Amkor Provides Update on Certain Fourth Quarter 2008 Financial Information

CHANDLER, Ariz.--(Business Wire)--
Amkor Technology, Inc. (NASDAQ:AMKR) today updated certain financial information
for the fourth quarter ended December 31, 2008.

Fourth quarter net sales are expected to be down 23% to 25% from the third
quarter of 2008. Net sales will be lower than the company`s previous guidance of
a sequential decline of 15% to 20% announced on October 29, 2008 as a result of
further weakness in consumer spending during the quarter and inventory
management efforts by customers.

The company reaffirmed that gross margin for the fourth quarter of 2008 is
expected to remain in its previously announced guidance range of 18% to 21%,
despite the greater than anticipated sequential decline in net sales. However,
gross margin is affected by a number of estimates and factors which are still
being reviewed and the final gross margin for the fourth quarter could vary.

The company is in the process of performing impairment testing of the carrying
value of goodwill on its balance sheet ($674 million at September 30, 2008).
While the impairment testing process is on-going, Amkor expects that it will
record an impairment charge for all or a substantial portion of its goodwill in
the fourth quarter of 2008. The expected impairment is a non-cash charge to
earnings and does not affect the company`s liquidity or cash flows from
operating activities.

As previously announced, the company may from time to time purchase its
outstanding notes for cash. During the fourth quarter of 2008 the company
repurchased $78 million aggregate principal amount of its 2.5% convertible
senior subordinated notes due May 2011 and $40 million aggregate principal
amount of its 7.125% senior notes due March 2011 using $81 million of its cash
on hand. The company expects to record a pre-tax gain on extinguishment of
approximately $36 million in the quarter ended December 31, 2008. The $118
million debt repurchase will reduce net interest expense by approximately $8
million through maturity.

It is too early for the company to provide other 2008 fourth quarter financial
information and therefore, it is neither updating nor reaffirming its prior
guidance regarding net income.

The company expects to announce its fourth quarter and full year 2008 financial
results on February 12, 2009 and will provide additional information and
commentary during its regularly scheduled quarterly conference call.

About Amkor

Amkor is a leading provider of semiconductor assembly and test services. The
company offers semiconductor companies and electronics OEMs a complete set of
microelectronics design and manufacturing services. More information on Amkor is
available from the company`s SEC filings and on Amkor`s website: www.amkor.com.

Forward Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of
federal securities laws. All statements other than statements of historical fact
are considered forward-looking statements including, without limitation, the
following: statements regarding our expectations for net sales, gross margin,
goodwill impairment charges and pre-tax gain on debt repurchases; the statements
regarding reduction in net interest expense; and the statements regarding the
repurchase of additional notes. These forward-looking statements contain
estimates and involve a number of risks, uncertainties, assumptions and other
factors that could affect future results and cause actual results and events to
differ materially from historical and expected results and those expressed or
implied in the forward looking statements, including, but not limited to, the
following: the outcome of Amkor`s final accounting and audit, the highly
unpredictable nature of the semiconductor industry; deteriorating market
conditions; the effect of the financial crisis on credit markets, financial
institutions, customers, suppliers and consumers; inability to achieve high
capacity utilization rates; volatility of consumer demand for products
incorporating our semiconductor packages; weakness in the forecasts of Amkor`s
customers; customer modification of and follow through with respect to forecasts
provided to Amkor; curtailment of outsourcing by our customers; our substantial
indebtedness and restrictive covenants; failure to realize sufficient cash flow
to fund capital expenditures; the effects of a recession in the U.S. and other
economies worldwide; the highly unpredictable nature and costs of litigation and
other legal activities and the risk of adverse results of such matters,
including the amount of the final award in our litigation with Tessera; the
outcome of the pending SEC investigation; worldwide economic effects of
terrorist attacks, natural disasters and military conflict; our ability to
reduce costs, and control capital spending, make prudent investments in
technology and maintain pricing discipline; competitive pricing and declines in
average selling prices; timing and volume of orders relative to production
capacity; fluctuations in manufacturing yields; competition; dependence on
international operations and sales; dependence on raw material and equipment
suppliers and changes in raw material costs; exchange rate fluctuations;
dependence on key personnel; difficulties in managing growth; enforcement of
intellectual property rights; environmental and other governmental regulations;
and technological challenges.

Other important risk factors that could affect the outcome of the events set
forth in these statements and that could affect our operating results and
financial condition are discussed in the company`s Annual Report on Form 10-K
for the year ended December 31, 2007 and in the company`s subsequent filings
with the Securities and Exchange Commission made prior to or after the date
hereof. Amkor undertakes no obligation to review or update any forward looking
statements to reflect events or circumstances occurring after the date of this
press release.

Amkor Technology, Inc.
Joanne Solomon, 480-821-5000 ext. 5416
Corporate Vice President & CFO
jsolo@amkor.com
or
MBS Value Partners
Lynn Morgen, 212-750-5800 (Investor Relations)
lynn.morgen@mbsvalue.com

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