Sales for the like period of 1995 were $595,178,000, which resulted in net income of $9,344,000, or $0.07 per share. In the immediate-prior quarter, AMD reported sales of $456,862,000, which resulted in a loss of $38,362,000, or $0.28 per share.

Revenues for 1996 amounted to $1,953,019,000, which resulted in a net loss of $68,950,000, or $0.51 per common share. In 1995 AMD reported revenues of $2,468,379,000, and net income of $216,326,000, or $1.57 per common share on a fully diluted basis.

"An increase in sales over the immediate-prior quarter, coupled with effective expense controls and excellent operational performance, enabled AMD to substantially reduce its operating loss in the fourth quarter," said W.J. Sanders III, chairman and chief executive officer of AMD. "Bookings improved significantly during the fourth quarter of 1996, and our book-to-bill ratio exceeded 1:1 for the first time since the second quarter of 1995. Customers have worked through excess inventories and order patterns currently reflect normal consumption rates.

"Our Computation Products Group (CPG) - primarily Microsoft® Windows®-compatible microprocessors - accounted for the majority of our revenue growth over the third quarter. Shipments of AMD-K5™ fifth-generation microprocessors again more than doubled over the immediate-prior quarter to 1.1 million units. A richer product mix, aided by strong demand for higher-performance AMD-K5-PR133 devices, contributed to higher average selling prices. With today's announcement of the AMD-K5-PR166 microprocessor, AMD's position in the mainstream of the desktop personal computer market continues to improve.

"We are now widely sampling our AMD-K6™ sixth-generation MMX processor to a broad customer base. We continue to expect to commence production in the current quarter and achieve initial revenues from K6 microprocessors in the second quarter," Sanders concluded.

The forward-looking statements in the above release concerning the company's microprocessor products, and any implication from any other statement in the release about the future performance of the company, involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from presently anticipated results are the following: success in completing the design and verification of the AMD-K6 processor; success in ramping production of new fifth- and sixth-generation microprocessors; shifts in market demand and fluctuating customer inventory levels; and such other risks and uncertainties as are detailed in "Management's Discussion and Analysis of Results of Operations and Financial Condition" contained in the Company's most recently filed annual report on Form 10-K, and the Company's most recently filed quarterly report on Form 10-Q.

About AMD
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices, and products for communications and networking applications. Founded in 1969 and based in Sunnyvale, CA, AMD had revenues of $2.0 billion in 1996. (NYSE: AMD).