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AMD Reports Fourth Quarter and Annual Results
    --  Record microprocessor unit shipments included nearly 400,000
        quad-core processors

    --  Fourth quarter non-GAAP operating loss reduced to $9
        million(1)

    --  Fourth quarter gross margin improved 3 points sequentially to
        44 percent

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 17, 2008--AMD (NYSE:AMD) today reported fourth quarter 2007 revenue of $1.770 billion, an 8 percent increase compared to the third quarter of 2007 and flat compared to the fourth quarter of 2006(2). In the fourth quarter of 2007, AMD reported a net loss of $1.772 billion, or $3.06 per share, and an operating loss of $1.678 billion. Fourth quarter net loss included charges of $1.675 billion, or $2.89 per share, of which $1.669 billion were operating charges. The non-cash portion of the fourth quarter charges was $1.606 billion. In the third quarter of 2007, AMD reported revenue of $1.632 billion, a net loss of $396 million, and an operating loss of $226 million. In the fourth quarter of 2006(2), AMD reported revenue of $1.773 billion, a net loss $576 million, and an operating loss of $529 million.

For the year ended December 29, 2007, AMD achieved revenue of $6.013 billion, a 6 percent increase from 2006(2). The fiscal 2007 net loss was $3.379 billion. Included in the 2007 net loss were non-cash charges of $2.007 billion. AMD reported revenue of $5.649 billion and a net loss of $166 million for fiscal 2006(2). Details of the various charges are described in the tables below.

     Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)


(Millions except per
 share amounts)             Q4-07           Q3-07         Q4-06(2)
--------------------------------------- -------------- --------------
GAAP net loss/EPS,
 less:                 $(1,772) $(3.06) $(396) $(0.71) $(576) $(1.08)
------------------------------- ------- ------ ------- ------ -------
 ATI impairment of
  goodwill and acquired
  intangible assets     (1,608)  (2.78)     -       -      -       -
------------------------------- ------- ------ ------- ------ -------
 ATI other acquisition-
  related and severance
  charges                  (61)  (0.11)   (78)  (0.14)  (551)  (1.04)
------------------------------- ------- ------ ------- ------ -------
 Tax benefit from ATI
  acquisition-related
  charges                   63    0.11      -       -      -       -
------------------------------- ------- ------ ------- ------ -------
 Spansion investment
  impairment               (69)  (0.12)   (42)  (0.08)     -       -
------------------------------- ------- ------ ------- ------ -------
 Debt-related net
  charges                    -       -      -       -      -       -
------------------------------- ------- ------ ------- ------ -------
 Total net charges      (1,675)  (2.89)  (120)  (0.22)  (551)  (1.04)
------------------------------- ------- ------ ------- ------ -------
Non-GAAP net income
 (loss)(1)             $   (97)         $(276)         $ (25)
------------------------------- ------- ------ ------- ------ -------

(Millions except per share amounts)        2007           2006(2)
------------------------------------------------------ --------------
GAAP net loss/EPS, less:              $(3,379) $(6.06) $(166) $(0.34)
---------------------------------------------- ------- ------ -------
 ATI impairment of goodwill and
  acquired intangible assets           (1,608)  (2.88)     -       -
---------------------------------------------- ------- ------ -------
 ATI other acquisition-related and
  severance charges                      (346)  (0.62)  (557)  (1.13)
---------------------------------------------- ------- ------ -------
 Tax benefit from ATI acquisition-
  related charges                          63    0.11      -       -
---------------------------------------------- ------- ------ -------
 Spansion investment impairment          (111)  (0.20)     -       -
---------------------------------------------- ------- ------ -------
 Debt-related net charges                  (5)  (0.01)   (10)  (0.02)
---------------------------------------------- ------- ------ -------
 Total net charges                     (2,007)  (3.60)  (567)  (1.15)
---------------------------------------------- ------- ------ -------
Non-GAAP net income (loss)(1)         $(1,372)         $ 401
---------------------------------------------- ------- ------ -------
 Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income
                                (Loss)

