Hsinchu, Taiwan,

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Third Quarter 2007 Unaudited Consolidated Financial Highlights

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• Revenues up 30.1% QoQ to NT$137.96 billion
• Net income after tax of NT$22.57 billion
• Earnings per share of NT$2.89 (US$0.88 per ADR)
• Gross margin: 23%
• Operating margin: 18.7%

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 3Q2007. All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”). For the third quarter ended September 30, 2007, AUO's consolidated revenue totaled NT$137.96 billion (US$4.2 billion*), consolidated net income NT$22,571 million (US$691 million), attributable to equity holders of the parent company NT$22,530 million (US$690 million) and basic EPS NT$2.89 per common share (US$0.88 per ADR unit). For the first nine months of 2007, AUO's consolidated revenues totaled NT$324 billion (US$9.9 billion), consolidated net income after tax NT$23,384 million (US$0.7 billion), attributable to equity holders of the parent company NT$23,412 million (US$0.7 billion) and basic EPS NT$3 per common share (US$0.9 per ADR.)

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In terms of 3Q2007 panel shipments, large-sized panel increased by 14.3% to 22.26 million from 2Q2007, while shipments of small- and medium-sized panel amounted to 40.70 million with a 26.3% QoQ increase, both once again set record high for the company’s single-quarter unit shipment.

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Mr. Max Cheng, Vice President and Chief Financial Officer of AUO, stated, “We are extremely pleased with the record high operating results that we have reached today. The 3Q2007 consolidated after-tax net income of NT$22.5 billion was 1.5 times more than the previous record high of NT$14.3 billion in 2Q2004. In addition to the strong demand from end-user markets, and stable even gradually increased panel ASP, the contributions of post-QDI merger synergy with the result of the whole is greater than the sum of the parts boosted the 3Q2007 gross margin to 23% from 11.4% sequentially, while the operating margin lifted to 18.7% from the earlier quarter of 6.5%. Through over one year of several post-M&A integration initiatives, such as R&D platform resource integration, better supply chain management practice, optimization of complementary production line strategy in different generation fabrications, and implement of more competitive product mix, AUO successfully reduced the 3Q2007 inventory turnover to 38 days from 43 days sequentially, and further demonstrated its outstanding execution to accomplished the extremely difficult QDI merger case as well as its effective integration initiatives to maximize business performance.

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*Amounts converted by an exchange rate of NTD32.67:USD1 as of September 30, 2007.