AU Optronics Reports 1Q2006 Results

AU Optronics Reports 1Q2006 Results

April 20, 2006

    First Quarter 2006 Unaudited Consolidated Financial
Highlights

     -- Revenues declined 9.0% QoQ to NT$66.3 billion 
     -- Net income decreased 42.0% QoQ to NT$6.7 billion
     -- Earnings per share (basic EPS) of $1.14 per common
share (US$0.35 per 
        ADR)
     -- Gross margin: 16.7%
     -- Operating margin: 12.0% 


    HSINCHU, Taiwan, April 20 /Xinhua-PRNewswire/ -- AU
Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO) today
announced unaudited results for 1Q2006.  For the first
quarter ended March 31, 2006, AUO's consolidated revenue
totaled NT$66.3 billion (US$2.0 billion*), net income
NT$6.7 billion, and basic EPS NT$1.14 per common share
(US$0.35 per ADR unit).

    Gross margin for the first quarter declined 5.5
percentage points to 16.7%.  This brought operating margin
to 12.0% and EBITDA margin to 27.9%.  Mr. Max Cheng, Vice
President and Chief Financial Officer of AUO noted that
overall industry experiences seasonal weakness as well as
supply & demand imbalance. 1Q2006 panel shipments are
much in line to the Company's initial guidance, large-size
panel declined 2.3% QoQ to 9.4 million and small- and
medium-size panel declined slightly by 0.8% post 15.8
million.  Panel Average Selling Price by square meter, is a
bit weaker than the Company anticipated, declined by about
11.9% sequentially.  The higher-than-expected panel pricing
declines are mitigated by better product mix, customer
portfolio, remarkable market gain on the LCD TV business,
cost competitiveness, manufacturing capability, and
innovative designs.  TV segment has substantially grown
from 27% of revenue in 4Q2005 to 35% in 1Q2006.

    On a sequential comparison, first quarter revenue
declined 9.0% and net income decreased 42.0%.  On the
year-over-year comparison, first quarter results represents
a 70.6% increase in revenue, while net income turned from
loss of NT$2.1 billion to profit of NT$6.7 billion.  

    In response to the trend towards larger-sized TFT-LCD
TVs in the market, AUO plans to deploy a new investment
plan in Houli, the Central Taiwan Science Park near the
city of Taichung, where at least G7.5 or next-generation
fabrication facilities will be built to cope with the brisk
demand for large-sized TFT-LCD TVs.  In its initial phase,
AUO's new G7.5 line in Taichung Houli is expected to begin
volume production with a monthly capacity to process 60,000
glass substrates.  As for plans to construct G8 or even more
advanced facilities, AUO may in appropriate times announce
the Company's plan depending on the pace of market demand. 
AUO has major competitive advantages with its comprehensive
product lines, allowing for maximum flexibility in
producing LCD TV panels.  After its recent merger with
Quanta Display Inc., AUO will be able to leverage the core
competency advantages of both sides to not only increase
production capacity but also better seize ever-shifting
market opportunities.

     * Amounts converted by an exchange rate of
NTD32.42:USD1 as of March 31, 
       2006.

    Conference Call & Webcast Notice:

    AUO's quarterly review conference call will be held at
8:00 pm Taiwan Time (GMT +8:00) on Thursday, April 20th,
2006.  The conference call will be available via webcast
http://www.auo.com .

    About AU Optronics

    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 14.2%* 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 Mar 1, 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), the world's
third largest manufacturer of large-size TFT-LCD panels,
today announced its unaudited consolidated results of
operations for FY2005.  Except for statements in respect of
historical matters, the statements contained in this 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.