Taiwan's First 7.5th Generation Technology On-Track For Mass Production in October

Taiwan's First 7.5th Generation Technology On-Track For Mass Production in October

August 01, 2006

    TAICHUNG, Taiwan, Aug. 1 /Xinhua-PRNewswire/ -- AU
Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO) late
yesterday successfully turned on Taiwan's very first
42" LCD TV panel, produced by the Company's 7.5th
generation ("G7.5") TFT and colour filter
production facility located in the Taichung Science Park. 
In addition to being regarded as the landmark in the
history of the development of Taiwan's new-generation
TFT-LCD fabrication, this successful test demonstrated
AUO's skilful and matured technology, to become the world's
second and Taiwan's first TFT-LCD manufacturer in G7.5
technology migration. 

    With the first equipment installation in AUO's first
G7.5 clean room on February 16 2006, the team only spent
additional 166 days, ahead of the schedule, to produce its
first G7.5 product -- a 42" LCD TV panel, by late
evening on July 31, 2006. 

    "AUO's first 42" LCD TV panel is also
Taiwan's very first 42" panel produced by G7.5
technology. I would like to thank and attribute this
epoch-making achievement to our G7.5 TFT, colour filter and
module team members, for their endeavours overcoming
difficulties of very larger G7.5 mother glass substrate and
leading AUO in the G7.5 technology leapfrog. It also
testifies AUO's continuing commitment offering customers
high quality and cost effective displays," said Mr. HB
Chen, AUO's President.

    AUO's Executive Vice President, Dr. Hui Hsiung noted
that the successfully turned-on 42" LCD TV panel with
WXGA(1366x768) resolution will be equipped with the
company's latest AMVA technology (Advanced MVA Technology)
with low colour washout and high contrast ratio above
1200:1. The success of this 42" LCD TV module once
again reaffirms AUO's product and process R&D as well
as execution capabilities. Presently, testing and pilot run
have been carried through and the schedule for mass
production remains to be on target for October of this
year, in anticipation of capturing the growing demand of
larger-than-40" sized LCD TV markets.

    With the optimized flexibility in producing panels
between 40" and 50", AUO's G7.5 mother glass
substrate is 1950mm x 2250mm and can optimally cut up to
eight 42" panels, and six 46" panels, so as to
meet the customer's demands. AUO's G7.5 line in Taichung
targets to begin volume production with a monthly capacity
to process 10,000 glass substrates by end of this year and
is expected to reach full capacity of 60,000 glass
substrates per month in the future.

    Note: Pictures for the above news release can be
downloaded from AUO corporate website URL:
http://www.auo.com/auoDEV/pressroom.php?sec=Photos&ls=en

    Any use of photographs must cite the source thereof is
from AU Optronics Corporation

    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 the above news.  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 Centre 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 Display Search 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.