Chi Mei Optoelectronics Announces Unaudited Second Quarter 2008

Net Sales of NT$ 95 Billion and Operating Margin of 16%

TAINAN, Taiwan, July 31 /Xinhua-PRNewswire-FirstCall/ -- Chi Mei
Optoelectronics (CMO) (TAIEX: 3009) today announced its second quarter 2008
results (Note 1). Combined TFT-LCD net sales for the second quarter 2008
amounted to NT$ 95,489 million, a 3.7% increase over the previous quarter's
NT$ 92,085 million. Gross profit was NT$ 21,228 million, for a gross margin of
22.2%. Operating income totaled NT$ 15,255 million with an operating margin of
16%. Net income amounted to NT$ 13,740 million, where NT$13,847 was
attributable to the shareholders of the parent company. EPS equaled NT$ 1.88.
For the first half of 2008, net sales totaled NT$ 187.6 billion, an
increase of 72.7% year over year. Operating income was NT$ 33,006 million
with an operating margin of 17.6%. Net income totaled NT$ 29,034 million,
where NT$29,051 was attributable to the shareholders of the parent company, or
an EPS of NT$ 3.95.
The company shipped 18.6 million large-sized (Note 2) panels in the second
quarter 2008, which represents a 19% increase over the 15.7 million panels
shipped in the first quarter 2008. Blended ASP for large-sized panel on a per
unit basis decreased by 7.2% to USD $164 over the previous quarter.
Note 1: All figures include TFT-LCD related subsidiaries: NBCMO, NBCME,
NHCMO, NHCME, CMOJ, and CHE
Note 2: Large-sized refers to panels equal to 10.4 inches and above

CMO with TFT Subsidiaries (1) 2Q08 Income Statement -- QoQ Comparison

NT$ million % % QoQ%
Except Per Share Data 2Q08 Revenue 1Q08 Revenue Change

Net Sales(1) 95,489 100.0% 92,085 100.0% 3.7%
Cost of Goods Sold -74,261 -77.8% -69,066 -75.0% 7.5%
Gross Profit 21,228 22.2% 23,019 25.0% -7.8%
Operating Expenses -5,973 -6.2% -5,268 -5.7% 13.4%
Operating Income 15,255 16.0% 17,751 19.3% -14.1%
Net Non-operating
Income (Exp.) -641 -0.7% -1,593 -1.7% -59.8%
Income before Tax 14,614 15.3% 16,158 17.6% -9.6%
EBITDA(2) 31,430 32.9% 32,706 35.5% -3.9%
Net Income(3) 13,740 14.4% 15,294 16.6% -10.2%
Basic EPS (NT$)(4) 1.88 -- 2.07 -- --

Net Income(3) 13,740 14.4% 15,294 16.6% -10.2%
Parent 13,847 14.5% 15,204 16.5% -8.9%
Minority interest -107 -0.1% 90 0.1% --

Notes
(1) Including TFT-LCD related subsidiaries: NBCMO, NBCME, NHCMO, NHCME,
CMOJ and CHE
(2) EBITDA = Operation Income + Depreciation & Amortization
(3) Net income before preferred dividend
(4) Calculation of basic EPS is after preferred dividend and based on
weighted average of outstanding common shares
(5) All figures are unaudited, prepared by Chi Mei Optoelectronics

CMO with TFT Subsidiaries (1) 1H08 Income Statement -- YoY Comparison

NT$ million % % YoY%
Except Per Share Data 1H08 Revenue 1H07 Revenue Change

Net Sales (1) 187,574 100.0% 108,594 100.0% 72.7%
Cost of Goods Sold -143,327 -76.4% -94,927 -87.4% 51.0%
Gross Profit 44,247 23.6% 13,667 12.6% 223.8%
Operating Expenses -11,241 -6.0% -8,623 -8.0% 30.4%
Operating Income 33,006 17.6% 5,044 4.6% 554.4%
Net Non-operating
Income (Exp.) -2,234 -1.2% -2,753 -2.5% -18.9%
Income before Tax 30,772 16.4% 2,291 2.1% 1243.2%
EBITDA (2) 64,136 34.2% 25,854 23.8% 148.1%
Net Income (3) 29,034 15.5% 2,285 2.1% 1170.6%
Basic EPS (NT$)(4) 3.95 -- 0.28 -- --

Net Income (3) 29,034 15.5% 2,285 2.1% 1170.6%
Parent 29,051 15.5% 2,285 2.1% 1171.4%
Minority interest -17 0.0% -- -- --

Notes
(1) Including TFT-LCD related subsidiaries: NBCMO, NBCME, NHCMO, NHCME,
CMOJ and CHE
(2) EBITDA = Operation Income + Depreciation & Amortization
(3) Net income before preferred dividend
(4) Calculation of basic EPS is after preferred dividend and based on
weighted average of outstanding common shares
(5) All figures are unaudited, prepared by Chi Mei Optoelectronics

CMO with TFT Subsidiaries (1) 2Q08 Balance Sheet

NT$ million 2Q08 1Q08 2Q07

Cash & Cash Equivalent 27,751 26,818 20,990
Inventory 42,500 38,265 32,955
Total Assets 527,341 503,935 427,530
Short Term Debt (2) 38,455 30,338 33,739
Long Term Debt 121,697 130,581 130,292
Shareholders' Equity (3) 237,998 236,385 187,276
Net Debt to Shareholders'
Equity 55.6% 56.7% 76.4%

Depreciation & Amortization 16,175 14,955 10,932
Capital Expenditure 26,089 28,025 23,069

Notes
(1) Including TFT-LCD related subsidiaries: NBCMO, NBCME, NHCMO, NHCME,
CMOJ and CHE
(2) Short term debt = (short-term bank loan + commercial papers + current
portion of long term loans)
(3) Capital Stock (common): NT$ 73.06 billion
(4) Book value per common stock: NT$ 30.5
(5) All figures are unaudited, prepared by Chi Mei Optoelectronics

Announcement Contact:

Denis Chen
CMO Acting Spokesperson
Tel: +886-06-505-3760
Email: ir@cmo.com.tw

Loreta Chen
CMO Public Relations
Tel: +886-06-505-1888 ext. 11202
Email: pr@cmo.com.tw

SOURCE Chi Mei Optoelectronics

Denis Chen, +886-06-505-3760, ir@cmo.com.tw, or Loreta Chen, +886-06-505-1888
ext.11202, or loreta_chen@cmo.com.tw, both of Chi Mei Optoelectronics