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    AUO Corporation Reports 4Q2007 and Full Year Results

    Published date:2008-01-30

    Hsinchu, Taiwan,


    AUO Corporation ("AUO"or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 4Q2007 and the Fiscal 2007. For the fourth quarter ended December 31, 2007, AUO’s consolidated revenue reached NT$155.5 billion (*US$4.8 billion), net income NT$33.1 billion (US$1,020 million), attributable to equity holders of the parent company NT$33 billion (US$1,018 million), and basic EPS NT$4.22 per common share (US$1.30 per ADR unit).

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    Fourth Quarter Results
    AUO reported the following unaudited consolidated results for the fourth quarter:

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    • Revenue increased 12.7% QoQ to NT$155.5 billion
    • Net income of NT$33.1 billion up 46.6% QoQ
    • Consolidated net income attributed to stockholders of the Company of NT$33 billion
    • Basic EPS of NT$4.22 per common share
    • Gross margin of 27%
    • Operating margin of 22.4%

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    Full Year Results
    AUO reported the following consolidated results for the full year:

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    • Revenue of NT$480.2 billion, up 63.8% YoY
    • Net income of NT$56.5 billion, up 521% YoY
    • basic EPS of NT$7.22 per common share (US$2.23 per ADR unit), up 413% from NT$1.41 per share the previous year
    • Consolidated net income attributed to stockholders of the Company of NT$56.4 billion


    Thanks to the merger synergy, AUO’s large-sized panel shipments in 2007 grew 65.9% YoY significantly to 80.9 million units, and the company therefore was ranked No.1 in terms of worldwide large-area TFT-LCD shipment units**. In addition, the shipment of small- to medium- sized panel for consumer product applications posted a remarkable 80.7% YoY increase to 143.1 million units.

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    "The significant result in fiscal 2007 was our best performance since its establishment, particularly the fourth quarter revenue and profits. The 4Q2007 unaudited consolidated net income amounted to NT$33.1 billion with a 47% sequential increase and broke the previous record,” said Mr. Max Cheng, Vice President and Chief Financial Officer of AUO. “Thanks to the strong demand from end-user markets resulting in steady blended panel ASP, and our implement of more competitive product mix, the 4Q2007 gross margin boosted to 27% from 23% sequentially, while the operating margin lifted to 22.4% from the earlier quarter of 18.7%.“

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    “We also made significant progress in our effective operation as well as in our financial goals of largely reducing debt ratio and improving financial structure, “Cheng added. “We experienced the post-QDI merger synergy effect since 3Q2007. In addition, 4Q2007 inventory turnover was reduced to 31 days from 38 days sequentially. The full-year 2007 net income totaled NT$56.5 billion while the basic EPS was NT$7.22 per common share, significantly increased 521% and 413% from the previous year respectively.”

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    *Amounts converted by an exchange rate of NTD32.43:USD1 as of December 31, 2007.

    **DisplaySearch 4Q2007 WW Large-Area TFT-LCD Shipment Report dated Jan 23, 2008. This data is used as reference only and AUO does not make any endorsement or representation in connection therewith.

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    Yawen Hsiao
    Corporate Communications Dept.
    AUO Corporation

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    No.1, Li-Hsin RD 2, Science-Based Industrial Park,
    Hsinchu City 300, Taiwan, R.O.C.
    Tel:+886-3-500-8899 ext:3211
    Fax:+886-3-5772730
    Email:yawenhsiao@yuequanlsl.com

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