AMD improves outlook for fourth quarter

AMD IMPROVES OUTLOOK FOR FOURTH QUARTER



- AMD Athlon* XP Processor Drives Sales Growth -





 SUNNYVALE, CA - December 6, 2001 - AMD said today that it currently
expects higher sales in the current quarter ending December 30, 2001 than
previously indicated. Demand for the AMD AthlonTM XP processor, which was
introduced on October 9, and is the world's highest-performance PC processor,
has been robust. As a result, PC processor revenues, in the aggregate, are
expected to exceed the previous record set in the first quarter of the year on
record units. The stronger than expected PC processor sales, even in the face of
flash memory sales now expected to be no better than flat, are expected to drive
overall fourth quarter sequential revenue growth into the 10 percent or better
range when compared to third quarter sales of $765,870,000.

 AMD expects that its cost containment and reduction programs, coupled with
revenue growth, will reduce the operating loss in the current quarter from the
level of the third quarter. AMD continues to expect that it will return to
profitability in the second quarter of 2002, when the full benefits of its cost
control programs are realized.



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. Risks include the possibility that global business and
economic conditions will worsen, and that consumer confidence will continue to
decline, resulting in lower than expected sales in the current quarter and in
2002; that Intel Corporation pricing, marketing programs, product bundling, new
product introductions or other activities targeting the company's processor
business will prevent attainment of the company's current PC processor sales
plans; that demand for personal computers and, in turn, demand for the company's
PC processors will be lower than currently expected; that demand for the
company's flash memory products will be lower tha!

n currently expected; that the company will not continue to be successful in
ramping production of the company's highest-performance AMD Athlon(tm)
processors in Fab 30 in Dresden, Germany; and that the company will not be able
to grow revenues and reduce cost in the current quarter and in 2002 consistent
with its current forecast. 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 report on Form 10-K for the year ended December
31, 2000, and the report on Form 10-Q for the quarter ended September 30, 2001.

About AMD

AMD is a global supplier of integrated circuits for the personal and networked
computer and communications markets with manufacturing facilities in the United
States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor's
500 company, produces microprocessors, flash memory devices, and support
circuitry for communications and networking applications.

Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $4.6
billion in 2000. (NYSE: AMD).



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