PRESS RELEASE DATED OCTOBER 5, 2001

Exhibit 99.1

NEWS RELEASE

Contacts:
John Greenagel
AMD Public Relations
(408) 749-3310
E-mail: john.greenagel@amd.com
----------------------




AMD SAYS THIRD-QUARTER PROCESSOR AVERAGE-SELLING PRICE

DECLINE WAS LARGER THAN EXPECTED

SUNNYVALE, CA - October 5, 2001 - AMD (NYSE:AMD) said today that sales
for the quarter ended September 30, 2001, at approximately $766 million,
declined by 22 percent from second-quarter sales of $985.3 million. On August 29
AMD said that it expected third-quarter revenues would decline by approximately
15 percent sequentially. The company also said it expects to report a pro-forma
net loss of between $90 million and $110 million or $0.26 and $0.31 per share
for the quarter. The pro-forma loss does not include restructuring and other
one-time special charges previously estimated at between $80 million and $110
million.

Sales of flash memory devices declined by approximately $100 million
sequentially, in line with previously reported expectations, reflecting
continued weakness in the communication sector and excess inventories in the
hands of major customers. AMD also said unit sales of PC processors remained at
the record level of the second quarter, when AMD sold more than 7.7 million PC
processors. In the face of very aggressive competition, average-selling prices
(ASPs) for PC processors declined sharply, which resulted in substantially lower
revenues.

-more-


2

"Our ability to maintain PC processor unit volumes under current market
conditions is a strong testament to the architectural superiority of AMD
Athlon(TM) and Duron(TM) processors," said W.J. Sanders III, chairman and chief
executive officer. "With unit sales of our seventh-generation processors at
record levels in an extremely difficult PC market, we believe we either held or
gained market share. In an effort to make up for the performance deficiencies of
computers based on its Pentium(R) 4 processors, Intel resorted to aggressive
pricing and large, cash-backed marketing programs, which had the effect of
driving down ASPs on PC processors in the market segments where we compete
directly," Sanders concluded.

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).

Visit AMD on the Web

For more AMD news and product information, please visit our virtual
pressroom at www.amd.com/news/virtualpress/index.html. Additional press releases
----------------------------------------
are available at www.amd.com/news/news.html.
--------------------------

AMD, the AMD logo, AMD Athlon, AMD Duron and combinations thereof are trademarks
of Advanced Micro Devices, Inc. Other product names used in this publication are
for identification purposes only and may be trademarks of their respective
companies.

Pentium is a registered trademark of Intel Corporation.