March 31 ,2010

Toshiba Mobile Display and AU Optronics Agree MOU on AFPD Stock Transfer

Toshiba Mobile Display Co., Ltd. (TMD) has signed a memorandum of understanding (MOU) with AU Optronics Corporation (AUO) under which it proposes to transfer to AUO all shares in its wholly owned subsidiary AFPD PTE., LTD. (AFPD) that is the manufacturing site of LCD displays for PCs.
The companies are in continuing discussions on the transfer, and aim to conclude a definitive agreement by the end of April 2010.

AFPD possesses technology for high-definition, slim, light low temperature polysilicon LCDs, and currently produces displays for high-end notebook PCs that realize compact sizes and high-level performance. TMD realizes the difficulty of promoting further growth in demand and securing profit for the types of LCDs which AFPD produces.

AUO intends to acquire AFPD as a manufacturing site of, among other products, small- and medium-sized LCDs, and through this transfer, AUO aims to further strengthen its competence in high-end display market and to secure a production facility in a shorter period of time. These interests supported the companies in signing the MOU announced today.

TMD will now concentrate management resources on displays for mobile devices, including mobiles phones and Smartphone, and for automotive applications such as car navigation. The company will continue to implement restructuring initiatives to return its LCD business to the path of sustained growth with profit.

[About AFPD]

Location: 10 Tampines Industrial Avenue 3, Singapore 528798
Established: March 2001
Managing Director: Kazuo Kawasaki
Number of Employees: Approximately 900
Capital: 472,584,000 Singapore dollars
Business: Production of TFT LCD displays

[About AUO]

Location: No. 1, Li-Hsin Road 2, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C.
Established: August 1996
Chairman: K. Y. Lee
Number of Employees: Approximately 42,000
Sales: US$11,247 Million (FY2009 in the consolidated financial statement)
Products: TFT LCD displays, TV Total Solutions (19"~52")