needs, including Intel® vPro™ technology for businesses, Intel® Centrino® Duo mobile technology for laptops, and Intel® Viiv™ technology for the home.

Many of the products will also offer a selection of Intel-designed and integrated technologies such as Intel® Virtualization Technology and Intel® Active Management Technology that make the PC more secure and manageable. Also, support for 64-bit computing now expands to notebook PCs. The new processors can be paired with the Intel® 975X, 965, and Mobile Intel® 945 Express chipset family. The Intel 965 Express chipset includes the latest integrated graphics and Intel® Clear Video Technology. All these chipsets are Microsoft Windows Vista* Premium Ready.

Advanced Innovations
Intel Core 2 Duo and Intel® Core™2 Extreme processors include many advanced innovations, including:

Intel® Wide Dynamic Execution – Improves performance and efficiency as each core can complete up to four full instructions simultaneously using an efficient 14-stage pipeline.
Intel® Smart Memory Access – Improves system performance by hiding memory latency, thus optimizing the use of available computer data bandwidth to provide data to the processor when and where it is needed.
Intel® Advanced Smart Cache – Includes a shared L2 cache or memory reservoir to reduce power by minimizing memory "traffic" yet increases performance by allowing one core to utilize the entire cache when the other core is idle. Only Intel provides this capability in all segments.
Intel® Advanced Digital Media Boost – Effectively doubles the execution speed for instructions used widely in multimedia and graphics applications.
Intel® 64 Technology – This enhancement to Intel's 32-bit architecture supports 64-bit computing, including enabling the processor to access larger amounts of memory.

Mobile PC Processor Unique Features
Intel Core 2 Duo mobile processors include many advanced innovations, including:

Intel® Dynamic Power Coordination – Coordinates Enhanced Intel SpeedStep® Technology and idle power-management state (C-states) transitions independently per core to help save power.
Intel® Dynamic Bus Parking – Enables platform power savings and improved battery life by allowing the chipset to power down with the processor in low-frequency mode.
Enhanced Intel® Deeper Sleep with Dynamic Cache Sizing – Saves power by flushing cache data to system memory during periods of inactivity to lower CPU voltage.

Pricing and Availability
Intel has been shipping production-ready Intel Core 2 Duo processors for all segments in advance of today's unveiling. Initial Intel Core 2 Extreme processor-based systems are now available from system manufacturers, resellers and integrators, including Intel Channel Partner Program members. Intel Core 2 Duo desktop processor-based systems will be available beginning in early August. Intel Core 2 Duo processor-based notebooks will be available at the end of August.



Desktop Processors
Processor Frequency Bus Speed L2 Cache Price
Intel® Core™2 Extreme processor X6800 2.93 GHz 1066 4MB $999
Intel® Core™2 Duo processor E6700 2.66 GHz 1066 4MB $530
Intel® Core™2 Duo processor E6600 2.40 GHz 1066 4MB $316
Intel® Core™2 Duo processor E6400 2.13 GHz 1066 2MB $224
Intel® Core™2 Duo processor E6300 1.86 GHz 1066 2MB $183

Mobile Processors
Processor Frequency Bus Speed L2 Cache Voltage
Intel® Core™2 Duo processor T7600 2.33 GHz 667 4MB 1.0375–1.3V
Intel® Core™2 Duo processor T7400 2.16 GHz 667 4MB 1.0375–1.3V
Intel® Core™2 Duo processor T7200 2.00 GHz 667 4MB 1.0375–1.3V
Intel® Core™2 Duo processor T5600 1.83 GHz 667 2MB 1.0375–1.3V
Intel® Core™2 Duo processor T5500 1.66 GHz 667 2MB 1.0375–1.3V

AKAM: Akamai Reports Second Quarter 2006 Results

Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today reported financial results for the second quarter ended June 30, 2006. Revenue for second quarter 2006 was $100.6 million, an 11 percent increase over first quarter 2006 revenue of $90.8 million, and a 56 percent increase over second quarter 2005 revenue of $64.6 million.

Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the second quarter of 2006 was $11.3 million, or $0.07 per diluted share. GAAP net income in the second quarter includes equity-related compensation charges of approximately $13.2 million, or $0.07 per diluted share, on a pre-tax basis, reflecting the Company's adoption of Financial Accounting Standard 123R on January 1, 2006. GAAP net income also reflects a book tax rate of approximately 45 percent.

The Company generated normalized net income* of $35.8 million, or $0.20 per normalized diluted share*, in the second quarter of 2006, a 22 percent increase over first quarter 2006 normalized net income of $29.4 million, or $0.17 per diluted share, and a 110 percent improvement over 2005 second quarter normalized earnings of $17.1 million, or $0.12 per diluted share. (*See Use of Non-GAAP Financial Measures below for definitions.)

"We had an exceptionally strong quarter, exceeding our growth expectations," said Paul Sagan, president and CEO of Akamai. "We experienced robust demand for our services across many verticals, with heavier than expected customer usage resulting in part from the explosion in digital media consumption and the continued proliferation of broadband around the world. Akamai is helping our customers leverage the low-cost, global reach of the Internet to optimize the performance of their content and business applications, and create more profitable online business models."

Adjusted EBITDA* for the second quarter of 2006 was $40.0 million, up 20 percent from $33.4 million in the prior quarter, and up from $22.7 million in the second quarter of 2005. Adjusted EBITDA as a percentage of revenue was 40 percent, up from 37 percent in the prior quarter and up from 35 percent a year ago. (*See Use of Non-GAAP Financial Measures below for definitions.)

Cash from operations was $27.7 million in the second quarter, as compared to $33.2 million in the first quarter 2006 and $16.9 million in the same period last year. Cash, cash equivalents and marketable securities totaled $367 million at the end of the period.

At June 30, 2006, the Company had approximately 155 million shares of common stock outstanding.

Customers
The number of customers under long-term services contracts at the end of the second quarter increased by 79 to a record 2,060, a four percent increase over first quarter 2006, and a 19 percent increase year-over-year.

Sales through resellers and sales outside the United States each accounted for 22 percent of revenue for the second quarter of 2006.

SANM: Sanmina Third Quarter Results

Sanmina-SCI Corporation (Nasdaq NM: SANM, "the Company"), a leading global electronics manufacturing services (EMS) company, today reported revenue for its third quarter ended July 1, 2006 of $2.71 billion, up from $2.67 billion in the second quarter of fiscal 2006. Revenue in the third quarter of fiscal 2005 was $2.83 billion.

As previously announced, the Company's Board of Directors formed an independent special committee of the Board to review certain matters concerning the Company's stock option administration policies and practices dating back to January 1, 1997. The special committee of the Board is currently working with independent outside legal counsel and is in the process of conducting its investigation and analysis of the Company's stock option activity. Until the investigation is complete, the Company is not providing detailed GAAP or Non-GAAP financial information for the quarter ended July 1, 2006 and will not be in a position to announce additional financial results for the third quarter until the special committee has completed its investigation. Further, as a result of this investigation, the Company may not be able to file its 10-Q within the deadlines prescribed by the SEC. In the case of a delay in the Company's filing, the Company will notify its stockholders in a press release.

"Sanmina-SCI is fully cooperating with the requests of the independent special committee to investigate the company's stock option activity dating back to January 1, 1997. We are focused on appropriately resolving these issues as quickly as possible, and providing complete transparency of our results as soon as available," stated Sanmina-SCI's CEO and Chairman, Jure Sola.

Company Revenue Outlook

Sanmina-SCI expects fourth quarter revenue to be in the range of $2.7 billion to $2.8 billion.

BIDU: Baidu Reports Earnings For The Quarter Ending June 30, 2006

Baidu.com, Inc. (Nasdaq: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the quarter ended June 30, 2006.(1)

Second Quarter 2006 Highlights

-- Total revenues increased by 41.3% sequentially or 174.9% year-over-year
to RMB191.6 million ($24.0 million).

-- Net income increased by 65.9% sequentially or 385.2% year-over-year to
RMB58.5 million ($7.3 million). Basic and diluted earnings per share
("EPS") were RMB1.76 ($0.22) and RMB1.69 ($0.21), respectively.