(Millions)                Q4-07    Q3-07   Q4-06(2)   2007     2006(2)
----------------------- --------- -------- -------- --------- --------
GAAP operating loss,
 less:                  $ (1,678) $  (226) $  (529) $ (2,865) $   (47)
----------------------- --------- -------- -------- --------- --------
      ATI Impairment of
       goodwill and
       acquired
       intangible
       assets             (1,608)       -        -    (1,608)       -
----------------------- --------- -------- -------- --------- --------
      ATI other
       acquisition-
       related and
       severance
       charges               (61)     (78)    (551)     (346)    (557)
----------------------- --------- -------- -------- --------- --------
Total ATI acquisition-
 related and severance
 charges                  (1,669)     (78)    (551)   (1,954)    (557)
----------------------- --------- -------- -------- --------- --------
Non-GAAP operating
 income (loss)(1)       $     (9) $  (148) $    22  $   (911) $   510
----------------------- --------- -------- -------- --------- --------

"We were close to break-even operationally for the quarter, reducing our fourth quarter non-GAAP operating loss to $9 million(1). We improved gross margin by three points sequentially, driven by increased shipments of new products, higher average selling prices and cost containment actions," said Robert J. Rivet, AMD's Chief Financial Officer. "We shipped a record number of microprocessor units in the quarter, including nearly four hundred thousand quad-core processors."

Fourth quarter 2007 gross margin was 44 percent, compared to 41 percent in the third quarter of 2007 and 36 percent in the fourth quarter of 2006(2).

Computing Solutions

Fourth quarter Computing Solutions segment revenue was $1.402 billion, a 9 percent sequential increase. Server, mobile and desktop processor revenue each increased quarter-over-quarter, driving an 11 percent sequential increase in microprocessor revenue. Record desktop and mobile processor unit shipments drove a 7 percent sequential increase in overall microprocessor unit shipments, resulting in record microprocessor unit shipments. Server processor unit shipments increased 22 percent sequentially, driven by a significant increase in quad-core AMD Opteron(TM) processor shipments.

Graphics

Graphics segment revenue was $259 million, a three percent sequential increase. The growth was due to demand for AMD's new ATI Radeon HD(TM) 3800 series and continued adoption of the ATI Radeon HD 2000 series of graphics processors.

Consumer Electronics

Fourth quarter Consumer Electronics segment revenue was $109 million, a 12 percent increase compared with $97 million in the third quarter of 2007. The increase was driven largely by increased game console royalties and sales of products for the handheld market.

Current Outlook

AMD's outlook statements are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

In the seasonally down first quarter, AMD expects revenue to decrease in line with seasonality.

    Additional Quarterly Highlights

    --  The Quad-Core AMD Opteron processor was named Chip of the Year
        by CRN. The publication called the processor a "game changer"
        because of its blend of "blazing" speed and energy efficiency.

    --  AMD launched its new desktop platform, "Spider," empowering
        enthusiasts with the ultimate computing experience. Spider
        combines AMD Phenom(TM) quad-core processors, ATI Radeon HD
        3800 series graphics processors and the AMD 7-Series chipset.

    --  Since their introduction, ATI Radeon HD 3800 series cards have
        won more than 25 editorial awards worldwide, including
        HardOCP.com's prestigious Gold Award in the US, Clubic.com's
        'Tres Bon' award in France, and Hexus.net's 'Good Value
        Gaming' award in the UK.

    --  Toshiba launched its first AMD-based business notebooks, the
        Satellite Pro A210 Series, and expanded its AMD-based consumer
        notebook offerings.

    --  AMD received net investment proceeds of $608 million from a
        wholly-owned subsidiary of Mubadala Development Company, a
        strategic investment and development company headquartered in
        Abu Dhabi, the capital of the United Arab Emirates (UAE).

    AMD Teleconference

AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss fourth quarter financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its web site at www.amd.com. The webcast will be available for 10 days after the conference call.

About AMD

Advanced Micro Devices (NYSE:AMD) is a leading global provider of innovative processing solutions in the computing, graphics and consumer electronics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. For more information, visit www.amd.com.

