Corning to Expand Generation 8 LCD Glass Production

Corning to Expand Generation 8 LCD Glass Production

May 08, 2006

Company Signs Supply Agreement with Sharp for Gen 8 fab

    CORNING, N.Y., May 8 /Xinhua-PRNewswire/ -- Corning
Incorporated (NYSE: GLW) announced on May 1 that its board
of directors recently approved a capital expenditure plan
of $174 million to further expand its Generation (Gen) 8
size liquid crystal display (LCD) glass substrates
manufacturing capacity at its facility in Shizuoka, Japan. 
The company had previously announced that it will ship
samples of its Gen 8 size LCD glass (2160 mm x 2400 mm)
from this facility in the second quarter.  Corning expects
to begin Gen 8 commercial shipments in the third quarter,
with this new capacity continuing to come on line through
late 2007.

    In addition, Corning announced that it recently signed
a supply agreement making Corning the majority glass
substrate supplier for Sharp Corporation's Gen 8 fab in Mie
Prefecture, which is currently under construction and
expected to open later this year.  Sharp's new Gen 8
factory will be focused on LCD TVs that are 40 inches and
larger.  Corning's new investment will add Gen 8 glass
capacity to meet Sharp's future supply requirements. 

    The Gen 8 substrates manufactured at the facility will
be Corning's new EAGLE XG(TM) glass, which the company
launched commercially in March of this year.  EAGLE XG is
the first LCD substrate free of all heavy metals including
arsenic, antimony and barium.  It is also free of halides,
such as chlorine, fluorine and bromine, making it the most
environmentally-friendly LCD glass on the market. 

    "Corning continues to be the leading supplier of
large-size glass substrates for the LCD industry,"
said James Clappin, president of Corning Display
Technologies.  "We are increasing capacity to meet the
anticipated future supply requirements for high-quality
large-size glass substrates to support the growing LCD TV
market.  We believe that LCD TV will continue to become
more competitive in the 40-inch and larger-size range,
especially with its exceptional HDTV performance," he
said.  "We are closely monitoring consumer demand for
LCD television, and we will pace our manufacturing
expansions accordingly." 

    "Sharp is a very important customer for us here in
Japan, and we are pleased to continue our strong, long-term
relationship with them.  We are excited to announce both
the expansion of our Gen 8 capacity at Shizuoka and the
supply agreement.  These will enable Corning to continue to
meet Sharp's demand for a reliable supply of pristine
substrates," said Akihisa Mitsuhashi, president,
Corning Japan K. K. 

    Corning previously said that it continues to believe
that the global LCD glass market will grow between 40
percent and 50 percent in volume this year and that
Corning's volume will grow at a rate greater than the
overall market. The company also said that LCD TV
penetration should reach 19 percent of the total television
market in 2006.  LCD TVs accounted for 11 percent of the
global television market last year. 

    In response to the growing demand for large-generation
LCD glass substrates, Corning has fully expanded its
Tainan, Taiwan facility.  The company also constructed a
second facility in Taichung, Taiwan and held the grand
opening of that facility in January of this year. In
addition to these expansions and Corning's recent decision
to establish a facility in Beijing, China, Samsung Corning
Precision Glass Co., Ltd. has also expanded large-gen size
capacity at its facility in Cheonan, Korea.  Samsung
Corning Precision is Corning's 50-percent owned equity
venture in Korea. 

    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 Contacts:

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

     Daniel F. Collins
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     Email: [e-mail]

    Investor Relations Contact:

     Kenneth C. Sofio
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     Email: [e-mail]

SOURCE  Corning Incorporated