-- Net income, excluding share-based compensation expenses (non-GAAP), was
RMB70.2 million (US$8.8 million). Basic and diluted EPS, excluding
share-based compensation expenses (non-GAAP), were RMB2.11 ($0.26) and
RMB2.03 ($0.25), respectively.

-- The number of active online marketing customers grew to more than
90,000, an increase of 21.6% from the previous quarter.

"We are very pleased Baidu has maintained its revenue growth momentum and achieved another quarter of excellent results," said Robin Li, Chairman and CEO of Baidu. "Our focus on providing the best user experience continues to drive traffic growth and our expanded sales force contributed to a substantial boost in our active customer base."

"Our community-based search products, including Baidu Post Bar, Baidu Knows and Baidupedia, have become increasingly popular because they make users stay connected while searching online. In July, we launched Baidu Space, which allows users to create personalized homepages on Baidu and integrate their use of other Baidu search products in one place. We will continue to develop products tailored to user needs to ensure that Baidu remains the search engine of choice in China," added Mr. Li.

"Our active customer base grew significantly in the second quarter due to expansion of our sales force and increased awareness of Baidu's pay-for- performance services," said Shawn Wang, Baidu's CFO. "In addition to customer base expansion, further optimization in monetization algorithm also contributed to strong revenue growth."

"The scalability of our business was once again demonstrated by margin increase during the quarter while we continued to invest heavily in the fundamental growth drivers of our business to facilitate long term sustainable growth," Mr. Wang continued.

Second Quarter 2006 Results

-- Baidu reported total revenues of RMB191.6 million ($24.0 million) for
the quarter ended June 30, 2006, representing a 41.3% increase from the
previous quarter and a 174.9% increase from the corresponding period in
2005.

-- Online marketing revenues for the second quarter were RMB189.1 million
($23.7 million), representing a 43.2% increase from the first quarter
of 2006 and a 183.3% increase from the second quarter of 2005. The
growth was driven by the increase in the number of active online
marketing customers, which increased by 21.6% from the first quarter of
2006 to more than 90,000 for the second quarter. Customer expansion was
driven by expansion of the direct sales force and the increased
effectiveness of the Company's direct sales offices and distributor
network. Revenue per online marketing customer for the second quarter
increased to RMB2,081 ($260.3) from RMB1,774, a sequential increase of
19.3%.

-- Traffic acquisition cost (TAC) as a component of cost of revenues was
RMB17.6 million ($2.2 million), representing 9.2% of total revenues,
compared to 9.1% in the first quarter of 2006. TAC remained largely
unchanged as a percentage of revenues.

-- Selling, general and administrative expenses for the second quarter
were RMB58.7 million ($7.3 million), representing an increase of 16.7%
from the previous quarter and an increase of 110.1% from the second
quarter of 2005.

-- Research and development expenses were RMB18.3 million ($2.3 million),
representing a 17.5% sequential increase and a 111.3% increase from the
corresponding period in 2005, primarily due to headcount increase.

-- Share-based compensation expenses, which were allocated to related
expense line items, decreased in aggregate to RMB11.7 million ($1.5
million) in the second quarter of 2006 from RMB12.8 million in the
previous quarter.

For the full year, we expect share-based compensation expenses for awards granted to employees prior to July 1, 2006 to be RMB37.6 million. This amount does not include expenses to be recognized over the remainder of the year related to awards granted to employees after July 1, 2006 or awards granted to non-employees that have been or may be granted.

-- Operating profit was RMB58.0 million ($7.3 million), representing a
115.4% increase from the first quarter of 2006 and a 384.7% increase
from the second quarter of 2005. Operating profit excluding share-based
compensation expenses (non-GAAP) was RMB69.7 million ($8.7 million) for
the second quarter of 2006, a 75.4% increase from the previous quarter
and a 284.5% increase from the corresponding period in 2005.

-- Net income was RMB58.5 million ($7.3 million), representing a 65.9%
increase from the previous quarter and a 385.2% increase from the
second quarter of 2005. Basic and diluted EPS for the second quarter of
2006 amounted to RMB1.76 ($0.22) and RMB1.69 ($0.21), respectively.

-- Net income excluding share-based compensation expenses (non-GAAP) was
RMB70.2 million ($8.8 million), a 61.6% increase from the previous
quarter and a 285.3% increase from the second quarter of 2005. Basic
and diluted EPS excluding share-based compensation expenses (non-GAAP)
for the second quarter of 2006 was RMB2.11 ($0.26) and RMB2.03 ($0.25),
respectively.

-- As of June 30, 2006, the Company had cash and cash equivalents of
RMB1.1 billion ($133.2 million). Net operating cash flow and capital
expenditures for the second quarter of 2006 were RMB129.7 million
($16.2 million) and RMB41.1 million ($5.1 million), respectively. The
increase in capital expenditures was primarily due to expenditures
incurred to support significant traffic growth during the quarter.

-- Adjusted EBITDA (non-GAAP), which is defined as earnings before
interest, taxes, depreciation, amortization, other non-operating
income, and share-based compensation expenses, were RMB85.0 million
($10.6 million) for the second quarter of 2006, representing a 62.7%
increase from the previous quarter and a 243.0% increase from the
corresponding period in 2005.

Outlook for Third Quarter 2006
Baidu currently expects to generate total revenues in an amount ranging from RMB238 million ($30 million) to RMB246 million ($31 million) in the third quarter of 2006, representing a 168% to 177% increase from the corresponding period in 2005. This forecast reflects Baidu's current and preliminary view, which is subject to change.

SYMC: Symantec First Quarter Results

Symantec Corp. (NASDAQ: SYMC) today reported results for the first quarter of fiscal year 2007, ended June 30, 2006. GAAP revenue for the quarter was $1.26 billion and non-GAAP revenue was $1.28 billion. Non-GAAP revenue grew 2 percent over the comparable period a year ago.

GAAP Results: GAAP net income for the fiscal first quarter was $95 million, compared to $199 million for the same quarter last year. Diluted earnings per share was $0.09, compared to earnings per share of $0.27 for the same quarter last year.

Non-GAAP Results: Non-GAAP net income for the fiscal first quarter was $248 million, compared to $311 million for the same quarter last year. Non-GAAP diluted earnings per share was $0.24, compared to diluted earnings per share of $0.25 for the same quarter last year. For a detailed reconciliation of our GAAP to non-GAAP results, please refer to the attached consolidated financial statements.

"Performance for the quarter was driven by strong sales of our Norton Internet Security, Storage Foundation, and enterprise messaging solutions, as well as solid execution by our services organization," said John W. Thompson, Symantec chairman and chief executive officer. "Our results speak to the value of our diversified business model, our strong market leadership in each business unit, and our long-standing relationships with consumers and enterprises around the world. I am very proud of the tremendous team effort."

Financial Highlights

For the quarter, Symantec's consumer business represented 30 percent of total revenue and grew 6 percent year-over-year on a combined non-GAAP basis. The data center management business represented 27 percent of total revenue and remained flat year-over-year. The security and data management business represented 38 percent of total revenue and declined 2 percent year-over-year. Services revenue represented 5 percent of total revenue and grew 18 percent year-over-year.

International revenues represented 51 percent of total revenue in the first quarter and grew 5 percent year-over-year on a combined non-GAAP basis. Asia Pacific/Japan revenue for the quarter represented 14 percent of total revenue and grew 16 percent year-over-year. The Europe, Middle East, and Africa region represented 31 percent of total revenue for the quarter and grew 1 percent year-over-year. The Americas, including the United States, Latin America, and Canada, represented 55 percent of total revenue and declined 1 percent year-over-year.

GAAP short- and long-term deferred revenue at the end of the June 2006 quarter was $2.209 billion. Non-GAAP deferred revenue at the end of the June 2006 quarter reached a record $2.244 billion. Non-GAAP deferred revenue grew 26 percent as compared to the June 2005 quarter.

September Quarter Forecast

For the September 2006 quarter, GAAP revenue is estimated between $1.265 billion and $1.295 billion. GAAP diluted earnings per share for the September quarter is estimated between $0.11 and $0.12.

Non-GAAP revenue for the September quarter is estimated between $1.275 billion and $1.305 billion. Non-GAAP diluted earnings per share is estimated between $0.26 and $0.27.