Cautionary Statement

This release contains a forward-looking statement concerning revenue for the first quarter of 2008 which is made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects," and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this release are based on current beliefs, assumptions and expectations, speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include the possibility that Intel Corporation's pricing, marketing and rebating programs, product bundling, standard setting, new product introductions or other activities targeting the company's business will prevent attainment of the company's current plans; the company will require additional funding and may not be able to raise funds on favorable terms or at all; the company's cost containment efforts will not be effective; customers stop buying the company's products or materially reduce their operations or demand for its products; the company will be unable to develop, launch and ramp new products and technologies in the volumes and mix required by the market and at mature yields on a timely basis; the company's competitors, customers and suppliers may take actions that will negate the anticipated benefits of the company's acquisition of ATI; demand for computers and consumer electronics products and, in turn, demand for the company's products will be lower than currently expected; global business and economic conditions will worsen, resulting in lower than currently expected revenue in the first quarter of 2008 and beyond; there will be unexpected variations in market growth and demand for the company's products and technologies in light of the product mix that it may have available at any particular time or a decline in demand; the company will be unable to transition to advanced manufacturing process technologies in a timely and effective way, consistent with planned capital expenditures; the company will be unable to maintain the level of investment in research and development and capacity that is required to remain competitive; and the company will be unable to obtain sufficient manufacturing capacity or components to meet demand for its products or will under-utilize its microprocessor manufacturing facilities. Investors are urged to review in detail the risks and uncertainties in the company's Securities and Exchange Commission filings, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended September 29, 2007.

AMD, the AMD Arrow logo, AMD Opteron, AMD Phenom and combinations thereof, and ATI, the ATI logo, and Radeon are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and used to identify companies and products and may be trademarks of their respective owners.

(1) In this press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures for operating income (loss) and net income (loss) to reflect its financial results without charges for the ATI impairment of goodwill and acquired intangible assets, ATI other acquisition-related charges, and severance charges for operating income (loss) and in addition, without the tax benefit from ATI acquisition-related charges, investment impairment charges and debt-related net charges for net income (loss). Management believes this non-GAAP presentation makes it easier for investors to compare current and historical period operating results.

(2) As a result of the acquisition of ATI, 2006 financial results only include the results of the former ATI operations from October 25 through December 31, 2006. Therefore, financial results for the fourth quarter 2007 and fiscal 2007 do not correlate directly to those for the fourth quarter 2006 and fiscal 2006, respectively.

ADVANCED MICRO DEVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages)


                         Quarter Ended                 Year Ended
------------------------------------------------- --------------------
               Dec. 29,    Sept. 29,   Dec. 31,    Dec. 29,   Dec. 31,
                 2007        2007        2006        2007     2006(a)
              (Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------------------------------------------------------------

Net revenue   $    1,770  $    1,632  $    1,773  $    6,013  $ 5,649

Cost of sales        985         963       1,132       3,751    2,856

------------------------------------------------- --------------------

Gross margin         785         669         641       2,262    2,793

Gross margin
 %                    44%         41%         36%         38%      49%

Research and
 development         473         467         385       1,847    1,205

Marketing,
 general and
 adminis-
trative              321         352         296       1,373    1,140

In-process
 research and
 development           -           -         416           -      416

Amortization
 of acquired
 intangible
 assets and
 integration
 charges              61          76          73         299       79

Impairment of
 goodwill and
 acquired
 intangible
 assets            1,608           -           -       1,608        -

------------------------------------------------- --------------------

Operating
 income
 (loss)           (1,678)       (226)       (529)     (2,865)     (47)

Interest
 income               19          19          22          73      116
Interest
 expense             (95)        (95)        (67)       (367)    (126)
Other income
 (expense),
 net                   1          (1)          2          (7)     (13)

------------------------------------------------- --------------------

Income (loss)
 before
 minority
 interest,
 equity in
 net loss of
 Spansion
 Inc. and
 other and
 income taxes     (1,753)       (303)       (572)     (3,166)     (70)

Minority
 interest in
 consolidated
 subsidiaries         (9)         (9)         (8)        (35)     (28)

Equity in net
 loss of
 Spansion
 Inc. and
 other               (69)        (57)         (5)       (155)     (45)

------------------------------------------------- --------------------

Income (loss)
 before
 income taxes     (1,831)       (369)       (585)     (3,356)    (143)

Provision
 (benefit)
 for income
 taxes               (59)         27          (9)         23       23

------------------------------------------------- --------------------

Net income
 (loss)       $   (1,772) $     (396) $     (576) $   (3,379) $  (166)

------------------------------------------------- --------------------

Net income
 (loss) per
 common share

Basic         $    (3.06) $    (0.71) $    (1.08) $    (6.06) $ (0.34)

Diluted       $    (3.06) $    (0.71) $    (1.08) $    (6.06) $ (0.34)

------------------------------------------------- --------------------

Shares used
 in per share
 calculation

Basic                579         554         531         558      492
Diluted              579         554         531         558      492


(a) Amounts for the year ended December 31, 2006 were derived from the
     December 31, 2006 audited financial statements.

