AU Optronics Unveils Key Technologies for HDTV

AU Optronics Unveils Key Technologies for HDTV

HSINCHU, Taiwan, Oct. 13 /Xinhua-PRNewswire-FirstCall/ -- AU Optronics ("AUO" or the " the Company") (TAIEX: 2409; NYSE: AUO) today announced its latest breakthrough technologies for LCD TV application, scheduled to be on exhibit at the FPD International 2005 later this month. These latest technologies are developed to improve response time, color and motion picture quality images. In the line up, Advanced MVA ( "AMVA") that provides low color washout and high contrast ratio is already under production. Included on show is a 32" module, in production mode, well equipped with low color washout and high contrast ratio (1200:1) features. One of the key self- developed technologies is the AUO Dynamic Vision Compensation System ideal for HDTV applications, which is found to improve response time to a measly 4 ms (gray to gray). Another technology to be unveiled is the Image Processing Technology used for clarity of depth images and to constraint tones and texture of color closer to its natural state. All of these advanced technologies, to name a few, are to be exhibited starting October 19th 2005 at the 3-day exhibition in Yokohama Japan. The aggressive development on improvement in quality image displays reflects the Company's readiness for the coming of age of the HDTV application.

AUO Executive Vice President, Dr. Hui Hsiung noted that the future trend of HDTV depends on three major hurdles; wide-viewing angle technology, color and image quality technology, and lastly fast response time technology. At AUO Technology Center, the collaboration of its R&D and sales team together has brought AUO's LCD TV panels to reach similar quality picture of traditional CRT's. AUO not only provides a wide range of different TV panel sizes, but it also can provide a wide range of latest technologies to tailor- made the right panel for each customer. The Company's R&D roadmap has always been customers first oriented. It has been based on its customer's needs and expects its latest breakthrough technologies can help in the coming challenges of the LCD TV age.

AMVA Gives a Fresh Visual Experience Provides Low Color Washout and High Contrast Ratio (1200:1)

The company's latest 32" LCD TV model, is debuting with AUO Advanced MVA ( "AMVA"), Low Color Washout, and High Contrast Ratio technologies. Based on the company's core technologies, its R&D team applied new pixel structure with new driving principles to generate 8 domains in a sub-pixel to help improve color washout typically found in wide-viewing angles with traditional Multi- Domain Vertical Alignment ( "MVA") technology. With this breakthrough, color is more natural and image quality is improved dramatically. It further improves the viewing-angle-dependent distortion of special colors, such as skin color differentiations, typically found with the traditional wide viewing angles. Moreover, the AMVA technology's revolutionary usage of specially developed color filter along with pixel modification and optical compensation can effectively improve light leakage at dark state. It improves contrast ratio from 800:1 to as high as 1200:1, which ultimately means comfortable viewing for the consumer, even in dark conditions.

Image Processing System -- The Solution to Natural Color Images and Clear Depth of View

One of AUO's newly developed technologies provides two important solutions for color and image enhancement. To be on exhibit is the company's latest 37" HDTV panel (with high resolution of 1920x1080) improved with the Image Processing system circuit hardware enabling clarity of depth in images, pure natural color images, improved color saturation, depth of view, and high contrast ratio. This new technology, scheduled for 2Q2006 production, eliminates the need for real time image processing, which in other words means memory IC cost savings for our customers. Non-linear image processing can accommodate changes in the dynamics of human perception ideally used to overcome an existing problem with LCD TV where motion picture tends to loose its realism during darker states. An added value of this process is its energy and environmental conservation abilities as its circuit hardware can automatically adjust the CCFL brightness.

High Dynamic Contrast LCD with LED Backlight for Clarity of Depth and 10,000:1 Contrast Ratio

Another new technology introduced is its High Dynamic Contrast LCD with LED Backlight. Displayed through its 46" LCD TV, it utilizes panel LED to localize and control luminance areas, producing a clear depth affect. Its contrast ratio is as high as 10,000:1, giving motion picture quality equivalent to CRT. Using unique optical scheme, LED backlight allows for division into subsections with its own independent brightness control. This method not only saves up to 50% energy, but also improves by 64 gray levels (6 bits).

AUO Dynamic Vision Compensation System Brings Fast Response Time to Merely 4ms

With 2006 World Cup around the corner, the 37" LCD TV has been in major demand. AUO will showcase a series of 37" LCD TV panels with different solution providing specifications to fulfill the unique needs of a wide range of customers. May it be WXGA (1366x768) LCD panels or HDTV (1920x1080), AUO's newly developed technology for fast response time, is targeted to improve picture quality to CRT level equivalent. It can successfully simulate similar quality images of CRT, decreasing motion blurring and improving picture quality, in addition to advanced response time of industrial standard gray to gray 4ms.

Dr. CT Liu, VP of AUO Technology Center added that in the search for uniformity of resolution, we have accomplished contrast ratio of still state over 1200:1 and motion state at over 10,000:1. In addition, the future of all AUO LCD TV panels will utilize digital color temperature adjustment technologies. The technology not only control gray levels to remain within human eye capability, but also allows us to fulfill the different customers' needs, allowing motion image adjustments to suit different color preferences of different regions and cultures.

About AUO

AU Optronics Corporation ("AUO") is the world's third largest manufacturer* of large-size thin film transistor liquid crystal display panels (TFT-LCD), with about 24,000 employees, dominating approximately 14%* of global market share and generated net income of NT$168.1Billion (US$5.3 bn) in 2004. Targeted for 40"+ sized LCD TV panels, AUO's next generation (7.5- generation ) fabrication facility production is scheduled for mass production in 4Q 2006. The Company currently operates one 6th-generation, one 5th- generation, one 4th-generation, and three 3.5-generation TFT- LCD fabs, in addition to four module assembly facilities and a R&D fab. specializing in low temperature poly silicon TFT and organic LED. Currently the most widely used flat panel display technology, AUO is one of few top-tier TFT-LCD manufacturer globally, able to offer a wide range of small to large sized (1.5"-46") TFT- LCD display panels, which puts it in a unique position to service clients of diversified product applications.

*As shown on DisplaySearch Quarterly Large-Area TFT LCD Shipment Report dated June 6, 2005. The data is used as reference only and AUO does not make any endorsement or representation in connection therewith.

Safe Harbour Notice Except for statements in respect of historical matters, the statements contained in this Release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements were based on our management's expectations, projections and beliefs at the time regarding matters including, among other things, future revenues and costs, financial performance, technology changes, capacity, utilization rates, yields, process and geographical diversification, future expansion plans and business strategy. Such forward looking statements are subject to a number of known and unknown risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements, including risks related to the flat panel display industry, the TFT-LCD market, acceptance and demand for our products, technological and development risks, competitive factors, and other risks described in the section entitled "Risk Factors" in our Form20-F filed with the United States Securities and Exchange Commission on June 3, 2005.

For more information, please contact:

Yawen Hsiao Corporate Communications Dept. AU Optronics Corp. Tel: +886-3-500-8899 x3211 Fax: +886-3-577-2730 Email: yawenhsiao@auo.com

Source: AU Optronics Corporation

CONTACT: Yawen Hsiao, Corporate Communications Dept., AU Optronics Corp., +886-3-500-8899 x3211, +886-3-577-2730, yawenhsiao@auo.com

Web site: http://www.auo.com/

------- Profile: Ent