Fiscal Year 2007 Forecast

For the fiscal year ending March 2007, GAAP revenue is estimated in the range of $5.1 billion to $5.3 billion. GAAP diluted earnings per share for the fiscal year ending in March 2007 is estimated between $0.46 and $0.56.

To adjust for the $1.5 billion stock buy back program announced in the June quarter, Symantec is increasing its non-GAAP earnings per share guidance for FY07 by $0.06. Non-GAAP revenue is estimated in the range of $5.2 billion to $5.4 billion. Non-GAAP diluted earnings per share is estimated between $1.06 and $1.16.

Quarterly Highlights

-- Symantec signed 280 contracts worldwide worth more than $300,000 each, including 63 worth more than $1 million each, during the quarter.

-- Symantec signed new or extended agreements with the following customers: Advocate Health Care, the largest fully integrated not-for- profit healthcare delivery system in metropolitan Chicago and one of the top 10 systems in the country; Best Buy Co. Inc., North America's number- one specialty retailer of consumer electronics, personal computers, entertainment software and appliances; Illinois' Cook County, home to 5 million residents in 129 municipalities including the City of Chicago; CedarCrestone, a leading-edge consulting, hosting, and managed services company; TiVo Inc., the creator and leader in advertising solutions and television services for digital video recorders (DVRs); Fujitsu Network Communications Inc., a leading supplier of wireline/wireless networking solutions to North American telecom, cable and wireless service providers; NCR Corp., a leading global technology company helping businesses build stronger relationships with their customers; Impac Cos., one of the nation's largest non-conforming residential mortgage loan originators; Sony Pictures Imageworks Inc., an Academy Award winning, state-of-the-art digital production studio; Quixtar Inc., which provides an opportunity for individuals to own their own businesses through a system of network marketing and online sales.

-- International customers from the quarter included Australian Stock Exchange Ltd., the primary national stock exchange and provider of market data for Australia; Hutchison Telecommunications (Australia) Ltd., focused on delivering leading communications and multimedia services to the Australian consumer; Fabrica Nacional de Moneda y Timbre, the national mint of Spain; Jiangsu Mobile Communications, a subsidiary of China Mobile; Mahindra & Mahindra Ltd., an India-based conglomerate offering information technology, trade and finance related services, and infrastructure development.

MSFT: Microsoft Strengthens Secure Access Platform With Whale Acquisition

Microsoft Corp. today announced it has completed the acquisition of Whale Communications Ltd., strengthening Microsoft’s secure access platform (http://www.microsoft.com/isaserver/default.mspx). Whale’s best-of-breed product line includes the Intelligent Application Gateway, which combines Whale’s secure sockets layer (SSL)-based access and application protection technologies with Microsoft® Internet Security and Acceleration (ISA) Server. To mark the deal close, Microsoft is providing a special price promotion for all current and new customers.

Now through Dec. 31, 2006, customers will receive 25 percent off the list price of the Whale Intelligent Application Gateway and 25 percent off on any add-on modules, including Whale’s Connectivity Modules and Application Optimizers. Whale’s Application Optimizers add the benefits of customized policy and content inspection for Microsoft applications and third-party customer relationship management, enterprise resource planning, and collaboration platforms.

“This acquisition and Whale’s products help us fulfill our promise to protect information and control access and move us closer to our vision of providing a comprehensive secure access platform,” said Bob Kelly, general manager of Infrastructure Marketing at Microsoft. “Microsoft is committed to the continued investment and support of Whale technology and its focus on optimizing Microsoft and third-party applications, as SSL-based access and application protection are integral parts of our secure access road map.”

Whale distinguished itself in the marketplace with its early focus on application-level security. Microsoft plans to further integrate the Whale access and application optimization technologies into its secure access platform, including ISA Server, in the future.

“We have been using the Whale Intelligent Application Gateway for employee and partner access, and we’re excited that this acquisition brings Microsoft’s expertise, support and engineering investment to this technology and helps us further achieve a cost-effective balance between access and security requirements,” said Gary Cooper, applications architect at E.ON UK, one of the U.K.’s leading energy suppliers and part of the world’s largest investor-owned power and gas company.

As with Microsoft’s current security solutions, Whale’s products enable partners to offer strong security solutions and services to their customers. In addition to Whale’s existing global partner channel, Microsoft field sales professionals are now able to sell and support Whale’s products. Microsoft is also committed to releasing these products through its channel of original equipment manufacturers (OEMs) in the near future.

“As one of Microsoft’s OEM partners, Network Engines has been building innovative security appliances based on ISA Server for over two years,” said Greg Shortell, president and CEO of Network Engines Inc. “We look forward to offering our customers and channel partners new appliances based on this industry-leading technology.”

The Whale acquisition follows Microsoft’s recent announcement of Microsoft Forefront, the new brand for its portfolio of security products. Microsoft Forefront-branded products will be rolled out with the next wave of Microsoft’s business security and secure access products across the client, server and network edge.

Whale Communications is now a wholly owned subsidiary of Microsoft Corp.

Product Availability

All Whale Communications products, including the Intelligent Application Gateway, remain immediately available through Whale and its global partner channel and Microsoft sales professionals. More information and product specifications are available at http://www.whalecommunications.com or http://www.microsoft.com/isaserver.

MSFT: Microsoft Buys Health Intelligence Software Azyxxi

Microsoft Corp. today announced that it has agreed to acquire the health intelligence software Azyxxi™ and to forge a strategic alliance with MedStar Health.

Designed by doctors for doctors in one of the country’s busiest hospitals, Azyxxi (rhymes with “Trixie”) was created by Craig Feied, M.D., Mark Smith, M.D., and Fidrik Iskandar using Microsoft® development tools. It brings together all types of patient data from hundreds of sources and makes them instantly available at the point of care.

Azyxxi was first deployed in 1996 in the emergency department of one of MedStar Health’s hospitals, Washington Hospital Center, in Washington, D.C. In addition to serving as a repository for all of a patient’s routine clinical information, Azyxxi provides caregivers with instant access to a comprehensive view of each patient that includes EKGs, scanned documents, X-rays, CT scans, MRI scans, PET scans and even dynamic angiograms and ultrasound images. The acquisition of Azyxxi deepens Microsoft’s commitment to the healthcare industry while making a proven solution more widely available to its customers. Financial terms were not disclosed as part of the agreement between the organizations.

Under the terms of the acquisition, the Azyxxi creators will continue to support the development and expansion of the Azyxxi solution. Drs. Feied and Iskandar, along with approximately 40 employees from the development team at Washington Hospital Center, will join Microsoft and continue to work on research and future enhancements to the product. Dr. Smith will remain as chairman of the emergency medicine department at Washington Hospital Center and will also serve as chief clinical liaison to Microsoft.

A newly formed division at Microsoft led by Peter Neupert, corporate vice president of the health solutions group, will incorporate the new employees and manage product development and delivery. Neupert rejoined Microsoft in September 2005 to coordinate its global health strategy. He reports to Craig Mundie, the company’s chief research and strategy officer.

“Healthcare delivery is one of the top global challenges for governments, employers, caregivers and consumers. Microsoft believes that information technology can positively impact the situation by removing barriers and empowering physicians with instant access to critical patient data,” Neupert said. “Azyxxi has demonstrated strong and clear benefits to physicians and other clinicians. We’re excited to work with the original architects, MedStar Health and Washington Hospital Center, to increase R&D investment in Azyxxi and deliver a technology environment that will help advance the quality of healthcare for patients.”

“Successful innovation requires collaboration, and we are honored to work with Microsoft to advance our shared vision for using information technology to improve patient care,” said Kenneth A. Samet, president and chief operating officer of MedStar Health. “The Azyxxi technology is an amazing tool that enables clinicians to treat their patients more quickly, efficiently and accurately with the click of a mouse. Putting patients first is what we’re all about, and Azyxxi helps us do that every day.”

“Instant access to patient information is key to lifesaving care, especially in the emergency room and intensive-care unit, where delays may mean the difference between life and death,” Dr. Smith said. “Azyxxi was developed in the crucible of a real-time, high-acuity hospital environment, not in an offsite office or research laboratory.”

“The reality is that most hospitals have islands of data that can’t easily be shared with other systems because of disparate data types,” Dr. Feied added. “We developed Azyxxi to address this challenge. Now, as part of Microsoft, we’ll be able to make an even greater contribution to healthcare systems, hopefully worldwide.”

