AU Optronics Announces Its Latest Commercialized LCD TV Technologies

AU Optronics Announces Its Latest Commercialized LCD TV Technologies

June 13, 2006

The Ultimate Viewing Experience for the High Definition TV Era

    HSINCHU, Taiwan, June 13 /Xinhua-PRNewswire/ -- With
the imminent arrival of the High Definition TV (HDTV) era,
AU Optronics ("AUO" or the " the
Company") (TAIEX: 2409; NYSE: AUO) emphasized its
leading role as the industry technology innovator by
introducing on Tuesday its latest commercialized
technologies for LCD TVs.  On the eve of the three-day FPD
(Flat Panel Display) Taiwan 2006 exhibit to be held in
Taipei June 14-16, AUO said it will demonstrate new HDTV
technologies throughout its 37" LCD TV platform.  The
four areas AUO's innovative designs will cover are:
Advanced MVA (AMVA) with low color washout and super high
contrast ratio, Simulated Pulsed Driving (SPD) technology
to solve the blurred motion problem with CRT-like 4ms
response time, HiColor technology with LED backlight to
achieve over 100% color saturation, and Image Processing
Technology featuring natural color images and clear depth
of view.

    * AMVA: A Fresh Visual Experience Featuring Low Color
Washout and High Contrast Ratio (>1200:1)

    AU Optronics successfully introduces the AUO Advanced
MVA Technology (AMVA), utilizing low color washout to
conquer the significant problem of color distortion with
traditional wide viewing angle technology.  This technology
creates more domains than conventional multi-domain vertical
alignment (MVA) LCDs and reduces the variation of
transmittance in oblique angles.  It productively improves
color washout and provides better image quality in oblique
angles than conventional VA LCDs.  Also, it has been widely
recognized worldwide that AMVA technology is one of the few
ways to provide optimized image quality through multiple
domains. 

    In addition, AMVA provides an extra-high contrast ratio
of greater than 1200:1 by optimized color-resist
implementation and a new pixel design.  The result is a
more comfortable viewing experience for the consumer, even
on dimmer images.  This high contrast technology can also
achieve wide viewing angles of up to 178 degrees.  AMVA,
which the Company believes to be the most competitive
solution in low color washout technology, has been applied
to AUO TV panels ranging from 32" up to 42", and
has attracted widespread attention among global brand-name
TV customers in the United States, Europe and Japan.

    * Simulated Pulsed Driving (SPD) Technology Provides
CRT-Like Image Quality

    The performance of motion picture response time is an
important requirement for LCD TVs.  Conventional LCDs use
hold-type driving methods that result in blurred images. 
AUO's Simulated Pulsed Driving (SPD) technology simulates
impulse-type displays with the adjustment of pixel driving
and scanning backlight to reach a CRT-like image quality in
motion picture response time. 

    The technology can greatly reduce motion blur, and
enable the image performance to reach optimal levels at 4ms
equivalent gray to gray (8ms MPRT). The technology is also
known as one of the few technologies ready for mass
production and can be applied both to WXGA (1366x768) or
Full HD (1920x1080) resolutions.

    * New HiColor Technology with LED Backlight for a
Richer-than-Life Color Experience

    AUO now builds on its successful 2005 development and
commercialization of the HiColor technology utilizing CCFL
backlight to reach 33% color saturation increase compared
with conventional LCDs.  This year AUO proves its
technology leadership by further developing the new HiColor
Technology with RGB LED backlight.  The new HiColor
Technology with LED backlight can reach 105% NTSC -- a 45%
increase from conventional 72% NTSC.  It also provides the
true natural performance of Red, Green and Blue and enables
brighter, richer, and more vivid display colors. 

    In addition, AUO has adopted specific techniques to
enhance the image performance of the LED backlight.  The
Color Management function can eliminate artificial colors
caused by inconsistent chromaticity between light source
and signal.  The Gamut Enhancement function enhances and
enriches colors.  The Flexible Color Temperature Setting
can change the intensity of the RGB LED to adjust the white
point of backlight and meet the requirements of different
applications with minimal luminance loss.  Other advantages
of LED backlights include instant light, low DC voltage,
shock and vibration safe, fast response time, low
temperature start, and an environmentally-friendly design
that is both mercury and lead free.

