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Updated: July 8th, 2008 05:26 PM CDT

AU Optronics Chooses Xiamen for Its Second Chinese Manufacturing Site

via PRNewswire

HSINCHU, Taiwan , Dec. 8 -- AU Optronics Corp (TAIEX: 2409; NYSE: AUO) today held a meeting of the Board of Directors, where the Board approved the Company's second China manufacturing site -- AU Optronics (Xiamen) Corp. -- in the city of Xiamen in Southern China . This move is in-line with the Company's on-going belief intreating its customers as partners in business. Initial capital investments of USD 50 million are facilitated for a new module plant (TFT-LCD Panel'sfinal manufacturing stage) and sales facility.

AUO indicated that heavy investment in its Taichung Taiwan manufacturing site in recent years demands sufficient Liquid Crystal Display Module ("LCM",the last TFT-LCD manufacturing process) capacity support, which should and is being considered in advance. A major determinant of the Company's second China site is one that can deliver immediate results to its customers. In recent years, Southern China has become a hub for both Information Technology and Consumer Electronic manufacturers, especially for TV, mobile phone, andother small- to medium- sized applications. In addition, top brand-name companies have chosen Xiamen, making it the chosen location in order to provide optimal customer services. By establishing TFT-LCD's final-stage production process in the same location means on-time delivery of efficient services. Xiamen, one of China's first four Special Economic Zones, is known as one of the most important ports in the country with infrastructure for transportation in air, land and sea in place.

AU Optronics (Xiamen) Corp. will be located in Xiamen City, Xiangan District. An initial capital investment of USD 50 million is planned for LCM manufacturing facility for a full-range sized applications (small- medium- andlarge) and is to gradually increase with customer demand. The Company presently has three LCM facility sites; Taiwan's Aspire Park, Taiwan's Central Taiwan Science Park, and another major site in Suzhou China . Three module facility locations target specialized production and capacity.

About AUO

AU Optronics Corporation ("AUO") is the world's third largest manufacturer* of large-size thin film transistor liquid crystal display panels(TFT-LCD), with about 24,000 employees, dominating approximately 13.9%* ofglobal market share and generated net income of NT$168.1 Billion (US$5.3 bn) in 2004. Targeted for 40"+ sized LCD TV panels, AUO's next generation (7.5-generation) fabrication facility production is scheduled for mass productionin 4Q 2006. The Company currently operates one 6th-generation, one 5th-generation, one 4th-generation, and three 3.5-generation TFT- LCD fabs, in addition to four module assembly facilities and a R&D fab. specializing in lowtemperature poly silicon TFT and organic LED. Currently the most widely used flat panel display technology, AUO is one of few top-tier TFT-LCD manufacturer globally, able to offer a wide range of small to large sized (1.5"-46")TFT-LCD display panels, which puts it in a unique position to service clientsof diversified product applications.

* As shown on DisplaySearch Quarterly Large-Area TFT LCD Shipment Report dated Sep 30, 2005. The data is used as reference only and AUO does not make any endorsement or representation in connection therewith. Safe Harbour Notice

Except for statements in respect of historical matters, the statementscontained 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 basedon 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" inour Form 20-F filed with the United States Securities and Exchange Commissionon June 3, 2005 .

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