Winbond Announces 1999 Financial Results--More Than 100 Percent Increase, Year Over Year, in Revenues Reported

Taipei, Taiwan (Feb. 15, 2000) - Winbond Electronics Corporation announced today that following the board meeting, that is has approved its CPA audited 1999 year financial report. The annual revenue of 1999 was NT$32.347 billion, an increase of 106.6% when compared with the NT$15.6 billion reported revenue of 1998. The net income before tax was NT$3.743 billion and net income after tax was NT$4.446 billion. Earnings per share was NT$1.53, a substantial earnings improvement when compared with net after tax loss of NT$396 million in 1998. 

Winbond attributes the dramatic increase in revenues to a number of positive factors including a continued rebounding of the semiconductor industry. This growing market helped generate an increase in sales for Winbond's General IC Business Group. The Company also attributes its success to the rapid and successful introduction of new production processes and capacity expansion of Winbond's DRAM products. 

After three years of battling a depressed semiconductor market, the business began to rebound last year. However, during the first half of last year, the market as a whole was still struggling with over-capacity. This adversely impacted the price of DRAM products. It was during the second half of last year, fueled by growth in the telecommunication and communication markets, that DRAM prices increased. Because Winbond also introduced new technology and expanded its production capacity, the overall result for the Company was record-breaking revenues; a historic high of NT$32.3 billion. 

In the third quarter of 1999, all DRAM products were transferred to 0.2 micron production process. This increased the gross die from each wafer significantly, resulting in major improvements in DRAM revenue and subsequently, in fourth quarter earnings. In December, 1999, the Company successfully produced Taiwan's first 256M DRAM using its new 0.175 micron process technology. Throughout last year, market analysts had been predicting increased demand for DRAM products and in concert with this upswing, it was Winbond's plan to deploy its 0.175 micron process technology beginning in the second half of 2000. Overall production capacity of Fab 4 and Fab 5 should increase to 30,000/wafers per month by the end of 2000. 

In 1999, Winbond's General IC Business Group also experienced increased profits, primarily in the sale of its logic and memory ICs. This year, Winbond will focus on introducing new products where consumer demand continues in such products as ICs for SVCD, DVD and video phone. The Company will also focus on internet-related ICs and LCD-driver ICs business opportunities. 

Because of strong market demand anticipated in 2000, the Company expects that both its General IC Business Group and DRAM Business Group will experience significant growth, resulting in considerable revenue increase for the Company. 

    Wilson Wen
    Vice President of Administrative Center
News Liaison
    Mike Liu
    Deputy Director

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