PRESS RELEASE DATED JANUARY 17, 2001

NEWS RELEASE



CONTACTS:
John Greenagel
Strategic Communications
(408) 749-3310

Toni Beckham
Investor Relations
(408) 749-3127



Exhibit 99.1


AMD REPORTS FOURTH QUARTER RESULTS

--AMD reports record annual sales of $4.6 billion
with record net income of $983 million--

SUNNYVALE, CA -- January 17, 2001 -- AMD today reported sales of
$1,175,172,000 and net income of $177,968,000 for the quarter ended December 31,
2000. Net income amounted to $0.53 per diluted share.

Aggregate sales of AMD flagship products - PC processors and flash memory
devices - increased by 33 percent from the like period of 1999. Total company
sales increased by 21 percent from the fourth quarter of 1999. In the fourth
quarter of 1999, AMD reported total sales of $968,710,000 and net income of
$65,080,000, which amounted to $0.21 per diluted share.

Annual sales for 2000 set a new record at $4,644,187,000 - 63 percent
higher than 1999. Net income of $983,026,000, or $2.89 per diluted share, was
also a record. Results for 2000 included a one-time net gain of $189,203,000
from the sale of the company's voice communications business (Legerity) and the
retirement of senior secured notes. Net income excluding the one-time net gain
above amounted to $793,823,000, or $2.36 per diluted share. In 1999 AMD reported
sales of $2,857,604,000, which resulted in a net loss of $88,936,000, or $0.30
per share.

-more-

2


"AMD had the best year in its history," said W.J. Sanders III, chairman and
chief executive officer. "AMD had record sales, record operating income, record
net income, and record earnings per share in 2000. Sales growth of approximately
$1.8 billion produced a favorable swing of $1.2 billion in operating income. Net
income was nearly $1 billion.

"Our technology and manufacturing organizations distinguished themselves
from the competition by executing nearly flawlessly. While the deterioration of
the PC market late in the year impacted sales of PC processors in the fourth
quarter, AMD substantially outperformed the semiconductor industry in a year of
extraordinary growth. Despite the PC slowdown, AMD achieved record unit
shipments of nearly 7 million PC processors during the quarter. AMD gained
market share in the PC processor arena, with more than 26.5 million total units
sold in 2000. We believe we gained three points of market share in units during
the year, to approximately 17 percent of the worldwide market for PC processors.

"Demand for AMD Athlon(TM) processors remained strong in the fourth
quarter," Sanders continued. "Unit and dollar sales of AMD Athlon and AMD
Duron(TM) processors increased for both despite severe weakness in the North
American retail sector of the PC market. Unit sales of AMD Duron processors were
impacted by the unavailability of certain chipsets. Total PC processor average
selling prices were negatively affected by end-of-life pricing of AMD-K6-2(R)
family processors.

"During the quarter, AMD introduced a 1.2-gigahertz version of the AMD
Athlon processor utilizing DDR memory," said Sanders. "This combination delivers
unsurpassed PC performance on the most commonly used business applications. Last
week, AMD introduced an 850-MHz AMD Duron processor, strengthening its
performance leadership in the value space. No matter how little or how much PC
users want to spend, they will continue to get more performance for their money
with an AMD-powered system.

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3


"A major factor in our excellent results was the continuing success of the
world's first 1-gigahertz PC processor, the AMD Athlon processor. The innovative
AMD Athlon processor established AMD as a leader in high-performance PCs. We
continue to be the volume provider for PCs featuring speeds of one gigahertz and
greater. Indeed, by the end of the current quarter, all AMD Athlon processors
will be manufactured with clock speeds of one gigahertz or higher," Sanders
continued.

"Sales of flash memory products remained strong, with fourth-quarter sales
growing by nearly 10 percent sequentially, as demand remained strong and broad-
based during the quarter. Sales of AMD flash memory products more than doubled
in 2000. We aggressively ramped production capacity during the year to support
our customers, and in the face of continuing strong demand for flash memory
products, we are continuing to add production capacity.