ADVANCED MICRO DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Millions)
                                    Dec. 29,    Sept. 29,   Dec. 31,
                                      2007        2007       2006(b)
                                   (Unaudited) (Unaudited)
----------------------------------------------------------------------

Assets

Current assets:
   Cash, cash equivalents and
    marketable securities          $    1,889  $    1,528  $    1,541
   Accounts receivable, net               640         682       1,140
   Inventories                            821         839         814
   Prepaid expenses and other
    current assets                        402         432         443
   Deferred income taxes                   64          62          25

----------------------------------------------------------------------

         Total current assets           3,816       3,543       3,963

Property, plant and equipment, net      4,720       4,725       3,987
Goodwill                                1,907       3,165       3,217
Investment in Spansion Inc.                 -           -         371
Acquisition related intangible
 assets, net                              587         994       1,207
Other assets                              520         507         402

----------------------------------------------------------------------

Total Assets                       $   11,550  $   12,934  $   13,147
======================================================================

Liabilities and Stockholders'
 Equity

Current liabilities:
   Accounts payable                $    1,009  $    1,064  $    1,338
   Accrued compensation and
    benefits                              186         198         177
   Accrued liabilities                    821         858         769
   Deferred income on shipments to
    distributors                          101         106         169
   Current portion of long-term
    debt and capital lease
    obligations                           238         218         125
   Other current liabilities              270         283         327
----------------------------------------------------------------------

         Total current liabilities      2,625       2,727       2,905

Deferred income taxes                       6          32          31
Long-term debt and capital lease
 obligations, less current portion      5,031       5,117       3,672
Other long-term liabilities               633         650         517
Minority interest in consolidated
 subsidiaries                             265         283         237

Stockholders' equity:
   Capital stock:
      Common stock, par value               6           6           5
      Capital in excess of par
       value                            5,921       5,280       5,316
   Retained earnings (deficit)         (3,100)     (1,328)        308
   Accumulated other comprehensive
    income                                163         167         156
----------------------------------------------------------------------

         Total stockholders'
          equity                        2,990       4,125       5,785

----------------------------------------------------------------------

Total Liabilities and
 Stockholders' Equity              $   11,550  $   12,934  $   13,147
======================================================================



(b) Amounts for the year ended December 31, 2006 were derived from the
     December 31, 2006 audited financial statements.
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Unaudited)
(Millions except headcount and percentages)


                                Quarter Ended           Year Ended
---------------------------------------------------- -----------------
                         Dec. 29, Sept. 29, Dec. 31, Dec. 29, Dec. 31,
Segment Information        2007     2007      2006     2007     2006
------------------------

---------------------------------------------------- -----------------

Computing Solutions (1)
   Net revenue           $ 1,402  $  1,283  $ 1,486  $ 4,702  $ 5,367
   Operating income
    (loss)               $    21  $   (112) $    65  $  (670) $   680

Graphics (2)
   Net revenue               259       252      166      903      166
   Operating income
    (loss)                   (12)       (3)     (27)    (100)     (27)

Consumer Electronics (3)
   Net revenue               109        97      120      408      120
   Operating income
    (loss)                    12        (3)      20      (17)      20

All Other (4)
   Net revenue                 -         -        1        -       (4)
   Operating income
    (loss)                (1,699)     (108)    (587)  (2,078)    (720)

Total AMD
   Net revenue           $ 1,770  $  1,632  $ 1,773  $ 6,013  $ 5,649
   Operating income
    (loss)               $(1,678) $   (226) $  (529) $(2,865) $   (47)


---------------------------------------------------- -----------------

Other Data
------------------------

Depreciation &
 amortization (excluding
 amortization of
 acquired intangible
 assets)                 $   273  $    263  $   224  $ 1,034  $   791

Capital additions        $   267  $    419  $   666  $ 1,686  $ 1,856

Headcount                 16,420    16,498   16,464   16,420   16,464

---------------------------------------------------- -----------------

Adjusted EBITDA (5)      $   203  $     60  $   169  $   (76) $ 1,237
------------------------

---------------------------------------------------- -----------------


(1) Computing Solutions segment includes what was formerly the
     Computation Products segment and the Embedded Products segment as
     well as revenue from sales of ATI chipsets.