Microsoft and MedStar Health have also agreed on a strategic alliance designed to deliver collaborative innovation to customers as the technology becomes commercially available. Building on more than 10 years of experience, Washington Hospital Center will serve as the development laboratory and continue to develop prototypes and deploy new features that support and enhance the Azyxxi technology.

About Azyxxi

Azyxxi was designed and developed to capture, integrate and display data from wherever it was created. The system can answer clinician-specific questions with great speed; it uses existing data in new ways to enable situational awareness and facilitate the recognition of patterns in the data.

The Azyxxi system excels in environments with fragmented systems that traditionally don’t share data. It manages more than 40 terabytes of live data while offering sub-second response times, and delivers data through a dynamic interface that can be defined by the user and accommodate almost any query. In use at Washington Hospital Center, Azyxxi has increased hospital efficiency, enhanced operational capacity for emergency room cases, improved patient safety, and reduced time for rounds reporting. Azyxxi was so successful that it was exported and deployed throughout MedStar Health’s other hospitals.

Built on the Microsoft .NET Framework and with Microsoft SQL Server™ database software, Azyxxi is able to scale across a range of devices including Tablet and Pocket PCs, and handle a large volume of work stations and terabytes of data to address the needs of any size of institution. Azyxxi’s intuitive, user-friendly interface also supports easy installation by requiring minimal training, and has proved itself to be extremely stable in mission-critical hospital environments, with almost zero downtime.

Azyxxi is being acquired by Microsoft from two technology companies, Datomics Licensing and General Datomics, founded by Azyxxi’s creators. MedStar Health was a co-owner of General Datomics.

Washington Hospital Center is the largest hospital in the nation’s capital with more than 400,000 patient visits per year. Its parent company, MedStar Health, is the largest healthcare provider in the Washington and Baltimore region.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

BEAWorld 2006 San Francisco The Destination For Liquid Thinkers And SOA Thought Leaders

The destination for SOA thought leaders and Liquid Thinkers, the annual BEAWorld Forums are where executives, architects, developers, customers and IT can meet to discuss, network and share best practices for ways to optimize and transform businesses. BEA Systems (NASDAQ:BEAS), the SOA leader, invites the world to register today for its flagship global forums, BEAWorld 2006. The first of three planned worldwide events is scheduled to begin September 19 at the Moscone Convention Center North in San Francisco.

“The theme of this year’s conference is ‘Liquid Thinking’, building on BEA’s on-going strategy for achieving simplicity and fluidity in enterprise computing,” says Marge Breya, senior vice president and chief marketing officer, BEA Systems. “BEAWorld 2006 is focused on helping empower enterprises to take advantage of the next generation enterprise, and is designed to help attendees gain competitive advantage with SOA by identifying ways they can transform and optimize their business.”

On-line registration closes at 5 p.m. PST September 17. To register or receive more information about the San Francisco event, please visit www.bea.com/beaworld.


BEAWorld 2006 Speakers, Partner Pavilion, Breakout Sessions and Registration
BEAWorld 2006 is scheduled to feature keynotes from Alfred Chuang, chairman and chief executive officer, BEA Systems, Inc., and Shaygan Kheradpir, chief information officer, Verizon.

In the Partner Pavilion, attendees can participate in SOA “white boarding” sessions, exchange ideas during SOA Clinics and meet with, and gain insights from, Liquid Thinkers.

BEAWorld 2006 is framed around six tracks comprised of 42 breakout sessions that are designed to help provide insight into improving cost structure and grow new revenue streams. The tracks are:
•Gaining Business Value from SOA: From Pilot to Production
•Business Integration and SOA Governance…Getting the Most Out of Your IT Assets
•Bridging the Gap Between People, Business Processes and Applications
•Embracing Heterogeneity in Today's Enterprise
•Seamless Innovation: Delivering Competitive Advantage Today and Tomorrow
•Liquid Thinkers: Real Companies in Action

About BEAWorld
BEAWorld is the premier event for SOA thought leadership and is scheduled to take place in three strategic world markets spanning the Americas, Europe and Asia. The conference is designed to provide critical insights, hands-on instruction, best-practice strategies, and opportunities for interaction with like-minded professionals, industry leaders, visionaries and expert practitioners.

In addition to working to make SOA a successful reality, BEAWorld can deliver the latest information on BEA’s infrastructure technologies including BEA Tuxedo®, BEA WebLogic, BEA AquaLogic and a Partner Showcase to highlight the latest and most innovative developments from the extensive BEA partner community.

AMZN: Amazon.com Announces 22% Sales Growth

Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its second quarter ended June 30, 2006.

Operating cash flow declined 2% to $610 million for the trailing twelve months, compared with $624 million for the trailing twelve months ended June 30, 2005. Free cash flow decreased 23% to $375 million for the trailing twelve months, compared with $486 million for the trailing twelve months ended June 30, 2005. The primary driver of the free cash flow decline was our increased expenditure in technology and content. Free cash flow was also reduced by a $40 million patent litigation settlement in third quarter 2005, $34 million from excess tax benefits for stock-based compensation now classified as financing cash flows, and investments in additional fulfillment capacity.

Common shares outstanding plus shares underlying stock-based awards outstanding totaled 443 million at June 30, 2006, compared with 438 million a year ago.

Net sales increased 22% to $2.14 billion in the second quarter, compared with $1.75 billion in second quarter 2005. Excluding the $24 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 23% compared with second quarter 2005.

Operating income decreased 55% to $47 million in the second quarter, compared with $104 million in second quarter 2005. The decline in operating income was mainly due to technology and content investments, lower prices including free shipping and Amazon Prime, and $20 million from a contract termination and related fee dispute.

Net income was $22 million in the second quarter, or $0.05 per diluted share, compared with net income of $52 million, or $0.12 per diluted share in second quarter 2005.

"We're investing in Amazon Prime and future technology initiatives," said Jeff Bezos, founder and CEO of Amazon.com. "Amazon Prime gets customers their products fast, and our investments in technology position us to innovate in seller platforms, web services, and digital. We're looking forward to the coming decrease in our year-over-year growth rates in technology spending in the second half of 2006."

Amazon Prime, Amazon.com's first-ever membership program, was introduced in February 2005. For a flat membership fee of $79 per year, Amazon Prime members get unlimited, express two-day shipping for free, with no minimum purchase requirement on over a million eligible items sold by Amazon.com. Members can order as late as 6:30 p.m. ET and still get their order the next day for only $3.99 per item, and they can share the benefits of Amazon Prime with up to four family members living in their household. Sign up for Amazon Prime at www.amazon.com/prime.

Highlights

-- North America segment sales, representing the Company's U.S.
and Canadian sites, were $1.16 billion, up 21% from second
quarter 2005.

-- International segment sales, representing the Company's U.K.,
German, Japanese, French and Chinese sites, were $982 million,
up 24% from second quarter 2005. Excluding the unfavorable
impact from year-over-year changes in foreign exchange rates
throughout the quarter, International net sales growth was
27%.

-- Worldwide Electronics & Other General Merchandise grew 37% to
$624 million in second quarter 2006, and increased to 29% of
worldwide net sales compared with 26% in second quarter 2005.

-- The Company launched its new Toy and Baby stores on
www.amazon.com, featuring tens of thousands of products
offered by Amazon and leading mass market and specialty
retailers. This is the largest selection of Toy and Baby
products ever offered through Amazon.com, and for the first
time ever, Toy and Baby products are eligible for Free Super
Saver Shipping and Amazon Prime.

-- The Company launched a Grocery store on www.amazon.com, with
over 14,000 dry goods grocery products across more than 1,200
brands - all eligible for Free Super Saver Shipping and Amazon
Prime.

-- Amazon's German website -- Amazon.de -- launched its Sporting
Goods store, offering customers a selection of thousands of
sporting goods in over 25 categories from top brands like
Adidas, Burton, Nike, Puma, Quiksilver and Salomon.

-- The Company extended its Enterprise Solutions agreement with
Target.com through August 2010 and launched a new Sears Canada
branded website providing Sears Canada with the tools and
services to control its brand, merchandising and online
business using Amazon Enterprise Solutions technology.

