Amkor Confirms Second Quarter Guidance.

Business Editors/High-Tech Writers

Amkor Technology, Inc. (Nasdaq: AMKR) today confirmed that it expects second quarter assembly and test revenue to increase approximately 20% from the first quarter of 2002. Amkor also expects second quarter gross margin, excluding charges for severance costs, to be approximately 3%, up from negative 4% in the first quarter of 2002. Both of these performance levels are consistent with the guidance Amkor provided earlier in the quarter. Wafer fab revenue is expected to be roughly flat with the first quarter, reflecting softer demand from Texas Instruments. Amkor also affirmed that, based on current customer forecasts, it continues to expect a double-digit sequential increase in third quarter assembly and test revenue. Amkor expects to report its second quarter results on or about July 30, 2002.

As a result of impairment tests required under FASB 142 and 144 accounting guidelines, Amkor expects to record a non-cash, second quarter impairment charge within an estimated range of $250 to $350 million associated with the company's underutilized test and assembly assests and associated goodwill. The anticipated impairment charge is preliminary and may vary significantly, and is subject to appraisals that will be completed prior to the company's second quarter earnings release, which may result in a higher or lower impairment charge.

The company also expects to record a second quarter charge of approximately $2.5 million in connection with several steps designed to achieve greater operational efficiencies and reduce expenses, including a non-factory workforce reduction. These activities are expected to yield ongoing cash cost savings of approximately $13 million per year.

"Last year, during the most severe downturn in the history of the semiconductor industry, we undertook a series of strategic initiatives that positioned Amkor for long-term growth," said James Kim, Amkor's chairman and chief executive officer. "We have already witnessed the early fruits of this positioning. With this strategy firmly in place, we now focus our attention on accelerating our return to profitable growth and enhancing shareholder value."

"I want to emphasize that our liquidity is sound, and we have no outstanding issues regarding our bank covenants. We expect to have approximately $140 million in cash as of June 30, 2002, our $100 million revolving credit facility remains unused, and we are in compliance with all of the financial covenants contained in our secured bank credit agreement," said Kim.

"Given these factors, combined with our business outlook, we see no reason for the recent, sharp decline in our stock price."

"We remain committed to several key, strategic initiatives. We are focused on profitably growing our core assembly and test business and extending our industry leadership. We believe the semiconductor industry will continue to embrace the outsourcing model, which should facilitate our continued growth," said Kim.

Amkor is the world's largest provider of contract microelectronics assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Factors that could affect future operating results and cause actual results to vary materially from historical and expected results include, but are not limited to: the highly unpredictable nature of the semiconductor industry; volatility of consumer demand for products incorporating our semiconductor packages; worldwide economic effects of the recent terrorist attacks on the United States and the United States military actions in response; competitive pricing and declines in average selling prices; dependence on our relationship with ASI for all of our wafer fabrication output; reliance on a small group of principal customers; timing and volume of orders relative to the production capacity; availability of manufacturing capacity and fluctuations in manufacturing yields; availability of financing; competition; dependence on international operations and sales; dependence on raw material and equipment suppliers; exchange rate fluctuations; dependence on key personnel; difficulties in managing growth; enforcement of intellectual property rights; environmental regulations; and the results of ASI through the equity method of accounting.

Further information on risk factors that could affect the outcome of the events set forth in these statements and that would affect the company's operating results and financial condition is detailed in the company's filings with the Securities and Exchange Commission.