Taiwan’s first 7.5th generation technology on-track for mass production in October

August 1, 2006 — /Xinhua-PRNewswire-FirstCall/ — TAICHUNG, Taiwan — 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 (1366×768) 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.

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.

Source: AU Optronics Corp.

CONTACT: Yawen Hsiao, Corporate Communications Dept. of AU Optronics
Corp., +886-3-500-8899 x3211, or fax, +886-3-577-2730, or
yawen.hsiao@auo.com

Web Site: http://www.auo.com/

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