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AU Optronics Intellectual Property Rights Reaching Historical Highs (2003.03.26)
Hsin Chu, Taiwan

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), AU Optronics has placed the highest number of patent applications in Taiwan's flat display panel industry. Reflecting its commitment to technology development and advancements and Intellectual Property Rights.

According to the Ministry of Economic Affairs Intellectual Rights Departmental statistics, AU Optronics was ranked as the 8th highest applications of patents for the year 2002. Within Taiwan's flat panel display industry, at 265 cases applied, AU Optronics had placed more patent applications than any other in its industry, a 250% increments as compared to the previous year (1990 at 106 applications). This signifies AUO's strong hold in the new technology and commitment for the flat display panel arena.

Dr. Fan Luo, VP and Chief Technology Officer of AUO, stated that although Taiwan came into the picture after both Japan and Korea, it has managed to catch up in a short time. Presently most new technologies are imported and it is essential to continue research and development for new technologies and improvement on existing technologies.

President of AUO, Mr. HB Chen, reiterates that AUO's dedication for research and development will not waver. "Intellectual property rights play a key role in achieving competitive advantages in this industry. With the completion of AU Technology Center next year, it will effectively integrate our R&D resources, strengthen our research capabilities, and significantly increase our number count in intellectual property right ownership. AUO is presently transforming one of our G3.5 fabs into production of low-temperature Poly Silicon (LTPS) flat panels and plans to bring on board 1,000 engineers for research and development for the coming three-year horizon. "

On March 10th, AUO officially signed an agreement with Fujitsu Display Technologies ("FDTC"), a technology arm of Fujitsu Limited, forming a joint development program for both fundamental technology research and development of advanced applications. Combining FDTC's advanced technology, such as their patented wide view angle MVA ("Multi-domain Vertical Alignment") technology best utilized in large size TFT-LCD panel applications, with AUO's leading manufacturing, this collaboration will actively develop advanced design, process and production technologies, and manufacturing capacity cooperation. In addition, AUO will be entitled to the usage of FDTC's intellectual property rights. All in all, this groundbreaking development is a historical one for not only AUO but also the flat panel display industry.