Hsinchu, Taiwan,

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held a meeting of the Board of Directors, where the Board approved the Company's second China manufacturing site - AU Optronics (Xiamen) Corp. - in the city of Xiamen in Southern China. This move is in-line with the Company's on-going belief in treating its customers as partners in business. Initial capital investments of USD 50 million are facilitated for a new module plant (TFT-LCD Panel's final manufacturing stage) and sales facility.

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AUO indicated that heavy investment in its Taichung Taiwan manufacturing site in recent years demands sufficient Liquid Crystal Display Module ("LCM", the last TFT-LCD manufacturing process) capacity support, which should and is being considered in advance. A major determinant of the Company's second China site is one that can deliver immediate results to its customers. In recent years, Southern China has become a hub for both Information Technology and Consumer Electronic manufacturers, especially for TV, mobile phone, and other small- to medium- sized applications. In addition, top brand-name companies have chosen Xiamen, making it the chosen location in order to provide optimal customer services. By establishing TFT-LCD's final-stage production process in the same location means on-time delivery of efficient services. Xiamen, one of China’s first four Special Economic Zones, is known as one of the most important ports in the country with infrastructure for transportation in air, land and sea in place.

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AU Optronics ( Xiamen ) Corp. will be located in Xiamen City, Xiangan District. An initial capital investment of USD 50 million is planned for LCM manufacturing facility for a full-range sized applications (small- medium- and large) and is to gradually increase with customer demand. The Company presently has three LCM facility sites; Taiwan's Aspire Park, Taiwan's Central Taiwan Science Park, and another major site in Suzhou China. Three module facility locations target specialized production and capacity.