Sunnyvale, CA — October 7, 2004 –AMD (NYSE: AMD) today reported sales of $1.239 billion and net income of $44 million for the quarter ended September 26, 2004. Net income amounted to $0.12 per diluted share.

Third quarter sales increased by 30 percent compared to the same period in 2003 and decreased by two percent from the second quarter of 2004. In the third quarter of 2003, AMD reported sales of $954 million and a net loss of $31 million, or $0.09 per share. In the second quarter of 2004, AMD reported sales of $1.262 billion and net income of $32 million, or $0.09 per diluted share.