Hsinchu, Taiwan

AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), announced at a press conference today, their plans to build a new R&D facility, AU Technology Center, which will be Taiwan's largest ever built. At AU Technology Center, research efforts will be dedicated to the development of new products and technologies, manufacturing process and continuous product improvements. The research center will doubtlessly be a key element of AUO's blueprint for its future success in the TFF-LCD industry. To compliment the center, AUO has launched their " Discover the Power of Optronics", an aggressive manhunt exercise going forward in the following few months.

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AUO Chairman, KY Lee, stated, "AUO is committed to be the global leader and is dedicated to the continuation of innovating flat display technologies." Just over the past 5 years, AUO has invested over NT$6.6 billion (USD188.6 million) on research and development and is budgeted to invest an additional NT$10 billion (USD285.7 million) in the next three years. Mr. Lee also stated, "To establish the best LCD technology platform and fully integrate our R&D resources, plans are underway to invest NT$1.2 billion (USD34.3 million) in constructing a 684,000 sq. ft. research center next to our head quarters in the Hsin-Chu Science-Based Industrial Park. The research center is targeted for completion by second quarter of 2004 and will employ over 1,000 research engineers over a three-year period.

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Mr. HB Chen, president of AUO, reiterates, "Intellectual property rights play a key role in achieving competitive advantages in this industry. AU Technology Center will effectively integrate our R&D resources, strengthen our research capabilities, and significantly increase our number count in intellectual property right ownership." Research activities at AU Technology Center will initially be divided in seven general segments including advance technology development in plasma display panel (PDP), organic light-emitting diode (OLED) and low temperature poly-silicon (LTPS). In addition to new product development and module processing, the Center will also devote substantial efforts in improving current LCD production and product technologies.

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Once complete, the AU Technology Center will fully integrate AUO's R&D resources in achieving optimal efficiency and ensure progress in key technologies. Their strategy and technical planning team targets to keep AUO at the forefront of the industry with new and advanced flat panel display technologies and reliable quality products.

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The model for the AU Technology Center was unveiled at the press conference. The 9-storey R&D center plans to house 8 to 16 research labs, state-of-the-art training facilities, an all-digital multi-media library, plus a 300-seat conference facility.

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AUO plans to attract over 300 R&D and process engineers for the establishment of their R&D Center. Starting from November through to December, AUO will aggressively launch "Discover the Power of Optronics", to attract talents through out Taiwan.