Hsinchu, Taiwan,

AUO Corporation ("AUO" or the "the Company") (TAIEX: 2409; NYSE: AUO) announced today its latest technology for small-medium sized applications. Its latest technologies include; AMOLED applied with Shadow Masking Process to reach VGA grade, LTPS which utilized System on Panel ("SOP") process technology to obtain VGA high resolution, and Sunlight readable Transflective MVA. In anticipation of the up and coming-of-age of the 3G handset, the company has developed a series of improved technologies solely for small-medium sized applications. These latest technologies will be unveiled at the FPD International 2005, starting from October 19th to 21st 2005, in Yokohama Japan.

* Prototype 3" VGA AMOLED High Resolution Surges to 270ppi
Its no secret that the Shadow Masking Process, widely used today, for OLED production has its resolution limitations. The highest resolution achieved by the process is around 170ppi. AUO has overcome this industry hurdle and revolutionized a pixel design that progresses the resolution of OLED to reach VGA grade standards (640 RGB x 480). AUO will debut this latest technology in its 3" VGA AMOLED prototype with resolution as high as 270 ppi (pixel per inch), bringing OLED resolutions to new level highs. With the added ultra high resolution, the panels are ideal for portable multimedia player (PMP), mobile phones, DSC, and DVC alike. Dr. JJ Lih, Director of OLED Division at AUO noted, " Our revolutionary design has been a breakthrough in dramatically improving resolution levels, without having to increase costs. Not only were we able to successfully improve our 3" AMOLED panel to VGA grade but we've also managed at the same time to maintain contrast ratio to >10,000:1 and fast response time <1ms. These advanced specifications can quench the demand for high resolution high end small-sized consumer applications."

* SOP Technological Process Upgrades LTPS to VGA
LTPS panels are distinctive for its high resolution and its driver IC on panel. AU Optronics' self-developed System on Panel process can increase application to VGA resolution grade. AUO's SOP processing is a methodology where Positive/Negative DC-DC Converters combined with Level Shifter and low voltage driver IC which impressively results in VGA grade high resolution as well as lower cost and space saving. This latest technology will be displayed via a 2.8" VGA LTPS panel for mobile phone application with high resolution of 287 ppi. Along side is a 2.8" VGA LTPS panel with SOP and PenTile Matrix combined. One of PenTile Matrix technology's characteristics is its ability to improve resolution. In addition, it also improves colour saturation, on top of decreasing power consumption dramatically by 30% to 50%. AU Optronics is believed to be the first in its industry to introduce such a model with such levels of high resolution, low power consumption, and space saving features. It is estimated to mass produce by 2Q2006, readily available for the anticipated 3G mobile phone market.

* Transflective MVA Sunlight Readable
In response to increasing 3G mobile communication market demand, AUO introduces small-sized panel with Transflective MVA. Transflective technology allows for reading under sunlight conditions in addition to providing lower power consumption. With MVA, wide viewing angle increases to above 160 degrees as well as 350:1 high contrast ratio. This technology provides power consumption is perfect for outdoor usage, for applications such as; mobile phone, DSC, and DVC. In addition, the company introduced MVA for Mobile Display technology which utilize Transflective method to improve panel brightness by over 50% and allows high contrast ratio of 600:1 – double the level of TN handsets available today. Both models are scheduled for mass production by mid 2006.

AU Optronics Executive Vice President, Dr. PoYen Lu indicated that since the birth of mobile telecommunications, the role of image display has gained increasing importance and with the coming of the 3G mobile era, the demand for quality flat panels have increased even more. Therefore, it is believed that wide viewing angle and high resolution is to become the center technology for telecommunication applications. At the AUO Technology Center, R&D for small-medium sized panels have been centered around TFT-LCD, Tranflective MVA, LTPS and OLED. By improving on AUO's existing key technologies, the Center has been able to help tailor-make for mobile phone application needs. The accelerated product development allowed us to service our customers with on-hands efficiency.