(2) Graphics segment includes graphics, video and multimedia products
     developed for use in desktop and notebook computers, including
     home media PCs, professional workstations and servers.

(3) Consumer Electronics segment includes products for and revenue
     related to mobile phones and PDAs, digital televisions and other
     consumer electronics and royalties received in connection with
     the sale of game console systems that incorporate the Company's
     technology.

(4) All Other category includes employee stock-based compensation
     expense, profit sharing expense, certain operating expenses and
     credits that are not allocated to the operating segments, and
     Personal Internet Communicator (PIC) related activities in 2006.
     Also included in this category are the ATI acquisition-related
     and severance charges. Details of the ATI acquisition-related and
     severance charges and employee stock-based compensation expense
     are shown below.
  ATI acquisition-related and severance charges:
                        Quarter Ended        Year Ended
                     Q407    Q307   Q406    FY07    FY06
                    --------------------- ----------------
  Amortization of
   acquired
   intangible
   assets           $   58  $  71  $  47  $   271  $   47
  Integration
   charges               3      5     26       28      32
                    --------------------- ----------------
    Subtotal        $   61  $  76  $  73  $   299  $   79
  Impairment of
   goodwill and
   acquired
   intangible
   assets            1,608      -      -    1,608       -
  In-process
   research and
   development           -      -    416        -     416
  Cost of fair
   value adjustment
   of acquired
   inventory             -      -     62       29      62
                    --------------------- ----------------
    ATI
     acquisition-
     related
     charges        $1,669  $  76  $ 551  $ 1,936  $  557
  Severance              -      2      -       18       -
                    --------------------- ----------------
      Total ATI
       acquisition-
       related and
       severance
       charges      $1,669  $  78  $ 551  $ 1,954  $  557
                    ===================== ================

  Employee stock-based compensation expense:
                       Quarter Ended         Year Ended
                     Q407    Q307   Q406    FY07    FY06
                   ---------------------- ----------------
  Cost of sales    $      3 $    2 $    2 $      9 $     8
  Research and
   development           12     14     13       54      30
  Marketing,
   general and
   administrative        11     11     12       49      39
                   ---------------------- ----------------
                   $     26 $   27 $   27 $    112 $    77
                   ====================== ================







  (5) Reconciliation of Net income (loss) to Adjusted
       EBITDA(c)
                       Quarter Ended         Year Ended
                     Q407    Q307   Q406    FY07    FY06
                   ---------------------- ----------------
     Net income
      (loss)       $(1,772) $(396) $(576) $(3,379) $ (166)
     Depreciation
      and
      amortization     273    263    224    1,034     791
     In-process
      research and
      development        -      -    416        -     416
     Amortization
      of acquired
      intangible
      assets            58     71     47      271      47
     Impairment of
      goodwill and
      acquired
      intangible
      assets         1,608      -      -    1,608       -
     Interest
      expense           95     95     67      367     126
     Provision
      (benefit)
      for income
      taxes            (59)    27     (9)      23      23
     ------------------------------------ ----------------
     Adjusted
      EBITDA       $   203  $  60  $ 169  $   (76) $1,237
                   ====================== ================


 (c) The Company defines Adjusted EBITDA as net income (loss) adjusted
      for depreciation and amortization, in-process research and
      development, amortization of acquired intangible assets,
      impairment of goodwill and acquired intangible assets, interest
      expense and taxes. The Company calculated and communicated
      Adjusted EBITDA because management believes it is of interest to
      investors and lenders in relation to its overall capital
      structure and its ability to borrow additional funds. The
      Company's calculation of Adjusted EBITDA may or may not be
      consistent with the calculation of this measure by other
      companies in the same industry. Investors should not view
      Adjusted EBITDA as an alternative to the U.S. GAAP operating
      measure of net income or U.S. GAAP liquidity measures of cash
      flows from operating, investing and financing activities. In
      addition, Adjusted EBITDA does not take into account changes in
      certain assets and liabilities as well as interest and income
      taxes that can affect cash flows.

    CONTACT: Advanced Micro Devices
             Drew Prairie, 512-602-4425 (Editorial)
             drew.prairie@amd.com
             Ruth Cotter, 408-749-3887 (Investor)
             ruth.cotter@amd.com

    SOURCE: Advanced Micro Devices, Inc.