Exhibit 99.1

Agilent Technologies Reports Third Quarter 2004 Results

PALO ALTO, Calif., Aug. 12, 2004 — Agilent Technologies Inc. (NYSE: A) today reported orders of $1.78 billion for the third fiscal quarter ended July 31, 2004, 21 percent above one year ago. Revenues during the quarter were $1.89 billion, 25 percent ahead of last year. Third quarter GAAP net earnings were $100 million, or $0.20 per diluted share, compared to a loss of $1.56 billion, or $3.28 per share, in last year’s third quarter.

Excluding $54 million of net restructuring and amortization charges, Agilent reported third quarter operating net income of $154 million, or $0.30 per share. On a comparable basis, but also excluding a $1.45 billion non-cash charge related to the write-off of deferred tax assets, the company had a loss last year of $11 million, or $0.02 per share.

“We are pleased with Agilent’s third quarter results,” said Ned Barnholt, Agilent chairman, president and chief executive officer. “Revenues, at $1.89 billion, were near the top of our expectations while operating earnings⁽¹⁾ hit the top end of our guidance range at $0.30 per share.

“Our Test and Measurement segment performance was particularly strong, with orders up 37 percent to the highest level since early 2001 and revenues 25 percent above last year. We achieved our commitment to reach double-digit operating margins in this segment one quarter ahead of plan, with a third quarter margin of 11 percent.”

For the fourth consecutive quarter, Agilent generated positive free cash flow from operations ⁽²⁾. The company ended the quarter with $1.94 billion of cash and equivalents, up $95 million from the prior quarter. Inventory days-on-hand improved by 16 from one year ago to a new low of 91. Receivables days sales outstanding improved by 3 to 55. Capital spending of $26 million was $39 million below the level of depreciation. Compared to the second quarter, total operating expenses were reduced by $22 million.

Looking to Agilent’s fiscal fourth quarter, Barnholt said, “We are pleased with the sustained momentum we are seeing in our Test and Measurement and our Life Sciences and Chemical Analysis segments. But, we are also seeing a pause in Agilent’s semiconductor and semiconductor equipment businesses that may continue through year-end before we see renewed growth in fiscal 2005.

“On balance, we remain comfortable with Agilent’s prior fourth quarter guidance for revenues of $1.85 billion to $1.95 billion and operating earnings of $0.30 to $0.35 per share ⁽³⁾.”

Segment Results

Test and Measurement

(in millions)

Third quarter Test and Measurement orders of $776 million were 37 percent above one year ago to the highest level since the second quarter of 2001. Orders in all geographies and all markets were up, including the first year-to-year improvement in wireline test in several years. Revenues of $768 million were 25 percent above last year and 9 percent ahead of three months earlier.

Third quarter operating profits of $88 million were improved by $157 million compared to one year ago on a $155 million increase in revenues because of the cumulative benefits of aggressive restructuring and lower levels of discounts. Compared to the second quarter, segment profits were up $77 million on a $63 million increase in revenues due to better gross margins, lower operating expenses and an improvement in the systems and support businesses. During the quarter, Test and Measurement achieved a 14 percent return on invested capital⁽⁵⁾ (ROIC), up from 1 percent in the second quarter and (6) percent one year ago.

Automated Test

(in millions)

Third quarter Automated Test orders of $208 million were down 17 percent from one year ago, with strength in parametric and manufacturing test more than offset by year-to-year declines in orders for system on a chip (SOC) and flash memory test systems. Utilization rates for SOC testers at semiconductor contract manufacturers (SCMs) dropped several percentage points in the third quarter, suggesting a period of semiconductor industry digestion and cautious ordering that could last through the fourth quarter of this year. Revenues of $243 million were 18 percent above last year but down 9 percent sequentially.

Segment profits of $19 million were up $13 million from one year ago on a $37 million increase in revenues. Over the year, segment R&D spending increased 16 percent as the company continues to aggressively expand the breadth of its offerings in flash and SOC test systems. Segment ROIC⁽⁵⁾ was 8 percent during the quarter compared to 2 percent one year ago and 12 percent in the second quarter.

Semiconductor Products

(in millions)

Semiconductor Products orders continued to show strong year-to-year gains, with third quarter orders of $470 million, up 31 percent from last year. Sequentially, orders were off 10 percent due to normal seasonal weakness and an industry inventory rebuilding that appears to have been completed. Personal systems orders were up 43 percent from last year but down 13 percent sequentially as the maturing semiconductor cycle begins to exhibit the normal seasonal patterns of a consumer-focused business. Networking systems orders were 8 percent above one year ago and down 3 percent sequentially. Third quarter revenues of $539 million were 42 percent above last year compared to a 40 percent increase in worldwide semiconductor industry shipments through June.

