SUNNYVALE, Calif. — Oct. 18, 2006 — AMD (NYSE: AMD) today reported sales of $1.33 billion, operating income of $119 million, and net income of $134 million, or $0.27 per share, for the quarter ended October 1, 2006.  These results include $16.5 million of employee stock-based compensation expense.

In the third quarter of 2005, excluding the Memory Products segment, AMD reported sales of $1.01 billion and operating income of $129 million.  In the second quarter of 2006, AMD reported sales of $1.22 billion and operating income of $102 million.