Corning CEO: Company is Delivering "Remarkable Results"

Corning CEO: Company is Delivering "Remarkable Results"

April 28, 2006

"We are after sustainable performance," Weeks tells shareholders

    CORNING, N.Y., April 28 /Xinhua-PRNewswire/ -- Corning
Incorporated (NYSE: GLW) Chief Executive Officer Wendell P.
Weeks today told shareholders that the company is continuing
to make progress on its financial goals and on growing its
position in key markets, including liquid crystal display
(LCD) glass substrates.  At the same time, he said, Corning
is working to become a more balanced company.

    Reflecting on the company's accomplishments over the
past year, Weeks said, "We have focused on consistent
operating priorities: protecting our financial health,
improving our profitability, investing in our future, and
always living our values.  These priorities have been the
foundation of our success over the past three years, and I
think it's fair to say the results have been
remarkable."

    Weeks made his comments to more than 500 shareholders
assembled for the company's annual meeting in Corning, N.Y.
and hundreds more listening through a live Web cast.  He
told them that the penetration of LCD technology into the
global TV market has more than doubled in 2005, from 5
percent to 11 percent, and that the company expects it to
increase to between 18 percent and 19 percent during 2006. 
"We are the world's leading supplier of LCD glass, and
growing consumer demand for LCD TV fuels a continued
industry migration to larger sizes, which plays to our
strengths," he said.

    Financial Health and Profitability

    Weeks pointed out that, over the past year, Corning has
strengthened both its balance sheet and its cash flow.  The
company ended 2005 with $600 million more cash than debt,
the first time it has more cash than debt in 25 years.
Improved operating cash flow has funded aggressive
expansion of the display and diesel businesses.  The
overall financial improvements resulted in an important
milestone last year, he said, when the company regained
investment-grade credit ratings.

    Regarding profitability, Weeks pointed to the fact that
in 2005 the company improved net profit before special
charges by more than $500 million for the third straight
year.  This improvement in net profit before special
charges is a non-GAAP financial measure.  This and all
non-GAAP financial measures are reconciled on the company's
investor relations Web site and in attachments to this news
release.

    Investing in the Future

    Weeks told shareholders that Corning's focus on three
major growth opportunities - LCD glass,
fiber-to-the-premises and diesel products - continues to
strengthen the company's position in those markets.  While
LCD is driving current revenue growth, he added that
fiber-to-the-premises (FTTP) is also promising.  "We
are maintaining our position as a leading supplier of
optical fiber cable, and optical hardware and equipment to
Verizon," he said, "and we are also working with
other customers on their access network architectures and
deployment plans."

    Regarding the diesel substrates and filters that help
engine manufacturers reduce emissions, he said, "We've
won a leading share of the heavy-duty market and we
successfully entered the light-duty diesel market." 
The company's diesel plant in Erwin, N.Y. is responsible
for providing these products for trucks, buses and other
heavy-duty vehicles as well as for passenger cars.

    Weeks added that 2006 "will be an important year
of execution - on many fronts.  In this year we must
deliver - in Display, Diesel and FTTP.  We also expect to
improve performance in all our businesses through continued
cost reduction and sustained manufacturing
improvement."

    Uncertainty and volatility are "facts of
life"

    In reviewing the company's business strategy with
shareholders, Weeks emphasized that "we place big bets
on long, difficult technology developments for new systems. 
Sometimes these bets pay off - and sometimes they don't.  So
our growth rate can be hard to predict.  The implication is
that uncertainty and volatility are facts of life for all
of us."

    Corning is working to mitigate the effects of this
volatility by improving both its financial strength and the
diversity of its cash-generating businesses, he said. 
"This is our goal, but it will take time."

    "Over the long sweep of time, we will become more
balanced by both growing new businesses through innovation
and improving the performance of our established
businesses," he said.  "We know that our journey
will not be a smooth ride but we won't lose faith in our
future when we encounter the inevitable bumps in the
road," he said.

    In closing, Weeks pledged to shareholders to keep the
momentum going.  "You can count on us to stay focused
on our mission.  This Management Committee is not after
peak performance during our brief time at the helm of this
great company.  What we are after is sustainable
performance.  Our goal is to ensure that we set up the next
generation of Corning leaders for success."

    Other Business

    In other business during the Annual Meeting,
shareholders elected the following directors to three-year
terms: James B. Flaws, 57, vice chairman and chief
financial officer, Corning Incorporated; James R. Houghton,
70, chairman, Corning Incorporated; James J. O'Connor, 68,
retired chairman and CEO, Unicom Corporation; Deborah D.
Rieman, 56, retired president and CEO, Check Point Software
Technologies, Incorporated; Peter F. Volanakis, 50, chief
operating officer, Corning Incorporated.  Shareholders also
elected to a two-year term Padmasree Warrior, 44, executive
vice president and chief technology officer, Motorola,
Inc.

