AU Optronics Reports 3Q2007 Results

AU Optronics Reports 3Q2007 Results

October 22, 2007

    HSINCHU, Oct. 22 /Xinhua-PRNewswire/ --  

    Third Quarter 2007 Unaudited Consolidated Financial
Highlights
     -- Revenues up 30.1% QoQ to NT$137.96 billion
     -- Net income after tax of NT$22.57 billion
     -- Earnings per share of NT$2.89 (US$0.88 per ADR)
     -- Gross margin: 23% 
     -- Operating margin: 18.7%

    AU Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO) today
announced unaudited results for 3Q2007. All financial
information was unaudited and was prepared by the Company
in accordance with generally accepted accounting principles
in Taiwan ("ROC GAAP").  For the third quarter
ended September 30, 2007, AUO's consolidated revenue
totaled NT$137.96 billion (US$4.2 billion*), consolidated
net income NT$22,571 million (US$691 million), attributable
to equity holders of the parent company NT$22,530 million
(US$690 million) and basic EPS NT$2.89 per common share
(US$0.88 per ADR unit).  For the first nine months of 2007,
AUO's consolidated revenues totaled NT$324 billion (US$9.9
billion), consolidated net income after tax NT$23,384
million (US$0.7 billion), attributable to equity holders of
the parent company NT$23,412 million (US$0.7 billion) and
basic EPS NT$3 per common share (US$0.9 per ADR.)     

    In terms of 3Q2007 panel shipments, large-sized panel
increased by 14.3% to 22.26 million from 2Q2007, while
shipments of small- and medium-sized panel amounted to
40.70 million with a 26.3% QoQ increase, both once again
set record high for the company's single-quarter unit
shipment. 

    Mr. Max Cheng, Vice President and Chief Financial
Officer of AUO, stated, "We are extremely pleased with
the record high operating results that we have reached
today.  The 3Q2007 consolidated after-tax net income of
NT$22.5 billion was 1.5 times more than the previous record
high of NT$14.3 billion in 2Q2004.  In addition to the
strong demand from end-user markets, and stable even
gradually increased panel ASP, the contributions of
post-QDI merger synergy with the result of the whole is
greater than the sum of the parts boosted the 3Q2007 gross
margin to 23% from 11.4% sequentially, while the operating
margin lifted to 18.7% from the earlier quarter of 6.5%. 
Through over one year of several post-M&A integration
initiatives, such as R&D platform resource integration,
better supply chain management practice, optimization of
complementary production line strategy in different
generation fabrications, and implement of more competitive
product mix, AUO successfully reduced the 3Q2007 inventory
turnover to 38 days from 43 days sequentially, and further
demonstrated its outstanding execution to accomplished the
extremely difficult QDI merger case as well as its
effective integration initiatives to maximize business
performance.

     * Amounts converted by an exchange rate of
NTD32.67:USD1 as of September 
       30, 2007.

    About AU Optronics

    AU Optronics Corp. ("AUO") is one of the top
three largest manufacturers* of large-size thin film
transistor liquid crystal display panels
("TFT-LCD"), with approximately 20.2%* of global
market share with revenues of NT$293.1billion (US$9.0bn)*
in 2006.  TFT-LCD technology is currently the most widely
used flat panel display technology.  Targeted for 40"+
sized LCD TV panels, AUO's new generation (7.5-generation)
fabrication facility production started mass production in
the fourth quarter of 2006.  The Company currently operates
one 7.5-generation, two 6th-generation, four 5th-generation,
one 4th-generation, and four 3.5-generation TFT- LCD fabs,
in addition to eight module assembly facilities and the AUO
Technology Center specializes in new technology platform and
new product development.  AUO is one of few top-tier TFT-LCD
manufacturers capable of offering a wide range of small- to
large- size (1.5"-65") TFT-LCD panels, which
enables it to offer a broad and diversified product
portfolio.

     * DisplaySearch 2Q2007 WW Large-Area TFT-LCD Shipment
Report dated Aug 7, 
       2007.  This data is used as reference only and AUO
does not make any 
       endorsement or representation in connection
therewith. 2006 year end 
       revenue converted by an exchange rate of
NTD32.59:USD1.

    Safe Harbour Notice 

    AU Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO), the
worldwide top three manufacturer of large-size TFT-LCD
panels, today announced the above news.  Except for
statements in respect of historical matters, the statements
contained in this Release are "forward-looking
statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S.
Securities Exchange Act of 1934.  These forward-looking
statements were based on our management's expectations,
projections and beliefs at the time regarding matters
including, among other things, future revenues and costs,
financial performance, technology changes, capacity,
utilization rates, yields, process and geographical
diversification, future expansion plans and business
strategy.  Such forward looking statements are subject to a
number of known and unknown risks and uncertainties that can
cause actual results to differ materially from those
expressed or implied by such statements, including risks
related to the flat panel display industry, the TFT-LCD
market, acceptance and demand for our products,
technological and development risks, competitive factors,
and other risks described in the section entitled
"Risk Factors" in our Form 20-F filed with the
United States Securities and Exchange Commission on July
2nd, 2007.



    For more information, please contact:

     Rose Lee					
     Corporate Communications Dept		
     AU Optronics Corp.				
     Tel:   [phone] x3204			
     Fax:   [phone]				
     Email: [e-mail]			

     Yawen Hsiao
     Corporate Communications Dept.
     AU Optronics Corp.
     Tel:   [phone] x3211
     Fax:   [phone]
     Fax:   [e-mail]