AMD

AMD

January 10, 2005 19:20 ET

AMD Updates Fourth Quarter Outlook


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AMD

NYSE SYMBOL: AMD

JANUARY 10, 2005 - 19:20 ET

AMD Updates Fourth Quarter Outlook

SUNNYVALE, Calif.--(CCNMatthews - Jan 10, 2005) -

AMD (NYSE:AMD) today announced sales for the fourth quarter ended
December 26, 2004 are expected to be up slightly from the $1.239 billion
reported in the third quarter. Fourth quarter operating income is
anticipated to be positive, but down significantly from third quarter
operating income of $68.4 million. The Computation Products Group (CPG)
continued its upward trajectory and fourth quarter sales are expected to
increase compared to the prior quarter. CPG is expected to be
profitable. In a competitive and challenging NOR Flash memory market,
the Memory Group is anticipated to have lower fourth quarter sales and
an operating loss.

The company's prior guidance for the fourth quarter anticipated overall
sales to increase, driven by processor sales that exceeded seasonal
trends, and Flash memory sales that were flat to up.

AMD will report its fourth quarter 2004 results after market close on
Tuesday, January 18, 2005. AMD will hold a conference call on this day
for the financial community at 2:30 PM PT to discuss fourth quarter
financial results. A real-time audio broadcast of the teleconference
will be provided at www.amd.com and www.streetevents.com. The webcast
will be available for ten days after the conference call.

CAUTIONARY STATEMENT

This release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements in this release involve risks and uncertainty
that could cause actual results to differ materially from current
expectations. We urge investors to review in detail the risks and
uncertainties in the company's Securities and Exchange Commission
filings, including but not limited to the Annual Report on Form 10-K for
the year ended December 28, 2003, and the Quarterly Report on Form 10-Q
for the quarter ended September 26, 2004.

ABOUT AMD

AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash
memory devices and low-power processor solutions for the computer,
communications and consumer electronics industries. AMD is dedicated to
delivering standards-based, customer-focused solutions for technology
users, ranging from enterprises and governments to individual consumers.
For more information visit www.amd.com.

AMD, the AMD Arrow logo, AMD Athlon, AMD Opteron, AMD Geode, and
combinations thereof, are trademarks of Advanced Micro Devices, Inc.
Spansion and MirrorBit are trademarks of Spansion LLC. Other names used
are for identification purposes only and may be trademarks of their
respective owners.

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