"Going forward, new versions of the AMD Athlon and AMD Duron processors
should enable us to participate in the performance mobile, server, and
workstation markets. These new products, coupled with continuing strength in
demand for our flash memory products, should ameliorate somewhat the impact of
the current slowdown as excess PC inventories work their way through the
channels of distribution.

"While current economic conditions make it difficult to forecast demand, we
believe our prospects are excellent for gaining market share, growing faster
than the industry, and increasing our operating profit in 2001," Sanders
concluded.

Current Outlook

The company's outlook statements are based on current expectations. The
following statements are forward-looking, and actual results could differ
materially. The company's current outlook is based on the following projections
for its flagship products.

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4


The company expects that normal seasonal weakness in first-quarter demand
for PC processors coupled with the effects of excess PC inventories in the
distribution channels will impact PC processor sales in the first quarter of
2001. The company currently expects to sell between 6 and 6.5 million PC
processors in the first quarter. Accordingly, PC processor revenues are expected
to be modestly lower. The company expects that unit growth for the PC market
will be in the mid-teens for 2001 as a whole.

The company currently projects that sales of its flash memory products will
grow modestly in the first quarter from the levels of the fourth quarter of
2000, with substantial growth for the year as a whole.

Accordingly, the company expects that total first-quarter sales for AMD
will be up year-on-year, but no better than flat sequentially from the fourth
quarter of 2000.

With some analysts currently reducing their forecasts for semiconductor
industry growth to the range of 7 to 15 percent for 2001, AMD expects its sales
to grow at the high end of these forecasts. The company believes that industry
growth in this range would likely result in pricing pressures and resultant
lower margins. The company believes that aggregate growth in the range of 15
percent in this environment would result in net income of $2.00 per diluted
share, plus-or-minus a few percentage points, assuming a 32 percent tax rate,
for 2001.

AMD Teleconference

AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Standard Time 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 http://www.amd.com or
------------------
http://www.streetfusion.com. The webcast will be available for two weeks after
- ---------------------------
the teleconference.

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5

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. There can be no assurance that demand for
the company's products will continue at current or greater levels, or that the
company will continue to grow revenues, operating profit, or earnings.

Risks also include the possibility that demand for personal computers and,
in turn, demand for the company's PC processors will be lower than currently
expected; that the company will not be able to produce the AMD Athlon and AMD
Duron processors in the volume, speed mix or with the feature set necessary to
meet customer requirements and the company's current plans and goals; that Intel
Corporation pricing, marketing programs, new product introductions or other
activities targeting the company's processor business will prevent attainment of
the company's current processor sales plans; that third parties may not provide
timely or adequate infrastructure solutions to support the AMD Athlon and AMD
Duron processors; and that uncertain political and economic conditions will
cause lower than expected demand for the company's products. In addition, the
company's flash memory products capacity expansion plans are based on current
forecasts of demand that are subject to change depending on evolving general
industry conditions, changes in customer needs, and the product introductions
and capacity expansion of competitors. While demand currently exceeds production
capacity, there can be no assurance that demand for the company's flash memory
products will continue at current or greater levels.

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 26, 1999, and the report
on Form 10-Q for the quarter ended October 2, 2000.

-more-

6


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 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).

--30--

WORLD WIDE WEB: Press announcements and other information about AMD are
available on the Internet via the World Wide Web. Type http://www.amd.com at
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the URL prompt.

NOTE TO EDITOR: Readers may obtain additional information by calling 1-800-222-
9323 or 408-749-3060. Technical Support Email: hw.support@amd.com

AMD, the AMD logo, AMD Athlon, AMD Duron, and combinations thereof are
trademarks, and AMD-K6 is a registered trademark of Advanced Micro Devices, Inc.
in the United States and other jurisdictions.




Advanced Micro Devices, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands except per share amounts)