Hsinchu, Taiwan,

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) announced today that AUO has signed an MOU with Toshiba Mobile Display Co., Ltd. ("TMD") to purchase 100% shares of AFPD Pte., Ltd. ("AFPD"), a subsidiary of TMD in Singapore and a leading manufacturer of LCD panels based on low temperature polysilicon (LTPS) technology. Meanwhile, AUO and TMD intend to enter into certain agreements relating to each party's intellectual property rights. This acquisition, when it becomes effective, will hopefully help AUO to gain business opportunities in high-end notebook and smart phone market.

"AUO has devoted to developing LTPS technologies for a long time." AUO's CEO and President, Dr. L. J. Chen said, "With AFPD's fab, capacity, talents and technologies, AUO's competence in high-end display market is further strengthened. In addition, the acquisition could help to place AUO in a special strategic position in slim notebook and smart phone for the high-end markets and new application markets such as tablet PC. We expect AUO to soon provide value-added LTPS technologies to our customers and to the end consumers."

Having demonstrated numerous achievements in LTPS technologies, Toshiba Mobile Display has long held a leading position in the high end notebook display sector. Currently, the world's latest generation fab capable of producing LTPS is G4.5. The G4.5 fab of AFPD has a capacity of approximately 45,000 sheets per month.

The acquisition of AFPD in Singapore will allow AUO to establish a new operating manufacturing base in Asia in addition to Taiwan and China. With its outstanding geographic location and logistics for resources, the new site will hopefully be able to serve the high-end display markets in South Asia, the Middle East, Australia and New Zealand. In meeting the future trend for smart phones equipped with LTPS technologies, AUO will not only be a step faster but also be ready for better visibility and competitiveness in the high-end cell phone market.

The proposed transaction is subject to the signing of definitive agreements between AUO and TMD, as well as to any necessary approvals.