AMD CONFIRMS OUTLOOK FOR CURRENT QUARTER

AMD CONFIRMS OUTLOOK FOR CURRENT QUARTER



SUNNYVALE, CA - November 8, 2001 - Speaking at the annual AMD fall analyst
conference today, AMD Chairman and Chief Executive Officer W.J. Sanders III said
he expects that overall revenues will range from flat to high single-digit
percentage growth on record unit sales of PC processors in the quarter ending
December 30, 2001. The company outlook for the quarter remains unchanged from a
projection issued when it reported third quarter results on October 17, 2001.



"Seasonal patterns in the PC industry lead us to believe that AMD PC
processor revenues in the first quarter of 2002 could retreat somewhat from the
current quarter," Sanders said. "The outlook for flash memory going
into 2002 remains uncertain, and pricing pressures on flash memory products are
expected to remain intense. We currently expect that these conditions will delay
our return to profitability until the second quarter of 2002."



Sanders said that the company's cost containment and cost reduction program will
contribute to improved operating results in the second quarter and beyond.
"While we expect only very modest overall growth in the semiconductor
industry next year, we believe that our new product offerings and low
manufacturing costs will result in a profitable year overall for AMD in
2002," Sanders concluded.





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 July 1, 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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