AU Optronics Reports 3Q2006 Results

AU Optronics Reports 3Q2006 Results

October 25, 2006

    Third Quarter 2006 Unaudited Consolidated Financial
Highlights

     * Revenues increased 17.1% QoQ to NT$71.313 billion 
     * Net income increased 236.9% QoQ to NT$613 million 
     * Earnings per share (basic EPS) of NT$0.10 per common
share (US$0.03 per 
       ADS) 
     * Gross margin: 8.3% 
     * Operating margin: 2.9% 


    HSINCHU, Taiwan, Oct. 25 /Xinhua-PRNewswire/ -- AU
Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO) today
announced unaudited results for 3Q2006.  For the third
quarter ended September 30, 2006, AUO's consolidated
revenue totaled NT$71.31 billion (US$2.15 billion*), net
income NT$613 million (US$19 million), and basic EPS
NT$0.10 per common share (US$0.03 per ADS).  For the nine
months ended September 30, 2006, AUO's consolidated
revenues totaled NT$198.46 billion (US$6.00 billion), net
income NT$7.45 billion (US$225 million), and basic EPS
NT$1.22 per common share (US$0.37 per ADS.)

     * Amounts converted by an exchange rate of
NTD33.1:USD1 as of September 
       29, 2006.

    Mr. Max Cheng, Vice President and Chief Financial
Officer of AUO noted that 3Q2006 panel shipments are better
than the Company's guidance announced on July 25.  Shipments
of large-sized panels increased 24.6% to 12.6 million from
2Q, and a remarkable Y-o-Y growth of 58.4%. In the mean
time, shipments of small- and medium-sized panels rose by
15.1% post 20.8 million from last quarter, up 18.3% from a
year earlier.  Although the ASP (average selling price) in
some PC-related applications had hit rock bottom and began
to rebound, the company's operation in the third quarter
still experienced the drop in ASP in LCD TV panels,
resulting panel ASP by square meter declined by about 12%. 
However, through effective increase in capacity utilization
rate and component cost-down, the company's 3Q gross margin
recorded 8.3%, operating margin grew to 2.9% from 2.2% of
last quarter, and maintained a stable EBITDA margin. 

    Earlier this month, AUO completed its merger with
Quanta Display Inc., ushering totaled capacity of the
company's G5 and G6 lines leaped to the world's leading
position.  AUO will leverage its competitive advantage to
not only increase the shipment volume and revenue in the
next coming quarters but also assure worldwide customers
with the most flexible solutions to meet their needs.

    About AU Optronics

    AU Optronics Corp. ("AUO") is one of the top
three largest manufacturers* of large-size thin film
transistor liquid crystal display panels
("TFT-LCD"), with approximately 20.9%* of global
market share with revenues 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 the fourth quarter of 2006.  The Company
currently operates two 6th-generation, four 5th-generation,
one 4th-generation, and four 3.5-generation TFT- LCD fabs,
in addition to eight module assembly facilities and the AUO
Technology Center specializes 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 August 25, 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 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 20-F
filed with the United States Securities and Exchange
Commission on June 1st, 2006.

    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.