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AMD Places Multi-Million Dollar Order
with Yield Dynamics for its 300mm Fab 36

Sunnyvale, CA, August 31, 2005 Yield Dynamics, Inc. (“YDI”) announced today that Advanced Micro Devices, Inc. (“AMD”) placed a multi-million dollar order for YDI’s Genesis yield management software for use in AMD’s Fab 36 in Dresden, Germany.

Fab 36 is AMD’s new 300mm fab and will manufacture its leading-edge microprocessors.  Fab 36 will use the third generation of AMD’s extensive patented suite of advanced fab technologies, known collectively as Automated Precision Manufacturing ("APM").  Genesis will act as a seamlessly integrated component within the APM framework, working in concert with APM’s numerous proprietary yield management systems.

Genesis has been used in AMD fabs worldwide for the past five years.

“APM’s unprecedented levels of automated decision-making enable us to stay at the forefront of manufacturing speed, accuracy and agility.  The flexibility of the Genesis solution strongly complements these capabilities,” stated Charles Clark, Director of Global Manufacturing Services for AMD.

Homi Fatemi, Vice President of Sales and Marketing at YDI, added, “AMD makes the most advanced semiconductor products in the world, and has competed successfully in microprocessors both based on their product designs as well as the unrivaled quality and efficiency of their fabrication processes.  We’re proud of the role our product plays in AMD’s yield optimization strategies, and of their vote of confidence to deploy our product in their latest and most advanced manufacturing facility.”

About Yield Dynamics, Inc.

Headquartered in Sunnyvale, Calif., Yield Dynamics, Inc. is the leading provider of enterprise yield management software for semiconductor and flat panel display (FPD) manufacturers, as well as fabless chip design companies. The company’s extensible software platform enables customers to quickly identify and correct semiconductor and FPD production failures, achieving faster product ramps and higher yields. Additional information about Yield Dynamics can be found at www.ydyn.com.

Trademarks

Yield Dynamics and Genesis are trademarks or registered trademarks of Yield Dynamics, Inc.

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