Hsinchu, Taiwan

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), announced today that the largest TFT-LCD R&D technology center in Taiwan, the AUO Technology Center, has successfully self-developed a 5 ms Response Time technology (patent pending). This technology is the ideal solution to improve and advance moving picture quality for LCD TV. To be applied on the company's latest 32" WXGA LCD TV panel, scheduled to be exhibited at FPD International 2004 in Yokohama Japan, as the world's first WXGA (1366x768) resolution, wide viewing angle panel equipped with the impressive 5 ms fast response time technology--mirroring a groundbreaking milestone for the company's LCD TV technology developments.

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Dr. CT Liu, Vice President of the AUO Technology Center, stated that, "In contrast, LCD TV's liquid crystal material in general has a slower response time as compared to CRT. However, with our team's latest technological breakthrough, we have applied CRT's traditional concept of Impulse Type Display to allow picture quality to flow more naturally." Dr. Liu added, "There are two major categories of Impulse Type Display technology. One is Blinking Backlight technology where the blinking of the backlight tube is utilized as a pulse response to reduce the afterimage effect, however this method increases the cost of light tubes and decreases lifetime. The other is Black Line Insertion technology. The downfall with this is that the high brightness will be decreased by motion picture quality."

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AUO's 5ms Response Time technology outshines the above two technologies, not only for its lifetime, but also in its performance in motion picture quality, high brightness and efficiency at minimized cost. Equivalent to Industrial Gray to Gray standards of 5 ms, this self-developed ultra high response time technology adaptively compensate images to simulate impulse type display, which could reduce the afterimage effect of human eyes and ultimately improves motion picture quality.

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With high recognition of AUO's accomplishments in LCD TV research and development, AUO’s Executive Vice President Dr. Hui Hsiung stated that, "Over time, finding ways to increase response time for wide viewing angle LCD panels has been a great challenge. Over the past few years, our TV research team has been putting in great efforts to overcome these challenges as we see it bear fruit today. Due to this technology's higher efficiency and lower cost, as compared to traditional response time technologies used to date, we have received strong interest from both our Japanese and European customers."

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At FPD Taiwan 2004 in June, AUO exhibited a 26" WXGA LCD TV display utilizing LED back light system to enhance color saturation and high brightness. By October, it revealed for the first time, its 32" WXGA LCD TV panel with AUO's technology. Via the sixth generation technology 8 of 32" panels, widely viewed as the ideal family TV size, can be processed from one mother glass. AUO's 5 ms Response Time technology is already in the manufacturing stage and is estimated to be available for production by 1H2005.