Hsinchu, Taiwan

In response to the Commercial Times news dated November 23, 2005 regarding that the Company may spin-off its G3.5 fabrication facilities, AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) reiterates that the report is false. The Company relays its grave concern of the falsehood of this report and questions the newspaper's publication without verifying its validity.

Since AUO was founded, we have continued to pursue comprehensive operational management, may it be the Company's product mix, research and development, capacity utilization, and customer services. Maximizing operational efficiency at its entirety, small- to medium- sized and large sized panels, although unique on its own, they are however complementary. AUO's Gen 3.5 fabrication facilities are an essential and important part of the whole. As of today, AUO has not discussed nor considered dissembling the Company's G3.5 Fabs.