AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced that AUO and Samsung Electronics Co., Ltd. (hereafter Samsung) have signed a broad patent cross-license agreement to allow expanded access to the patent portfolios each company holds. The agreement is a significant expansion of the companies’ relationship to enhance the development and delivery of innovative digital consumer electronics products by sharing each other’s respective technologies.

The coverage of the cross license includes patents in the area of TFT-LCD and OLED, especially the technology for LCD TV application. AUO and Samsung expect the agreement to bolster the development and deployment of TFT-LCD technology in the LCD TV, giving a new catalyst to strengthen the competitiveness of the two companies.

Samsung is a world-renowned consumer electronics company and both AUO and Samsung are leading TFT-LCD manufacturers. Both companies have invested heavily in research and development of flat panel display technology. As of 2005, AUO owns over 1,700 patents worldwide, with over 3,300 patent applications pending. AUO ranks as one of the top companies in the number of patent applications filed in Taiwan during the past few years. With the sharing of each other’s patents, AUO and Samsung believe this to be an opportunity for further technological and business cooperation.