Hsinchu, Taiwan,

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) late yesterday successfully turned on Taiwan's very first 42" LCD TV panel, produced by the Company's 7.5th generation ("G7.5") TFT and color filter production facility located in the Taichung Science Park. In addition to being regarded as the landmark in the history of the development of Taiwan's new-generation TFT-LCD fabrication, this successful test demonstrated AUO's skillful and matured technology, to become the world's second and Taiwan's first TFT-LCD manufacturer in G7.5 technology migration.

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With the first equipment installation in AUO's first G7.5 clean room on February 16 2006, the team only spent additional 166 days, ahead of the schedule, to produce its first G7.5 product – a 42" LCD TV panel, by late evening on July 31, 2006.

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"AUO's first 42" LCD TV panel is also Taiwan's very first 42" panel produced by G7.5 technology. I would like to thank and attribute this epoch-making achievement to our G7.5 TFT, color filter and module team members, for their endeavors overcoming difficulties of very larger G7.5 mother glass substrate and leading AUO in the G7.5 technology leapfrog. It also testifies AUO's continuing commitment offering customers high quality and cost effective displays." said Mr. HB Chen, AUO's President.

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AUO's Executive Vice President, Dr. Hui Hsiung noted that the successfully turned-on 42" LCD TV panel with WXGA(1366x768) resolution will be equipped with the company's latest AMVA technology (Advanced MVA Technology) with low color washout and high contrast ratio above 1200:1. The success of this 42" LCD TV module once again reaffirms AUO's product and process R&D as well as execution capabilities. Presently, testing and pilot run have been carried through and the schedule for mass production remains to be on target for October of this year, in anticipation of capturing the growing demand of larger-than-40" sized LCD TV markets.

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With the optimized flexibility in producing panels between 40" and 50", AUO's G7.5 mother glass substrate is 1950mm x 2250mm and can optimally cut up to eight 42" panels, and six 46" panels, so as to meet the customer's demands. AUO's G7.5 line in Taichung targets to begin volume production with a monthly capacity to process 10,000 glass substrates by end of this year and is expected to reach full capacity of 60,000 glass substrates per month in the future.