Sales for the like period of 1996 were $496,868,000, which resulted in a net loss of $21,243 ,000, or $0.15 per share. In the immediate-prior quarter, AMD reported sales of $596,64 4,000, which resulted in a loss of $0.22 per share.

Revenues for 1997 were $2,356,375,000, which resulted in a net loss of $21,090,000, or $0.15 per share. In 1996 AMD reported revenues of $1,953,019,000, which resulted in a net loss of $68,950,000, or $0.51 per share. Revenues grew by 21 percent year-to-year.

"Our three non-microprocessor businesses - our Communications Group, our Memory Group, and our programmable logic company, Vantis™ - were profitable in the aggregate in the fourth quarter on revenues down slightly from the immediate-prior quarter," said W.J. Sanders III, chairman and chief executive officer. " We were especially pleased that flash memory sales increased nominally during a period of intense competition.

"Sales of AMD-K6® processors for Microsoft® Windows& reg; computing increased by 26 percent over the immediate-prior quarter to $190 million ," Sanders continued. "Unit shipments of AMD-K6 processors increased by 50 percent to 1.5 million units. Although we increased unit production substantially, yields continued to be disappointing. We achieved significant progress in shipping higher-speed devices as nearly half of the units shipped were 233-megahertz (MHz) devices.

"Demand for AMD-K6 processors remained strong. The AMD-K6 processor has achieved significant acceptance in the market for desktop personal computers priced be low $2,000, and especially in the fast-growing market for sub-$1,000 personal computers. Our base of top-tier customers expanded with the addition of Compaq, the world"s largest personal computer manufacturer, during the quarter. As previously reported, we made initial shipments of AMD-K6 processors manufactured with 0.25-micron technology produced in the company"s Submicron Development Center in Sunnyvale, California, including bot h 266-MHz desktop and 233-MHz mobile versions. The 266-MHz AMD-K6 is being used in IBM Corp."s new Aptiva model E46 personal computer, and the 233-MHz AMD-K6 is being used in the Compaq Presario model 1621 notebook computer.

"Our current challenge is to execute a successful transition to 0.25-micron technology in our megafab, Fab 25, in Austin, Texas. Meeting our customers" demand for higher-performance AMD-K6 processors in the volumes they need is our first priority," Sanders concluded.

Investors are cautioned that all forward looking statements of management's expectations involve risks and uncertainties that could cause actual results to differ materially from current expectations.

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, California, AMD had revenues of $2.4 billion in 1997. (NYSE: AMD).