-- Amazon S3, a simple storage service for software developers,
gained momentum in its first full quarter after launch,
providing businesses of all sizes -- from Microsoft to SmugMug
-- with a web services solution for storing and retrieving any
amount of data, at any time, from anywhere on the web.
Developers continue to adopt Amazon's web services -- over
180,000 have registered to date, up greater than 60%
year-over-year.

Financial Guidance

The following forward-looking statements reflect Amazon.com's expectations as of July 25, 2006. Results may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, and the various factors detailed below.

Third Quarter 2006 Guidance

-- Net sales are expected to be between $2.17 billion and $2.33
billion, or to grow between 17% and 25% compared with third
quarter 2005.

-- Operating income is expected to be between $7 million and $42
million, or between (87%) decline and (24%) decline, compared
with third quarter 2005. This guidance includes $38 million
for stock-based compensation and amortization of intangible
assets, and it assumes, among other things, that no additional
intangible assets are recorded and that there are no further
revisions to stock-based compensation estimates.

Full Year 2006 Expectations

-- Net sales are expected to be between $10.15 billion and $10.65
billion, or to grow between 20% and 25% compared with 2005.

-- Operating income is expected to be between $310 million and
$440 million, or between (28%) decline and 2% growth, compared
with 2005. This guidance includes $120 million for stock-based
compensation and amortization of intangible assets, and it
assumes, among other things, that no additional intangible
assets are recorded and that there are no further revisions to
stock-based compensation estimates.



These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risk of future losses, significant indebtedness, system interruptions, consumer trends, limited operating history, government regulation and taxation, fraud, and new business areas. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2005, and all subsequent filings.

SUNW: Sun Microsystems Reports Results, Total Revenues Up 29%

Sun Microsystems, Inc., (NASDAQ: SUNW) reported results today for its fiscal fourth quarter, which ended June 30, 2006.


Revenues for the fourth quarter of fiscal 2006 were $3.828 billion, an increase of 29 percent as compared with $2.974 billion for the fourth quarter of fiscal 2005. Year over year revenue increase resulted from both acquisitions and increasing acceptance of the Solaris 10 Operating System, as well as recently introduced products. Computer Systems Products revenues increased 15% year over year, the second consecutive quarter of year over year revenue increase.

Net loss for the fourth quarter of fiscal 2006 on a GAAP basis was $301 million or a net loss of ($0.09) per share, as compared with net income of $50 million, or net income per share of $0.01, for the fourth quarter of fiscal 2005.

GAAP net loss for the fourth quarter of fiscal 2006 included: $86 million principally related to intangible asset amortization associated with recent acquisitions, $63 million of stock-based compensation charges relating to the adoption of SFAS 123R, $228 million of restructuring charges and an $8 million benefit for related tax effects, $70 million in impairment of acquisition-related intangible assets, $54 million in settlement income, and a $4 million loss on equity investments. In addition, we incurred a $58 million tax charge and $14 million reduction in other income due to a repatriation of foreign earnings. The net impact of these nine items was approximately ($0.13) per share.

Cash generated from operations for the fourth quarter was $410 million and cash and marketable debt securities balance at the end of the quarter was $4.848 billion.

"We're making excellent progress returning Sun to growth and profitability. Revenue, bookings and backlog are all up substantially - indicating we're gaining traction, market confidence and share," said Jonathan Schwartz, CEO, Sun Microsystems. "Our position is steadily improving - among a few highlights: the Solaris OS exceeded 5 million licenses in Q4, largely on Dell and HP servers, and on Sun. The Java platform continues to drive demand in the datacenter and on leading consumer devices. And by opening our UltraSPARC platforms to Ubuntu Linux - we're proving great products and customer choice matter."

"Our total revenues grew by more than 20% sequentially in the June quarter, and this was the largest sequential growth from Q3 to Q4 since fiscal 2000. Our revenue growth was fairly broad-based from both a geographic and industry basis. In the former Sun standalone business, more than half of our 15 geographies had double-digit product revenue growth year over year. The company did an outstanding job remaining focused on the fundamentals, including shipping product, controlling inventory, and managing the overall cash conversion cycle. And, we're starting the new fiscal year with a healthy product backlog of over $1 billion," said Michael Lehman, chief financial officer and executive vice president, Corporate Resources, Sun Microsystems.

HPQ: HP to Acquire Mercury Interactive Corp.

HP today announced that it has signed a definitive agreement to purchase Mercury Interactive Corp., a leading IT management software and services company, through a cash tender offer for $52.00 per share, or an enterprise value of approximately $4.5 billion, which is net of existing cash and debt.

Upon closing, the acquisition will establish HP's portfolio of IT management software and services as the clear choice for companies seeking to optimize the value that IT brings to business.

"Today, we are combining two market-leading businesses to create the most powerful management software portfolio in the industry," said Mark Hurd, HP chief executive officer and president. "Together, they will help customers cut their IT costs, speed the delivery of new services and drive profitable growth at HP. We expect this important acquisition to deliver significant value for our shareholders."

Mercury Chief Executive Officer and President Tony Zingale said, "Together, HP and Mercury instantly become the industry's premier provider of business technology optimization (BTO) software. A deal of this magnitude creates significant opportunities for our customers, our shareholders, our people and our partners."

The transaction brings together the strength of HP OpenView systems, network and IT service management software with Mercury's strength in application management, application delivery, IT governance and service-oriented architecture governance. This combination provides customers with the industry's most robust suite for optimizing, automating and aligning IT services with business needs.

"HP's software strategy is to be the clear leader in end-to-end enterprise IT management and help our customers tightly align IT priorities with changing business requirements," said Thomas E. Hogan, senior vice president, Software, HP. "Combining our HP OpenView offerings with Mercury's BTO Enterprise offerings will integrate the many building blocks of enterprise IT management into one complete solution for the entire IT lifecycle, from planning through to deployment and operations. Mercury is a results-driven, high-performing company with outstanding people that will be a strong addition to HP."

The Mercury acquisition is expected to increase the size of the HP Software business to more than $2 billion in annual revenue. Immediately following the close of the transaction, Mercury will become part of the HP Software business and both companies' sales forces will begin reference-selling each others' products.

HP forecasts that on a non-GAAP basis, the combined HP Software business will deliver revenue growth of approximately 10 percent to 15 percent and operating margin of approximately 20 percent in fiscal year 2008. On a pro forma basis, the transaction is expected to be approximately $0.04 dilutive to non-GAAP per share earnings in fiscal year 2007 and approximately $0.02 accretive to non-GAAP per share earnings in fiscal 2008. This includes purchase accounting adjustments related to deferred revenue write downs and deferred compensation expense of approximately $141 million, or $0.05 per share, in fiscal 2007 and approximately $43 million, or $0.01 per share, in fiscal 2008, as well as expected synergies.

The acquisition will be conducted by means of a tender offer for all of the outstanding shares of Mercury, followed by merger of Mercury with an HP subsidiary. The tender offer is subject to a number of conditions, including that Mercury has filed its Annual Report on Form 10-K for its fiscal year ended Dec. 31, 2005. HP expects to commence the tender offer promptly and the merger is expected to close in the fourth quarter of calendar year 2006.


About Mercury
Mercury, the global leader in business technology optimization (BTO), is committed to helping customers optimize the business value of information technology. Founded in 1989, Mercury conducts business worldwide and is one of the fastest growing enterprise software companies today. It provides software and services to govern the priorities, people, and processes of IT; deliver and manage applications; and integrate IT strategy and execution. Customers worldwide rely on Mercury offerings to improve quality and performance of applications and manage IT costs, risks and compliance. Mercury BTO offerings are complemented by technologies and services from global business partners. For more information, please visit http://www.mercury.com.


About HP
HHP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2006, HP revenue totaled $88.9 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.

AAPL: Warner Bros. And Apple Bring Television Favorites To iTunes

Warner Bros. Home Entertainment Group and Apple® today announced that classic hit programming from Warner Bros.’ vast television library is now available for purchase and download on the iTunes® Music Store (www.itunes.com). The new content features favorites such as the hugely popular sitcom “Friends,” sci-fi epic “Babylon 5” and some of the most popular sketches from “MADtv,” as well as animated classics including “The Jetsons” and “The Flintstones.” iTunes offers over 150 TV shows for $1.99 per episode for viewing on a computer or iPod®.

