Abstract: A packed half-word addition and subtraction operation is performed by a microprocessor in parallel upon half-word operands obtained from designated top or bottom half-word locations of designated source registers of a register file and the sum and difference results of such operation are packed into respective top and bottom half-word locations of a designated destination register. The microprocessor includes an arithmetic-logic unit (ALU) with adder circuitry that can be selectively split into separate half-word adders that are independently selectable to perform either an addition operation or subtraction operation upon the selected half-word operands. The half-word adders of the ALU access the operands from source registers via a set of multiplexers that select among the top and bottom half-word locations. Operations with halving and saturation modifications to the sum and difference results may also be provided.