AMIS Holdings, Inc. Reports Third Quarter 2007 Financial Results and Completion of Audit Committee Accounting Review.

* Revenue of $154.6 million, In-line with Previous Guidance

* GAAP EPS of $0.09, Non-GAAP EPS of $0.18

POCATELLO, Idaho -- AMIS Holdings, Inc. (NASDAQ: AMIS) (the "Company"), parent company of AMI Semiconductor, a leading designer and manufacturer of state-of-the-art mixed-signal and digital products for the automotive, medical, industrial and military/aerospace sectors, today reported its financial results for the third quarter and nine months ended September 29, 2007, as well as the completion of its Audit Committee accounting review. The Company also announced that as a result of the review, it will be restating its first and second quarter 2007 financial statements, resulting in a negative net adjustment to net income of approximately $443,000 for the first half of 2007. The consolidated financial statements and amounts in this press release have been restated to reflect these changes.

Financial Results

Third quarter 2007 revenue was $154.6 million, a decrease of less than two percent sequentially and three percent compared to the third quarter of 2006. Gross margin for the third quarter of 2007 was 44.0 percent, flat sequentially and up 20 basis points year over year. On a non-GAAP basis, gross margin for the third quarter was 44.2 percent, up 10 basis points sequentially and 30 basis points compared to the same period in 2006. Non-GAAP gross margin for the third quarter of 2007 and 2006 excludes stock-based compensation expense.

Operating margin was 8.3 percent in the third quarter of 2007, up 290 basis points sequentially but down 130 basis points year over year. On a non-GAAP basis, operating margin for the third quarter of 2007 was 15.7 percent, up 250 basis points sequentially and 130 basis points year over year. Third quarter 2007 GAAP and non-GAAP operating margins were higher sequentially due to savings realized from restructuring initiatives in the first and second quarter of 2007, spending controls during the third quarter, and reduced bad debt expense after taking the full reserve for the receivable from a former distributor that went into bankruptcy in the second quarter. Non-GAAP operating margins for each quarter in 2007 and 2006 exclude amortization of acquisition-related intangibles, restructuring and impairment charges and stock-based compensation expense.

Net income for the third quarter of 2007 was $7.8 million, or $0.09 per diluted share, compared to net income of $8.6 million, or $0.10 per diluted share, for the same period in 2006. Non-GAAP net income for third quarter 2007 was $16.2 million or $0.18 per diluted share, compared to $14.6 million or $0.16 per diluted share in third quarter 2006. Third quarter 2006 and 2007 non-GAAP net income excludes amortization of acquisition-related intangibles, restructuring and impairment charges and stock-based compensation, net of tax effects.

Revenue for the first nine months of 2007 was $462.0 million, an increase of 3 percent compared to the first nine months of 2006. Net income for the first nine months of 2007 was $19.4 million, or $0.22 per diluted share, as compared to net income of $25.4 million, or $0.28 per diluted share, for the same period of 2006. Non-GAAP net income for the first nine months of 2007 was $46.7 million, or $0.52 per diluted share, compared to non-GAAP net income of $44.5 million or $0.50 per diluted share in the first nine months of 2006. Non-GAAP net income for the first nine months of 2007 and 2006 excludes amortization of acquisition-related intangibles, restructuring and impairment charges and stock-based compensation, net of tax effects. Non-GAAP net income and earnings per share for the first nine months of 2007 also excludes charges related to the first quarter 2007 secondary stock offering, from which the Company received no proceeds.

"Our third quarter results demonstrate improved operating leverage," stated Christine King, chief executive officer. "Going forward we expect to reach our fourth quarter 46 percent gross margin target and we believe that the actions we've taken will enable us to further demonstrate operating leverage improvements despite a flat revenue outlook."

The Company generated cash from operations during the third quarter of $23.5 million, bringing cash at the end of the quarter to $89.3 million, a sequential increase of $11.5 million. Capital expenditures during the quarter 2007 were $15.5 million.

Audit Committee Review Completed

As previously announced in the Company's October 24, 2007 press release, the Audit Committee of the Board of Directors, which is comprised solely of independent directors, reviewed the Company's February 2007 standard cost valuation of inventories and related issues. The Audit Committee's review was conducted with the assistance of independent accounting and legal advisors.