Segment profits of $33 million were $41 million better than last year on a $159 million improvement in sales. Sequentially, profits were down $32 million on a $12 million increase in revenues. During the quarter, the business experienced severe price pressures in mobile camera modules and fiber optics. Actions are now under way to restore segment operating margins to double digits in the first half of fiscal 2005. Segment ROIC⁽⁵⁾ was 15 percent during the quarter compared to (1) percent one year ago and 26 percent during the second quarter.

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Life Sciences and Chemical Analysis

(in millions)

Life Sciences and Chemical Analysis continued to show good momentum in the third quarter. Orders of $321 million were 10 percent above last year, with Life Sciences orders up 5 percent and Chemical Analysis up 13 percent. Revenues of $335 million were an all-time record and 11 percent above last year.

Segment profits reached $46 million in the quarter, up $5 million from last year’s excellent operating results on a $32 million increase in revenues as the company continued to invest in new life sciences solutions. Profits were up $7 million from the second quarter because of seasonally lower expenses. During the quarter, the segment achieved an ROIC⁽⁵⁾ of 23 percent, compared with last year’s ROIC of 22 percent and 16 percent in the second quarter.

About Agilent Technologies

Agilent Technologies Inc. (NYSE: A) is a global technology leader in communications, electronics, life sciences and chemical analysis. The company’s 28,000 employees serve customers in more than 110 countries. Agilent had net revenue of $6.1 billion in fiscal year 2003. Information about Agilent is available on the Web at www.agilent.com.

Agilent management will host a live webcast of its quarterly conference call with the investment community in listen-only mode today at 1:30 p.m. (PT). Listeners may log on at www.investor.agilent.com and select “Agilent Third Quarter Financial Results Conference Call” under “Recent News and Events.” The webcast will remain on the company site for 90 days.

A telephone replay of the conference call will be available from 5:30 p.m. (PT) today through Aug. 19 by dialing + 1 719 457 0820 and entering pass code 146803.

Forward-Looking Statements

This news release contains forward-looking statements (including, without limitation, information regarding the markets we serve, revenues, earnings and operating margins) that involve risks and uncertainties that could cause results of Agilent to differ materially from management’s current expectations.

In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles while it continues to implement workforce and other cost reductions; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross margin pressures; the risk that our cost-cutting initiatives will impair our ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties on our markets and our ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix, and other risks detailed in Agilent’s filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended April 30, 2004.

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AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

Historical amounts were reclassified to conform with current period presentation.

4

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

(Unaudited)

Historical amounts were reclassified to conform with current period presentation.

5

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Excluding Restructuring, Amortization of Intangibles

and Non-Operational Items

(Unaudited)

(In millions, except per share amounts)

We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors operating results.

Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.

This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. It excludes items, such as restructuring and amortization, that may have a material effect on the company’s net income (loss) and net income (loss) per share calculated in accordance with GAAP. Management monitors these items to ensure that expenses are in line with expectations and that our GAAP results are correctly stated but does not use them to measure the ongoing operating performance of the company. The non-GAAP information we provide may be different from the non-GAAP information provided by other companies.

Historical amounts were reclassified to conform with current period presentation.

6

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Excluding Restructuring, Amortization of Intangibles

and Non-Operational Items

(Unaudited)

(In millions, except per share amounts)

We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors operating results.

Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.

This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. It excludes items, such as restructuring and amortization, that may have a material effect on the company’s net income (loss) and net income (loss) per share calculated in accordance with GAAP. Management monitors these items to ensure that expenses are in line with expectations and that our GAAP results are correctly stated but does not use them to measure the ongoing operating performance of the company. The non-GAAP information we provide may be different from the non-GAAP information provided by other companies.

Historical amounts were reclassified to conform with current period presentation.

7

AGILENT TECHNOLOGIES, INC

RECONCILIATION FROM GAAP TO NON-GAAP

NET INCOME

THREE MONTHS ENDED JULY 31, 2004

(Unaudited)

We provide non-GAAP financial information in order to provide meaningful supplemental information regarding our operational performance and to enhance our investors’ overall understanding of our core current financial performance and our prospects for the future. We believe that our investors benefit from seeing our results “through the eyes” of management in addition to the GAAP presentation. Management measures segment and enterprise performance using measures such as those that are disclosed in this release. This information facilitates management’s internal comparisons to the company’s historical operating results and comparisons to competitors’ operating results.

Non-GAAP information allows for greater transparency to supplemental information used by management in its financial and operational decision making. Historically, we have reported similar non-GAAP information to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting.

This information is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. It excludes items, such as restructuring and amortization, that may have a material effect on the company’s net income (loss) and net income (loss) per share calculated in accordance with GAAP. Management monitors these items to ensure that expenses are in line with expectations and that our GAAP results are correctly stated but does not use them to measure the ongoing operating performance of the company. The non-GAAP information we provide may be different from the non-GAAP information provided by other companies.

8

AGILENT TECHNOLOGIES, INC

RECONCILIATION FROM GAAP TO NON-GAAP

NET INCOME

NINE MONTHS ENDED JULY 31, 2004

(Unaudited)