Dear Stakeholders,

As a world leading LCD panel manufacturer, AUO constantly strives for product innovations. Meanwhile, we are determined to pursue sustainable developments based on our core values, i.e. Passion and Professionalism, Execution and Excellence and Care and Contribution. We hope to maximize benefits to our stakeholders. I heartily wish this CSR report can convey AUO's commitment and efforts in corporate social responsibility and continue to serve as a communication channel with our stakeholders.

The impact of the global financial crisis has gradually tapering off during the past 12 months. AUO went through the year with a firm and stable pace. For this, I sincerely thank all of our colleagues for their hard-work and persistence. We also owe our success in 2009 to the support from our clients, investors and other stakeholders.

The continued focus on global warming and climate change shows an urgent need for energy efficiency, car reductions and essentially a low-carbon economy. We came up with AUO Green Solutions two years ago and started our green strategy from within. Two years on, we have accumulated an extensive green knowledge and achievements. At the end of 2009, we released our new statement Green SELECT, embracing the upcoming low-carbon society by converting carbon risks into carbon business opportunities. Green SELECT consists of six domains, i.e. Solar, Energy Service, Lighting, E-paper, Car and TFT-LCD. We hope Green SELECT can set a good example for the industry to join the bandwagon of energy efficiency and energy generation, in order to create a low-carbon life full of green choices.

In September 2009, AUO's 32” environmental-friendly and energy-efficient TV set was certified by PAS 2050 for carbon footprint, the world’s first TV set awarded with this certification. The quantitative indicator to carbon footprint allows consumers to gauge the impact of electronics products on the environment during different stages of product lifecycles. AUO spares no efforts in the development of low-carbon products with our strong innovation and R&D capabilities, implementations and sophisticated supply chain management. In early 2010, AUO declared our target to reduce carbon footprint by 30% in 2012 (compared to 2009). We are determined to assist our clients and to create a low-carbon digital life for consumers, as part of AUO's Green Solutions.

AUO thinks green, all the way from product development to the planning of manufacturing facilities. Our first generation 8.5 TFT-LCD fab in Taichung introduced green concepts from the start and became the first TFT-LCD production facilities in the world awarded with Gold Certification by Leadership in Energy and Environmental Design (LEED) in the US. It is estimated that the facilities can save energy by 21%, recover 90% of the water during the manufacturing processes and reduce water consumption by 3 million tons per annum. Meanwhile, AUO announced our plans to obtain LEED Gold Certifications for all of our future TFT-LCD fabs.

AUO entered the green energy market at the end of 2008. In addition to our continued efforts in the developing of LCD panels, we also exercise our creative thinking in the renewable energy market. AUO hopes to play our part as a corporate citizen in the environmental issues, as well as to create unlimited green business opportunities for the display industry. In 2009, AUO obtained over 50% stake in M. Setek, a polysilicon and wafer manufacturer in Japan and established a solar business unit. We intend to create value-added services from the upstream to the downstream of the energy industry. AUO is stepping up investments and efforts in the solar market and energy service industry. We hope to leverage on the green knowledge we have accumulated from our long-standing efforts in energy efficiency and carbon reductions, in order to become an important supply of renewable energy and energy services. We strive to assist our clients in sustainable developments of high value and low carbon.

On top of our efforts in AUO Green Solutions, we also work with BenQ Foundation with a number of initiatives, such as the commitment to the reconstruction of some elementary schools in remote areas of Taiwan, Reading Promotion Project (with volunteer employees serving as storytellers to school students) and assistant to Digital Opportunity Center in Miaoli (in the improvement of IT literacy of local residents). One-Acre-Farmland Project does not only help farmers to improve their living hood but also connects AUO's employees to our land. Taiwan 88 Flood Relief Project, a scheme to support the reconstruction following the havoc created by Typhoon Morakot in the summer of 2009, prioritizes the education of school children in the disaster regions. By combining our technologies in green energy and experience in green buildings, AUO helped many campuses to re-emerge from the ruins.

Meanwhile, to respond to the concern of some environmental groups over the waste water of the photonics industry, AUO has established themed pages on our corporate website to provide a complete picture of the issues and developments. The relevant research reports commissioned by us are also posted on these web pages. We hope that such information can allow the public to gain an in-depth understanding of the waste water issues. AUO believes that the well-intended suggestions from environmental groups are the driver for us to continue our improvements. However, AUO makes efforts and does its best to clarify issues regarding some misunderstanding of environmental groups.

For AUO, environmental protection is more than just a slogan. We ensure that it is part of our operations and daily life of our employees. We are striving to think further, act faster and stay longer on the road to sustainability. AUO endeavors to create a colorful and wonderful digital life to the public and to do our part toward a low-carbon society.