The Audit Committee has completed its review, and as a result, the Company, in consultation with its independent registered public accounting firm, has decided to restate its consolidated financial statements for the first and second quarters of fiscal year ended December 31, 2007. In connection with the February 2007 standard cost valuation the Audit Committee review found that the Company made errors in certain aspects of the standard cost process. In addition, in the course of its review, the Audit Committee found system coding issues that resulted in certain errors in the Company's recording of inventory value. The total adjustment amount was a decrease to net income of approximately $443,000 for the first half of 2007, comprised of an increase of approximately $208,000 for the first quarter ended March 31, 2007 and a reduction of approximately $651,000 for the second quarter ended June 30, 2007.

The Audit Committee continues to have confidence in the leadership of the Company's management and the review resulted in no recommendation of personnel changes or disciplinary action.

The Audit Committee conferred with the Company's independent registered public accounting firm regarding the scope and results of the review. The Company also informed the Securities and Exchange Commission of the Audit Committee's review.

Business Outlook

* Revenue in the fourth quarter is expected to be roughly flat sequentially.

* Fourth quarter gross margin is expected to be approximately 46 percent.

* GAAP diluted earnings per share in the fourth quarter is expected to be in the range of $0.09 to $0.11 per diluted share. Excluding amortization of acquisition-related intangibles, restructuring and impairment charges, stock-based compensation expense, and charges related to the Audit Committee accounting review, non-GAAP diluted earnings per share is expected to be in the range of $0.18 to $0.20.

* The Company continues to expect full-year capital expenditures to be approximately nine percent of annual revenues.

Conference Call and Webcast Information

Christine King, chief executive officer, along with Joseph Passarello, senior vice president and chief financial officer, will host a conference call on November 8, 2007 at 4:30 p.m. ET, to discuss the Company's third quarter financial results and its updated business outlook. The web simulcast of this call will be available under the investor relations section of the Company's web site at http://www.amis.com. A webcast replay will be available at that same location until close of business November 22, 2007.

About AMI Semiconductor

AMI Semiconductor (AMIS) is a leader in the design and manufacture of silicon solutions for the real world. As a widely recognized innovator in state-of-the-art mixed-signal and digital products, AMIS is committed to providing customers in the automotive, medical, industrial, mil/aero, and communication markets with the optimal value, quickest time-to-market semiconductor solutions. AMI Semiconductor operates globally with headquarters in Pocatello, Idaho, European corporate offices in Oudenaarde, Belgium, and a network of sales and design centers located in the key markets of the North America, Europe and the Asia Pacific region. For more information, please visit the AMIS Web site at www.amis.com.

Additional Information Regarding Non-GAAP Financial Measures

Management provides the non-GAAP financial measures presented in this release because we use them as an additional measure of our operating performance and we believe that excluding these charges enhance comparability between current and prior periods. Please see the reconciliation of each of these non-GAAP financial measures to its closest GAAP financial measure in the financial statements that accompany this release. Non-GAAP net income and non-GAAP earnings per share should not be considered as alternatives to net income, earnings per share or other consolidated operational data prepared in accordance with accounting principles generally accepted in the United States of America, as indicators of our operating performance or as a measure of liquidity.

Forward Looking Statements

Statements in this press release other than statements of historical fact are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the expectation that actions taken will result in attainting fourth quarter 46 percent gross margin target and further operating leverage improvements despite a flat revenue outlook, and fourth quarter 2007 guidance on revenue, gross margin, GAAP and non-GAAP earnings per share, and full-year capital expenditures. These forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements. These risks include the failure to properly and efficiently operate our manufacturing facilities, to take the actions necessary to increase our gross margins and avoid manufacturing defects and unnecessary scrap, failure to maintain and improve the quality and effectiveness of our internal controls over financial reporting, the impact of our Audit Committee's completed accounting review and the related restatement of financial statements, our ability to manage the availability, capacity and quality of our subcontractors, manufacturing under-utilization, changes in the conditions affecting our target markets, fluctuations in customer demand, timing and success of new products, loss of key personnel, failure to properly execute on anticipated restructuring plans, general economic and political uncertainty, failure to successfully integrate the NanoAmp Solutions business, conditions in the semiconductor industry, and other risks and uncertainties that we identified in reports filed from time to time with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. We do not intend to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

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