    Shareholders also approved the following measures: an
amendment to the 2002 Worldwide Employee Share Purchase
Plan; the 2006 Variable Compensation Plan; and an amendment
of the 2003 Equity Plan for Non-employee Directors.
Shareholders also ratified the appointment of
PricewaterhouseCoopers LLP as Corning's independent
auditors for 2006.

    A shareholder proposal seeking annual election of all
directors passed. The non-binding proposal requests the
Board of Directors to take necessary steps, in the most
expeditious manner possible, to adopt annual election of
each director.  The Board agreed to review this matter
following the vote. Since 1985, Corning's certificate of
incorporation and by-laws have specified classified Board
elections, putting about a third of the Board up for
election each year.

    Webcast Information

    The company hosted a live audio webcast of the 2006
annual meeting of shareholders in Corning, N.Y., from 11
a.m. to 12:15 p.m. EDT, April 27, 2006. To access the
webcast archive, go to
http://www.corning.com/investor_relations and click on the
webcast link.  No password or registration is required. 
The webcast will be archived on the Web site for one year
following the broadcast.

    Presentation of Information in this News Release

    Non-GAAP financial measures are not in accordance with,
or an alternative to, GAAP.  Corning's non-GAAP net income
and EPS measure excludes restructuring, impairment and
other charges and adjustments to prior estimates for such
charges.  Additionally, the company's non-GAAP measure
excludes adjustments to asbestos settlement reserves
required by movements in Corning's common stock price,
gains and losses arising from debt retirements, charges
resulting from the impairment of equity or cost method
investments, or adjustments to deferred tax assets, and
gains or losses recognized in equity earnings from
restructuring, impairment or other charges or credits taken
by equity method companies.  Corning's free cash flow
financial measures are also non-GAAP measures.  The company
believes presenting non-GAAP free cash flow, net income and
EPS measures are helpful to analyze financial performance
without the impact of unusual items that may obscure trends
in the company's underlying performance.  These non-GAAP
measures are reconciled on the company's Web site at
http://www.corning.com/investor_relations and accompany
this news release.

    As a result of a planned restatement, the company's
previously issued consolidated financial statements,
including those contained in its 2005 Form 10-K and its
first, second and third quarter 2005 Form 10-Qs, can no
longer be relied upon.  Corning intends to file an amended
2005 Form 10-K and its first quarter 2006 Form 10-Q by May
10, 2006.

    About Corning Incorporated

    Corning Incorporated ( http://www.corning.com ) is a
diversified technology company that concentrates its
efforts on high-impact growth opportunities.  Corning
combines its expertise in specialty glass, ceramic
materials, polymers and the manipulation of the properties
of light, with strong process and manufacturing
capabilities to develop, engineer and commercialize
significant innovative products for the telecommunications,
flat panel display, environmental, semiconductor, and life
sciences industries.

    Forward-Looking and Cautionary Statements

    This press release contains forward-looking statements
that involve a variety of business risks and other
uncertainties that could cause actual results to differ
materially.  These risks and uncertainties include the
possibility of changes or fluctuations in global economic
and political conditions; tariffs, import duties and
currency fluctuations; product demand and industry
capacity; competitive products and pricing; manufacturing
efficiencies; cost reductions; availability and costs of
critical components and materials; new product development
and commercialization; order activity and demand from major
customers; capital spending by larger customers in the
liquid crystal display industry and other businesses;
changes in the mix of sales between premium and non-premium
products; facility expansions and new plant start-up costs;
possible disruption in commercial activities due to
terrorist activity, armed conflict, political instability
or major health concerns; ability to obtain financing and
capital on commercially reasonable terms; adequacy and
availability of insurance; capital resource and cash flow
activities; capital spending; equity company activities;
interest costs; acquisition and divestiture activities; the
level of excess or obsolete inventory; the rate of
technology change; the ability to enforce patents; product
and components performance issues; changes in key
personnel; stock price fluctuations; and adverse litigation
or regulatory developments.  These and other risk factors
are identified in Corning's filings with the Securities and
Exchange Commission.  Forward-looking statements speak only
as of the day that they are made, and Corning undertakes no
obligation to update them in light of new information or
future events.

    For more information, please contact:

     Media Relations Contact:
     Lydia Lu
     Tel:   [phone]-1900
     Email: [e-mail]

     M. Elizabeth Dann
     Tel:   [phone]
     Email: [e-mail]

     Investor Relations Contact:
     Kenneth C. Sofio
     Tel:   [phone]
     Email: [e-mail]

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