Also available is the never-before-seen pilot episode of “Aquaman”–a grounded, contemporary reinterpretation of DC Comics’ Aquaman mythology from the acclaimed writing/producing team of Alfred Gough and Miles Millar (“Smallville”).

“Making our television content available to iTunes consumers is an important step in our digital distribution strategy,” said Simon Kenny, president, Warner Bros. Digital Distribution. “This deal fits perfectly with our philosophy of providing consumers with access to our world-class entertainment properties across the widest selection of platforms and devices available.”

“We’re thrilled to add hit programming from Warner Bros. as we continue to grow our video catalog with the best current and classic television programming,” said Eddy Cue, Apple’s vice president of iTunes. “iTunes is the world's most popular online video store with over 35 million videos sold.”

With Apple’s legendary ease of use, pioneering features such as integrated video and podcasting support, iMix playlist sharing, seamless integration with iPod and groundbreaking personal use rights, the iTunes Music Store is the best way for Mac® and PC users to legally discover, purchase and download music and videos online. The iTunes Music Store features a selection of over 9,000 music videos, Pixar and Disney short films, a variety of hit TV shows, and more than three million songs from the major music companies and over 1,000 independent labels.

Pricing and Availability
iTunes 6 for Mac and Windows includes the iTunes Music Store and is available as a free download from www.apple.com/itunes. Purchase and download of songs and videos from the iTunes Music Store requires a valid credit card with a billing address in the country of purchase. Television shows are available in the US only, and video availability varies by country. Television shows are $1.99 (US) per episode, and music videos and short films are $1.99 (US) each.

The Warner Bros. Home Entertainment Group was founded in 2005 to bring together all of the Warner Bros. Entertainment businesses involved in the digital delivery of entertainment content to consumers, including home video, online, wireless, games and anti-piracy and emerging technologies operations. WBHEG is a strategic recognition of the ongoing changes in the way consumers view entertainment product and seeks to maximize current and next-generation distribution scenarios to make the Studio’s content available to audiences through as many channels, platforms and devices as possible.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.

IBM Unleashes World's Most Powerful Server

IBM Unleashes World's Most Powerful Server (1)
Processes business transactions 3.2 times faster with 38% better price/performance; Derived from technology developed for video games "Dual Stress" silicon chip breakthrough drives surge in performance and power efficiency; New virtual meter allows businesses to measure utilization by the drinkIBM, which according to IDC, is the number one vendor of UNIX® systems based on revenue share (2) today introduced a pair of ultra-powerful high-end machines, including the world's most powerful server (1), the IBM System p5™ 595 - a 64-core speed demon capable of a record-shattering four million transactions per minute at a more affordable cost per transaction than HP's flagship Integrity Superdome (1). IBM attributed the huge leap in performance over industry competitors to the company's revolutionary new Dual Stress processor technology, pioneered for ultrafast videogames and making its first appearance in System p5 machines.

Having gained 13 points of UNIX server revenue share in the past 5 years, according to the IDC reports (2) IBM expects the new systems will extend its leadership over competitors.

IBM also announced a major advance in virtualization: IBM Tivoli® Usage and Accounting Manager (UAM). UAM allows IT departments and outsourcing vendors to accurately monitor and bill for individual usage of server resources, like utility companies charge for electricity and water.

"The new system is the first to combine immense power and linear scaling with the ability to create virtualized environments that map business functions with IT assets," said Ross A. Mauri, General Manager, IBM System p. "This is a powerful combination that helps make the concept of the virtualized data center into a reality."

Owning the number one position in five key benchmarks (3), the new IBM System p5 595 is designed to help companies improve IT operational efficiency while cutting overall infrastructure costs. The bigger of the two IBM servers, the 64-core p5-595 running a single instance of the IBM DB2® 9 data server on the AIX 5L™ operating system and using IBM System Storage™ DS4800, processed 4,016,222 transactions per minute on the TPC-C benchmark - 3.2 times better than the HP Integrity Superdome. The p5-595 offered 38% better price performance than the HP machine - $2.98 per transaction versus $4.82 per transaction. (1) The TPC-C benchmark is an industry standard for measuring the ability of a system to process complex online transactions and large volumes of business data. The TPC-C benchmark is unique in the way it exercises all components of a system, including processors, memory, networking, storage, operating system and database software, demonstrating total system performance in a way that many of the other benchmarks touted by some competitors do not.

The new systems leverage IBM's leadership Virtualization Engine™ technology offerings to accommodate up to 10 virtual servers - or partitions - per processor core, enabling clients to consolidate multiple systems and distributed applications - even entire IT infrastructures - on a single box.

Dual Stress Technology - From Gaming Consoles to Servers
One of the most significant processor breakthroughs in recent years - called Dual Stress - is driving the dramatic leap in server performance. Developed by IBM initially for state-of-the-art video gaming consoles introduced late last year, dual stress solves a fundamental conundrum of physics that had vexed processor designers since the dawn of the semiconductor industry. The scientists discovered a method of simultaneously stretching and compressing the silicon to deliver a dramatic surge in system performance and power efficiency. The breakthrough process is designed to result in up to a 24 percent transistor speed increase, at the same power levels, compared to similar transistors produced without the technology. Dual Stress can also be used to lower power consumption.

Faster, more power-efficient transistors are the building blocks of higher performance, lower power processors. As transistors get smaller, they operate faster, but also risk operating at higher power and heat levels due to electrical leakage or inefficient switching. IBM's strained silicon helps overcome these challenges.

Dual Stress enhances the performance of both types of semiconductor transistors, called n-channel and p-channel transistors, by stretching silicon atoms in one transistor and compressing them in the other. Dual Stress technique works without the introduction of challenging, costly new production techniques, allowing for its rapid integration into volume manufacturing using standard tools and materials.

Balanced System Design
IBM's attention to balanced system design helps transmit and magnify the performance boost provided by Dual Stress at the processor level all the way to the system level. The speeds of components of the new systems, including processor-to-processor interconnects, processor to cache speed, all chips and buses, have been scaled up from previous systems to help maintain balanced system performance

"IBM's microprocessor leadership - our chips power everything from gaming consoles to supercomputers - is key to our server leadership," said Mauri. "But equally important is our unmatched success in designing total systems, including software that can take advantage of processor improvements. For the future, IBM is committed to extending our lead in processors, matching it every step of the way with substantial innovations at the system level. The unparalleled scalability of AIX 5L and DB2 9 complement the hardware to produce a superior overall system solution."

IBM Tivoli Usage and Accounting Manager
IBM's new Tivoli Usage and Accounting Manager ("ITUAM"), available on the new systems, enables clients to measure for technical resources usage costs in a virtualized environment and integrate them directly into an organization's accounting structure - by application, business unit, division, department, cost center, or project. ITUAM collects information from operating systems, databases, networks, storage systems, applications and virtualized environments and "understands" which part of an organization consumes each of these resources, enabling administrators to charge the appropriate department for such resource usage.

For example, a financial services company's commercial loan business might involve thousands of employees using dozens of applications running across several virtual servers. ITUAM will report total IT costs charged to the commercial loans unit and allow the company to drill down to see how much of the total is spent on databases, email, printing, servers, and all other resources. Amazingly granular in the reports it generates, ITUAM can break down database statistics, say, by mainframe, UNIX and Windows®, Linux®, etc. The database costs can be further parsed by server, giving the client specifics on the individual resource level for each server.

Combining the functionality of the IBM Tivoli Usage and Accounting Manager with the existing AIX 5L technology offered by System p servers provides clients a proportioning capability with unsurpassed flexibility, which helps them to accurately anticipate and meet their resource demands. The two features together allow virtually instantaneous creation, deletion and movement of partitions as well as workload reallocation.

IBM Usage and Accounting Manager's simple GUI enable changes to be easily made in real time and often automatically, helping users realize greater efficiency and resource usage.

IBM Tivoli Access Manager for Operating Systems on System p
IBM Tivoli Access Manager for Operating Systems will be included on the new System p servers as a no-charge, preinstalled product. The security software helps to defend against many of the top internal and external security threats facing enterprises today such as insider threats and identity theft. The security software helps prevent unauthorized access to valuable customer, employee and business data and facilitates compliance with corporate security policy and regulatory requirements.

