Hsinchu, Taiwan,

Second Quarter 2007 Unaudited Consolidated Financial Highlights

• Revenues up 31.3% QoQ to NT$106.009 billion
• Net income after tax of NT$5.987 billion
• Earnings per share of NT$0.79 (US$0.2 per ADR)
• Gross margin: 11.4% Operating margin: 6.5%

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 2Q2007. All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”). For the second quarter ended June 30, 2007, AUO's consolidated revenue totaled NT$106.009 billion (US$3.2 billion*), net income NT$5,987million (US$182 million), and basic EPS NT$0.79 per common share (US$0.2 per ADR unit). For the first half year ended June 30, 2007, AUO's consolidated revenues totaled NT$186.729 billion (US$5.7 billion), net income after tax NT$882 million (US$26.9 million), and basic EPS NT$0.12 per common share (US$0.04 per ADR.)

In terms of 2Q2007 panel shipments, large-sized panel increased by 22.2% to 19.48 million from 1Q2007, while shipments of small- and medium-sized panel amounted to 32.23 million with a 45.6% QoQ increase, both set record high for a single-quarter unit shipment.

Mr. Max Cheng, Vice President and Chief Financial Officer of AUO noted that the 2Q2007 performance is better than the Company’s guidance announced during the Q12007 investor conference. Gross margin for the 2Q2007 increased significantly to 11.4%, bringing operating margin to 6.5%. The remarkable business performance was contributed by the increasing demand from customers, relatively better price, cost reduction efforts, contribution of post-merger synergies and higher loading rate. Starting from 2Q2007, AUO has aggressively implemented more competitive product lines with better material cost control and product mix adjustment in order to increase profitability. The first half year profitable earnings demonstrated that AUO has accomplished the complicated QDI merger case with outstanding execution and has more confidence to face the traditional 3Q-peak season by means of capacity advantages and the widest product lines.

*Amounts converted by an exchange rate of NTD32.83:USD1 as of June 30, 2007.