AU Optronics Reports 2Q2006 Results

AU Optronics Reports 2Q2006 Results

July 25, 2006

Second Quarter 2006 Unaudited Consolidated Financial Highlights

     * Revenues decreased 8.1% QoQ to NT$60.90 billion 
     * Net income decreased 97.3% QoQ to NT$182 million
     * Earnings per share (basic EPS) of $0.03 per common
share (US$0.01 per 
       ADR)
     * Gross margin: 8.5%
     * Operating margin: 2.2%
     * EBITDA margin: 21%


    HSIN CHU, Taiwan, July 25 /Xinhua-PRNewswire/ -- AU
Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO) today
announced unaudited results for 2Q2006.  For the second
quarter ended June 30, 2006, AUO's consolidated revenue
totaled NT$60.90 billion (US$1.88 billion*), net income
NT$182 million (US$5.63 million), and basic EPS NT$0.03 per
common share (US$0.01 per ADR unit).  For the first half
year ended June 30, 2006, AUO's consolidated revenues
totaled NT$127.15 billion (US$3.93 billion), net income
NT$6.83 billion (US$0.21 billion), and basic EPS NT$1.12
per common share (US$0.35 per ADS.) 

    Gross margin for the second quarter declined 8.2
percentage points to 8.5%.  This brought operating margin
to 2.2% and EBITDA margin to 21%.  Mr. Max Cheng, Vice
President and Chief Financial Officer of AUO noted that the
company's operation in the second quarter experienced faster
and larger than expected declines in Average Selling Price
in all product segments.  However, 2Q2006 panel shipments
are aligned with the Company's guidance revised on June 6;
large-size panel increased 8.1% to 10.1 million while
small- and medium-size panel also rose by 14.3% post 18.1
million from last quarter.  Panel Average Selling Price by
square meter, is weaker than the Company anticipated,
declined by about 14% sequentially, directly resulted in
the company's 2Q2006 profit.  The higher-than-expected
panel pricing declines are mitigated by the reduction of
output in response to ease inventory pressure, the
best-cost control and better product mix. 

    On a sequential comparison, second quarter revenue
declined 8.1% and net income decreased 97.3%.  On the
year-over-year comparison, second quarter results represent
a 31.7% increase in revenue, while net income experienced a
61.3% decrease to NT$182 million.  

    AUO's Executive Vice President, Dr. Hui Hsiung, also
noted that in the second quarter, the ratio of consumer
electronics display sales (TV display, mobile device
display and audio-video display) was approximately equal to
the information technology display sales (desktop display
and notebook PC display), reached 48% and 49% respectively.
 This also reflected AUO's balanced deployment and well
management in terms of the development of its all product
segments.  Although the industry experienced seasonal
weakness true to form, the shipments of AUO's all product
segments represent increase among the peers. Particularly,
the shipments of TV, notebook PC and mobile phone segments
all hit historical high for the single quarter.

     * Amounts converted by an exchange rate of
NTD32.33:USD1 as of June 30, 
       2006.

    Conference Call & Webcast Notice:

    AUO's quarterly review conference call will be held at
8:00 pm Taiwan Time (GMT +8:00) on Tuesday, July 25th,
2006. The conference call will be available via webcast
http://www.auo.com .

    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 2Q 2006.  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. 

    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 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.

    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.