PRESS RELEASE DATED OCTOBER 17, 2001

Exhibit 99.1

NEWS RELEASE

CONTACTS:
John Greenagel
AMD Public Relations
(408) 749-3310
E-mail: john.greenagel@amd.com
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Toni Beckham
AMD Investor Relations
(408) 749-3127
E-Mail: investorrelations-ca.communications@amd.com



AMD REPORTS THIRD QUARTER RESULTS

-- Company Reports Lower Revenues on Record Unit Sales of AMD
Athlon(TM) and AMD Duron(TM) Processors at Depressed Prices--

SUNNYVALE, CA - October 17, 2001 - AMD today reported results for the
quarter ended September 30, 2001.

Net sales for the third quarter of 2001 were $765,870,000, a decline of 22
percent compared with sales of $985,264,000 in the second quarter of 2001. AMD
reported sales of $1,206,549,000 in the third quarter of 2000.

The pro forma net loss for the quarter, which excludes one-time charges,
amounted to $97,424,000, which was equivalent to $0.28 per share. The pro forma
net loss excludes the effects of restructuring and other special charges
amounting to $89.3 million and additional inventory provisions amounting to $6.9
million. These charges were associated with the company's previously announced
plans to close wafer fabrication facilities and reduce other manufacturing
activities and administrative support that primarily serve AMD foundry service
operations. The pro forma net loss also excludes the effects of a charge
amounting to $22 million for impaired investments. Total pro forma adjustments,
net of tax credits, amounted to $89.5 million.

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The total net loss under GAAP (generally accepted accounting
principles) for the third quarter of 2001 was $186,929,000, which amounted to
$0.54 per share on 345,044,000 shares outstanding. In the second quarter of
2001, AMD reported net income of $17,352,000, which amounted to $0.05 per
diluted share.

Net sales for the first nine months of 2001 were $2,939,881,000,
compared with $3,469,015,000 for the first nine months of 2000, a decline of 15
percent. Pro forma net income for the first nine months of 2001 amounted to
$44,766,000, or $0.13 per diluted share. Pro forma net income for the first nine
months of 2000 amounted to $615,792,000, or $1.81 per diluted share.

The total net loss under GAAP for the first nine months of 2001 was
$44,739,000, or $0.14 per share. Net income for the first nine months of 2000
was $805,058,000, or $2.36 per diluted share.

Memory Group sales in the third quarter of 2001 at $210 million
declined by 34 percent from the second quarter of 2001, reflecting continuing
weakness in the communication sector and excess inventories of flash memory
devices at major customers.

The company reported record unit sales of AMD Athlon(TM) and AMD
Duron(TM) processors in the quarter. Total PC processor unit sales for the third
quarter of 2001, at more than 7.7 million units, remained at the record level of
the immediate-prior quarter. In the face of very aggressive competition, average
selling prices (ASPs) for PC processors declined by 20 percent sequentially.

"AMD held market share in the 22 percent range in a very weak PC market
made more difficult by our principal competitor's efforts to halt our forward
momentum," said W. J. Sanders III, chairman and chief executive officer. "Those
efforts have failed as the performance deficiencies of computers based on
Intel's Pentium(R) 4 processors have become increasingly evident. Nevertheless,
drastic price cuts and large, cash-backed marketing programs from Intel had the
effect of driving down ASPs on PC processors in the market segments where we
compete directly.

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"During the quarter, AMD commenced shipments of the newest member of
the AMD Athlon processor family, the AMD Athlon XP processor, based on the
`Palomino' core. AMD Athlon XP processors were designed to deliver extreme
performance on the desktop running the new Microsoft(R) Windows(R) XP operating
system. The AMD Athlon XP processor outperforms any other PC processor in the
world, unlocking the full potential of a PC when combined with the Windows XP
operating system," Sanders said.

"Earlier this week at the Microprocessor Forum, the industry's leading
microprocessor technical conference, AMD revealed more details about the
architecture of the eighth-generation Hammer family of PC processors planned for
introduction late next year. The Hammer family will feature on-chip memory
control as well as a highly scalable system bus that uses HyperTransport(TM)
technology, enabling the chips inside PCs to communicate with each other up to
24 times faster than with existing technologies. We believe the Hammer family
will continue AMD's performance leadership in the PC processor market.

"AMD employees throughout the world responded valiantly in the wake of
the terrorist attacks in New York and Washington. Despite disruption of air
transportation services following the attacks, AMD maintained its operational
excellence and met all commitments to customers," Sanders concluded.

The company also reported the repurchase of 6.3 million shares of its
common stock during the quarter.

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:

Demand for flash memory devices from new customers is expected to
offset continuing weakness in demand from customers in the communications
sector, where inventories continue to exceed desired levels. Uncertainty in the
economy reflecting declining consumer sentiment suggests caution in attempting a
precise forecast. Accordingly, the company projects that Memory Group sales in
the fourth quarter will range from unchanged to growth of 10 percent over the
level of the third quarter of 2001.

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The company expects that the normal seasonality that was to have
benefited the PC market in the fourth quarter will be muted at best in light of
the impact of global economic uncertainty on consumer spending.

Unit sales of PCs are expected to grow only modestly in the fourth
quarter of 2001 from the levels of the third quarter. The encouraging reception
of the new AMD Athlon XP processor, the world's highest-performance PC
processor; the acceptance of AMD's first multiprocessor server and workstation
product, the AMD Athlon MP processor; and the growing success in commercial
markets of the AMD Athlon family offerings presage continuing growth in unit
shipments of AMD PC processors.

In the current quarter, the company again expects to achieve record
unit volume sales of AMD Athlon and AMD Duron processors. The company's
strengthening competitive position is expected to result in attenuating price
declines and to generate revenues ranging from the level of the third quarter of
2001 to as much as 10 percent growth sequentially.

If current conditions prevail and as revenues from the company's other
IC products and foundry services decline, the company expects that overall
revenues will range from flat to high single-digit percentage growth in the
fourth quarter.

Revenues in this range would be insufficient to offset the current
level of expenses, and therefore the company currently expects to report an
operating loss in the fourth quarter.

AMD Teleconference

AMD will hold a teleconference for the financial community at 2:30 PM
Pacific Daylight Time today to discuss third-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
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http://www.StreetEvents.com. The webcast will be available for two weeks after
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the teleconference.

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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 quarter; 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
seventh-generation PC processors will be lower than currently expected; that
demand from new customers for the company's flash memory products will be lower
than currently expected; that changes in customer needs will dampen anticipated
demand for the company's flash memory products; that the company will not
continue to be successful in ramping production of the company's
highest-performance AMD Athlon processors in Fab 30 in Dresden, Germany; and
that the company will not be able to maintain or grow revenues in the current
quarter 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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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
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are available at www.amd.com/news/news.html.
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AMD, the AMD logo, AMD Athlon, AMD Duron and combinations thereof are trademarks
of Advanced Micro Devices, Inc. HyperTransport is a trademark of the
HyperTransport Technology Consortium.

Other product names used in this publication are for identification purposes
only and may be trademarks of their respective companies.



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