SUNNYVALE, Calif. — Jan. 18, 2006 — AMD (NYSE: AMD) today reported earnings for the quarter ended December 25, 2005.  As a result of Spansion Inc.’s initial public offering (IPO), AMD’s financial results of operations include Spansion’s financial results of operations as a consolidated subsidiary only through December 20, 2005.  Because comparison of fourth quarter consolidated financial results to previous periods do not correlate directly, AMD has provided non-GAAP financial statements that exclude Spansion and the Memory Segment results of operations.  Management believes this non-GAAP presentation will aid investors by presenting the company’s current and historical results in a form that will be more consistent with the presentation of future operating results.

AMD reported record fourth quarter sales of $1.84 billion, operating income of $206 million, and net income of $96 million, or $0.21 per share.  These results include a non-cash charge of $110 million, or $0.24 per share, associated with the reduction of AMD’s ownership in Spansion to 37.9 percent as a result of Spansion’s IPO.  Excluding this charge, AMD achieved net income of $205 million, or $0.45 per share.