    * Image Processing Technology -Providing Sharp, Vivid
Images and Clear Depth of View

    AUO's Image Processing Technology integrates the input
image data management and the dynamic backlight control
solution.  The intrinsic image processing system circuit
can dynamically adjust the contrast, sharpness, hue, color
temperature, and color saturation to accommodate the image
contents. Non-linear image processing can accommodate
changes in the dynamics of human perception ideally used to
overcome an existing problem with LCD TVs where a motion
picture tends to loose its accuracy during darker states. 
AUO's Image Processing Technology enables vivid and sharp
images, enhances color saturation, details in gray levels
and contrast ratios, and retrieves natural colors. 
Customers can now enjoy the precise details of dark and
night scenes on movies.

    An added value of this technology is its energy and
environmental conservation abilities as its dynamic
backlight control function can automatically adjust the
CCFL brightness.

    AUO's Executive Vice President, Dr. Hui Hsiung, noted
AUO's recent breakthrough technologies in LCD TV would have
a major impact in the coming era of high definition TV.  The
four AUO commercialized TV technologies announced not only
ensure higher-quality LCD TV images -- already surpassing
CRT TVs or PDP -- but more importantly, they also mark a
significant milestone in the LCD TV market, giving AUO's TV
panels a unique position among other competitors.  Most
brand-name clients adopt AUO's advanced technology panels
on their high-end products, which help explain why AUO
successfully increased its TV panel market share rapidly in
just a short few years.  By gradually implementing these
leading technologies into its products, especially the
overall implementation upgrade to 37" from 32",
AUO hopes to help more customers to enjoy better image
quality in larger sized LCD TVs.  On top of that, AUO's
37" LCD TV panels provide both WXGA (1366x768) and
Full HDTV (1920x1080) specifications to fulfill the diverse
needs of the widest range of customers. 

    About AUO

    AU Optronics Corp. ("AUO") is the world's
third largest manufacturer* of large-size thin film
transistor liquid crystal display panels
("TFT-LCD"), with approximately 15.1%* of global
market share and generated revenue of NT$217.4billion
(US$6.75 bn)* in 2005.  TFT-LCD technology is currently the
most widely used flat panel display technology.  Targeted
for 40"+ sized LCD TV panels, AUO's next generation
(7.5-Generation) fabrication facility production is
scheduled for mass production in 4Q 2006.  The Company
currently operates one 6th-generation, three
5th-generation, one 4th-generation, and three
3.5-generation TFT- LCD fabs, in addition to four module
assembly facilities and AUO Technology Center specializing
in new technology platform and new product development. 
AUO is one of few top-tier TFT-LCD manufacturers capable of
offering a wide range of small- to large- size
(1.5"-46") TFT-LCD panels, which enables it to
offer a broad and diversified product portfolio.

    * As shown on DisplaySearch Quarterly Large-Area
TFT-LCD Shipment Report 
      dated June, 2006.  This data is used as reference
only and AUO does not 
      make any endorsement or representation in connection
therewith. 2005 
      year end revenue converted by an exchange rate of
NTD32.2039:USD1.

    Safe Harbour Notice

    AU Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO) today
announced the following News Release.  Except for
statements in respect of historical matters, the statements
contained in this News Release are "forward-looking
statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S.
Securities Exchange Act of 1934.  These forward-looking
statements were based on our management's expectations,
projections and beliefs at the time regarding matters
including, among other things, future revenues and costs,
financial performance, technology changes, capacity,
utilization rates, yields, process and geographical
diversification, future expansion plans and business
strategy. Such forward looking statements are subject to a
number of known and unknown risks and uncertainties that
can cause actual results to differ materially from those
expressed or implied by such statements, including risks
related to the flat panel display industry, the TFT-LCD
market, acceptance and demand for our products,
technological and development risks, competitive factors,
and other risks described in the section entitled
"Risk Factors" in our Form F-3 filed with the
United States Securities and Exchange Commission on July
8th, 2005.

    For more information, please contact:

     Yawen Hsiao
     Corporate Communications Dept.
     AU Optronics Corp.
     Tel:   [phone] x3211
     Fax:   [phone]
     Email: [e-mail]

SOURCE  AU Optronics Corp.