Lung Tan, Taiwan

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), has announced today the birth of Taiwan's first TFT Mother Glass and 17" module produced under the world's most advanced TFT-LCD Technology to-date-The 5th Generation Fab Technology. Previously scheduled for completion next year, its early accomplishment has strengthened AUO's position in the TFT-LCD display panel industry.

KY Lee, AU Optronics Chairman stated, "Next year will be the stage for G5 production." With the 5th Generation Fab Technology, AU Optronics can increase its production and efficiency substantially, as its output is 2.5 folds of 4 Generation Fab Technology. For the average 15" panel, G4 cuts six 15" panels per 680mm x 880mm mother glass while, G5 cuts fifteen panels per 1100mm x 1250mm mother glass.

HB Chen, President of AUO, reiterated, "We have received unquestionable support from our suppliers and customers alike. In addition, our team has faced each challenge without wavering. We are determined to provide our customers the best quality panels at lowest prices and having the most updated of technologies is essential. Not only has the mother glass become substantially bigger in G5 production, along with it, the whole fab facility needed to expand on its support facilities, to enhance its efficiency and stability in the long-run. This whole experience has brought all of us closer together, it has been a great experience indeed." Mr. Chen is very confident of the success of the 5th Generation fab, as just within a five-year horizon, AUO had moved its production straight into 3.5 generation fab technologies and quickly into 4th generation. With valuable experience under its belt, AU Optronics is poised for success.

On the eve of Christmas, Mr. Lee perceived that "While others are lighting their Christmas Trees, AU Optronics is busy lighting up the next generation in LCD display panels. This, I must say has been the best Christmas present for us yet! "