IBM Server Consolidation Factory for System p
The combination of Usage and Accounting Manager with the virtualization capabilities of System p servers creates a powerful opportunity to consolidate customers currently using large numbers of smaller, less efficient servers, which in aggregate can consume vast quantities of floor space and electricity in addition to being hard to manage. To that end, IBM is launching the IBM Server Consolidation Factory for System p. The Factory delivers a complete solution including hardware, middleware, consulting and deployment services, together with financing to help customers move to a virtualized environment on System p. The Factory can also mitigate risks to IT operations both during and after the deployment. The result is a data center where all elements are configured to be reusable, shared and optimized.

IBM System p5 590 and 595 Designed for Scalability
The new servers are built with 16-core units called "books", each containing two 8-core multichip modules (MCMs) with four dual-core POWER5+™ processor chips. Processor clock speeds available on the 64-core p5-595 are 2.3 GHz or 2.1 GHz, while the 32-core p5-590 offers 2.1 GHz processors. Each processor chip contains 1.9MB of Level 2 (L2) cache and an integrated memory controller. In addition, the MCM contains 36MB of L3 cache per dual-core processor chip, for a total of 144MB L3. Each book provides 16 memory card slots, allowing 8GB to 512GB of high-speed 533 MHz DDR2 (double data rate 2) memory per book. So a p5-590 can scale up to 32 cores and 1TB of memory, while the p5-595 goes all the way to a 64-core system and an amazing 2TB of total memory capacity.

(1) IBM TPC-C result of 4,016,222 tpmC, $2.98 on a 64-core (32 processor chips, 128 threads) 2.3 GHz POWER5+ System p5-595 (configuration planned to be available 12/20/06) running DB2 9.1 on AIX 5L V5.3 vs. HP TPC-C result of 1,231,433 tpmC, $4.82/tpmC on a 64-core (64 chips, 64 threads) 1.6 GHz Intel® Itanium® 2 Integrity Superdome (configuration available 6/05/06)

(2) Based on IDC Worldwide Quarterly Server Tracker, 1Q06, issued on May 24, 2006

(3) IBM TPC-C result of 4,016,222 tpmC, $2.98 on a 64-core (32 processor chips, 128 threads) 2.3 GHz POWER5+ System p5-595 (configuration planned to be available 12/20/06) running DB2 9.1 on AIX 5L V5.3 using IBM System Storage DS4800;The IBM System p5 595 (2.3 GHz) two-tier SAP SD Standard Application Benchmark result of 23,456 SD Benchmark users running DB2 Universal Database 9.1 on AIX 5L V5.3, MySAP™ ERP 2004 Application. (1.98 second average response time, 2,350,330 Fully processed Order lines items/hours, 7,051,000 Dialog steps/hour, 117,520 SAPS, 0.019 sec / 0.016 sec Average DB request time (dia/upd), 99% CPU utilization of central server, SAP ECC Release 5.0, 64 cores, 128 threads,

The SAP certification number was not available at press time and can be found at: http://www.sap.com/benchmark;
IBM System p5-595 1-core (2.3 GHz, 1 thread) SPECfp2000 result of 3,642;
IBM System p5-595 64-core (2.3 GHz, 128 threads) SPECompMpeak2001 result of 157,880;
IBM System p5-595 64-core (2.3 GHz, 128 threads) SPECompLpeak2001 result of 1,056,459

AAPL: Apple Debuts Wireless Mighty Mouse

Apple today introduced the wireless Mighty Mouse, a new version of its popular multi-button mouse, now with the added freedom that only wireless connectivity can provide. The new wireless Mighty Mouse offers a reliable, secure connection to Macs and features a new laser tracking engine that is 20 times more sensitive than standard optical mice for better tracking on even more surfaces. Priced at just $69, Apple’s wireless Mighty Mouse includes up to four independently programmable buttons and an ingenious Scroll Ball that lets users scroll in any direction.

“We cut the cord on our popular Mighty Mouse to give consumers even more flexibility when using a Mac,” said David Moody, Apple’s vice president of Worldwide Mac Product Marketing. “A Bluetooth-enabled Mac desktop with an Apple Wireless Keyboard and Mighty Mouse is the ideal cable-free setup at home or in the office, and the wireless Mighty Mouse is the perfect travel companion for the MacBook user on the go.”

The wireless Mighty Mouse is a Bluetooth 2.0 based multi-button mouse that retains the simplicity of a single-button mouse, and can be used as a single- or multi-button mouse depending on the user’s preference. The wireless Mighty Mouse features a single seamless enclosure with programmable touch sensors that act as primary or secondary buttons. With a simple click on the upper right or left side of the mouse, users can instantly access features such as contextual menus found in Mac OS® X and other applications. The wireless Mighty Mouse’s two other buttons are activated by pressing its Scroll Ball and squeezing its sides, and can be easily programmed to give users one-click access to Mac OS X “Tiger” features such as Spotlight™, Dashboard and Exposé™, or to launch any application such as Safari™ or iChat.

The wireless Mighty Mouse features an easy-to-use design that comfortably fits the left or right hand. It also includes an advanced power management system that automatically switches to low power modes during inactivity, and an off switch to maintain battery life while not in use. Ready to use out of the box, the wireless Mighty Mouse works with either one or two AA batteries.

Pricing & Availability
The wireless Mighty Mouse is available immediately through the Apple Store® (www.apple.com), at Apple’s retail stores and Apple Authorized Resellers for a suggested retail price of $69 (US). The wireless Mighty Mouse easily connects to the latest Macs with built-in Bluetooth wireless technology, and requires Mac OS X “Tiger” version 10.4.6 or later to customize buttons for one-click access to Spotlight, Dashboard and Exposé or to launch applications.

Oracle (ORCL) And HP (HPQ) Unveil Reference Configurations to Streamline Data Warehouse Design and Deployment

Oracle and HP (NYSE: HPQ) (Nasdaq: HPQ) today announced that they have developed reference configurations that can accelerate implementation by IT departments of Oracle(r) Database 10g-based data warehouses on HP servers and storage.
Reference configurations help customers get the database, server, and storage mix they need, right out of the gates. These configurations have a sliding scale to optimize data warehouse solutions for either raw performance or price performance. This approach can help cut weeks out of the buying cycle for even greater ease of doing business with HP and Oracle, and speed time to implementation.

To avoid typical bottlenecks, each configuration defines a matched set of servers and storage that balances I/O throughput seamlessly across all components to yield consistently high performance for complex queries running against large data warehouses. Customers can make quick and accurate infrastructure decisions with guidance on the right combination of HP Integrity and ProLiant servers and HP StorageWorks disk arrays. From a single HP ProLiant server to scale-out server clusters running Linux and scale-up HP Integrity Superdome servers running HP-UX11i, the configurations cover data warehouses ranging in size from 250GB to 10TB.

"We've worked closely to ensure that joint customers can benefit from the high performance, reliability and scalability of Oracle Database 10g on a choice of proven HP server and storage configurations," said Willie Hardie, vice president of Database Product Marketing, Oracle. "Together, we've established multiple TPC-H world record benchmarks, proving time and again the performance and value of an Oracle and HP data warehousing solution. We're offering customers a choice of reference configurations to meet their immediate requirements and a roadmap that enables their Oracle and HP solution to grow with them."

"The HP and Oracle joint reference configurations are well engineered, tested, and true to real world business intelligence scenarios," said Chris Buss, senior director of Business Intelligence, Business Critical Servers, HP. "We are confident that this intelligent approach translates into cost and time savings for customers deploying decision support systems on HP and Oracle."

For more information about the HP and Oracle BI Reference Configuration program, customers can go to: http://www.oracle.com/features/hp/data-warehousing.html .

About Oracle Database 10g
The only database designed for grid computing, Oracle Database 10g delivers superior performance, scalability, availability, security and ease of management on a low-cost grid of industry standard storage and servers. Oracle Database 10g is designed to be effectively deployed on everything from small blade servers to the biggest SMP servers and clusters of all sizes. It features automated management capabilities for easy, cost-effective operation. Oracle Database 10g's unique ability to manage data from traditional business information to XML documents and spatial/location information makes it the ideal choice to power online transaction processing, decision support and content management applications.

