Hsinchu, Taiwan,

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) announced today that AUO has entered into an agreement with Field Emission Technologies (FET) and FET Japan, Inc. (FETJ), to purchase certain assets and to transfer certain technology from FET, a leader in FED (field emission displays) technology whose 39.8% of shareholding is owned by Sony Corporation. In the transaction, AUO will acquire certain assets that include patents, know-how, inventions, and relevant equipment related to FED technology and materials.

The fast response time, high efficiency, brightness, and contrast of FED technology not only compare favorably with traditional CRT technology but also outperform in terms of image quality and power efficiency. FED technology will be focused on high-end display application for future development. Apart from OLED, FED technology will be a new application option in the flat display industry, which will become a strong support for AUO's unique competence in the future.

"Being a total solutions provider of display applications, AUO is dedicated to developing all kinds of display technologies for offering customers more application solutions. FED technology will be an appropriate fit especially for the high-end market needs such as medical or broadcast displays," AUO's CEO and President, Dr. L. J. Chen, said, "Sony had been a leader in FED technology, and AUO also has committed itself to developing new technologies. With its successful cooperation with FET, AUO intends to utilize FET's resources of FED technology to commercialize products, which will hopefully benefit our customers and end consumers."

FED display is self light-emitting and has great contrast and low power consumption, with no motion blur and deeper color depth -- capable of 12bit gray level. With Sony and FET's efforts, FED technology and the possibility of its mass production have achieved a breakthrough. FED is intended to target high-end display applications.

The acquisition is a highlight for AUO's strategies of actively developing core technologies in advanced displays, thanks to the efforts and contribution of the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs supporting Taiwanese companies in acquiring core industrial technologies. With the past two mergers in the display industry, AUO not only has gained large-scale production capacity, but has also aggressively dedicated itself to raising its technology level relevant to the Company's future development. The Company shows its unique thinking in transforming itself to a technology pioneer.

The substance of the agreement includes patents, know-how, inventions, and equipment. Currently FET owns certain core technologies in the FED field. With the completion of the acquisition, AUO will hopefully become one of the few companies in the world that will be able to offer commercialized FED products.

Yawen Hsiao
Corporate Communications Division
AUO Corporation

No.1, Li-Hsin RD 2, Science-Based Industrial Park,
Hsinchu City 300, Taiwan, R.O.C.
Tel ：+886-3-500-8899 ext：3211
Fax：+886-3-5772730
Email ：Yawen.Hsiao@wfderan.com