Hsinchu, Taiwan,

AUO Corporation ("AUO") announced today that it is glad to have obtained formal approval from the Investment Commission of MOEA to establish G7.5 fab in China and appreciates for all the attention received. AUO will follow the government regulations and submit the subsequent information needed to expedite the investment process.

In a highly competitive international market, Taiwanese panel suppliers now have only very limited time to create the early-mover competitive advantages in mainland China. We must work much harder to catch up. AUO hereby calls for the Government to perceive from the point of expanding the global influence of Taiwan's optoelectronic supply chain. We hope the Government could consider adopting a more lenient industry policy implemented by Taiwan's competitor countries and lifting the current restriction on fab generation and M&A investments in order to provide Taiwanese manufacturers with more flexibility for its global business strategy and boost Taiwan panel industry's global competitiveness.

The Company's second G8.5 production line in Central Taiwan Science Park will enter mass production next year. In the future, AUO will continue moving toward developing and investing in next-generation production lines in Taiwan and continue devoting itself to invest in Taiwan.