ORCL: Oracle Embeds COBIT 4.0 With Oracle Internal Controls Manager

Oracle today announced that it will bundle, at no additional cost, the Control Objectives for Information and Related Technology (COBIT) 4.0 framework with Oracle(r) Internal Controls Manager, a compliance management tool used to document, test and certify internal controls and monitor ongoing compliance. Oracle plans to provide customers with a single application that manages compliance control requirements for Information Technology (IT). The packaged offering of Oracle Internal Controls Manager with COBIT, the IT governance public domain framework and the most widely adopted standard for IT controls and auditability under the Sarbanes-Oxley Act, extends Oracle's compliance offerings by delivering a comprehensive compliance management control set-up and IT administration framework.
Aligning Compliance Efforts: Oracle Delivers Direct Access to COBIT 4.0
Previously, companies had to create separate connections between the control frameworks in IT and finance. COBIT gives users a single connection and allows them to implement best practices in application and general IT controls while enabling them to meet the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework control objectives are met. By partnering with the Information Systems Audit and Control Association (ISACA) and members of the global IT audit industry to embed COBIT 4.0 in Oracle Internal Controls Manager, Oracle is able to offer users direct access to the premier comprehensive risk and audit control framework for IT processes. COBIT emphasizes regulatory compliance, helping organizations increase the value attained from IT and simplifying the implementation of the COBIT framework. Additionally, it presents activities in a streamlined and practical manner that facilitates continuous improvement in IT governance.

"Companies need to align best practices in IT management with the business to achieve more efficient operations," said Oracle Group Vice President of Application Strategy Chris Leone. "We continue to recommend that enterprises use COBIT to bolster their IT governance procedures and to improve the controls they have in place. Bundling COBIT with Oracle should enable enterprises to detail control objectives and monitor for compliance consistency without additional costs or integration."

The new bundled package provides a structure and presentation that is easy to understand and use across the organization. Information-technology managers can evaluate IT content needs for a Sarbanes-Oxley Section 404 audit. At the same time, enterprises are now equipped to communicate IT compliance requirements successfully across business and IT departments.

In COBIT 4.0, the inclusion of core content, process mappings and cross-references supports a financial controls product that is superior to previous versions with a structure for communication between IT, management and accounting. The core content is organized according to 34 IT processes including a high-level control objective, a process description summarizing its objectives, information criteria and IT resources, management guidelines, the process inputs and outputs, a RACI (responsible, accountable, consulted and/or informed) chart, goals and metrics and the maturity model for a process.

"Improving the coordination between IT and business units to help achieve and maintain compliance is an ongoing challenge," said Kathleen Wilhide, Research Director, Compliance and BPM Solutions, at IDC. "Bundling COBIT 4.0 with Oracle Internal Controls Manager provides a structure for addressing general computer controls as required by regulations such as Sarbanes-Oxley, and fills gaps and adds clarity for the user. The addition of COBIT will ultimately enable a better managed IT processes department and help with enhanced compliance and visibility and risk management capabilities maintenance."

ATYT: AMD To Buy ATI Technologies

AMD (NYSE: AMD) and ATI (TSX: ATY, NASDAQ: ATYT) today announced plans to join forces in a transaction valued at approximately $5.4 billion. The combination will create a processing powerhouse by bringing AMD’s technology leadership in microprocessors together with ATI’s strengths in graphics, chipsets and consumer electronics. The result: A new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly-growing consumer electronics market. Combining technologies, people, and complementary strengths, AMD plans to deliver in 2007 customer-centric platforms for the benefit of customers who want to collaborate in the development of differentiated solutions.

AMD’s acquisition of ATI will position the new company to deliver innovations that fulfill the increasing demand for more integrated solutions in key market segments while also continuing to develop “best-of-breed” discrete products that empower customers to choose the combination of technologies that best serves their needs. In 2008 and beyond, AMD aims to move beyond current technological configurations to transform processing technologies, with silicon-specific platforms that integrate microprocessors and graphics processors to address the growing need for general-purpose, media-centric, data-centric and graphic-centric performance. Thus, the combined company intends to empower its customers to create their own unique products and solutions within an open-innovation ecosystem free from artificial barriers to customer success.

“ATI shares our passion and complements our strengths: technology leadership and customer centric innovation,” said AMD Chairman and CEO Hector Ruiz. “Bringing these two great companies together will allow us to transcend what we have accomplished as individual businesses and reinvent our industry as the technology leader and partner of choice. We believe AMD and ATI will drive growth and innovation for the entire industry, enabling our partners to create differentiated solutions and empowering our customers to choose what is best for them.”

“This combination means accelerated growth for ATI, and broader horizons for our employees,” said Dave Orton, President and CEO of ATI. “All of our product lines will benefit. Joining with AMD will enable us to innovate aggressively on the PC platform, and continue to invest significantly in our consumer business to stay in front of our markets.”

“Windows Vista will deliver incredible advances in the user experience as a result of advancements in graphics integration and performance,” said Jim Allchin, Co-President of Microsoft’s Platforms & Services Division. “We’re excited by the potential of what AMD and ATI can deliver together to enhance the Windows Vista experience for our customers even further.”

Under the terms of the transaction, AMD will acquire all of the outstanding common shares of ATI for a combination of $4.2 billion in cash and 57 million shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21, 2006. All outstanding options and RSUs of ATI will be assumed. Based upon the closing price of AMD common stock on July 21, 2006 of $18.26 a share, the consideration for each outstanding share of ATI common stock would be $20.47, comprised of $16.40 of cash and 0.2229 shares of AMD common stock.

AMD anticipates it will finance the cash portion of the transaction with a combination of cash and new debt. AMD has obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding, Inc. which, together with combined existing cash, cash equivalents, and short term investments balances of approximately $3.0 billion, provides full funding for the transaction.

ATI has received an opinion from its financial advisors that the transaction from a financial point of view is fair to its shareholders. The transaction was unanimously approved by the board of directors of each company. The transaction is subject to ATI shareholder approval, Canadian court supervision of a Plan of Arrangement, and other regulatory approvals including merger notification filings in the United States, Canada and other jurisdictions, as well as customary closing conditions. In the event that the transaction does not close, ATI has agreed to pay AMD a termination fee of $162.0 million under circumstances specified in the acquisition agreement. The transaction is expected to be completed in the fourth quarter of 2006.

A Compelling Financial Opportunity
AMD expects that the transaction will be slightly accretive to earnings in 2007, and meaningfully accretive in 2008, before the inclusion of ATI acquisition–related charges, based upon AMD’s plans to deliver more integrated and advanced platform solutions and thereby improve its position in commercial clients, mobile computing, gaming, media and emerging markets. AMD anticipates that it will reduce operating expenses by approximately $75 million for the combined company by the end of 2007.

The combined company would have achieved approximately $7.3 billion1 in total consolidated sales during the last four quarters with a workforce of approximately 15,000 employees. Headquartered in Sunnyvale, California, the company will maintain sales, design and manufacturing centers worldwide and major business centers in Silicon Valley, Austin, Texas and Markham, Ontario - all valued centers of innovation for the combined company. AMD’s current executive team will be complemented by the addition of ATI President and CEO Dave Orton. Orton will serve as an executive vice president of the ATI business division, reporting to the AMD Office of the CEO, comprised of Chairman and CEO Hector Ruiz and President and Chief Operating Officer Dirk Meyer. In addition, under the terms of the acquisition agreement, two ATI directors will join AMD’s board of directors upon closing of the transaction.

The collective roster of AMD and ATI’s strong customer relationships represents a “who’s who” of the computing and consumer electronics industries. Drawing upon a shared culture of customer-centric innovation and engineering excellence, the combined company will be well positioned to meet customer demand for more innovative solutions, system-level engineering and faster time-to-market.

About AMD
Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide. For more information visit www.amd.com.

About ATI
ATI Technologies Inc. is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies and digital media silicon solutions. An industry pioneer since 1985, ATI is the world's foremost graphics processor unit (GPU) provider and is dedicated to deliver leading-edge performance solutions for the full range of PC and Mac desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets. With fiscal 2005 revenues of US $2.2 billion, ATI has approximately 4,000 employees in the Americas, Europe and Asia. ATI common shares trade on NASDAQ (ATYT) and the Toronto Stock Exchange (ATY).