Hsinchu, Taiwan

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), today announced that the Company has successfully developed low-temperature poly silicon (LTPS) TFT-LCD and active matrix organic light emitting diode display (AMOLED) technologies. Established only one year, AUO has already achieved impressive sales and revenue, and its research and development focus has produced significant results. Especially in OLED technology, AUO is the only company in the world that is capable of both a-Si TFT and LTPS AMOLED technologies.

This March, AU Optronics launched the world's first 4-inch full-color AMOLED based on a-Si. Five months later, AUO has improved its a-Si AMOLED performance with newly developed driver ICs. At the same time, a new 4-inch LTPS OLED based on AUO's own LTPS technology was also developed. The results represent the Company's rapid development and leading technologies in OLED technology. AUO has Taiwan's only fully dedicated R&D TFT fab that can provide both amorphous-silicon (a-Si) TFT and LTPS TFT backplane for active matrix OLED technology development. Currently AUO's OLED technology emphasizes on medium and small size applications with lower color and resolution requirements best suited for mobile phones. The mid-term strategy is to aim at medium and small area applications for information appliances such as PDAs, digital still cameras (DSC), portable TVs, and next-generation SmartPhone with digital mobile phone, and wireless LAN (WLAN) built in.

Taking advantage of AUO's conversion of their L1 fab into an experiment TFT fab, installing equipments of LTPS TFT-LCD production line, the newly released 3.8-inch LTPS TFT-LCD panel can be widely applied to various medium and small size displays such as DSC, portable DVD players, car navigation systems and entertainment products. Cooperating with AUO's transflective type TFT-LCD technology, the panel is used for mobile phones and PDAs. AUO's strategy for LTPS technology is to concentrate on both production and research and development. The Company plans to begin trial production in the fourth quarter of 2002 and start mass production in the third quarter of 2003.

AU Optronics believes that the effective research and development is essential to its success. AUO will continue to invest in advanced technologies to enhance its competitive strength.