HSINCHU, Taiwan, Jan. 22 /PRNewswire-Asia-FirstCall/ -- AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 4Q2008 and the Fiscal 2008. For the fourth quarter ended December 31, 2008, AUO posted consolidated revenue of NT$59,750 million (US$1.8 billion), net loss of NT$26,595 million (US$812 million), attributable to equity holders of the parent company NT$26,565 million (US$811 million), and basic LPS NT$3.12 per common share (US$0.95 per ADR unit).

Fourth Quarter Result Highlights

AUO reported the following unaudited consolidated results for the fourth quarter:



    -- Revenue decreased by 42.6% Q-o-Q to NT$59.8 billion
    -- Net loss of NT$26.6 billion
    -- Basic LPS of NT$3.12 per common share
    -- Gross loss of 35%
    -- Operating loss of 44.3%

    Full Year Result Highlights
    AUO reported the following consolidated results for the full year:

    -- Revenue of NT$423.9 billion, down 11.7% YoY
    -- Net income of NT$21.6 billion, down 61.7% YoY
    -- Basic EPS of NT$2.5 per common share (US$0.76 per ADR unit), down
       65.4% YoY
    -- Gross margin of 13.1%
    -- Operating margin of 7.2%

"Due to continued repercussion caused by the global financial crisis and sluggish market demands, the shipments of large-sized panels in 4Q2008 resulted in 27% Q-o-Q decrease, with average selling price down by 28%. Meanwhile, the shipments of small- and medium-sized panels were also down by 23% comparing with previous quarter. Nevertheless, these numbers are in line with the Company's revised 4Q2008 guidance," said Mr. Max Cheng, Vice President and Chief Financial Officer of AUO, "Following the Company's longstanding operation practice of not storing inventories, the Company has adopted the newly enacted Statement of Financial Accounting Standards (SFAS) No. 10, also known as accounting standard No. 10, since 4Q2008. Impacted by gross loss and low loading rate, the net loss in 4Q was higher than it was anticipated. But the net value of inventories has reduced to NT$23.6 billion, a substantial 40.8% Q-o-Q drop. The Inventory Turnover Days had also reduced to 36 days in 4Q from 40 days in 3Q, which had further strengthened the Company's effective management over its inventory."

"The Company was able to manage its Net Debt to Equity Ratio in a reasonable scale, despite the increase from 19.0% in 3Q to 26.5% in 4Q. In terms of overall result in 2008, the Company was able to post 13.1% consolidated Gross Margin, as well as 7.2% Operating Margin amid the global economic downturn that has impeded all sectors around the world," added Cheng, "In 2009, AUO is to carefully manage its Capital Expenditure and continue to maintain a cautious position in terms of its capacity input in accordance with market demands. Furthermore, the Company is to continue strengthening its Research and Development efforts, as well as seeking innovative methods to improve its manufacturing processes, in a bid to enhance its long-term competitiveness and to ensure its best readiness in coping with future business opportunities when the cycle turns positively."



    * Amounts converted by an exchange rate of NTD32.76:USD1 as of
      December 31, 2008.
    * All financial information was unaudited and was prepared by the Company
      in accordance with generally accepted accounting principles in Taiwan
      ("ROC GAAP")

ABOUT AU OPTRONICS

AU Optronics Corp. (AUO) is the worldwide top 3 manufacturer* of thin film transistor liquid crystal display panels (TFT-LCD). AUO is able to provide customers a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.5 inches to greater than 65 inches. AUO generated NT$480.2 billion (US$14.8 billion) in sales revenue in 2007 and now houses a staff of more than 38,000 employees throughout its global operations spreading across Taiwan, Mainland China, Japan, Singapore, South Korea, the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD manufacturer to successfully list at the New York Stock Exchange (NYSE). For more information, please visit http://www.AUO.com .



    * DisplaySearch 3Q2008 WW Large-Area TFT-LCD Shipment Report dated
      October 29, 2008.  This data is used as reference only and AUO does not
      make any endorsement or representation in connection therewith. 2007
      year end revenue converted by an exchange rate of NTD32.43: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 June 4th, 2008.

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