Advanced Micro Devices Inc. has agreed to buy Canadian graphics chip maker ATI Technologies Inc. for about US$5.4 billion in cash and stock. AMD said the merger will speed its plan to offer integrated products for the mobile computing and consumer electronics markets. The deal is subject to shareholder and regulatory approvals. The companies had combined revenue of $7.3 billion for the fiscal year that ended May 31.

Microsoft ships new Exchange beta

Microsoft Corp. has released the second beta version of Exchange Server 2007 and the beta for an accompanying antivirus product, Forefront Security for Exchange. The new beta of Exchange Server 2007 is more reliable than the previous version and adds new management and mobility features, Microsoft said. The final version of the product will be released late this year or early in 2007.

Sun posts $301M fourth-quarter loss

Sun Microsystems Inc. posted a loss of $301 million for its fourth quarter, which ended June 30. Sun blamed the loss on restructuring costs from a tumultuous period of layoffs and plant closings.